Why should you consider income protection? Well, let’s start with this: New Zealand’s standard paid sick leave is ten days per year, after you have been employed by your employer for six months, accumulating to a maximum of 20 days in two years.
So, how would you cope financially if illness or injury prevented you from working for much longer? Do you have savings? How long would they last, and what would happen to the planned holiday or new car you had earmarked those funds for?
Income protection insurance provides a financial safety net if you cannot work for a prolonged period. It is designed to replace a large portion of your income, so you can maintain your and your family’s living standards while you recover.
Staying on track with your income
Whether you’re saving for a future goal, building an emergency fund, or planning for your children’s education, maintaining a steady income stream is essential. Income protection insurance can help you stay on track financially until you are able to resume working at full capacity.
Tales of the unexpected
Life is unpredictable – we’ve all heard the tales – and unexpected events can disrupt your ability to work. Income protection insurance can provide you with financial peace of mind, helping you to meet your financial obligations so you can focus on your health and recovery.
Tailoring cover to your situation and needs
Income protection insurance is flexible. You can adjust the wait period, select a suitable cover amount (to the maximum available insurable percentage of your gross income) and the benefit period suitable for your situation and needs. The wait period is the time you will need to be off work before you start receiving payments, and choosing an appropriate cover amount ensures you receive adequate financial support. Tailoring these options helps to align your cover with your needs and circumstances.
Like to know more?
Understanding income protection insurance is vital, but navigating the various provider offerings and terms can be challenging. That’s where we come in - we are here to help you navigate through all the information, saving you time from reading multiple policy wordings.
As advisers, we can guide you through the process and help you secure your financial future. Get in touch for personalised advice, tailored to you.
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.
