Income Protection Insurance
This type of insurance creates a flexible plan that will pay you an income should you become sick or disabled. There is a range of features and additional options to allow you to customise the product to suit your individual requirements.
Your ability to earn an income is your most important asset – if disability prevents you from working you need to protect your earning power to meet your commitments and achieve your goals.
The financial consequences of a disability or extended illness could be devastating for your lifestyle and those that depend on you. A person will earn on average over $1.5 million through their working life. A prolonged absence from work or a return to work in a reduced capacity could have a severe impact on your future financial security.
Around one in six of the working age population has a disability. Of those with a disability, 10% within the working age population are disease or illness related and 38% are attributed to accident or injury.*
* Source: Statistics New Zealand, Disability Counts 2001
If you have a small business or are in a partnership you can select the Business Overheads/Locum, or Business Disability Cover options. These allow your business to claim either the costs associated with the running of your business or the cost of a locum while you are unable to work due to illness or injury, or receive an agreed benefit.
Income Protection DOES NOT cover you for being made redundant. With the down turn in the economy and redundancy rates increasing, many people have thought that this might be a good way to cover themselves if they get made redundant. This is not the case.
Contact an InsuranceNet Adviser for more help.