Income Protection

Income Protection insurance looks after your lifestyle by protecting your ability to earn. It’s particularly important if you’re a family income earner and/or have financial liabilities, such as a mortgage or personal loan.

Good reasons to get Income Protection

• Could pay up to 75% of your income: If you choose the indemnity option, you could be covered for up to 75% of your gross remuneration package, paid monthly.
• Or up to 55% of your income: If you choose the agreed value option, you could be covered for up to 55% of your gross remuneration package, paid monthly.
• Guaranteed renewable: You can renew your cover to age 70, regardless of claims, health or occupation.
• Choose your benefit term: You can choose whether you wish to receive your monthly income payment for one year, two years, five years, to age 65 or to age 70.
• Choice of waiting period: Waiting period refers to the amount of time that must pass before your monthly income payments will start. You can choose a period of 2, 4, 8, 13, 26, 52 or 104 weeks. The longer the waiting period, the lower your premium.
• Waiver of premium: You won’t have to pay premiums during a claim.
• Waiver of waiting period: If a condition that you’ve previously claimed for reoccurs within six months, there’s no waiting period.
• Rehabilitation benefit: Could provide a lump sum of up to six times the monthly benefit to pay for specialised equipment or home alterations.
• Partial disability benefit: Disability isn't always total. You may suffer a partial disability that limits your ability to work and results in decreased income. This benefit could supplement that income.
• Bed confinement benefit: Could provide a payment if you are confined to bed - at home, or in a hospital - under the daily supervision of a registered medical practitioner.
• Vocational retraining benefit: Could provide a lump sum of up to 12 times the monthly benefit while you are on an approved course of retraining to get back to work in an occupation which requires new skills.
• Special allowances: Special benefit allowances of up to $2,500 per month are available to students and homemakers who do not earn a regular income, but still require cover.
• Special occupational benefits: Law, medical or accountancy graduates may apply for cover of up to $2,500 per month, irrespective of income.
• Leave without pay benefit. If you become totally disabled while on leave without pay due to pregnancy, maternity, paternity or work sabbatical, you will be eligible for the monthly benefit. If you have been on leave for more than 12 months before the disability, the benefit payable will be limited to $1,000 per month.
• Optional childcare benefit: Could provide up to $2,500 per child per month.
• Premier cover option: Could provide extra benefits including the extra cash benefit, permanent disablement benefit and home care benefit.
• Part of your plan: This cover may be written in conjunction with the full range of ASB Bank's Lifestyle Security Plan benefits.
• Underwritten by Sovereign: You have the security of knowing that your policy is underwritten by Sovereign, New Zealand’s leading life insurance provider.

Quick facts

Sovereign will not pay any of the benefits listed where any of the following (and in each case either directly or indirectly) causes or contributes to the disability:

• The life assured deliberately injuring himself or herself or attempting to do so.
• The life assured participating in any criminal act.
• Pregnancy or childbirth of the life assured, unless the disability lasts for more than 90 days after the end of pregnancy, in which case the waiting period will start from the 91st day.
• The life assured does not comply with the treatment prescribed by the attending treatment providers.
• The life assured deliberately taking or using non-prescribed drugs, other than for proper therapeutic or medical purposes and in accordance with the manufacturer's directions for use, or the deliberate misuse by the life assured of prescribed drugs.

If the life assured is imprisoned for any reason, no monthly benefit will be payable during the term of imprisonment.