Income Cover provides a financial safety net should you be disabled as a result of sickness or injury, and unable to earn your regular income. The monthly benefit is designed to replace a significant portion of lost income to help maintain your usual lifestyle during treatment and recovery.
Income Cover is for Wage Earners, Salaried Employees and Self-Employed Individuals.
Your choice of waiting periods, cover terms and payment terms
Income Replacement Insurance provides you with the flexibility to structure your plan to most closely suit your needs. You have a choice of six waiting periods, the period of time before your monthly benefit begins after becoming disabled; either 4, 8, 13, 26, 52, or 104 weeks. You also have a choice of two cover terms, either to age 65 or 70, and six payment term options of three, six or twelve months, two or five years or to the end of the cover term. Your adviser will assist you to understand the implications of these options to enable you to make the best choice for your personal circumstances.
Benefit agreed on upfront or assessed at claim
There are two options when applying for Income Cover, on when your income will be assessed. You have the choice to provide financial evidence at application time to obtain an agreed monthly benefit, which is not then financially assessed again at claims time. Alternatively, you can choose to purchase an indemnity benefit which will be calculated based on the income you can prove you were earning just before becoming disabled.
If you suffer from one of the specific injuries listed below, you will be paid the monthly benefit for a specified minimum period, irrespective of whether you return to work within that time frame. If your disability lasts longer than the specified minimum period the normal monthly benefit will continue to be payable. Minimum specified periods can be found in the Income Cover Protection Benefit Sheet (Indemnity and Agreed Value).
- Fracture of jaw
- Fracture of skull
- Fracture of forearm
- Fracture of collarbone
- Fracture of wrist
- Fracture of upper arm
- Fracture of shoulder
- Fracture of elbow
- Fracture of vertebrae
- Fracture of kneecap
- Fracture of ankle
- Fracture of heel
- Fracture of leg below the knee (tibia or fibula)
- Fracture of the leg above the knee (femur)
- Fracture of the pelvis
- Loss of the thumb and index finger of the same hand
- Loss of a foot or hand
- Loss of sight in an eye
- Loss of a whole leg or arm
- Loss of any combination of hand, foot or sight
- Paralysis (Diplegia, Hemiplegia, Paraplegia, Quadriplegia)
If you suffer from one of the critical illnesses listed below, your income insurance will be paid the monthly benefit for a minimum period of six months* irrespective of whether you return to work within that time frame. If your disability lasts longer than six months the normal monthly benefit will continue to be payable.
- Aortic Surgery
- Chronic Kidney Failure
- Chronic Liver Failure
- Chronic Lung Failure
- Coronary Artery Surgery
- Heart Attack
- Major Burns
- Major Head Trauma
- Multiple Sclerosis
Other benefits which may also be included in your policy.
- Waiver of waiting period
- Retraining and rehabilitation
- Return to work reward
- Bed confinement benefit
- Emergency transport costs
- Death benefit
- Increasing benefits to match increasing income
- Optional booster benefit
- Optional total and permanent disability booster benefit
- Special equipment or home modifications
- Optional dependent relative benefit
- Optional KiwiSaver contribution while on claim
- Bringing you home
- Treatment away from home.
The above benefits are summary examples only of income insurance and may not be a full list of benefits which may be available to you. The exact types of cover and benefits will change depending on the insurer and the specific policy. Please contact us for a comprehensive list of benefits available.
This can be a very complex product and must be set up correctly from the outset. You need professional advice to set this type of product for you. If you become disabled due to an accident then ACC may also pay you and this would be offsets and deductions from your insurance payment.
If you are self-employed then there are many other considerations for example, how is a loss assessed if you have staff who are still producing income and a profit, then what happens in a case of partial disability?
Professional advice MUST be sought so an accurate assessment can be made and the correct solution arranged for you because you cannot change it at claim time.
Income Replacement Insurance
This type of product is also known as Income Cover, Income Protection, Loss of Earnings, Disability Income and other variations of names, please contact us for an income protection quote and advice anytime.