Your ability to earn an income is likely to be your largest asset. What would you do if couldn’t earn an income? How would you afford the cost of living such as your mortgage, rent, bills, and liesure & lifestyle expenses?
Income Protection Insurance
Your largest asset is likely to be your ability to earn an income. Multiply your current earnings by the number of working years you have left and then make an allowance for inflation and pay increases, it is likely that you will find the figure is many times the value of any other assets you have.
In the event of an accident, you might be covered by ACC but only if it is an injury caused by an accident. If you can’t work due to illness rather than accident it is likely that you will become dependant upon your savings and finally social welfare. Protecting your income is protecting your lifestyle.
In most cases of serious illness (e.g. cancer) there is a requirement for long term treatment and recovery which could leave you unable to work for years not months. What if your condition was so severe you could never work again? Income protection will provide you and your family with a monthly income while you focus on recovery giving the peace of mind of financial security. If you can never work again Income Protection can pay you a monthly benefit including inflation until you are 70 years old.
There are different types of Income Protection to suit your unique personal circumstances; talk to Hurford Parker to establish the most suitable policy for your needs.
Total and Permanent Disability
A lump sum payment in the event that you are totally and permanently disabled and unlikely to ever be able to follow a career again for which you are reasonably suited by training or experience.
Total & Permanent Disability or TPD as it is often referred as, is typically used to follow on from an initial income protection claim and provide you with sufficient funds to meet thecosts that may result from your disability. This can include repaying all debt, providing funds for home modifications and covering specialist care or equipment.