Graeme Lindsay, who owns insurance analyst Strategy Financial Services, said income protection is a "minefield" due to a number of issues that consumers won't be aware of if they don't use the services of an adviser.

The most complex, he said, is the issue of offsets against whatever income the client is still earning at the time of the claim.

"What this means is, how much is the insurer actually going to pay you despite what it says on the policy?  The position of a comma can make a world of difference to what you actually get paid.

"Some insurers will say, ok, you're earning $100,000 a year and you're insured for $50,000 a year but you've still got ongoing income of $30,000 a year so we'll give you $20,000.  However, others will say, we'll give you three quarters of your loss up to a maximum, which would mean you would get the full $50,000," he explained.

Lindsay said advisers "add value" at both ends of the process, when applying for insurance and filing a claim, and buying online without the help of an adviser is "dangerous".

The increasing trend of offering insurance online is a result of "focus groups", he said.

"I think it's a reaction to this notion that Generation Y-ers will buy everything online.  These people will get what they paid for."

However, Cigna chief executive Gail Costa said customers wouldn't be at risk and the target market for the product - largely those who don't already have income protection - would have little overlap with the client base for insurance advisers.

"Those that are with brokers are going to go with brokers and aren't going to go online," she said.

"There are a number of New Zealanders without insurance despite the best efforts of advisers.  We did the research and we know it's top of the mind but people haven't done it."

She rejected the claim income protection insurance is too complex for people to do online.

"I come from a broker background and I don't know how complicated it [income protection] really is.  What is complicated is all the riders and understanding the definitions, so we've been trying to make it simpler for customers."

Costa also said brokers mainly sell products to age 65, which is more comprehensive but also more expensive; Cigna is offering two-year income protection policies which she said are more affordable.

"If you have something that keeps you off work for two years you'll probably be off work forever."