If you were unable to work due to illness or injury, how long could you survive on your savings? For most Kiwis, the answer is “not long.” Income protection insurance is designed to provide a monthly payment if you’re unable to work, ensuring your bills are paid while you recover.
How It Works
Income protection typically pays up to 75% of your gross income. You can choose a “waiting period” (how long you wait before payments start) and a “payment period” (how long the payments continue). At AdviseNow, we help you tailor these to your specific needs.
Why ACC Isn’t Enough
Many people assume ACC will cover them. However, ACC only covers accidents. If you’re unable to work due to a serious illness (like cancer or a heart condition), ACC generally won’t provide any support. That’s where income protection is vital.
Key Takeaways
- Income protection covers illness, which ACC does not.
- It provides a monthly payment to cover your living costs.
- It’s essential for anyone with a mortgage or dependents.
Disclaimer: This information is general in nature and does not constitute personalised financial advice.
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