What’s the benefit of having Income Protection or Disability Insurance?

6 important reasons to have Income Protection or Disability Insurance:

1. Financial Security: Income protection insurance can provide a safety net for you and your family in the event that you suffer a loss of income due to illness, injury or other unexpected circumstances.

2. Peace of Mind: Knowing that your family would be financially secure if something were to happen to you can provide a great deal of peace of mind.

3. Flexibility: Income protection policies can be tailored to your specific needs and can include options such as payment holidays, indexation, and payment of additional benefits.

4. Tax Advantages: Depending on the type of policy, premiums paid for income protection insurance may be deductible for income tax purposes.

5. Income Protection: You can receive a regular income to help you cover your living expenses while you are unable to work. This can help you to maintain your lifestyle while you are unable to work.

6. Financial Security for Your Family: In the event you are unable to work, income protection insurance can provide financial security for your family. This can be especially important if you are the main breadwinner in your household.

NZ income cover policies typically include features and benefits such as:

• Waiver of Premium: If you are unable to work due to an illness or injury, your premiums will be waived while you are receiving a benefit payment.  

• Indexation: Your benefit payments will be adjusted to keep up with inflation.

• Payment of Additional Benefits: Some policies may include additional inbuilt benefits such as, rehabilitation and retraining benefits, total and permanent disability benefit payments, and other optional benefits like a booster benefit and KiwiSaver contribution.

• Waiting Periods: You may be able to choose a waiting period before your benefit payments begin, depending on the policy.

• Flexible Payment Options: You may be able to choose how your benefit payments are made, such as monthly, fortnightly, or weekly.

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