It has released new figures showing a $1.133 billion total payout for the year ended June 30.

That figure includes life and income protection insurance.

Neilson said it was the fifth year in a row that the annual payout had topped $1 billion.

He said income protection insurance cover was growing strongly, including trauma, replacement income, lump sum disablement and credit cover.

Annual premiums are up 44% from $659.1 million in June 2010 to $948.8 million in June this year.

But the FSC estimates that three-quarters of New Zealand households are still not insured against loss of income due to a serious illness.

Neilson said his organisation was in the process of surveying New Zealanders about their insurance cover.

“Our earlier research showed many New Zealanders still think their chances of being off work with a long-term illness is less than for accident. The reality is they are much more likely to be off work for six months or more after a serious illness than as the result of an accident. The ability to earn an income over a lifetime is usually a person’s most valuable asset. For most of us it is worth more than the family home yet it is insured far less than homes, home contents or cars.”

The FSC plans to hold a conference to discuss the research findings.

Term life cover had the largest annual payout in the year to June, at $430.1 million. This includes mortgage repayment insurance but not consumer credit insurance.

Whole life and endowment policies came in second place, paying out $197.9 million. In third was trauma protection, at $140.9 million.