Mortgage / Income Protection

Income protection covers you if you can’t work because of illness or injury.

While you might think your biggest asset is your house, it’s actually your ability to get up every day and go to work to earn your salary or wage.

Multiply that out over the course of your working life and you might be surprised to learn just how much you are worth! Now consider:

• How long can you go without your income?
• How long will your annual and sick leave last?
• Do you have emergency savings?
• Will your employer keep paying you if you are off work?

For most Kiwis the answers are: not long, not long enough, no and of course not! Income/mortgage protection can be a financial lifeline.

While New Zealand has a useful support system in ACC, you’ll only receive assistance if you can’t work because of an accident. However, for most people who are off work for six months or more, the reasons are not accident related at all.

In the event that you can't work due to illness or injury, income/mortgage protection will pay you a monthly benefit on top of anything you may get from ACC. There are a number of different ways of assessing income and loss, and many options to consider, so Daniel recommends you seek tailored advice.

If you are, or are considering becoming self-employed, talk to us to find out how we can help you pay lower levies to ACC.

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I pay ACC levies already. Why do I need income protection as well?

Our no-fault personal injury ACC system, while enviable in many respects, leaves a number of things to be desired. Of most concern is that ACC only covers you for injuries, treatment and time off work caused by accidents, and anything related to illness, aging or emotional/mental health issues is simply not covered. The vast majority of claims that take people off work for longer than six months are illness related and therefore do not have any ACC involvement at all.

As ACC levies are compulsory for all NZ earners and employers, it’s not possible to have income protection solely instead of ACC. It’s important to make sure you are covered for both illnesses and accidents. For self-employed business owners and shareholder-employees there is an option whereby ACC levies may be managed and reduced. Find out more about ACC for the self-employed.

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