Category Archives: Business insurance

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.

Could you be paying lower ACC levies? Don’t pay more for less; look at leveraging your insurance.

A large number of small businesses and self-employed New Zealanders are overpaying on their ACC levies, mainly because they are unaware of how ACC works and what other options are available to them.

ACC only provides loss of earnings compensation for work or non-work related personal injury – not for illness or a disability that prevents you from working – which statistics show is a far more likely scenario. The standard ACC policy – ACC CoverPlus, also only pays 80 per cent in loss of earnings compensation based on your previous year’s income. So if you made a financial loss in the previous year, you won’t receive a cent.

Both contractors and self-employed business owners can save significant amounts by booking a Workplace Review and leveraging insurance. How does a reduction in your ACC levies and up-to-date protection for your business sound?

Talk to one of our insurance advisers about our complimentary service, ACC Helper.