Income Protection vs. ACC: What’s the Difference?

Many Kiwis assume ACC will cover them if they can’t work. But ACC only covers accidents, not illnesses — and that’s where income protection insurance comes in.

Key Differences

Feature ACC Income Protection

Covers Accidental injuries only Illness and injury

Payout Amount Up to 80% of pre-injury income Usually up to 75% of income

Duration of Payments Often 1–2 years max Can be 2 years, 5 years, or to age 65

Why You Might Need Both

You’re more likely to be off work due to illness than injury. Income protection fills the gap that ACC leaves, helping you keep up with:

• Rent or mortgage

• Groceries and bills

• School or childcare costs

• Savings goals

Bonus: You Can Offset ACC

Some policies allow you to reduce your ACC levy by having a lower cover level and let your income protection take the lead. 

Sorting out insurance doesn’t have to be scary. We’re here to make it simple and tailored to you. Whether you're starting a family or simply want peace of mind, get in touch for a no-obligation chat.

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