Income Protection

 

Are you protecting your Greatest Asset?   

 

Your ability to earn an income is arguably the single biggest asset you own.

Your ability to generate an income is what allows you to fund your lifestyle, dreams and aspirations.

The financial consequences of a disability or extended illness could be devastating on you, your lifestyle and the people that rely on you.

An average income earner will earn over $1.4 million through their working life so it makes sense to insure it.  

 

 

Some helpful advice on the terminology used for Income Protection.

 

Agreed Value

You can agree the level of cover you will get from the insurer so there are no arguments at claim time.  This is particularly good if you are self employed or earnings fluctuate.

 

Benefit Period

When you take out a policy you can select how long you will be paid your monthly salary for e.g. a period of 2 years, 5 years or all the way through to Age 65

 

 
Waiting Period

When you take out the policy you can select how long you are prepared to self insure.  This results in lower premiums.  You can choose 2 weeks, 4 weeks, 8 weeks, 13 Weeks, 26 Weeks or 52 Weeks.  The longer the wait period you are willing to take the cheaper the premiums.

 

Waiver of Premium

If you go on claim the insurers will waive the requirement for you to pay your premiums on a monthly basis until such a time you are back at work.  You don’t want to be on claim and having to pay your premiums at the same time.

 

Level Premiums

You can choose to "lock" in your premiums and they are guaranteed never to increase for the life of the policy.  

 

 

Claims Escalation Costs

 While on claim your benefit will be linked to CPI to ensure that any payments keep up with the pace of inflation. 

 
Tax Deductibility 

Some types of Income Protection policies can be tax deductible.  We recommend that you talk to your accountant. 

 

 
ACC Cover Plus Extra

 If you are self employed we can work with you and ACC to get your benefits on an agreed value basis.  This can be especially beneficial if your income fluctuates year to year or you are income splitting with your partner.   We then use a private income protection policy on top to ensure you get the right amount of protection.   In some cases we can save you quite a lot on your ACC Levies * terms and conditions do apply.  Please contact us for further information.

 

 

Please note this is a summary of optional extensions and policy coverage.  It is intended as a guide only.  It is not a comphrensive list and cover can vary from insurer to insurer.  Some benefits may attract an extra premium.  Please refer to the appropriate insurers policy wording for full details of their policy coverage.