What is Income Protection Insurance?
Income Protection insurance pays you a monthly benefit if you are unable to work due to an accident or illness.
Why do I need Income Protection?
The most valuable thing you have is your ability to earn an Income. Most people insure their house or car but often over-look the fact that their ability to earn an income is worth so much more. Yes ACC will continue to pay you if you have an accident, but not if you get sick. Income Protection covers you for both accidents and illnesses.
Will my existing injuries still be covered if I change to The ACC Alternative?
Yes. If you have claimed ACC in the past for an injury, and have a re-occurrence you will still be covered by ACC at 80% of your income.
Is the ACC Alternative a business expense?
Yes, just like regular ACC you are able to claim your ACC Alternative Income Protection as a business expense.
What if I already have Income Protection?
Just apply as usual, but make sure to state that you already have Income Protection in the section that asks about existing insurance.
If your new income Protection is accepted with the same terms as your existing cover we can replace this cover for you. If we cannot match the terms, we will advise you of your options.
Are there any Risks of changing to The ACC Alternative?
When you change to the ACC Alternative you are essentially reducing your ACC Accident Only Cover and adding Income Protection Insurance to ensure that you’ll be covered for accidents and also continue to be paid if you are unable to work due to illness. You need to be aware of two things: 1) the policy details of the stand down period and 2) what your spouse will be entitled to in the circumstance of accidental death. Please read this article.
Are there any sicknesses that The ACC Alternative does not cover?
No. All sickness/ disease and accidents are covered by Income Protection insurance.
If you have a pre-existing illness, this may or may not be covered, we will let you know if your pre existing illnesses are not covered before your cover is accepted.
What is underwriting?
When you apply for The ACC Alternative, your application will be assessed by a qualified underwriter. They will let you know if pre-existing illnesses can or cannot be covered, based on severity, time since the illness, re-occurrences etc.
What ACC doesn’t cover
As It says in the name, ACC (Accident Compensation Corporation) only covers accidents. ACC does not cover you if you get sick and cannot work. (think cancer, heart attack etc.) That’s where The ACC Alternative comes in.
Why do you compare Asteron Insurance by default?
Asteron Life has an A+ financial strength rating provided by Standard & Poors.
They have also paid out 97% of all claims received which is the best in the market. For most people, the most important thing about purchasing insurance is that it pays out at claim time. Therefore we have chosen the company with the best record of paying claims.
What if I change my mind?
If you decide to change your mind, please let us know as soon as possible and we will cancel your application. If your cover has already been accepted, you have a 17day free look period where you can cancel without having paid anything.
If we have lowered your ACC, we will send you a letter suggesting that you raise it back to where it was and instructions on how to do so.
Can I pay nothing to ACC?
No, not unless you are earning no income or operating at a loss.
If not, the minimum you can agree on is minimum wage each year.