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Income Protection Insurance


Income protection insurance provides an income stream in the event that illness leaves you unable to work.

In New Zealand, if you are incapacitated through accident, you are protected by the ACC. "The accident compensation scheme generally covers you for treatment of personal injury." But, the ACC expressly does not provide cover against illness.

Each year, thousands of working New Zealanders suffer debilitating heart attacks, strokes and various forms of cancer.

For most, their income earning potential is their greatest asset. A salary of $70,000 will provide an after-tax income of approximately $50,000. Over 40 years, that amounts to two million dollars. A major period of disablement will seriously disrupt your current standard of living and the ability to achieve your financial goals.

Add to that the emotional and physical pain of such an event, and income protection insurance becomes highly recommended.