Why Income Protection Insurance Important for Kiwi Families

It’s never fun to consider what would happen to you and your family should you become too sick or injured to work.

But it’s something that New Zealanders do need to think about – after all, according to the Financial Services Council, almost 85% of Kiwis don’t have any insurance in place to protect them from loss of income. They also point out that ‘there are nearly one million households with incomes above $20,000 that would be vulnerable if they faced a long-term illness that stopped a major earner in the household working.’

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Income Insurance: New Zealand faces an underinsurance crisis

The results of a recent survey of 1000 New Zealanders gauge their attitudes toward income insurance are far from stellar.

Intended to check whether any progress had been made on a $650 billion underinsurance problem identified in 2013 by the Financial Services Council, the Trade Me study showed very little change four years on: While 88% had vehicle insurance and 74% had home insurance, only 51% had life insurance and just 41% health insurance.

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