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Is ACC enough, or do you still need Income Protection Insurance?
Many New Zealanders find themselves puzzled about what ACC actually covers and how it relates to income protection insurance. While they might seem similar, they offer distinct benefits. To clarify, ACC is designed to cover injuries, but it does not extend to illnesses.
In these circumstances, unless an employer offers a substantial long-term sickness benefit, many individuals find it challenging to manage without pay for more than 2-4 weeks.
Se we asked our partner, Monument Insurance, to share some thoughts on this subject...
At Monument, we believe there’s a common misconception regarding the Accident Compensation Corporation (ACC) and the necessity of disability or income protection insurance.
Many believe that ACC will cover all expenses in the event of an injury, but this is unfortunately a myth.
According to a 2022 report by the Financial Services Council (FSC), 8 in 10 Kiwis would struggle to support their children and partners if they suffered a serious injury resulting in permanent disability.
Additionally, 8 in 10 Kiwis would face financial difficulties if confronted with trauma or a critical illness that left them unable to earn a living or care for their families.
We believe it is essential to have a steady income to meet the costs of everyday bills such as shopping, rates, petrol, power, and water. But what happens if illness or injury robs you of your income?
While you might think ACC will cover all these costs, the reality is that ACC does not cover all expenses resulting from an injury, nor does it cover any costs associated with illnesses such as cancer, stroke, heart attack, and other illness related conditions.
Without some form of income protection, you could face significant financial losses, and potentially even losing your home.
Monument Advisers can discuss a range of income protection products designed to provide you and your family with an income if you fall ill or suffer an injury that prevents you from working.
These products can offer a monthly amount to help you get back on your feet, covering essential expenses such as your mortgage, rates, rent, school fees, groceries, power bills, phone bills, and other living costs. The coverage can be structured to pay for a short period or extend all the way up until retirement age.
Monument strongly encourages you to consider the benefits of income protection insurance to safeguard your financial wellbeing and ensure peace of mind for you and your loved ones.
As a HealthCarePlus Member, you can talk to a nationwide team of Monument financial advisers who can provide you with personalised advice on Health and Life Insurance.
Monument has been our appointed business partner since the early 1990’s to provide financial advice to our members on life and health insurance products (HealthCarePlus is not legally able to provide financial advice).
They are the experts and can talk specifically about your individual needs. Plus they have access to all the main New Zealand insurance providers so can explain which of their many plans are best suited to your needs.
So to speak directly to your local Monument adviser, please click the button below to book a free, no obligation chat with them.
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