Your ability to work and earn an income is one of your greatest assets – income protection helps to protect against the loss of this asset. If you become unable to work 1 due to illness, accident or injury, for an extended period, income protection can provide you with a monthly benefit.
This can help pay your bills and meet your financial commitments. This means you and your loved ones have financial support to help you continue to enjoy the lifestyle you’ve worked hard for.
This might suit you if…
- you want to have a secure source of income in the event you’re unable to work 1 due to illness, accident or injury
- you want to continue to meet your monthly expenses, even if you cannot work 1 due to illness, accident or injury
- you’d like your loved ones and dependents to be financially supported, regardless of your ability to work when you’re ill or injured.
Here’s what you get:
- A monthly benefit – depending on your circumstances and the type of cover you choose, this can be based on either an amount agreed at the time you take out your policy or an amount based on what you’ve earned in the period prior to a claim (typically up to 75% of your average monthly income earned over a 12 month period in the previous three years).
- Additional benefits such as premium cover depending on options selected.
- Peace of mind knowing that you’ve got support to help meet your financial commitments.
Talk to your adviser
Monday to Friday
- Email [email protected]
Talk to an adviser
If you’re wondering whether income protection is right for you, an adviser is the best person to talk to. They can advise you on your options and tailor the right plan for your needs.
How much does it cost?
How much your income protection costs depends on:
- your age
- smoking status
- level of cover
- your and your family’s health
- the options you have selected.
Talk to an adviser for your individual premium cost.
Why you need income protection insurance
For most of us, regardless of how much we love our jobs, we work to allow us to live and meet our financial obligations. Income protection provides support with meeting your necessary financial demands if you’re not able to work 1 for an extended period due to illness, accident or injury. A monthly benefit can help you to pay your bills or cover other financial commitments while you’re unable to work 1 .
Benefits of income protection
You can get a monthly benefit to help pay your bills or any other financial commitments you may have while you’re unable to work 1 due to illness, accident or injury. The key benefits are:
- after a waiting period, a monthly benefit is paid during the time you’re unable to work 1 . Depending on your circumstances and the type of cover you choose, this can be based on either an amount agreed at the time you take out your policy or an amount based on what you’ve earned in the period prior to a claim (typically up to 75% of your average monthly income earned over a 12 month period in the previous three years).
- the flexibility to choose the type of cover you need, including illness only cover, chronic condition, new job income cover, and your choice of waiting period.
How income protection helps Kiwis
60-year-old Ruth 2 was the national sales manager for a successful New Zealand company and the main earner for her family. She’d taken out AMP income protection insurance when she was 52. As she was approaching 60, her premium increases were getting bigger and Ruth began to wonder whether she still needed the cover. She says she probably would have cancelled it if she hadn’t been so busy.Soon after, Ruth was diagnosed with melanoma.
Before long she was unable to continue working as a result of the cancer and she qualified under her policy for an income protection benefit. Ruth turned 65 this year, the age she’d chosen for her income protection policy to end.
While she has some regrets about not choosing a later age for her policy to end, she is delighted with the cover she has received. At a rough calculation, Ruth figures she paid about $14,500 in premiums during the eight years before her diagnosis and received around $480,000 in benefits over the following five years.
Sandy 3 is a single, self-employed consultant. About five years ago she discovered she was the owner of a leaky home, so set about planning to put things right.
But before long, the frustration and stress became unbearable. She was struggling to focus on her work and the prospect of losing income was the final straw. Sandy was suffering from extreme stress and anxiety that made her unable to work.
Eventually, she phoned her adviser to see whether her Income Protection cover might provide the lifeline she so desperately needed.
The extent of Sandy’s condition meant that she qualified for an Income Protection benefit while she recovered. We also arranged for a psychologist to provide Sandy with the professional help she needed. Within four months, Sandy was back to earning a full income and keeping her successful consultancy alive.
Sandy recently had another episode which again left her unable to work, and once again she received an Income Protection benefit while she recovered.