Income protection insurance is designed to support you financially if you’re unable to work for an extended period of time, due to an injury or illness. When applying for income protection, depending on your needs, you can choose:
Unlike the income protection ACC can provide, which is entirely accident-related, income protection insurance is designed to cover you if you’re off work due to a range of illnesses or injuries.
ACC pays up to 80 per cent of your gross pre-injury salary until you can return to work, while Income Protection pays up to 75 per cent, but as we’ve seen, you have more control over the payment period. Which brings us to the next point…
If you have other people or significant financial commitments depending on your income (for example, a mortgage), relying on ACC alone for income protection may not be a good idea.
To understand whether you need this cover, here’s a key question to consider: How long would you be able to survive off your savings, if you lost your ability to earn an income for an extended period of time?
Income protection insurance may help keep you afloat and take some of the financial pressure off by supporting you financially until you get back on your feet.
Get in touch. As insurance advisers, we can help you make an appropriate insurance decision based on your financial needs and situation. We understand that getting insurance can be an emotional decision, and we are with you every step of the way.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.
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