What is Start-up Income Protection?
Start-up Income Protection Disability Cover protects Sole Traders and Small to medium-sized enterprises (SMEs) against revenue disruption when illness or injury impacts core personnel or business owners. This cover delivers pre-agreed monthly payments, sustaining business operations throughout recovery periods.
Typically, a policy will:
- Pay up to $9,000 monthly tax-free when illness or injury prevents business operations
- No financial documentation required – claims and benefits process without income proof or profit and loss statements
- No ACC offsets or deductions from other income sources during disability
What you're covered for
Benefit duration and amount scales with business age and selected coverage level
Business Benefits Table
| Time in Business | Monthly Benefit | Maximum Payment Period |
|---|---|---|
| 0 - 12 months | Up to $6,500 | 12 months |
| 0 - 12 months | $6,501 to $9,000 | 6 months |
| Over 12 months | Up to $9,000 | 24 months |
Why is start-up income protection important for self-employed?
Self-employment comes with built-in financial risks, the biggest being the lack of traditional safety nets like sick pay or government-backed income support. Without income protection, an illness could leave you without the funds to cover essential expenses.
If you’re self-employed or a contractor, you’re automatically enrolled in ACC CoverPlus. In the event of an accident, ACC may cover up to 80% of your taxable income based on your most recently completed financial year. For example, if you earn $52,000 annually, you could receive up to $800 per week before tax.
For higher earners, ACC’s self-employed cover provides compensation up to $113,826, provided you submit the necessary financial documentation. However, ACC does not cover income loss due to illness or other health-related conditions.
This is where start-up income protection steps in. It safeguards your finances by covering income loss due to sickness without requiring financial documentation. This ensures a steady cash flow and protects you from debt, business disruption, or even closure.
| Features | Start-up Income Protection | ACC Cover Plus |
|---|---|---|
| Coverage Type | Both Sickness & Accident | Accident Only |
| Documentation Required | ✕ No financial documents needed | ✓ Financial documents required |
| Monthly Benefit | Up to $9,000 automatically approved | Based on financial evidence |
| Approval Process | Automatic approval up to limit | Documentation review required |
About LifeCovered
I started LifeCovered because I believe everyone deserves a trusted guide when it comes to insurance. Let’s be honest—it can be confusing, and the last thing you need is a pushy salesperson.
As brokers, my team and I work for you, not the insurance companies. Our goal is to help you cut through the noise, make insurance easy to understand, and find the best cover for your life, health, income, mortgage, or trauma insurance at the best price.
With us, you’ll feel confident knowing you’ve made the right choice for you and your family. And the best part? Our service is completely free.
Let’s make insurance simple.
Our Service is 100% Free.
- We compare top NZ insurers to find the best cover at the best price—same rates as going direct, but with expert, easy-to-follow advice.
- We suggest a yearly review to keep your coverage right for your needs – more, less, or just refresh your understanding of what’s covered.
- We’ve got your back all year round, sorting out billing, claims, and any questions you have.
What to expect
Three easy steps to see what's possible
Matters of family and wealth are always deeply personal. The same goes for how we work with you.From our first meeting to the reviews we do regularly, every touch feels human, even when discussing numbers, financial protection and retirement. We don’t beat around the bush when we talk to you; our goal is to make life easier with one plan.
Discover
Just a conversation about what you want insurance to do for you so you can have peace of mind today and tomorrow.
Design
Together, we explore insurance options that might fit you and your budget.
Deliver
Once a financial protection plan is chosen, we’ll activate the plan and schedule annual follow-ups to make sure the plan stays on track.
