Benefits of Having Income Protection Insurance in New Zealand
There are several advantages to purchasing income protection, it provides a safety net for anyone who is unfortunate enough to get injured or suffer from an illness which causes them to stop working for an extend period of time. There are multiple policies available and some of them include a wide range of benefits, here are some of the reasons kiwi’s buy income protection insurance.
Flexible Waiting Periods
No two situations are the same, which means a lot of insurance companies offer a flexible waiting period when it comes to covering expenses. When you take out income protection insurance in NZ, you’ll find that you have the option of delaying your payment if you have savings that can cover the first few months you are off work. For instance, if you’ve suffered a bad injury that will keep you out of your job for a long period, you can put a policy in place whereby you can opt for a waiting period, the length of this period depends on the company you deal with, but most offer a one-month option.
If you are thinking about purchasing insurance line income protection, it is important to find out what is covered and decide whether this type of policy is correct for you. Does it contain flexible waiting and benefit periods? If this is something you’d like included in your policy, you should speak to an insurance provider and find out what they have to offer.
Inclusive Insurance Policy
A major benefit of having personal income insurance is that it is available to everyone, no matter what company you work for, but there are a few exceptions including professional sports people. It doesn’t just cover Kiwis who are employed by companies, it also looks after individuals who operate as sole traders, so if you work alone or you’ve set up a small business, you can still purchase a self-employed income protection policy. Most insurance firms will require that you work at least 20 hours a week to guarantee that if you suffer loss of income, they’ll be able to offer a policy.
Partial Disability Payment
Some individuals return to work in a reduced capacity, meaning they can’t do what they had previously done, or they can only work on a part-time basis for an indefinite period of time. If you factor this into the equation, you may decide to opt for partial disability cover if the insurance broker you are dealing with offers this service. The policy you take out really depends on the type of company you do business with, that’s why it is important to compare income protection policies using a range of brokers.
The three benefits listed above are only a small illustration of the many advantages associated with purchasing an income protection policy. It is vital that you consider insuring yourself just in case you get injured or suffer from an illnesses which requires you to miss work.