Continuity for your rural business, regardless of life’s curve balls.
What is rural protection?
Designed especially for farmers, rural protection insurance is a monthly payment that protects the continuity of a rural business if you are unable to work due to illness or injury.
More than 40% of New Zealand’s land is used for farming and agriculture is still the most significant sector in our economy – so it’s important to protect that. On a more local level, farms represent a livelihood, but they also require a huge investment of energy and responsibility for their maintenance and success. Rural protection insurance ensures that your farm – your greatest asset – is covered and that you are protected from the financial consequences of being unable to work. To secure the future of your farm, and keep it running in good shape for future generations, this insurance enables you to bring in the support you need.
How does rural protection differ from income protection?
While income protection provides a payout to replace a loss of earnings, rural protection insurance has other benefits for farmers. Focused towards all of the aspects of keeping a farm running, rural protection insurance allows for you to hire a farm hand or someone to manage the farm as needed. Some policies also cover lifestyle blocks and other farm assets, including plant and machinery breakdowns.
Do I need to own the farm to qualify?
Talk to your advisor about this, but in most cases, rural protection insurance is available for a farm or sharemilking business that you either own or part-own, or when you lease the farm or the herd. This type of cover has been especially designed to meet the needs of farmers, their partners that also might work on the farm, and any sharemilkers.
How is cover agreed?
Understanding that most farms have variable cash flows, most insurers require only minimal paperwork and proof of financial income. In most cases cover is based on a simple ‘agreed value’, which you also have a part in determining. Your advisor can work with you throughout this process.