For those of us still in paid employment or are self-employed, our largest asset is often our future income. Our financial security, and that of our families, is dependent on one single factor, our income. Take that away and our ability to pay for all the things we need, and some of the extras that make life more enjoyable, is gone. Despite this fact, very few of New Zealand households insure their income.
We are acutely aware of the fallout when someone becomes unable to work due to illness or accident, and where his or her income has not been protected by adequate insurance cover. Let’s briefly consider some facts1.
• 25% of the approximately 7,000 people who have strokes every year in New Zealand will be under retirement age;
• Over 16% (and rising) of disability claims are due to stress and depression;
• Approximately 31% of cancer deaths occur under the age of 65, and
• Every year over a quarter of a million New Zealanders aged 15 to 64 are prevented from working for more than a month due to sickness or injury.
And these are only a few statistics from a vast list of risks that could be detailed. It may seem obvious, but anyone who is working and earning an income needs income protection cover. It doesn’t matter if he or she is a young single person, a middle-aged person with family, self-employed or an employee – a plan to protect income is essential.
Protecting your income does not have to cost the earth, there are now many types of cover available to suit a range of needs.
Contact us for a review of your income protection policy or to obtain information on the most appropriate income protection cover to suit your situation.
(1. Statistics from Health Funds New Zealand)