Sunday, October 22, 2017

New Accident and Illness Cover: Is It Right for You?

Spratt Financial Services can now offer you a new and more cost effective option to cover your income in the result of an accident or illness that renders you unable to work. With the new personal accident and illness cover option, income protection insurance is now attainable to even more people who need it. This new insurance could be right for you if: 


  • You are 60 or older and are ineligible for typical forms of disability income protection.
  • You work in a 'high risk' profession and have trouble getting approved for Income Protection Insurance.
  • You want to protect your income should something happen, but you find traditional forms of income protection insurance too expensive for your budget.
  • You wish to add the most cost effective form of income insurance to an existing insurance portfolio.
  • You have income protection, but are concerned about rising costs as you age.
    Personal Accident and Illness cover is in effect identical to a traditional income protection policy, but with a few key differences. If you suffer an accident or illness that renders you unable to work for a protracted period of time, accident and illness cover will pay you the amount agreed upon to cover the wages you are missing from your employer. This amount is decided at the time you take out your policy. For instance, if you are earning $60,000 and set this as your sum assured, you will receive (after the agreed upon waiting period) monthly payouts of $5,000 so that you can maintain your lifestyle, pay the bills and support the family while you're unable to work.



    The key differences between a Personal Accident and Illness policy and a traditional Disability Income Protection policy are:


    • Unlike income protection, there is no age limit, making this a good option for those over 60 who are still active in the work force. 
    • The policy will include a maximum claim term, for instance a year or two years of claim payouts before the benefits will cease.
    • The policy is not guaranteed to renew each year and will be reviewed by the insurer based on your current health conditions and claim payout history.
    • Thus in most cases, a personal accident and illness policy will be less expensive than an Income Protection policy.


    These days, more of us are working and staying active in their later years. We recommend the new personal accident and illness option to those who may be approaching retirement age who want an option to protect their valuable income until that time arrives. We also think this could be a good option for those of any age who have considered income protection but decided not to proceed due to factors of cost, or people of 'high risk' professions that have trouble getting regular income protection insurance. This type of insurance comes with a few added conditions outlined above, but having it could be the difference between having the funds to support your life and not.


    If you think a personal accident and illness policy could be right for you or you have any questions, use the form here or email enquiry@sprattfinancial.co.nz and one of our professional insurance team will get right back to you. All of our services are completely free and with no obligation to proceed, so you have nothing to lose and everything to gain.



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