As a Kiwi, if you’re self-employed or an employee, you have a level of income protection in the event of an accident at work. However, the key word in the acronymn ACC, is of course accident. What happens when you can’t work because of a health condition? Who protects your income?

Private insurance and ACC work very differently. With ACC you are only covered for up to 80% of your lost earnings if you’re out of work due to an accidental injury. By comparison, private income insurance offers coverage if you are unable to work due to an accident or an illness. This is an important difference to note as according to statistics, the chances of a male aged between 18 and 65 years suffering a critical illness or a permanent or temporary disability is 30% (25% for a female). (quotemonster tables stats, need link).

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Terms of Benefits

In terms of benefit maximums should you make an accident claim, ACC will limit any ongoing income replacement payments to 80% of your delcared income. This is generally not an issue for those in an employed PAYE situation. However, if you are self-employed this can become tricky as you need to prove your loss of earnings through recent business account information and your declared income – so if you have been covering a large portion of business expenses to minimise your tax obligations, you may find yourself qualifying for a much smaller ACC payment than what you would actually need to continue maintaining your standard of living. Also bear in mind that any benefit paid by ACC is taxable.

Benefit Maximums for Private Income Protection

In terms of benefit maximums for private income protection, you may be limited to up to 75% of your income depending upon whether you select an agreed or indemnity value product. In short, an agreed value product provides a smaller benefit but is non-taxable, wheres as an indemnity benefit is usually a larger amount but is taxable (you can read more about the diffferences here). Although at first glance the benefit maximum appear less than the 80% offered by ACC, it is important to consider that with private income protection there is the ability to structure your cover in such a way that should you claim due to an accident, you would receive an payout from both ACC and your private insurer. And more importantly, remember that ACC provides cover only in the event of an accident, private income protection provides cover should you not be able to work due to an accident or an illness.

Due to the nature of income protection and the countless options that are available, it is important to ensure you are making the most of any cover you have, this includes ensuring it is tailored to meet your employment siuation and your budget. With access to experts on all things income protection, we can help with comparions and price indications, offer you tips for consideration and also point you in the right direction to ensure you have the right cover for the right situation.  

 
miriam sciascia
miriam sciascia
21:53 05 Oct 20
Nicole is fantastic. Im very busy as most of us are and Nicole did the hard yards for me. Highly recommend if you want someone on your side every step of the way.Thank you xx
Lisa McTavish
Lisa McTavish
22:35 03 Oct 20
Kelsey was fast and efficient in her procurement of new rates for me. She was happy to deal with me being unable to video chat due to work issues and got the job done quickly and easily.Thanks again.
A Google User
A Google User
20:30 23 Sep 20
Daniel made things simple, new his stuff and took away the hours of research I would have had to do to get the right insurance. I take comfort in the fact I didn't have to waste my time and have got the right products for my needs.
Paul Rose
Paul Rose
07:37 23 Sep 20
Hayley was very professional and knowledgeable in explaining and setting up policies for me. Highly recommend
Paula Callen
Paula Callen
23:19 17 Sep 20
Hayley was professional, discussed different options for what I want and kept me informed at all times. Would recommend her services.
celia dasler
celia dasler
07:55 30 Aug 20
Hayley was a pleasure to work with. Helpful efficient attentive. 10/10.
Andrew Harvey
Andrew Harvey
23:44 18 Aug 20
Nicole has made our transition from one insurance broke agency to hers so easy.Very happy with the professional manner in which she handled our policies - she also saw loop holes and saved us $$$ with the same policies we had with the other agency. Highly recommend!Thanks Andrew
Kim Griffiths
Kim Griffiths
04:54 15 Aug 20
Hayley was the best to work with and I loved the personal service and she was also so friendly and easy to talk and deal with.
Emma Clare
Emma Clare
20:47 04 Aug 20
Paul was efficient, friendly and forthcoming. Very happy with the service I received!
Rachael Manson
Rachael Manson
03:27 30 May 20
Alan has been brilliant to deal with and extremely patient as we worked through the changes that we were seeking for our life cover and income protection requirements.
Celia Grigg
Celia Grigg
23:36 21 May 20
Hayley was great, from responding to my initial inquiry to finalising my policy. She provided good information and communicated with me every step of the way - efficient, thorough and friendly. She went above and beyond.
Wang Emily
Wang Emily
01:59 19 Apr 20
Hayley has been very helpful and professional with her insurance services, she is committed to work for the best interest of her clients , friendly to deal with and flexible to suit clients’ requirement. Definitely Recommended!
Toko Ngakiau
Toko Ngakiau
20:19 29 Mar 20
I am very wary of random calls about insurance, but I found Daniel from IronOak to be very transparent and a pleasure to deal with.On all occasions he was able to come out and visit us. He explained in detail what we were looking at, and offered a number of comparisons. HIGHLY RECOMMENDED
Hannah Lawrence
Hannah Lawrence
21:00 15 Mar 20
Hayley was very efficient and always delivered on her promises. She put together a good package for me. I would highly recommend Hayley.
Jay Nimbus
Jay Nimbus
08:11 15 Mar 20
Daniel was great to deal with and made seemingly complicated decisions a lot simpler than I expected. I had been stressing about it for a while, wish I had got in touch sooner. Much thanks!
Annette Page
Annette Page
22:39 01 Mar 20
Prompt, professional, pragmatic advice and service. Many thanks.
CrazySmurf Azrial
CrazySmurf Azrial
11:20 28 Feb 20
Hayley was awesome to deal with, answered all my questions and followed up with me weekly to keep me informed throughout the whole process. It can be daunting but she made the process easy. She was easy to talk to and didn't feel pressured.Thanks Hayley for organising everything and helping me through the whole process.
Paul has helped me to find the best option for my family insurance. He made everything easy.
Trixie Lawton
Trixie Lawton
15:55 25 Dec 19
I found Hayley very pleasant to speak to and was explained everything in great detail and in easy terms
Kayleigh Price
Kayleigh Price
22:12 16 Dec 19
Paul was very easy to deal with and made income protection insurance seem much clearer. He gave sound advice, was efficient, friendly and I would recommend him to anyone.
Sunil Kadri
Sunil Kadri
23:23 01 Dec 19
Paul did alot of work to find the right policy for me, was very patient as I wavered, and even helped me with the right questions to ask of my insurer on their parallel policy. Overall he proved an excellent broker whom I'd gladly recommend, and go back to myself.
Dawn Randell
Dawn Randell
02:02 18 Nov 19
Thank you Hayley you were fantastic at sorting out the best choices for me
Sophie Speer
Sophie Speer
23:08 26 Sep 19
Blake was great to work with. He explained my options and sorted me out with the best policy. I really appreciated his expert advice and would recommend him highly.
Nigel Flynn
Nigel Flynn
05:50 18 Sep 19
Very helpful,learnt a lot of things I did not know about this type of insurance.
Nat Malc
Nat Malc
01:11 04 Sep 19
Great, professional, knowledgeable help from Paul, so easy and friendly to deal with.
manoj valiaveetil
manoj valiaveetil
01:00 30 Aug 19
I found Paul to be excellent in terms of understanding my needs and formulate an action plan and I would recommend him for anyone to get financial advice.
manoj valiaveetil
manoj valiaveetil
01:00 30 Aug 19
I found Paul to be excellent in terms of understanding my needs and formulate an action plan and I would recommend him for anyone to get financial advice.
Mathew Harding
Mathew Harding
22:45 22 Aug 19
Blake makes the whole process really easy. I'd recommend his services to anyone.
Hank Feng
Hank Feng
20:50 16 Aug 19
Jeff has been great at helping me and my family with getting the right amount of cover that fits within my budget. I got a much better insurance package than the one provided by my previous broker. I appreciate him taking the time to go through some of my questions and he was always patient in explaining them to me. Definitely recommend if anyone was looking at getting new insurance cover or wanting a review of their current one.
Craig Mackie
Craig Mackie
03:07 16 Aug 19
Paul gave me all the information and advice I needed to make an informed decision on the best insurance for my situation.
jason mcmillan
jason mcmillan
19:20 08 Aug 19
Easy to work with and get a hold of. Genuinely wanting to get you the best cover and rate. Thanks again!
Tim Rose
Tim Rose
01:39 07 Aug 19
Not the biggest policy in the world as I'm just starting out in my own business appreciate fast turn around and explanation.
Austin Emirali
Austin Emirali
07:58 06 Aug 19
Thanks for your help. Glad to know we’re on the right track with our cover
 

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