If you can no longer work, how can you get paid? The importance of Income Protection Insurance
More Kiwis become unable to work through illness as opposed to an accident. And while ACC will replace income for an accident, if you don’t have income protection insurance – what’s the plan for you and your family financially if you’re too sick to do your job?
The benefits of income protection insurance are clear: if you lose your income temporarily or permanently through illness or accident, you will receive up to 75 per cent of your previous salary up until the time you can return to work or reach the age of 65.
You can purchase income protection insurance through a bank – which will usually only sell its own product – or get the help of an insurance adviser who can sift through the insurance policies from different companies to find the best one for you.
The premiums are higher than for standard life insurance, but it is possible to reduce the price by increasing wait periods or reducing the level of cover – so its best to talk to your insurance adviser who can work with you to identify the right product for you financial and lifestyle needs.