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Once you’d used up your sick leave and annual leave, how many weeks would your savings last in covering the normal household expenses, rent or mortgage if you were unable to work?
Some alarming statistics are available in relation to the under insurance of income by New Zealanders:
· It is estimated that nearly 50% of Kiwis in employment wouldn’t be able to sustain a further 4 weeks without income as their savings would be fully depleted.
· Illness causes twice as many people to be prevented from working for a long period compared with accidents
· Every year over 50,000 New Zealand households (a Napier-sized city) lose the main income earner’s salary through illness. More than half of those lose it for six months or more
· Only one in 8 of those households with no main income for six months or more due to illness had Income Protection Insurance cover
· 70% have household contents insurance, yet only 26% of New Zealand households have someone with income protection insurance!
Some form of benefit may be available, such as ACC (available,usually, only in the case of an accident); or a sickness benefit (now known as a Job Seeker Allowance), but if your partner’s income is $30,000 or more per annum that will limit the allowance you are eligible for.
It is challenging enough trying to recover and get back to work without the added pressure of struggling to pay the on-going living expenses!
For personal insurance advice contact Paul Tuffin on 021 0844 2524.