Income Protection Insurance Broker NZ
Income protection insurance is an essential tool for protecting your financial stability, especially in the face of unexpected illness or injury. As a dedicated income protection insurance broker in New Zealand, we aim to provide you with the knowledge and guidance needed to secure your income and ensure peace of mind for you and your loved ones if you have to take time off work.
What is Income Protection Insurance?
Income protection insurance is designed to replace a portion of your income if you cannot work due to illness or injury. Unlike Trauma Insurance, which pays a lump sum payment upon diagnosis of certain conditions, income protection provides a regular income, usually as a monthly payment, for a specified period of time.
Imagine you’re self-employed or the main income earner in your household. A significant portion of your income, or your family members, rely on your ability to work. An unforeseen accident or serious illness could jeopardise your financial stability. Unfortunately, we see this happen for far too many New Zealanders.
With income protection insurance, you can receive a steady income replacement while you recover, ensuring that your business expenses, mortgage payments, and household bills are covered. This not only protects your livelihood but also allows you to focus on your recovery without the added stress of lost income.
Why You Need Income Protection Cover
Receive an Income Protection Benefit
Your ability to earn an income is one of your most valuable assets. Without it, covering essential expenses becomes challenging, especially if you are off work for an extended period. Income protection insurance gives you 75% of your gross income paid as a monthly benefit through the insurance provider.
Peace of Mind
Knowing that you have a financial safety net allows you to focus on recovery without added financial stress. This peace of mind is invaluable, particularly during difficult times. Depending on the policy you choose, the income benefit can be paid for a specified period of time, or until retirement age.
Support During Recovery
Many income protection policies offer additional benefits, such as rehabilitation and retraining support. This helps you get back to work sooner and more easily, ensuring a smoother transition back to your professional life. You may also be able to access partial payment as you transition back to full time work.
Coverage for Various Conditions
Income protection insurance covers a broad range of medical conditions, including accidents, physical injuries, and mental health issues. This flexibility makes it a comprehensive safety net for diverse situations.
Customisable Policies
Policies can be tailored to fit your specific needs. You can choose the waiting period (the time between becoming unable to work and starting to receive benefits), which typically ranges from 2 to 52 weeks. The benefit period, or how long you’ll receive payments, can also be selected, often lasting from 2 years (short term benefits) or until you turn 65 or 70 (long term benefits).
Tax Deductibility
In New Zealand, the premiums you pay for income protection insurance are often tax-deductible if the benefits are taxable. This provides an added financial incentive to maintain an income protection insurance policy.
Types of Income Protection Policies
1. Indemnity Value Policies:
These policies calculate your benefit payout based on your income at the time of the claim. They are generally more affordable but can be risky if your income fluctuates significantly.
2. Agreed Value Policies:
With these policies, the benefit amount is agreed upon at the time of the policy issuance based on your income documentation. They provide more certainty and are ideal for those with fluctuating incomes, though they tend to have higher premiums.
Choosing the Right Financial Protection
There are a few things to consider when choosing income protection insurance solutions. Our friendly staff will chat further with you about this, but here’s what to consider in the short term:
Our expert income protection insurance brokers can help you explore the best insurance options for your needs. Whether it’s disability insurance, trauma or critical illness insurance, or mortgage protection insurance, we can help you find the perfect fit.
If you own a business, consider business income insurance, business overhead insurance, and key person insurance for comprehensive coverage. Don’t forget your health insurance cover can also be part of your protection plan.
Let’s make sure you have the right insurance program without any overlaps. Contact OneStop Financial Solutions now to get started!
Working with an Insurance Broker
With so many income protection insurance products on the market, it’s easy to become confused and overwhelmed. This is where our insurance brokers are invaluable. Our insurance experts can:
– Assess Your Needs: Evaluate your financial situation, career stability, and personal health condition to recommend the most suitable policies.
– Compare Policies: Provide comparisons from various insurance companies to find the best coverage at the most competitive rates.
– Help You Understand Policy Wording: We help you understand policy wording by explaining complex terms in simple language and highlighting key details to ensure clarity and informed decision-making.
We Partner With New Zealand’s Leading Insurers Including:
Organise Your Income Protection Insurance Today
Our experienced insurance advisers are ready to help organise the right personal insurance for you. Talk to us today about your income protection insurance needs.
Frequently Asked Questions
How much does income protection insurance cost in NZ?
The cost of income protection insurance in New Zealand varies based on factors like age, occupation, salary, health status, and waiting period, with a rough estimate being around $100 per month for a 40-year-old male earning $90,000 per year.
How does an insurance broker get paid in NZ?
In New Zealand, insurance brokers get paid through commissions from the insurance companies for the policies we sell. Rest assured, we will only recommend policies that align with your needs, goals, and level of cover required.
Are income protection insurance payouts taxable in NZ?
Yes, income protection insurance payouts are generally considered taxable income in New Zealand, and the premiums paid for these policies are often tax-deductible.
Which companies provide income protection insurance?
Companies that provide income protection insurance in New Zealand include AIA New Zealand, Fidelity Life, Pinnacle Life, Asteron Life, and KiwiCover, among others.
Income protection insurance is not just an optional add-on but a critical component of a robust financial strategy. By securing your income, you protect yourself and your family from the uncertainties of life, providing peace of mind and financial stability. It doesn’t matter what you do for a job. If you are relied upon for a steady income, organising income protection insurance offers a lifeline when you need it most.
Our income protection insurance brokers can help you get the right level of cover at the best price. Don’t wait for the unexpected to happen—secure your financial future today with income protection insurance.
For more detailed information and personalised advice, contact us at OneStop Financial Solutions. We are here to help you find the best insurance products for your specific needs.
