This is a question that we get asked a lot, for good reason. It can be confusing to work out which policy is best for you and even more confusing to read through all the fine print that income protection insurance policies often consist of.
Most income insurance policies in New Zealand fall into two categories - Indemnity or Agreed value.
Agreed Value: Based on your income when you apply
Indemnity Value: Based on your income at claim time
Our advisers can help you work out which is most suitable for you, and help you find the most competitive rates too.
Other things to consider are partial and recurring disability payments. For example, if your illness is something that gradually improves, and you may be able to return to work part time, a good policy will recognise this and continue to pay you partial payments to help make up the income. This is similar for recurring disability, with the difference being that a person may have returned to full time work, only to relapse into the illness and is not able to work again.
Most reputable insurers will allow a 12 month window for this scenario and provide full payments with no waiting period. Other things to take into consideration is whether the policy provides home or work modification allowances, as in some cases your illness or injury will mean modifications need to be made.
Getting the right income protection insurance policy is essential to make sure you and your family are actually going to be taken care of in the event that you lose your income.
Although it can be a little confusing to work out what policy is best, and ensure you pay the lowest fees without compromising on the cover you’ll receive, we are here to help guide you through this process. Our advisers will hunt around the top providers for you, and come back to you with the best options, so that you can make an informed decision. Click here if you want to have a chat.