Category Archives: Personal insurance

Income – it’s our biggest asset. Let’s say you’re 30 years old and earn a steady income of $65,000 p.a. More than $2.75 million up until the golden age of 65 will go through your hands – not even taking into account any pay rises.

What if that was taken away from you due to illness or accident? That’s where income protection comes in, propping up your lifestyle with a monthly payment until you’re able to return to work or reach retirement age.

Every person has different insurance needs, so it makes sense to get a policy that’s right for you. And because not all Income Protection policies are equal, it’s important to ask the following questions to make sure you’re getting the very best cover available, tailored to your priorities.

Does your cover need to…

• Pay a bonus when you start returning to work after being off sick/or having had an accident?
• Waive the waiting period if you get cancer or have a heart attack and still pay you if you end up working through?
• Pay you on top of ACC for your mortgage repayments and or your fixed expenses like power, rates phone, etc?
• Give you a payment prior to your wait period being met if you break your arm, leg, etc?

At Insurance People we make sure our clients get the best policies with the most usable and practical benefits. Click here to arrange a chat with one of our advisers and make sure you’ve got the best cover to protect you and your family’s lifestyle. We’re only too happy to help.

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.