Income protection New Zealand also has variations aside from the standard fixed income insurance policy. There are generally five variations of income protection insurance. This article will tackle Group Income Protection Insurance.

Group Income Protection Insurance which covers replacement income for a group of employees should they fall into sickness or have injuries. Group Income Protection Insurance is often taken out by employers instead of the employees themselves. Insurers pay the employers first then the employers will be the ones to pay the employees their replacement income.

One notable thing about Group Income Protection Insurance is that it stops or expires if the employee who holds the insurance policy is no longer employed in the same employer which has provided him the Group Income Protection Insurance in the first place. There is also a maximum payout period for Group Income Protection Insurance plans. This is quite different if we compare income protection insurance of the standard fixed income type as the latter provides indefinite coverage. The only condition that needs to be fulfilled is that the employee who holds the insurance policy is not yet able to get back to work.