An Income Protection Policy is reported to be the most comprehensive and cost effective policy on the market. This provides for a continuation of a regular income, in the event of illness or accident and is essential for all self employed with commitments or employers wishing to cover for the absence of key staff.(eg Locum cover).

If you don't protect your Income Earning Ability;what are you working so hard for?

Your lifetime income could amount to over 2 million dollars. Just think about how much money you are likely to receive over your lifetime from working;(Take your current income and multiply it by the number of years you have until retirement - age 65, to give you a round-about figure).

If you owned a machine that produced your income every week; would you look after it?, would you oil it and maintain it?, and would you insure it against being stolen or destroyed? Surprisingly some people would treat that machine better than they would treat themselves or their family.

Its surprising because;

Statistically, 2 out of 5 people will be unable to work, due to sickness or accident, for at least a 6 month period in their lifetime and;

ACC is not always available in all situations and when available, at modest levels, it covers accident not sickness but;

statistics show that you are far more likely to be disabled due to illness rather than accident - only 25% of patients in Public Hospitals in 1992 had an accident related complaint plus;

sickness is more likely to result in long term disability rather than accident, in fact the average age of claimants from a major Insurance company is only 39 which shows that this is not just an older persons problem.

Most people struggle to establish and maintain their income. This determines their lifestyle and that of their family. The income needs to be consistent to ensure the comfort, security and independence which we all aspire towards and it is only achieved through hard work, good planning and decision making in your chosen business.

Think, what would happen to you, your family or business if something beyond your control prevents you from working? While ACC provides some cover for accidents, over 75% of the 270,000 New Zealanders who were unable to work for a significant period last year, were prevented by sickness rather than accident and received no ACC assistance.

You probably know several people who have, through no fault of their own , fallen on hard times through illnesses such as strokes, cancer or heart problems. Common questions faced by them which require answers when income ceases are:

How will my family and business survive without an income?

Who will pay the bills?

When will my savings run out?

Will I need to sell my business, house, car etc?

WHY TAKE THE RISK WHEN YOU CAN INSURE YOUR FUTURE INCOME!

Income Protection Insurance, can remove these risks and provide an income if you are ever too sick, or injured, to work. For a small portion of your current income, you can provide the protection you need. Your contribution can also be tax deductible. This provides for a continuation of a regular income, and is essential for all self employed with financial commitments.

All Income Protection policies are specifically designed for each client. You may select from a range of benefit and wait periods. The shorter the benefit period on a claim, the lower the premium. Conversely the longer the wait period before a benefit is paid, the lower the premium.

If you are aged 16 - 55 and would like more information or a quote - click here for www.nzlife.co.nz

Contact us for a quote.

Q & A

If you have questions you would like answered email ushere

CASE STUDY 1

It seemed to be a day like any other. A busy senior partner in a successful accounting firm, Michael, 45 years of age, thought he was in pretty good shape. However, in May 1994 he suffered a serious stroke.

Michael, having selected a 13 week waiting period, received approximately $3,800 per month from September 1994.

After his fight for survival the last thing he needed to worry about was how the bills were to be paid. Sovereign settled the claim quickly, helping Michael get back on his feet. After only three months of receiving the full Disability Income benefit Michael was able to get himself 'up and running', taking on non-strenuous tasks and returning to work part-time until he fully recovered.

His initial premium was $59 per month.

CASE STUDY 2

John, 49 years old, was a company director of a jewellery manufacturing business he owned. While on business in Perth, Australia in February of 2005, John suffered a right-sided stroke and has since been unable to work. At this early stage it seems he may never return to full employment. His income, as confirmed by his accountant, was $70,000 per annum.

John currently receives an inflation-adjusted Disability Income benefit of $55,106 per annum, by direct credit on a monthly basis.

CASE STUDY 3

Dave started his own business in 2000 working as an auto glazier, having had 14 years experience in the industry. In September of 2004, at the age of 30, he suffered a lower back injury which put him out of work.

Through his Sovereign Insurance, Dave was entitled to an agreed value benefit of $2,000 per month, after a four week waiting period. The claim was approved within two days of Sovereign receiving the necessary information. Sovereign paid Dave $1,374.22 per month, which is the agreed value benefit less the payments he received from ACC. However, in June of 2005 his ACC payments ceased, so his benefit from Sovereign increased to $2,025 per month. Dave's injury was such that he will not be able to work as an auto glazier again.

He has, however, commenced a computer course at the Bay of Plenty Polytech and plans future work in this area.

Other clients we have assisted include:

Company Director
Male aged 54. Injured whilst chasing car thief. Paid $4000 a month for 3 months until able to return to work.

Secretary
Female aged 45. Diagnosed Multiple Sclerosis. $1050 per month ongoing. Used to assist with mortgage

Plumber
Male aged 35. Broke arm whilst on holiday in Australia. $3600 per month until he returned to work.

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