Income Protection Cover

Income Protection Cover

^{Monthly financial support for you and your loved ones if illness or injury stops you from working.}

From $16.52/week

Based on a $5,000 per month benefit for a 40-year-old female AA member who is a non-smoker, professional office worker, who has chosen a 90 day wait period and 2 year benefit period.

Premiums can be paid fortnightly, monthly, quarterly, half-yearly or annually.

Monthly payments up to 75% of your income (as calculated in accordance with the policy and up to a maximum of $8,000/month) 
No medical examinations or reports required when you apply
5% AA Member discount^*

Mum holding her baby in kitchen

Who might this be for?

You rely on your income to pay for everyday expenses, mortgages and/or other debts
You want protection in case illness or injury prevents you from working, that can also support with rehabilitation or returning to work.

How to apply

Get a quote online in around 2 minutes.
Select which options work best for you:
- Monthly payment amounts.
- Length of time the benefit will be paid.
- How long you will wait before your claim payments start.
When you're ready, apply, with no medical exam needed for application.

What's included?

Income Protection Cover can help cover monthly living costs and be used to aid your recovery.

Receive up to 75% of your income (as calculated in accordance with the policy and up to a maximum of $8,000 per month) if you’re unable to work due to illness or injury.

You can choose how long you will continue to receive monthly payments - either a two-year or five-year benefit period. The longer the benefit period, the more protection you have if your recovery takes time. However, a longer benefit period will also mean a higher premium. 

Choose how long you wait before your claim payments start — 30, 60 or 90 days after becoming disabled due to illness or injury. The longer your waiting period is, the lower your premium.

Your cover amount increases each year on your policy anniversary by either 2% or the Consumer Price Index (CPI) — whichever is higher, up to the cover limit of $8,000/month (unless you tell us that you don't want your cover to be adjusted before your policy anniversary date).

Your premiums for all covers on the same policy will be waived or refunded while you’re receiving Income Protection Cover payments due to disability.

Get up to six times your monthly benefit amount towards a rehabilitation or retraining plan that we approve to help you return to work when you’re ready. 

PLUS, free access to Connected Care

As an AA Life Insurance policyholder, you receive complimentary access to AA Life Insurance Connected Care – a virtual health and wellbeing service. It connects you and eligible family members with New Zealand GPs, global medical specialists, mental-health professionals and more. Whether you need a quick GP consultation, a second opinion, or wellbeing guidance, AA Life Insurance Connected Care is another way we help you focus on life’s precious moments.

Things you should know:

You need to be aged 18–55 and in New Zealand when you apply, and worked 20–60 hours/week on average over the last 12 months in an eligible occupation with an eligible residency status. Cover stays in place until your 65th birthday.
Disability as a result of certain events described in the policy, including an intentional self-inflicted act, is not covered.
The waiting period will not start until the person insured has consulted a registered doctor for the relevant illness or injury.
You must apply for any payment you are eligible for under ACC before you can submit your claim.
You can apply online, at an AA Centre, or over the phone with our New Zealand-based team. 
There's a 30 day no-obligation period - if you change your mind during this time, 100% of the premiums you've paid will be refunded, provided you have not made any claims.

Understanding what your policy covers

Please read your policy wording so you understand what is and isn’t covered, the benefits, your responsibilities as the policy owner, cover limits and exclusions.

You may want to also consider

Mum and son standing in backyard smiling

Life Cover

Protects your loved ones by paying them a lump sum if you die or are diagnosed with a terminal illness (as defined under the policy), so they have financial support when they need it most.

Dad holding his young daughter and stuffed animal

Serious Illness Cover

Protection that supports you and your family if you have a heart attack or stroke, are diagnosed with cancer, or become seriously incapacitated (as defined under the policy).

Have a question?

Please check out our frequently asked questions, give one of our friendly New Zealand-based team a call on 0800 AA LIFE Monday to Friday 8.30am - 5pm, or pop into one of our AA Centres to speak to a consultant.

Income protection insurance pays a regular monthly payment if the person insured can’t work because of illness or injury.

The payments are designed to help with everyday living costs, like rent, mortgage payments, or bills, while the person insured is unable to work due to illness or injury (subject to waiting periods and maximum benefit periods).

You choose a monthly benefit when you apply for AA Life Insurance Income Protection Cover, up to 75% of your before-tax income (as calculated in accordance with the policy and up to a maximum of $8,000 per month).

If your claim is accepted, we’ll pay up to that chosen amount, as long as it doesn’t exceed 75% of your income from before you became unable to work.

Income received while disabled (such as ACC or other insurance payments) may affect the amount paid.

A waiting period is the amount of time the person insured must be unable to work before income protection payments can begin.

You choose the waiting period when you apply. Shorter waiting periods mean higher premiums, and longer waiting periods mean lower premiums.

This is the maximum time payments can be made for a claim. You can choose a 2-year or 5-year benefit period. The longer the benefit period, the more protection you have if your recovery takes time. However, a longer benefit period will also mean a higher premium. 

You need to have worked 20 – 60 hours per week on average for the last 12 months to apply.

No. Unfortunately, AA Life Insurance Income Protection Cover isn’t available for self-employed people.

If you’re unsure whether your work situation is considered self-employed, you can contact us and we can help explain how this applies to you.

Yes. Occupation is used to calculate Income Protection Cover premiums.

If the person insured becomes unable to work because of illness or injury, and in our opinion it’s likely to last beyond the waiting period, we may be able to help support their return to work.

If we agree in advance, we can reimburse some rehabilitation, retraining, or support costs as part of an agreed plan to help the person insured return to work when they are ready.

The maximum we’ll pay is up to six times the monthly benefit for each claim. Costs must be agreed with us before they’re incurred, and this benefit isn’t automatic.

If the person insured becomes ill or injured and can’t work, contact us as soon as you can.

We’ll explain what information is needed, which may include medical and financial details, and guide you through the process. Payments start once a claim is accepted and the waiting period has been met.

Why choose AA Life Insurance

We’ve been helping New Zealanders take care of what matters for over a century, on the road, and in life.

roundel 5% AA Member discount

roundel 99.4% of claims paid out

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^{^}_{AA Life Insurance claim acceptance ratio Jan-Dec 2024 for Life, Cancer Care, Funeral, and Accidental Death Cover.}

PZ AA Life

Our insurance partner 

AA Life Insurance policies are distributed by the New Zealand Automobile Association (Incorporated) (AA) and provided and underwritten by Asteron Life Limited. You should consider the appropriate policy wording before making any decisions about any policy you decide to purchase. Terms and Conditions, Limits and Exclusions apply

Financial strength rating 

Asteron Life Limited has been given an  "A+" (Strong) financial strength rating by Fitch Australia Pty Ltd (Fitch), an approved ratings agency. The scale that this rating forms part of is available for viewing at Asteron Life Limited's New Zealand offices.

Financial advice 

Our website provides general information about our products and services to help you make choices when it comes to protecting the things in life that really matter. The information doesn’t take into account your specific financial situation, needs or goals and is not intended to be financial advice.

If you'd like to receive financial advice, you can get professional advice from a financial adviser.

More information

Terms and conditions

Complaints process

^*_{Provide a valid AA Membership number at time of purchase. Discount applies to the total premium.}

_{The information on this page refers to the currently on sale product.}