Partners Life Income Protection Insurance - a review

Partners Life - a brief company overview

“We're an industry leader that Kiwis trust.”

Partners Life began as a New Zealand start-up company around a decade ago. In that short time, it’s grown to become one of New Zealand’s most trusted health, life, and business insurance providers. Partners Life pays out around 89% of claims received each year.

Partners Life received the ANZIIF Life Insurance Company of the Year award for 2022, recognising a strong dedication to clients and an ongoing pursuit of better solutions. Since its inception, the company has also consistently achieved the Lewers Research five-star approval rating (Lewers Survey), indicating Partners Life’s focus on excellent customer service.

Partners Life believes that there’s no one-size-fits-all insurance product. The company encourages Kiwis to work with licenced financial advisers who can help them tailor insurance cover to fit their needs.

Policywise works with the full suite of Partners Life products, including life, medical, critical illness, and total and permanent disability cover. In this Partners Life Income Protection review, we’ll look at their income protection plans in detail.

What is income protection insurance?

Income protection insurance provides regular monthly payments (plus other benefits) if you're unable to work due to illness or injury. It's designed to replace a portion of your income to help cover regular expenses, such as mortgage or rent, utility bills, groceries, and more. It can also help you afford additional costs, such as your rehabilitation, vocational retraining, home care, extra child care support, healthcare requirements, non-Pharmac medications, and specialist consultations in private facilities.

Depending on the product you select, Partners Life’s income protection plans can cover up to 75% of your income, your mortgage payment, or a portion of your expenses.  

Your monthly payments begin according to your chosen waiting time , which can range from 4 to 104 weeks. For instance, if you elected an eight-week waiting period, your payments will commence if you're still not able to work after eight weeks of filing a claim. You will then get paid every month for the time frame of your policy; this could be a specific short-term period or until retirement.

Your income protection premiums may be tax deductible, and the benefit payments you receive may be taxable.

Another key advantage of income protection is the extended cover it provides over and above what ACC (Accident Compensation Corporation) offers. ACC covers injuries due to an accident but doesn't cover sickness, long-term illnesses like cancer, sudden events like strokes, or disabilities from pre-existing conditions.

Partners Life Income Protection: 4 Options

Partners Life offers four types of income protection insurance:

• Life Income Cover: In case of your death, this product provides your dependants with a monthly payment to replace a portion of your income.
• Income and Expenses Cover: This covers either up to 75% of your lost income or your share of household expenses.
• Mortgage Repayment Cover: With this product, your monthly benefits are calculated either on your mortgage repayments or a portion of your income.
• Household Expenses Cover: Regular expenses, like utilities, childcare, loan payments, rent, and school fees, don't take a break when you're partially or totally disabled. This insurance product ensures these costs can be met.

To learn more about these products or to get a personalised quote, schedule a FREE 5-minute consultation with one of our Policywise advisers. They can help you assess which income protection insurers and products best meet your goals, needs, and budget.

Key features and benefits

Depending on your chosen Partners Life Income Protection plan, you can receive some or most of the benefits listed below.

• Total and Permanent Disability Benefit

You'll receive either a lump sum amount or a monthly benefit if you are unable to work and unlikely to resume your usual occupation due to your accident, illness, or injury. 

• Partial Disability Benefit

If you become partially disabled and are still unable to fully return to work at the end of your waiting period, you'll receive your benefit payment.

• Recurrent Disablement Benefit

Pays out and waives the waiting period if you suffer a new or recurrent total disability or partial disability within twelve months of ending a claim.

• Critical Illness Benefit

Gives you and your family financial support if you need treatment for a major illness or event, such as stroke, heart attack, major head trauma, cancer, chronic kidney failure, or multiple sclerosis.

• Terminal Illness Advance Benefit

Provides a portion of the monthly sum insured if you are diagnosed with a covered condition - such as motor neurone disease, Stage 4 malignant melanoma, or Stage 4 non-small cell lung cancer - or receive a terminal medical prognosis wherein you may pass away within 2 years.

• Specific Injury Benefit

Partners Life will pay a benefit for injuries such as fractures, loss of limbs, loss of sight, or paralysis.

• Bed Confinement Benefit

If you're in bed for more than three days during the waiting period and need GP or specialist care, Partners Life will pay one-thirtieth of the monthly sum insured for each night.

• Childcare Assistance Benefit

Offers help for childcare expenses up to $800 per month per child under 14 if you're fully or partially disabled and have children under 14 years who rely on you.

• Death Benefit

Your beneficiaries will receive three times your monthly sum insured after you pass away.  

• Leave without Pay Benefit

Allows you to receive cover even if you are on unpaid leave. 

• Vocational Retraining and Rehabilitation Benefit

Reimburses the costs of Partners Life-approved retraining and rehabilitation to help you return to work.

• Recovery Support Benefit

Assists with the purchase costs of specialised equipment, such as prostheses, house or car modifications, or wheelchairs, to help you get work-ready again.

• Return to Home Benefit

If you've been working or living overseas for over three months and experience a total or partial disability, you may receive up to $10,000 to help cover the expenses of you and a support person returning home.

• Return to Work Benefit

Offers a one-time payment if you can resume full-time work immediately after receiving a Vocational Retraining and Rehabilitation Benefit.

• Increasing Income Benefit

Ensures that your cover adjusts to match your growing income, providing continued financial protection as your earnings increase.

• Special Care Benefit

Provides additional financial assistance to cover the cost of a full-time professional carer or replace a portion of a family caregiver’s lost income.

• Emergency Transportation Benefit

Offers financial assistance for emergency transportation expenses as recommended by a medical doctor or specialist.

Please Note: Terms and conditions, as well as exclusions, apply to all Partners Life products. It's important to review your policy carefully to understand the specific terms of cover, benefits, and any limitations. This ensures that you have a clear understanding of the protection provided by each product. If you have any questions or would like some help finding the right policy for you, book a callback with a Policywise adviser; it's fast and free.

Partners Life offers more ways to strengthen your cover

• Partners Life Medical Cover: Expedites treatment through private healthcare, ensuring access to a wider array of medical options instead of waiting for public healthcare services.
• Partners Life Life Insurance Cover: Offers financial security to beneficiaries in case of the policyholder's death. It provides a lump sum payment to support your loved ones by helping cover outstanding debts, rents, or mortgages, and providing for future expenses.
• Partners Life Trauma Cover: Provides financial support if you are diagnosed with or suffer a serious health condition, such as cancer, heart attack, stroke, and more.
• Total and Permanent Disability Cover: Pays out a sum of money if you become severely ill or suffer an injury that renders you permanently unable to return to work.

Do you need Partners Life Income Protection Insurance in New Zealand?

Partners Life Income Protection Insurance provides crucial financial support when unforeseen events, like a policy-defined injury or illness, impede your ability to work. This cover ensures continuity in meeting your financial commitments and helps maintain your lifestyle during challenging times.

1. Financial security: Of 2.8 million employed Kiwis in the March 2022 quarter, 44,200 were away from work for a full week because of sickness, illness, or injury. Partners Life Income Protection shields your finances if injury or illness affects your ability to work, offering financial security and stability for your family.
2. Lifestyle maintenance: The costs of educating your child at tertiary level in New Zealand can range from $20,000 to $40,000+ per year. Income protection retains your lifestyle and standard of living by covering essential expenses, such as education costs, bills, and daily expenditures.
3. Peace of mind: While ACC offers some financial relief for accident recovery, it does not cover all expenses, nor cover illnesses, such as cancer. With Partners Life Income Protection, you can focus on recovery without worrying about financial obligations.
4. Customisable cover: Tailor your policy to suit your specific requirements, including waiting periods, duration of cover, and income percentage replacement.
5. Long-term support: Unlike short-term options, income protection offers sustained financial support throughout your recovery phase.
6. Affordability: The cost of living in New Zealand rose by 7.0% in the 12 months to the December 2023 quarter. Partners Life Income Protection comes at reasonable premiums, often tax deductible, making it an accessible and valuable investment.
   

Policywise: Your trusted insurance adviser

Policywise is a 100% free service which tells you which health, life, and disability insurance provider best fits your needs. We offer fast, comprehensive, and easy-to-understand comparisons of all leading providers, and a simple summary clearly recommending which insurer is best for your situation.

Not all insurance policies are the same. Policywise can help you sort out the duds, avoid the lemons, understand the fine print and exclusions, and get the right insurance for you and your family.

We make the important decision of where to buy your insurance super easy. We’ll answer your questions, provide experienced advice, quotes, and comparisons, and manage all the back and forth throughout the application process. Taking out your cover through us means you'll have our lifetime support and claims advocacy, and we'll help you negotiate a positive outcome at claim time. We can also take care of lodging any claims on your behalf and back you up if the going gets tough.

Check out the reviews on our homepage for how other New Zealanders have found our service, because now is the time to get your income protection insurance sorted. Give your family or someone you love the most outstanding financial support possible. Book a 5-minute callback with Policywise today; our service is fast and free.