Income Protection for Self-Employed
Income protection replaces a percentage of your salary if illness or injury stops you working. It’s the cover that quietly keeps mortgages serviced and groceries on the table for months, or years, while you recover.
How the cover actually works.
A monthly benefit, typically 65 to 75 percent of your pre-tax income, paid for as long as you remain unable to work, up to your chosen benefit period
Triggered by illness or injury that meets the policy’s definition of disability, which can vary between insurers and typically requires supporting evidence from your doctor
A wait period, commonly 4, 8, 13, 26 or 52 weeks, chosen when you take out the policy, where a longer wait usually means a lower monthly premium
A benefit period from two years up to age 65, chosen by you to balance ongoing premium cost against how long you want the payments to continue
This page is for you if…
Anyone whose household depends on their salary continuing
Self-employed Kiwis (no employer sick leave, no group cover)
Professionals and tradespeople with specialist skills
Single-income households
Two ways to get income protection sorted.
Going it alone
You compare policy wording and exclusions yourself, insurer by insurer.
No one flags it when your circumstances change and your cover no longer fits.
If a claim is ever declined, you deal with the insurer directly.
The cheapest premium today isn't checked against what it actually covers.
With a Smiths adviser
We compare income protection across the providers we work with, in plain English.
We review your cover again as your circumstances change, not just once at the start.
If you ever need to claim, we deal with the insurer on your behalf.
You get one recommendation based on your situation, not a single insurer's product.
Talk to an adviser about this.
Thirty minutes with a licensed Smiths adviser, no obligation. Leave your details and we'll be in touch, usually within one working day.
Full audit of your existing cover, fund, and policy wordings
Comparison across the providers we work with
A clear written recommendation in plain English
Implementation paperwork handled by us, not you
Why this is easier with an adviser.
Match the policy definition of disability to your specific occupation: ‘own occupation’ vs ‘any occupation’ status matters a lot for professionals.
Set wait + benefit period at the sweet spot for your sick leave, savings, and risk appetite.
Choose indemnity vs. agreed-value cover correctly for self-employed clients.
Compare offset clauses (how ACC, sick pay, or KiwiSaver payments interact with the benefit).
The providers we work with for this cover.
Income protection
Our advice covers the providers shown here, not every insurer or KiwiSaver provider in New Zealand. The panel can change, and we'll always confirm it when we give you advice.
Common questions about income protection.
ACC covers accidental injury only. The most common cause of long-term inability to work in NZ is cancer, mental illness, or musculoskeletal disease, none of them ACC-covered.
Statutory sick leave in NZ is 10 days a year. A serious illness can mean months off, and self-employed Kiwis don’t even have that.
You also stop paying the mortgage, the power bill, and the school fees. Income protection covers those, not just savings.
Cover is generally based on your income before you stopped working, up to the policy's insured percentage. We check this figure is current whenever your income changes.
Yes, though the way income is proven differs from PAYE employment. We work through what documentation the provider needs before you apply.
Other services in this area.
Talk to the team.
Book a free review with Craig, Guy or Henry. No fees, and we're there if you ever need to claim.