Income Protection & Redundancy
Income Protection and Redundancy Insurance
Income protection insurance provides a financial safety net should you be disabled as a result of sickness or injury, and unable to earn your regular income. The monthly benefit is designed to replace a significant portion of lost income to help maintain your usual lifestyle during treatment and recovery.
Your Income Is Your Greatest Resource
Don’t take it for granted. Surprisingly, few working New Zealanders insure their income in any form. Historically, we have relied on ACC, together with the mistaken belief that a serious or prolonged illness will never strike us. Our income is our greatest asset, yet we often take it for granted. While ACC will cover a large number of injury claims, it is increasingly limited in its extent, and will not cover sickness.
Read what our clients say…
I recently asked Theo to review my life insurance and advise me on the most suitable policy for this stage in my life. As a busy working Mum, I wanted to know I could support my family even if I wasn’t able to work. Theo was very knowledgeable and listened carefully to my needs then gave me different options to consider and talked through what each one offered.
I’m very happy with the final result and would highly recommend Theo for his friendly manner and expert advice.
M Hastings, Auckland
A question: What’s your most valuable asset?
Most people invariably answer “my house” if they own their own property. Or, if they are renting, they might nominate their car or boat as their most valuable assets.
But here’s the irony:
While we don’t hesitate to insure our house, its contents, our car or boat, many of us neglect to insure what is undoubtedly our most valuable asset – ourselves, our health and our ability to earn income.
A person aged 40, on a salary of, say, $75,000 per annum and with 25 years (or more) income-earning ahead of them. That comes to $1.875 million. That’s certainly worth protecting!
Benefits Of Income Protection Insurance
As with other types of insurance, you pay a regular premium. In return, if you are off work through injury or illness, the insurance company will pay you a regular income until you are able to resume work. If you are only able to take up part-time work, many policies will pay you a ‘partial’ benefit.
Income protection is a monthly benefit that pays you up to 75% of your income and covers you for accidents, illnesses or major traumas. It pays you up until you return to work (after your waiting period), or the end of your benefit payment period.
Income protection insurance is a product that can help protect you and your family during a period of incapacitation and inability to work.
In the event of losing your job, redundancy insurance provides you an interim monthly benefit until such time as you are employed again.
Redundancy insurance may be more important now than ever. Job security is a thing of the past for many of us. Companies that manage to stay afloat in the current market are usually forced to cut staff to reduce costs sharply, or gradually as new technology progressively reduces staff requirements. Employees, who have worked in the same position for years, even decades, can find themselves out of work.
And if you don’t have an income, would you have to take the first job offer you received, even if it was not your preferred choice or not aligned to your skill-set or experience? If it took you several months to find the right job how long could you survive financially while you are looking for a new job?
Short-Term Cover When You Need It
Redundancy insurance is short-term cover. It helps protect you and your family for up to 6 months should you be made redundant, by helping you financially until you are in paid employment again. The money can be used to pay your rent, mortgage, monthly bills or any other expenses.