The Financial Services Council recently commissioned Massey University andHorizon Research to undertake research about New Zealanders being under-insured. The key points that came up are:
- Over the past 5 years, 1 in 7 households have experienced a serious illness resulting in an inability to work for 3 months or more.
- The need to have a long time off work is twice as likely to be the result of illness rather than injury - i.e. No ACC cover.
- Sickness benefit: a couple (with or without children) receive $341 a week (at M tax rate) which is household income tested. (The average household needs $652 a week just to cover existing expenses).
- 55% of households would be unable to pay all their expenses and maintain their lifestyle 4 weeks after their sick leave and annual leave ran out.
- Each week 288 households in New Zealand fall into this situation.
- For some, this was aggravated by the need to also meet higher health costs.
For a two-income household, income protection is a must have, not a nice to have!
Not sure what you need or where to go for advice…
Call 0800 BRAVEDAY or contact us on www.braveday.co.nz (we're here to help).
