Income protection insurance is created in order to provide assistance to the employees who have nothing to spend when they are forced to leave their position in the company because of temporary disability. In this column, you will be reading about the limitations of income protection insurance NZ.

One of the reasons why you are encouraged to have this type of insurance is to protect yourself from the negative effect of not being able to work because of disability caused by sickness and accident. However, the company will investigate the factors leading to your accident or illness. There are different factors that will lead to the denial of your claim.

Pregnant women will not receive benefits from income protection insurance New Zealand when they give birth because pregnancy is not part of the valid conditions. Another condition that is not included in the terms is sickness that is caused by drug addiction. If you became very sick because of illegal drugs, you will not be able to get assistance from the insurance company.

And finally, a person who is already suffering from an illness even before becoming insured will not be getting any assistance. It is clearly stated on the IPI terms that they are only going to cover unexpected sickness and accidents.