Personal Risk Insurance NZ
Protect your income, family, and financial future
Personal risk insurance protects you and your family when life doesn't go to plan. From replacing your income if you can't work, to paying out a lump sum if you're diagnosed with cancer or have a heart attack, to covering your mortgage if you die. We help you understand which protection matters for your situation.
Why Work With DBI
What is Personal Risk Insurance?
Personal risk insurance (also called life and risk insurance) protects you and your family from financial hardship when illness, injury, or death disrupts your ability to earn income or maintain your lifestyle. Unlike business insurance (which protects companies), personal insurance protects individuals and families.
Common personal risks in New Zealand:
Loss of income
If you become seriously ill or injured and can't work, your income stops but your bills don't. Mortgage payments, insurance premiums, groceries, and school fees continue regardless of your ability to earn.
Critical illness diagnosis
A cancer diagnosis, heart attack, or stroke can create immediate financial pressure. Medical costs, treatment expenses, time off work, and lifestyle adjustments require funds that savings may not cover.
Death of income earner
If the main income earner dies, families face mortgage payments, living expenses, and education costs without the income that previously supported them. Debt doesn't disappear when someone dies.
Permanent disability
Total and permanent disability means you'll never work again. This creates lifetime financial consequences including loss of future earnings, retirement savings, and the ability to service debt.
Medical treatment costs
Public healthcare in New Zealand has waiting lists. Private health insurance provides faster access to specialists, surgery, diagnostics, and treatment. This reduces time off work and improves outcomes.
Personal risk insurance addresses these risks with six main types of protection. Most people need multiple types of cover working together, depending on their income, debts, family situation, and financial goals.
Types of Personal Risk Insurance in New Zealand
Six main types of personal risk insurance protect different aspects of your financial life. Most New Zealanders benefit from a combination of these.
Life Insurance
What if you die unexpectedly?
Life insurance pays a lump sum to your family or beneficiaries when you die. This money replaces your lost income, pays off debts, covers funeral costs, and provides financial security for those who depend on you.
What it protects:
- •Mortgage and debt repayment
- •Family living expenses and lifestyle
- •Children's education costs
- •Funeral and estate costs
- •Partner's financial security and independence
Coverage type: Lump sum payment on death
Maximum cover amount: Unlimited
Best for: Replacing income, clearing debt, protecting dependants
Trauma Insurance
What if you're diagnosed with serious illness?
Trauma insurance (critical illness cover) pays a lump sum if you're diagnosed with a specified serious condition like cancer, heart attack, stroke, or major organ failure. The payment is made while you're alive, helping cover treatment, lifestyle changes, and time off work.
What it protects:
- •Medical treatment and therapy costs
- •Time off work during recovery
- •Mortgage payments while unable to work
- •Home modifications and lifestyle adjustments
- •Financial stress during diagnosis and treatment
Coverage type: Lump sum on diagnosis of specified condition
Maximum cover amount: $2,000,000
Best for: Covering costs and lifestyle during serious illness
Income Protection
What if you can't work due to sickness or injury?
Income protection insurance pays up to 75% of your income as monthly payments if you're unable to work due to sickness or injury. Payments continue until you can return to work, reach retirement age, or the policy term ends.
What it protects:
- •Monthly income replacement during disability
- •Mortgage and rent payments
- •Living expenses and bills
- •Lifestyle maintenance during recovery
- •Financial independence and dignity
Coverage type: Monthly payments while unable to work
Payment: Up to 75% of income
Best for: Replacing income during long-term illness or injury
Mortgage Protection
What if you can't work and need to keep up mortgage payments?
Mortgage Protection insurance pays up to 45% of your income or 115% of your mortgage as monthly payments if you're unable to work due to illness or injury. Payments continue until you can return to work, reach retirement age, or the benefit term ends.
What it protects:
- •Mortgage payments during disability
- •No ACC offsets: full payment regardless of ACC
- •Can be combined with Income Protection
- •Protects your home from repossession
- •Financial security during recovery
Coverage type: Monthly payments while unable to work
Payment: Up to 45% of income or 115% of mortgage
Best for: Homeowners wanting dedicated mortgage protection without ACC reduction
TPD Cover
What if you become permanently disabled?
Total and Permanent Disablement (TPD) insurance pays a lump sum if you become so severely disabled that you'll never work again in any occupation. This provides capital for long-term care, debt repayment, and lifestyle adjustments.
What it protects:
- •Clearing mortgage and debts
- •Long-term care and medical costs
- •Home modifications and accessibility
- •Loss of future earnings capacity
- •Family's financial security and independence
Coverage type: Lump sum on permanent disability
Maximum cover amount: $5,000,000
Best for: Providing capital when you can never work again
Health Insurance
What if you need medical treatment quickly?
Health insurance covers the cost of private medical treatment, surgery, specialists, and diagnostics. This means faster access to care, shorter waiting times, choice of specialists, and better treatment outcomes without draining savings.
What it protects:
- •Specialist consultations and second opinions
- •Surgery and hospital treatment costs
- •Diagnostics, scans, and tests
- •Faster treatment and reduced waiting times
- •Quality of life and peace of mind
Coverage type: Reimburses medical treatment costs
Payment: Covers approved treatment up to policy limits
Best for: Accessing faster, private medical care
Frequently Asked Questions
Common questions about personal risk insurance in New Zealand.
What's the difference between life insurance and trauma insurance?
How much personal insurance do I need?
Is personal insurance tax deductible in New Zealand?
Can I get insurance if I have pre-existing medical conditions?
What happens if I stop paying premiums?
Should I get insurance through my employer or personally?
How do I choose between different insurers?
Have more questions?
Let's talkReady to protect your family's financial future?
Get clear advice on which personal insurance you need, compare options from multiple insurers, and make informed decisions about your financial protection.