Renewable income protection insurance is another variation of income protection insurance. It is different from standard fixed income protection insurance in that it allows insurance holders to renew the policy every after a given set of years. The period of time wherein insurance holders can renew their income protection insurance policy differs from one insurance company to another but most insurance companies allow renewal every five years.

Upon renewing the insurance policy, policy holders now pay a different premium. Renewable income protection New Zealand allows insurers to charge premiums to insurers according to current and prevailing premiums of individuals with the same age and occupation that the policy holder has. There is a very big disadvantage to this variation of income protection insurance though since generally, premiums do increase with age. As a result, policy holders of renewable income protection insurance end up paying more premium than they have initially signed up for. Most people are often convinced due to probability of earning much more in future jobs and thus sign up for renewable income protection insurance. This is why future policy holders should choose carefully and do compare income protection insurances.