A steady income when illness or injury keep you from earning.
What is income protection?
Income protection insurance provides a steady stream of monthly income if you are no longer able to work due to illness or injury. Some policies also offer cover for redundancy.
For most people, their ability to earn an income is one of their greatest assets. Unfortunately, all the responsibilities of being an adult – like paying bills and buying groceries – don’t stop even in the event of an unexpected illness or injury, when we’re no longer able to earn that income. Income protection insurance means that you can continue to receive a regular payment – to keep you and your family covered – in the event that you’re no longer able to work.
How does income protection work?
In most cases, you choose a percentage of your income (usually up to 75%) to insure. You then decide on a payment period, which is how long you would want your claim payments to last. Additionally, you can select a ‘wait period’, after which your payments will start. All of these factors will affect your premium amounts, and your advisor can help you to determine what will work best for your situation.
Does my income protection insurance pay out on top of other payments like ACC?
This can be a bit of a grey area, as some policies and providers do and some don’t. It’s best to discuss this with your advisor. They can help you understand the detail that’s often nestled in the fine print.
Does the job I have impact my chances to get cover?
Depending on your career, there are different levels of cover. Some will pay out if you can no longer work in your specific occupation – others will only activate if you are unable to work in any capacity. Some special risk occupations have maximum payout amounts or other loadings. There are even specific policies that can protect the income and earning potential of those who are self-employed or on a variable income. All of these issues can be discussed with your advisor and, as independent brokers, we are able to find you a policy that works best for you.
What if my circumstances change?
We understand that life changes, so we help to make it easy for you to change your cover as your career, financial situation, and debt liabilities change, as well as when you are approaching retirement age. Our advisors will talk you through all of these scenarios and how they impact on the amount of protection you need.