How would you and your family cope if you were no longer able to work? Even if you’ve saved up a healthy emergency fund, chances are the loss of regular income would have a big impact on your standard of living.
As leading insurance brokers in the Auckland, Tauranga and Hamilton regions, we want to shed some light on the benefits of income protection insurance and how it differs from the financial assistance provided by ACC and the sickness benefit.
Understanding the Limitations of ACC and the Sickness Benefit
Nobody can predict what the future may hold. Although the idea of suddenly becoming sick or sustaining a serious injury may seem unlikely, the fact is that accidents can and do occur. Most of the time, these events will beyond your control and while you may not be able to directly manage them, you can limit the risks.
Of course, the New Zealand government already has a number of safety nets in place to stop people falling through the cracks. In the event of an accident, ACC pays out up to 80 percent of your regular income, while the sickness benefit provides ongoing financial assistance to those who can’t work due to illness, injury or disability. With this in mind, why would you need to pay for income protection insurance in Auckland?
Simply put, these schemes are not bulletproof solutions. ACC only covers accidents and does not take illnesses into account. Meanwhile, sickness benefit payments are quite modest and influenced by your household’s total earnings, meaning you may only qualify for a small amount or not qualify at all.
Reducing Future Risk with Income Protection Insurance
Auckland income protection insurance is a far more comprehensive solution. This type of policy is able to provide you with continuous income in the event you’re unable to work due to disability, long-term illness and other events not covered under ACC that result in income loss. While the exact amount of income you can receive will depend on your specific policy and unique circumstances, income protection insurance typically pays around 75 percent of your normal income.
The payouts from income protection insurance in Tauranaga provide you with the financial assistance you need to continue meeting your financial obligations and supporting your family. This gives you the ultimate peace of mind knowing that regardless of what ailment may befall you in the years ahead, your family will be well taken care of.
Despite the benefit of investing in income protection insurance, relatively few Kiwis have done so. In fact, just 15 percent of New Zealand households have income protection, according to figures reported by the Financial Services Council of New Zealand.
We want to change this statistic and provide the people of New Zealand with the coverage they need. If you’re interested in taking out income protection insurance in Auckland, Tauranga or Hamilton, we’d love to hear from you. Contact our expert insurance brokers today for your free quote.