ACC Cover Plus Extra
Are you self-employed? Talk to us about your ACC entitlements and make sure you're getting the most out of this government scheme.
ACC Cover Plus Extra
There are two types of cover with ACC; Cover Plus and Cover Plus Extra. Cover Plus can pay you up to 80% of your income before tax if you are injured and unable to work. Cover Plus Extra will let you nominate a certain amount of cover and pay you that sum while you are unable to work.
Both forms of ACC work like an insurance policy. You pay your levy and are able to claim if you are injured due to an accident. Cover Plus Extra is an option available to those who are self-employed. As your income fluctuates more than an employee’s, it can be hard to prove exactly what you earn at claim time.
Nominating a designated amount will mean that you receive your money faster and with less hassle. Guaranteeing you cover will give you a definite sum you can rely on should you need to claim an ACC benefit.
If you reduce the amount of cover you have you will also be able to reduce the levies you pay each year. One option is to reinvest these savings in a private Income Protection policy which would pay out if you were unable to work due to illness as well as injury. This would in turn give you added security as your income would be covered should you be diagnosed with an illness and were unable to work.
While ACC is an impressive benefit of living and working in New Zealand, it is not fool proof. We can help you assess your risks and determine what kind of cover you need to protect you against loss of income. Relying on ACC alone as a form of Income Protection can be risky. If you are diagnosed with an illness, you will not be eligible for any money from ACC and will have to rely on Work and Income until you are able to work again.
Talk to us about your ACC cover and we can see if you would benefit from any alterations. Our main concern is the wellbeing of you, your business and your family. Our objective advice may be able to help you save some money or protect you from the risks of lost income.
Health benefits can play a critical role in retaining existing staff and attracting new talent to your organisation. Lifetime financial adviser Carmen Lapthorne warns business owners and HR managers against making these common mistakes.
From relying on only Pharmac-subsidised drugs to thinking you’re fully covered by your work health insurance, Lifetime adviser Lisa Davis warns of the common mistakes we make when selecting health insurance and how best to avoid them.
Moving from the default ACC Cover Plus to ACC Cover Plus Extra might sound like an expensive exercise, but when topped up with appropriate personal cover, it can cost you less per year for more comprehensive cover that pays out in circumstances of illness as well as injury.