What is Income Protection Insurance?

Income protection insurance provides a monthly benefit to replace a portion of your income if you are unable to work due to illness or injury. Whether you’re dealing with a temporary setback or a long-term condition, income protection ensures that you can still cover essential living costs like rent or mortgage payments, utility bills, and daily expenses.

In New Zealand, ACC (Accident Compensation Corporation) covers injuries from accidents, but it does not provide coverage for sickness or long-term disabilities. That’s where income protection insurance comes in – it’s an additional safety net for those who want comprehensive coverage against illness or injury.

Why You Need Income Protection Insurance

Here are some reasons why having income protection insurance is crucial:

1. Replaces Lost Income: If an illness or injury keeps you from working, income protection insurance provides you with monthly payments, typically up to 75% of your pre-tax income*. This ensures you can still meet your financial obligations even if you’re unable to work.
2. Helps You Maintain Your Lifestyle: Your monthly benefit can help you continue to pay your mortgage, rent, car loans, and other bills. It ensures that your life can continue as normally as possible, even during challenging times.
3. Protects Your Family: If you’re the primary earner in your household, your absence can put a significant strain on your family’s finances. Income protection insurance ensures that your family’s financial security is not compromised if you’re unable to work.
4. Coverage Beyond ACC: ACC only covers you if you’re injured in an accident. It does not provide support for illnesses like cancer, heart disease, or mental health conditions. Income protection insurance fills in the gaps, ensuring you’re protected no matter what the cause of your inability to work is.
5. Peace of Mind: Knowing that you have a safety net in place gives you peace of mind, so you can focus on your recovery instead of worrying about finances.

How Income Protection Insurance Works

Income protection insurance works by providing you with a monthly payout if you can’t work due to an injury or illness. The exact payout will depend on your salary, the terms of your policy, and other factors such as your waiting period and the benefit period you select.

Key Factors to Consider:

• Waiting Period: This is the time you must wait before you begin receiving payments. Common options range from 2 weeks to 3 months. A shorter waiting period will generally increase your premium, but it provides quicker access to benefits.
• Benefit Period: This refers to how long you will receive payments. You can typically choose between 2 years, 5 years, or until age 65*. A longer benefit period offers more comprehensive coverage, but the premiums will be higher.
• Cover Percentage: Most policies cover up to 75% of your pre-tax income*. This allows you to maintain a similar standard of living while you focus on getting better.

Who Can Benefit from Income Protection Insurance?

Income protection insurance is ideal for a wide range of individuals, including:

• Full-time Employees: If you rely on your salary to pay the bills, income protection is crucial. With this cover, you can ensure that you’re financially protected if you fall ill or get injured.
• Self-Employed Individuals: As a business owner or contractor, you don’t have the luxury of paid sick leave or employer benefits. Income protection insurance provides a critical safety net for you and your business.
• Families: If you’re the primary income earner in your household, your family’s financial security is directly tied to your ability to work. Income protection insurance ensures that your family is supported if you can’t work due to illness or injury.

Why Choose Turning Point Finance as Your Income Protection Advisor?

At Turning Point Finance, we understand that every individual’s situation is unique. That’s why we provide personalized advice to ensure that you get the right income protection insurance policy to suit your specific needs. Our experienced team will guide you through the entire process, from understanding your options to selecting the best coverage.

Here’s why you should choose us:

1. Expert Knowledge: We specialize in income protection insurance and understand the nuances of the policies available in New Zealand. We’ll help you make an informed decision.
2. Tailored Solutions: Our advisors take the time to understand your lifestyle, financial commitments, and goals to recommend the right level of cover for you.
3. Comprehensive Comparison: We work with leading insurers in New Zealand to give you a wide range of options and help you choose the best coverage at the best price.
4. Ongoing Support: From the moment you take out your policy to the moment you need to claim, we’re here to support you every step of the way.

How to Get Started

Getting started with income protection insurance is easy. Simply contact Turning Point Finance today, and one of our expert advisors will guide you through the process. We’ll help you understand your needs, explore different coverage options, and provide a customized recommendation based on your financial situation.

Don’t leave your financial future to chance – protect your income today and gain the peace of mind that comes with knowing you’re covered when life throws unexpected challenges your way.

Contact Turning Point Finance for a consultation and get a free, no-obligation quote comparison. Our team is here to help you make the best choice for your income protection insurance.

Call to Action:

Get a Quote Today! Call 021 481 713 or visit turningpointfinance.co.nz to speak with one of our income protection insurance experts. Let us help you secure your income and protect your financial future!

*Based on individual situations and quotes may vary as provided by insurance companies.