Help protect your clients' biggest asset - their income

Income Protection

If your client is unable to work because of illness or injury, it can replace a portion of their income.

Mortgage and Income Protection

If your client is unable to work because of illness or injury, it can cover their mortgage or rent payments.

Why choose us?

  • New Zealand's largest life insurer

    We're New Zealand's largest life insurer

    During our many years in business, Sovereign has worked alongside thousands of customers as they deal with difficult moments in their lives. We currently protect more than 646,000 New Zealanders and their families.

  • Guaranteed enhancements

    Guaranteed enhancements

    We regularly review our TotalCareMax products to ensure that they continue to meet your clients' changing needs. Our Guaranteed Enhancement Benefit ensures your client automatically benefit from all changes without having to re-apply for cover.

  • Best possible treatments

    Best possible treatments

    With access to independent specialists, we can also help find the best possible treatments for your clients, which could include occupational therapy sessions, psychiatric consultations, and other medical assessments, even if they aren't near where your client lives.

  • We look for ways to say ‘yes' to claims

    We look for ways to say 'yes' to claims

    Our large and experienced claim team works to get your client paid as quickly as possible.

  • You'll be supported by the largest claim team in 
New Zealand

    Your client will be supported by the largest claim team in New Zealand

    Paying your client's income protection claim is just one part of the story: We have proactive focus on rehabilitation, getting your client back to health and living their life.

    Our claim team is dedicated to understanding and delivering the support your client needs to get their life back on track.

  • Fill out only one claim form

    Fill out only one claim form

    If your client has more than one insurance policy with Sovereign and they have an illness or are injured, they only need to fill out one claim form and we take care of the rest. This lets them focus on their recovery.

  • Financial stability for peace 
of mind

    Financial stability for peace of mind

    Sovereign has an A+ (Superior) financial strength rating from A.M. Best. The financial strength is an assessment of an insurer's ability to meet obligations to policyholders. A.M.Best is an approved insurance rating agency in terms of the Insurance (Prudential Supervision) Act 2010.

    Copy of the ratings scale of which the rating forms part, is available here.


TotalCareMax - Personal

Income Protection and Mortgage and Income Protection - At a glance

Please note the following table is a guide only. Please refer to policy wordings for further information.

Income Protection Cover Mortgage Income Protection

Benefit type

Monthly payment

Monthly payment

Benefit periods

1 year, 2 years, 5 years or to age 65 or 70 years

2 years, 5 years or to age 65 or 70 years

Cover options

Your client can choose from Agreed value, Indemnity or Loss of Earnings cover options.

  • Agreed value: Benefits are based on an agreed value. The agreed amount is set as a proportion of before tax income at the time of application. This means that no proof of pre-disability income at claim time is needed in order to receive a benefit.

    In general, the maximum proportion of annual income that can be covered is 62.5%.

    Suited if   your client wants certainty about how much their benefit will be at claim time

  • Indemnity: Benefits are based on a proportion of pre-disability income before tax at claim time. These payments are paid up to a specified maximum selected at the time of applying for cover. This means that your client needs to provide proof of pre-disability income at claim time.

    In general, the maximum proportion of annual income that can be covered is 75%.

    Suited if   your client wants their payments to be based on their income at claim time

  • Loss of Earnings: Your client can choose an Agreed Value or Indemnity Cover style benefit at claim time, whichever is higher. This is subject to a maximum based on a proportion of your client's before tax income disclosed at time of application.

    Suited if   your client's income fluctuates, for example they are a contractor, self-employed, or buying a new business.

These base cover options can be extended with Premier Cover which has extra benefits to give your clients added peace of mind.

Your client can choose to either cover up to 115% of their contractual mortgage repayment on their residential property or 45% of their gross income.

Max $6000 per month or up to max $72,000 per annum - subject to conditions.

Premium options

Rate for Age (increase each year based on age)

Fixed for 10 years (your client can lock their premium for 10 years)

Fixed for 65 (your client can lock their premium to age 65)

Fixed Premiums may still change if Sovereign changes its underlying premium rates or if your client chooses to have their benefits linked to the Consumer Price Index.

Rate for Age (increase each year based on age)

Fixed for 10 years (your client can lock their premium for 10 years)

Fixed for 65 (your client can lock their premium to age 65)

Fixed premiums may still change if Sovereign changes its underlying premium rates or if your client chooses to have their benefits linked to the Consumer Price Index.

Wait periods

2, 4, 8, 13, 26, 52 or 104 weeks

4, 8, 13, 26, 52 or 104 weeks

Inflation adjusted

Optional (New Zealand Consumer Price Index)

Optional (New Zealand Consumer Price Index)

Offsets - How other income or benefit may change your clients' benefit payment

Offsets apply. This means that the benefit payable will be reduced by:

  • Any other income replacement or mortgage protection benefits such as ACC and/or WINZ sickness benefits relating to the same condition that is being claimed for;
  • Any income from your client's active involvement in a job or business. The benefit will not be reduced (offset) by any passive income such as investment or rental income.

Please note that if your client has Income Protection or Mortgage and Income Protection cover with other providers, Sovereign will negotiate with them to determine the amount to be offset.

No ACC offsets.

Please note that if your client has Income Protection or Mortgage and Income Protection cover with other providers, Sovereign will negotiate with them to determine the amount to be offset.


Overview of features included

Feature: Income Protection Cover Mortgage and
Income Protection Cover

Recurrent disability benefit
If your client is affected by the same disability or injury within 12 months of their recovery, we may waive the waiting period.

Vocational retraining benefit
To help your client return to work, they may be eligible for a vocational retraining programme - we'll cover the fee charged by the institution providing the programme.

Back to work
If your client returns to work between 12 and 24 months after claiming, we will pay them a lump-sum payment equivalent to 3 times their monthly benefit.

Home modification or equipment support
If your client becomes totally disabled, they may have access to a lump sum payment to help cover the cost of specialised equipment or completing home alterations.

Property special events
In some situations your client might want to increase their sum assured. These can be an increase in their current mortgage, or the purchase of a new residential property, a vacation home, or bare block of residential land. In these instances they can increase the sum assured without needing to provide further medical information, (subject to limits).

Bed confinement
If your client is confined to bed under full-time care during their wait period, either at home or hospital, they may be eligible for a bed-confinement benefit.

Suspension of cover
If your client goes on parental leave or leave without pay, they can suspend their cover for up to 12 months. They won't have to go through the complexity of reapplying for cover when they decide to resume cover again. While their cover is suspended, no claim will be payable.

Future insurability
Your client can apply to increase their sum assured every third year at their policy anniversary. They don't need to provide further medical information, however limits and conditions may apply, and their premium payments may increase. Future Insurability is included only if Claim Indexation is not taken out.

Waiver of premiums
If your client is unable to work due to total disability, we will waive their premium payments while their insurance remains in place. This benefit is compulsory with Income Protection cover, but they can choose the wait period.

Enhanced partial disability benefit
When your client moves from being totally to partially disabled, they can receive a monthly top-up payment paid for up to 12 months while on claim. This is on top of any income from work and the partial disability benefit.

World-wide cover
Your client is covered anywhere in the world, 24 hours a day.

For further information on some choices your client has, please see the policy wordings and customer guides.

There are also optional features to consider when your client is taking out cover:

  • Retirement Protection: Your client can keep contributing to their KiwiSaver while they are on a total disability claim. We pay an agreed contribution to Inland Revenue and this enables your client to continue receiving the member tax credits.
  • Redundancy Cover: If your client is made redundant, they'll be covered with monthly payments for up to 6 months.
  • Claim Indexation: Your client's sum assured will increase every year by the same amount as the CPI, (New Zealand Consumer Price Index). This helps their sum assured stay in line with inflation.
  • Mental Health Limitation: Choosing this option will reduce your client's premiums but means if they make a claim for mental health, they'll receive payments for only two years throughout the life of their policy. This option is only available if they choose a benefit period to age 65 or 70.

Essential Disability Income Protection

  • This is a lower-cost, simplified indemnity option.
  • The Agreed Value, Indemnity and Loss of Earnings cover options can be upgraded with Premier Option. This provides extra benefits to give your clients added peace of mind.

TotalCareMax - Business

Start-up

  • Easy and affordable protection for the newly self-employed

Suited for   those starting out on their own in business, and might find it difficult to provide financial evidence of their last three years' income

Rural Continuity

  • Protects farmers and sharemilkers from loss of income relating to illness or accident through the payment of a monthly benefit

Suited for   farmers and their partners who also work on the farm, as well as herd owning/leasing sharemilkers.

Locum Cover

  • Covers the reasonable costs of engaging a suitably qualified person to run your client's business if they are unable to work due to sickness or injury.

Suited for   business owners where the impact of the principal being unable to work is significant.

Business Overheads

  • Designed to pay the ongoing business expenses that continue to be incurred in the event of the owner being unable to work.

Suited for   small business owners where the impact of the principal being unable to work is significant.

Business Continuity

  • Provides a monthly benefit payment to help keep your client's business in action should they or their key employees be unable to earn an income for the business due to an accident or ill health.

Suited for   business owners and shareholders who have been trading for more than three years and their key employees.

This is a guide only, please refer to policy wordings for further information.


Other Options to think about:

Accidental Injury Cover

Optional benefit that can be added to our core TotalCareMax (TCM) Personal and Business range (issued after February 2004 Illustrations version 8.3 or later) and provides customers an up-front lump sum payment, should they be injured accidentally. They can use this lump sum for whatever they need: covering treatment costs, getting taxis to work, hiring someone to help with children or running their business, or simply taking time off work to recover.

Key product features:

  • Can be taken out with any of our core TCM products giving flexibility to you and your clients
  • Sum assured can be anywhere between $500 - $5,000 a month with no proof of income required and flat rate pricing based on gender and smoking status
  • Easy to understand insurance with four simple claim categories
  • Once approved, claims are paid as a lump sum giving your clients quick access to funding to deal with the accidental injury they're facing
  • There are no offsets against ACC or other insurances so your clients get the financial support they need, relevant to their situation
  • Application is easy. For new customers, there are no extra questions than what is required for their core TCM products. For eligible existing customers there is a new, simple form to endorse it on to their existing policy

For more information please read the Accidental Injury Cover Personal Policy Wordings or Business Policy Wordings.


Specialist and Diagnostic Testing with Best Doctors®

Seeing a specialist through the public health system may take longer than you think. With Specialist and Diagnostic testing, your client doesn't need to wait to see a specialist and get the test needed.

Why is this important?

  • Specialist consultation and diagnostic testing (as covered under the benefit wording), quickly increasing the chances they receive early treatment for potentially life-threatening conditions
  • Best Doctors' offers your clients and their families remote access to over 53,000 leading medical specialists worldwide. They have all been nominated by their peers as top experts in their field, and are there to help your client
    • Access an Expert: Easy access to the world's best medical minds for advice and guidance on any medical condition
    • Find an Expert: Face to face consultations with a broad range of medical specialists in your clients' area
    • DocOnline: Unlimited access for clients to send medical questions to experienced, local GPs, with a response within 48 hours
    • Multimedia medical library: Access to hundreds of articles, videos and blogs on a wide range of medical conditions

For more information, read more about Best Doctors®.

The information on this page is provided as a sales support tool to be used in conjunction with the appropriate policy wording.