Self Employed Income Cover
Pays a monthly benefit if the insured person is unable to work because of a total disability. This cover is ideal for business owners who find it difficult to demonstrate their income. In many cases, much of the profit is poured straight back into the business rather than drawn as personal income. This means that sometimes the personal drawings of the business owner do not accurately reflect their income. When we assess this benefit we look at trends rather than income.
How does it work?
The amount payable is calculated at the outset, so once your policy starts you can be sure of the level of your benefit and you only need to change it if your income increases. Choose your own payment term: 2 or 5 years; or payable to age 65. Decide how long you want to wait before your claim payment begins – 4, 8 or 13 weeks. The longer you wait, the lower the premium.
This product is strictly for self-employed people. It is a much simpler product to determine your insurable income and what you would get at claim time. This is particularly useful when you do have trouble verifying income to ACC as well. In short, if you are unable to verify an income to ACC then this could also cause you problems if you try and claim an ACC benefit, so this type of specialist product is ideal.
Becoming self-employed is difficult at best, but assessing what how much you can insure for under your disability income product and what ACC offsets do require some prudent planning. It also takes a clear understanding of how you and your business would be affected should the insured person become disabled due to sickness or accident.