Making Sure The Bills Are Still Paid...Even If You Are Not

A Simple Guide To Income Replacement Cover

Income replacement is probably the most important cover for a working person to have if you lose your income, your whole lifestyle could be threatened. There are a number of different types of cover available and a lot of variables and our job is to help you choose the policy that suits you and your budget best.

Factors Influencing The Cost Of Income Replacement Cover

  • Personal Details such as occupation, health (incl height and weight) and whether or not one smokes, can have a direct bearing on the cost of cover.

  • The No Pay Period (ie your chosen excess) can vary from 4 weeks up to 2 years and, as you might expect, the longer the excess, the cheaper the cost. The most cost-effective period is often 13 weeks and it's important to note that most companies pay one month in arrears after that. It is possible to choose a split benefit, for instance you might choose to receive $x per month with a 4 week wait topped up with $y per month after 13 weeks.

  • The Benefit Payment Period can be 2 years, 5 years or through to 60, 65 or 70. The longer the benefit period the higher the premium, however, having a benefit payable to age 65 or 70 could be very important if you're unable to work again.

  • A Back or Stress Limitation can reduce the cost, but it also limits the benefit period for depression or back disorder to a maximum of 2 years. We do not normally recommend these limitations as these conditions typically require long term benefit payments.

  • Indexation of the cover, both before and after a claim, is essential to maintain your purchasing power.

Contact Us

 

Phone: 07 855 9041 or

021 184 3499

Email: jheritage@xtra.co.nz

Website: jheritageassocicates.com

 

 

Address

 

58 Chedworth Avenue,

Chedworth,

Hamilton

3210

Member of Financial Advice New Zealand, and the Newpark Group, a nationwide group of like minded advisers.

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