Brought to you by Pinnacle Life

At Pinnacle Life, we get more questions about income protection insurance than about any other type of cover. The main question is: ‘Do I even need it?’ For most of us, the idea of managing with no income for three months or longer is pretty scary, in which case the answer is ‘yes’.

Income protection can help if you are unable to work due to illness or injury by providing a regular monthly payment to help replace your income. It provides for you and your family through, what can be, a really tough time. This means: 

* you can keep up your rent or mortgage repayments

* you can cover your bills and everyday expenses

* you don’t need to rely on family or friends for financial support.

Every year, more than 50,000 New Zealand households have someone in the family who is unable to work for three months or more.

In NZ, the most likely reason that you may not be able to work for an extended period of time is illness, not injury.

While the Accident Compensation Corporation (ACC) covers accidents, it may not replace all of your income. Also, it won’t provide for you if you become ill. And the most likely reason for not being able to work for an extended period is illness. Eighty-eight per cent of health loss in NZ is attributed to long-term mental and physical conditions. The main causes are coronary heart disease, chronic obstructive pulmonary disease, chronic kidney disease, bowel cancer and self-harm. 

Can I get it if I’m self-employed?

With Pinnacle Life, if you’re self-employed, you can get cover if you have averaged at least 30 hours of work a week over a two-year period.  

Making sure you have protection if you can’t work if you are ill or injured is particularly important if you’re self-employed, as you are likely to have less of a safety net than employees, with their statutory access to sick and annual leave.

How does it actually work?

When you first take out an income protection policy, you make some choices about how it will work. These choices include:

1.    How much of your monthly income you want to replace, from either 60% or 75% of your average monthly income (before tax) up to a maximum of $12,000 per month.

2.    How long you want payments to continue for – either six, 12, 24 or 36 months.

3.    How long to wait to receive your first payment, either 30, 60 or 90 days from the time you are unable to work.

4.    You choose how you pay – monthly, half yearly or annually.

Then when it comes time to claim, you simply contact us and we will talk you through the process. Once your claim is approved, your first payment will be made on the last day of the month you complete your waiting period. Provided you remain unable to work, we’ll keep making monthly payments until you reach the end of your chosen claim period.

With Pinnacle Life, it takes only 30 seconds to get a quote and 10 minutes to apply. We offer exceptional benefits to CA ANZ members, including discounts on your premium and other benefits to which you and your family may be entitled.  

Only 26% of households have somebody with income protection insurance. Make sure you’re one of them.