This file describes the structured inputs an insurer needs to price and assess a New Zealand income protection application. Each section names one field, says what it is, and says why it is a rating input (it moves the premium or risk), an eligibility input (it decides whether cover can be offered at all), or both. Nothing here produces a premium, rate, or quote: Bob never prices. The job is field collection only, so the captured inputs can be passed to a licensed adviser and an insurer's own rating engine. Each field below is also tagged to Bob's data-dictionary classification (identity / rating / eligibility / advice / compliance) so the same chunk can drive both the conversation and the data model.
What "rating inputs" means, and why no price is produced here
A rating input is a single fact about the applicant or the cover they want that an insurer's pricing engine uses to work out a premium and to decide what terms to offer. Examples are age, smoker status, occupation, the benefit amount, and the wait period. These inputs are collected at application, before any number is calculated. Bob's role is to collect them accurately and in a structured form, then hand them to a licensed adviser and to the insurer; Bob does not multiply inputs by rates, does not quote, and does not estimate a premium, because pricing is the insurer's regulated function and getting it wrong would be both inaccurate and outside scope. It is useful to separate three things: the input (the fact collected here), the rate or rating factor (the insurer's private number that an input maps to, which Bob never holds), and the premium (the output, which only the insurer produces). This section exists so every other section can be read as "a field to collect," not "a price to compute."
Source: own-summary, general income-protection adviser education; MoneyHub income protection insurance (https://www.moneyhub.co.nz/income-protection-insurance.html) · retrieved 2026-06-18 · rights: own-summary · drives: information · status: draft
Age and date of birth
Date of birth gives the applicant's exact age at the start of cover, and age is one of the strongest rating inputs in income protection. The risk of illness or injury that stops someone working tends to rise with age, so the same cover usually costs more for an older applicant than a younger one. Date of birth also feeds eligibility, because insurers set a minimum and maximum entry age, and because the benefit period is often expressed relative to age (for example, payments to age 65). Bob collects full date of birth rather than a stated age so the value is unambiguous and can be re-derived at the policy anniversary. The exact entry-age limits differ by insurer and product and must be confirmed against current terms before relying on them [VERIFY]. Data-dictionary classification: identity (date of birth) feeding rating and eligibility (age).
Source: own-summary, general underwriting education; MoneyHub income protection insurance (https://www.moneyhub.co.nz/income-protection-insurance.html) · retrieved 2026-06-18 · rights: own-summary · drives: information · status: draft
Sex (recorded for underwriting tables)
Insurers historically rate income protection partly on sex, because claim patterns have differed between male and female applicants over the periods their tables are built on. This is captured as a structured field used to select the correct rating table, not as a judgement about the individual. It is an input to pricing rather than an eligibility gate: it does not by itself decide whether cover can be offered. Whether and how an insurer uses sex as a rating factor is set by that insurer's tables and is governed by New Zealand law on insurance and discrimination, so the specific treatment must be confirmed per insurer rather than assumed [VERIFY]. Bob records this as the value the insurer's underwriting needs (commonly sex recorded at birth) and keeps the question neutral and minimal. Data-dictionary classification: rating (with an identity overlap).
Source: own-summary, general underwriting education; MoneyHub income protection insurance (https://www.moneyhub.co.nz/income-protection-insurance.html) · retrieved 2026-06-18 · rights: own-summary · drives: information · status: draft
Smoker / nicotine status
Smoker or nicotine status records whether the applicant currently uses tobacco or nicotine products, and often whether they have used them within a recent window (commonly the last 12 months). It is a major rating input because nicotine use is linked to higher rates of illness, so smoker premiums are typically higher than non-smoker premiums for otherwise identical cover. It can also be an underwriting input that affects terms. The exact definition of "smoker" (which products count, and over what look-back period) is insurer-specific and must be confirmed before the answer is treated as final [VERIFY]. Because a wrong answer here materially affects the contract, the question must be clear and specific so the applicant can answer without making a misrepresentation under the Contracts of Insurance Act 2024. Data-dictionary classification: rating, with a compliance overlap because accuracy carries duty-of-disclosure consequences.
Source: own-summary, general underwriting education; MoneyHub income protection insurance (https://www.moneyhub.co.nz/income-protection-insurance.html) · retrieved 2026-06-18 · rights: own-summary · drives: information · status: draft
Occupation and occupation class
Occupation is the applicant's actual job and main duties; occupation class is the risk band an insurer maps that job into. Occupation is a rating input because the chance of a disabling illness or injury, and how long a claim is likely to last, differs sharply between, say, a desk-based professional and a manual or outdoor worker. Insurers group occupations into classes that carry different terms; a commonly described pattern in the New Zealand market runs from professional and clerical roles at the lower-risk end through skilled trades to labour-intensive work at the higher-risk end, with some categories (such as home executive) treated separately or excluded. Occupation also feeds eligibility, because some hazardous occupations are uninsurable or offered only on special terms, and because insurers commonly require a minimum number of paid working hours per week (a figure often around 20 to 30 hours, varying by insurer). The exact class boundaries, hours thresholds, and excluded occupations are insurer-defined and must be confirmed before use [VERIFY]. Bob captures the concrete facts (job title, employer or self-employment, share of manual versus desk work, hours) and lets the insurer assign the class, rather than asking the applicant to self-classify. Data-dictionary classification: rating and eligibility.
Source: own-summary, general underwriting education (occupation classes); Fidelity Life adviser underwriting guide (https://advisers.fidelitylife.co.nz/media/y5gmgw0b/fid0398-underwriter-guide-a4p.pdf) · retrieved 2026-06-18 · rights: own-summary · drives: information · status: draft
Gross annual income
Gross annual income is the applicant's before-tax earnings from personal exertion (salary, wages, or, for the self-employed, their share of business profit after expenses). It is both a rating input and an eligibility input. As an eligibility input it sets the ceiling on cover, because income protection replaces only a capped share of earnings rather than a freely chosen amount, so the income figure limits the benefit that can be issued. It influences pricing because the benefit amount it supports is itself a rating input. The relevant definition of "income" (which components count, which financial year, how self-employed profit is measured) is insurer-specific and must be confirmed [VERIFY]. For agreed-value style cover, financial evidence of income is usually required at application; for indemnity cover, income is typically verified at claim time instead. Bob captures gross earned income with a clear time window and separates it from passive income such as rent or investments. Data-dictionary classification: rating and eligibility (with a financial-evidence compliance overlap).
Source: own-summary, general underwriting education; MoneyHub income protection insurance (https://www.moneyhub.co.nz/income-protection-insurance.html); Fidelity Life adviser underwriting guide (https://advisers.fidelitylife.co.nz/media/y5gmgw0b/fid0398-underwriter-guide-a4p.pdf) · retrieved 2026-06-18 · rights: own-summary · drives: information · status: draft
Chosen benefit amount
The benefit amount is the monthly (or weekly) sum the applicant chooses to be paid while they are unable to work. It is usually set as a percentage of gross income up to an insurer cap (a replacement ratio in the region of 75% of income is commonly described, with the rest left uninsured to keep an incentive to return to work). It is a direct rating input, because a larger benefit is a larger potential claim, and it is constrained by the income field as an eligibility limit. The way the benefit relates to income also depends on whether the cover is agreed value (the benefit is fixed at application based on income evidence) or indemnity (the benefit is assessed against income at the time of claim). The exact cap, the maximum dollar limits, and how the replacement ratio is calculated are insurer-specific and must be confirmed [VERIFY]. Bob records the chosen benefit as a structured amount and notes which income basis it relates to; it does not compute a premium from it. Data-dictionary classification: rating, constrained by eligibility.
Source: own-summary, general underwriting education; MoneyHub income protection insurance (https://www.moneyhub.co.nz/income-protection-insurance.html) · retrieved 2026-06-18 · rights: own-summary · drives: information · status: draft
Wait / stand-down period
The wait period (also called the stand-down or waiting period) is how long after the applicant becomes unable to work before benefit payments start. It is a rating input that moves the premium in a predictable direction: a short wait means the insurer starts paying sooner and on more claims, so it costs more, while a longer wait costs less. Commonly offered options in the New Zealand market include around 2, 4, 8, 13, 26, 52 and up to 104 weeks, though the exact menu varies by insurer and product [VERIFY]. The right choice for an applicant depends on their savings, any sick-leave entitlement, and other resources, which is advice territory for the licensed adviser, not something Bob decides. Bob captures the chosen wait period as a structured value from the insurer's available options. Data-dictionary classification: rating (and an advice overlap, because the choice is part of the recommendation the adviser owns).
Source: own-summary, general underwriting education; PolicyWise income protection waiting period (https://www.policywise.co.nz/resources/income-protection-waiting-period) · retrieved 2026-06-18 · rights: own-summary · drives: information · status: draft
Benefit period
The benefit period is the maximum length of time payments will continue for a single claim, once the wait period has passed and while the applicant remains unable to work. It is a rating input because a longer benefit period exposes the insurer to longer claims, so it generally costs more than a short one. Commonly described choices are a fixed term such as 2 years or 5 years, or a to-age option such as payments to age 65 or to age 70, with the exact menu varying by insurer and product [VERIFY]. The benefit period interacts with age (a to-age option naturally shortens as the applicant gets older) and with the applicant's needs, which makes the choice part of the adviser's recommendation. Bob captures the chosen benefit period as a structured value. Data-dictionary classification: rating (with an advice overlap).
Source: own-summary, general underwriting education; ANZ guide to income protection insurance (https://www.anz.co.nz/personal/insurance/understanding-insurance/income-protection-guide/) · retrieved 2026-06-18 · rights: own-summary · drives: information · status: draft
Stepped vs level premium choice
This field records how the premium is structured over time, not the premium itself. With a stepped structure the premium starts lower and rises over time, typically as the applicant ages. With a level structure the premium starts higher but is designed to stay flatter over the life of the policy, so it can work out cheaper in the longer run. The choice is a rating input because it selects which rate basis the insurer applies, and it is also an advice input because which structure suits an applicant depends on how long they expect to hold the cover and their budget over time. The exact mechanics (how often stepped premiums step, how level premiums behave at certain ages) are insurer-specific and must be confirmed [VERIFY]. Bob captures the chosen structure as a structured value and leaves the recommendation to the adviser. Data-dictionary classification: rating and advice.
Source: own-summary, general underwriting education; AIA income protection insurance (https://www.aia.co.nz/en/our-products/income-protection-insurance.html) · retrieved 2026-06-18 · rights: own-summary · drives: information · status: draft
Indexation / CPI option
The indexation option records whether the cover automatically increases each year to keep pace with inflation, so its real value is not eroded over time. The common form is CPI indexation, where the benefit (and sometimes the premium) rises at each policy anniversary in line with a published consumer price measure; for example, one insurer applies the annual change in the Consumers Price Index published by Stats NZ for the year to 30 September. Some insurers instead offer a fixed-percentage increase (for example a set 2% a year) as an alternative to CPI. It is a rating-relevant input because turning indexation on changes the cover that is being priced and how it grows over time. The exact index used, the reference date, and the available alternatives are insurer-specific and must be confirmed [VERIFY]. Bob captures whether indexation is selected and which basis, as a structured value. Data-dictionary classification: rating (with an advice overlap on whether to take it).
Source: AIA, how CPI indexation may affect your AIA insurance cover (https://www.aia.co.nz/en/help-support/consumers-price-index.html) · retrieved 2026-06-18 · rights: own-summary · drives: information · status: draft
Optional benefits and riders
Optional benefits (riders) are extra features an applicant can add to a base income protection policy, each of which changes the cover and therefore the price. Examples described in the market include top-up or booster payments, support payments tied to specific events, and add-ons covering things like rehabilitation, childcare, or similar assistance. Each selected rider is a rating input because it adds to the insurer's exposure, and the set of riders is an advice matter because which ones suit an applicant depends on their circumstances. The available riders, their definitions, and their terms vary widely by insurer and product and must be confirmed against current wordings rather than assumed [VERIFY]. Bob captures which optional benefits the applicant has chosen as a structured list, without quoting their cost. Data-dictionary classification: rating and advice.
Source: own-summary, general underwriting education; ANZ guide to income protection insurance (https://www.anz.co.nz/personal/insurance/understanding-insurance/income-protection-guide/) · retrieved 2026-06-18 · rights: own-summary · drives: information · status: draft
Residency and citizenship
Residency and citizenship record whether the applicant is a New Zealand citizen or resident and whether they currently live in New Zealand. This is primarily an eligibility input rather than a rating input: insurers offer cover only to applicants with an eligible residency status, and ongoing or planned time living overseas can affect whether cover is available or what terms apply. The application form commonly asks about residency alongside occupation, income, and health. The exact residency definitions, accepted statuses, and any travel or overseas-residence limits are insurer-specific and must be confirmed before treating an answer as final [VERIFY]. Bob captures citizenship or residency status and current country of residence as structured values, plus any firm plans to live or work overseas for an extended period. Data-dictionary classification: eligibility (with an identity overlap).
Source: own-summary, general underwriting education; AA Life income protection cover (https://www.aa.co.nz/insurance/life-insurance/income-protection/) · retrieved 2026-06-18 · rights: own-summary · drives: information · status: draft
Height and weight (BMI)
Height and weight are collected so the insurer can derive body mass index (BMI), a standard underwriting input. BMI is used in underwriting because weight relative to height is associated with certain health risks, so values well outside the usual range can affect terms, loadings, or exclusions. It is therefore an underwriting and rating-relevant input rather than a simple eligibility gate, though extreme values can affect whether standard terms are available. The specific BMI bands an insurer applies, and the loadings or terms attached to them, are insurer-specific and not published as a single market standard, so they must be confirmed per insurer [VERIFY]. Bob captures height and weight as structured numeric values and lets the insurer apply its own bands; it does not compute a premium effect. Data-dictionary classification: rating (underwriting input), with a compliance overlap because the figures are disclosures.
Source: own-summary, general underwriting education; Fidelity Life adviser underwriting guide (https://advisers.fidelitylife.co.nz/media/y5gmgw0b/fid0398-underwriter-guide-a4p.pdf) · retrieved 2026-06-18 · rights: own-summary · drives: information · status: draft
Medical history and underwriting outcomes
Medical history is the applicant's record of past and current illnesses, conditions, treatments, and (where asked) family history, collected through the application's health questions. It is the core underwriting input: it does not feed a simple rate table the way age or smoker status does, but it drives the insurer's assessment of whether to offer cover and on what terms. The outcomes of that assessment are themselves structured fields to capture: standard terms, a premium loading, a specific exclusion, a deferral, or a decline. Insurers usually decide each application individually, and special conditions, exclusions, or loadings may apply; medical examinations are not always required but can be requested. Because the answers are disclosures, the questions must be clear and specific so the applicant can take reasonable care not to make a misrepresentation under the Contracts of Insurance Act 2024. The exact health questions and the terms attached to particular conditions are insurer-specific and must be confirmed [VERIFY]. Bob captures structured health disclosures and any recorded underwriting outcome, and routes anything needing judgement to the licensed adviser. Data-dictionary classification: rating (underwriting) and compliance, with the outcome also feeding advice.
Source: own-summary, general underwriting education; MoneyHub income protection insurance explained (https://www.moneyhub.co.nz/income-protection-insurance.html); Contracts of Insurance Act 2024, New Zealand Legislation (https://www.legislation.govt.nz/act/public/2024/46/en/latest/) · retrieved 2026-06-18 · rights: own-summary · drives: information · status: draft
Pastimes and hazardous activities
Pastimes and hazardous activities record the applicant's regular sports, hobbies, and pursuits that carry above-average injury risk, such as motorsport, aviation, diving, or climbing. They are an underwriting input because they raise the chance of a disabling injury, so they can attract a loading, a specific exclusion, or special terms, and in some cases affect whether standard cover is available. This makes them both a rating-relevant and a partial eligibility input. The specific activities an insurer asks about and the terms attached to each are insurer-specific and must be confirmed [VERIFY]. Bob captures named activities and rough frequency or intensity as structured values, kept concrete so the applicant can answer accurately, and leaves the terms to the insurer. Data-dictionary classification: rating (underwriting) and eligibility, with a compliance overlap because the answers are disclosures.
Source: own-summary, general underwriting education; MoneyHub income protection (https://www.moneyhub.co.nz/income-protection-insurance.html) · retrieved 2026-06-18 · rights: own-summary · drives: information · status: draft