Everything You Need to Know about Income Protection Insurance in New Zealand
Ease Insurance Brokers are here to tell you that you don’t need to worry about your financial situation should injury or illness render you temporarily unable to work. Thanks to income or salary protection, you can receive up to 75% if your income for years if you can’t make a living and it’s not as expensive as you might expect.
Below, we’ve detailed everything you need to know about income protection, including its benefits, the types of cover available, who it’s for and why it’s so crucial. Don’t hesitate to contact our insurance broker experts if you have any questions.
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- Income Protection Insurance will pay you money every month when you become unable to work in your usual job.
- You can insure up to 75% of your pre-tax income.
- Income protection insurance pays you money if you are unable to work in your usual job due to medical problems, sickness or disease, or have had an accident.
- Ongoing expenses like, rent or mortgage payments, power phone internet and groceries can be paid when you have income protection or salary insurance.
Get the best Income Protection Insurance in NZ at the best price, and don’t waste time looking through many websites for income protection insurance.
Confused about income protection? Don’t know which company to take? We are here to help
Why Do I Need to Insure My Income?
Did you know that 40% of working people become unable to work for at least six months at some point in their careers? What happens if you’re one of the unlucky ones that fall into that category? Fortunately, thanks to income protection insurance in Auckland, you don’t need to worry about where the money will come from to pay the bills and mortgage in such a situation.
How Does Salary Protection Work?
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What You Get
If you have salary protection, you can ensure that you still receive an income in the event you’re unable to work, whether it’s due to a temporary disability or disease. Depending on the type of cover you choose, you could receive up to 75% of your income for a number of years. -
Who it’s for
Provided you have a salary or wage-paying job, or if you’re self-employed and work over 20 hours a week, you can get covered. Some occupations, including pilots and professional sports people, can’t get cover. -
The Wait Period
Once you become unable to work, you’ll start receiving an income from your salary protection after one, two, three or more months, depending on your cover. -
Choosing the Length of Your Coverage
You can choose a premium that pays you a monthly income for a length of time of your choosing, whether it’s just a few years or until you reach retirement age. -
Types of Cover Available
The most common forms of salary protection include: new business income protection, agreed value protection and indemnity protection. Contact our experts for more details.
Find the best income protection insurance for you.
Find the best income protection insurance for you.
The Benefits of Income Protection Insurance
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No Need to Worry about the Bills
The last thing you need is to worry about how to pay the bills, keep a roof over your head and put food on the table after sustaining an injury that’s left you unable to work. Fortunately, if you insure your income, you’ll never be in such a stressful financial situation. -
Make a Speedy Recovery
Studies have shown that those who worry about how to cover their expenses when sick or injured tend to recover slower than those who are financially stable. With salary protection, you don’t need to have tens of thousands of dollars saved just to continue with your life while you can’t work. -
Don’t Rely on What Can Be Insufficient Government Protection
As countless people can confirm, government aid and benefits aren’t always enough to keep you afloat when you’re unable to make your usual living. Instead of hoping the government will keep you 100% protected when you can’t work, you could insure your income and secure peace of mind about the future of your finances. -
Get Paid a Liveable Income Until You Return to Your Previous Occupation
Thanks to income protection, you won’t be forced to take a different job just to get the money you need to pay the bills. You’ll receive an income from your insurance provider until you either return to work or get a job in a similar or identical occupation.
Why Choose Ease Insurance Brokers?
We know that many people avoid purchasing insurance because they have little faith in providers or assume it’s overpriced, which is why we make it simple to compare quotes from New Zealand’s top providers and advise you on how to choose the right premium for your needs. Get your free quotes today or call us on 0800 141 889 with any questions.
Income Protection Insurance Policy Wordings
Case Study – Dave
Dave started his own business in 1995 working as an auto glazier, having had 14 years experience in the industry. In September of 1996, at the age of 30, he suffered a lower back injury which put him out of work.
Dave’s Disability Income Cover meant he was entitled to an agreed value benefit of $2,000 per month, after a four week waiting period. Dave was paid $1,374.22 per month, which is the agreed value benefit less the payments he received from ACC. However, in June of 1997 his ACC payments ceased, so his income protection payments increased to $2,025 per month. Dave’s injury was such that he will not be able to work as an auto glazier again.
He has, however, commenced a computer course at the Bay of Plenty Polytech. For this, the insurer paid the course fees of $2,445 pursuant to the Retraining benefit.
Case Study - Dave September 28, 2015
Case Study – John
John, 49 years old, was a company director of a jewellery manufacturing business he owned. While on business in Perth, Australia in February of 1995, John suffered a right-sided stroke and has since been unable to work. At this early stage it seems he may never return to full employment. His income, as confirmed by his accountant, was $70,000 per annum.
Although he would normally have had to wait four weeks before receiving the first benefit payment, because he was confined to bed John qualified after only three days for a payment under the Bed Confinement/Hospitalisation benefit.
John currently receives an inflation-adjusted Income Protection payment of $55,106 per annum, by direct credit on a monthly basis.
Case Study John September 28, 2015
Case Study – Michael
It seemed to be a day like any other. A busy senior partner in a successful accounting firm, Michael, 45 years of age, thought he was in pretty good shape. However, in May 1994 he suffered a serious stroke.
He claimed on his Income Protection Insurance and after five days he received money from the insurer They paid out on the Bed Confinement/Hospitalisation benefit. He received $1,500 for the total time he spent in hospital.
Michael, having selected a 13 week waiting period, received approximately $3,800 per month from September 1994.
After his fight for survival the last thing he needed to worry about was how the bills were to be paid. The insurer settled the claim quickly, helping Michael get back on his feet. After only three months of receiving the full monthly Income Protection Insurance payment Michael was able to get himself ‘up and running’, taking on non-strenuous tasks and working 20 hours per week. His salary was still topped up by a Partial Disability Income benefit of $2,700 per month.
Case Study - Michael September 28, 2015