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Nothing is as bad as not being able to earn an income due to a crippling injury or illness. Fortunately, we’ve collated redundancy insurance in NZ to protect you.
These products feature a great array of benefits and loads of options. However, it can be hard to figure out which policy you should choose based on your needs and budget.
But don’t worry, as we’re here to make it easier for you. In fact, we’ll walk you through the basics of redundancy policies before we go over our list!
What to Look for in Redundancy Insurance
Redundancy insurance (more commonly known as income protection policy) pays you each month to compensate for the lost income if you’re physically incapable of working.
Come to think of it: it’s a huge financial blow if you can’t pay your household bills, mortgage, or rent. What if your disability is permanent and you have no one to care for you?
As such, it can be a smart choice to buy redundancy protection. Anyway, here are some tips on how you can pick the right and best policy:
This is the amount that you are covered for with the policy. Insurers base this off of a percentage of your income—generally up to 75%. This will be what you will get every month.
The important thing is to talk it out with your insurance adviser to determine the right level of cover. He can tailor it based on your individual budget and needs.
You can also discuss whether you intend to have the policy for a particular term only or until you retire.
Premiums increase each year due to the fact that as you get older you are likely to get sick or have an accident.
Some premium-level options level out your income protection premium each year. With these, you’ll make great savings, say, if you are covered from age 40 to 65, so these are worth checking out.
There are loads of benefits that come with income protection covers, such as partial disability benefit, rehab and recovery support, parental leave premium waiver, and much more.
Note that the benefits for each insurance product differ in terms and conditions. They have particular rules where a small detail can make a big difference.
You have to be sure that the benefits you want out of the policy are included. The policy also states if and when you can make a claim on certain instances.
A return-to-work bonus is another great benefit you can get where they will pay you when you have recovered from your debilitating condition.
There are also overseas assistance benefits, which cover the travel costs of the policyholder if they’ve been disabled while working overseas. Furthermore, at least one support person is sent over to assist them in going back to NZ.
3. Wait Period
The wait period is the allowance of time given before you get your payout. This is important since this is the period when you will be needing financial help.
This is the time allotted before your income protection (the monthly payments) kicks in.
Many insurance companies have a standard waiting period of 30 days. However, some companies let you decide whether you want a 2, 4, 8, 13, or 26 weeks wait period.
4. Claims Process
You can read the customer reviews to know if the claims process of one insurance provider is any good. However, there’s no certainty, as every client’s situation is different.
However, it helps that the claim process is simple and fast so that you can receive your compensation or benefit you’ve qualified for.
5. Terms & Conditions
As we know, the terms and conditions shouldn’t be taken for granted. It states there what you’re covered for and what you’re not covered for.
When clients complain that their claims have been rejected, they should have read through the T&Cs carefully to avoid costly mistakes.
So always read the fine print and don’t hesitate to ask your adviser if something isn’t clear before buying the policy. This will stand you in good stead.
Redundancy Insurance in NZ
Those were the basics of choosing redundancy insurance. Now that you know what to look for, you can finally pick from our list of redundancy insurance in NZ!
1) AIA Redundancy Insurance
For Redundancy Insurance for Value
With the AIA Redundancy Insurance, you get regular monthly payments to cover for your living expenses if you’re presently unable to work due to an illness or injury.
It has a long list of benefits for the policyholder. One of which is the team will work closely with you to figure out what recovery programme is best for your condition.
You can also temporarily halt your premium payment for up to 12 months when you’re on parental or unpaid leave.
You can also earn Airpoints Dollars by paying the premiums. Furthermore, you can join AIA Vitality to get back to health and well-being with discounts.
You have the choice to purchase the premier option which adds the following features to your current plan: Extra Cash Benefit, Home Care Benefit, Permanent Disablement Benefit, and Bereavement Grant.
- Access to partial payments
- Allows you to earn Airpoints Dollars
- You can get rewards and discounts with AIA Vitality
- The team works closely with you to know what recovery programme is best
- Lets you suspend your cover for 12 months, if you’re on parental or unpaid leave
- Offers the premier cover option
- Mortgage and Income Protection option available as well
- Fast claim process
- Premium increases every year
AIA New Zealand received a mixed score of 3.6/5 stars on Google. Three clients have noted that the team was nice and friendly, as well as fast to settle claims.
One of these clients, Urmila, said:
“Don’t have to wait for your claim very long. Claims are done within 24 hours. Very nice and friendly staffs who know their work well.”
2) Cigna Redundancy Insurance
For Comprehensive Redundancy Insurance
Cigna has been protecting individuals and families through insurance for over a century. One of their comprehensive policies is income protection cover.
Their redundancy policies are tailored to suit your personal needs and budget. They provide you with a monthly income if you’re disabled as a result of an accident or illness.
You can be insured for up to 75% of your income. However, take note that $25,000 is the upper limit of the cover per month.
While its plans have lots of built-in benefits, they don’t provide cover for pregnant mums or those suffering from pregnancy complications.
If you have become permanently disabled from an illness or injury, Cigna will pay you a lump sum. Furthermore, they will provide additional financial support in the event that you have been badly injured from your work overseas.
- Comprehensive cover with built-in benefits
- You can receive monthly income while you’re disabled
- Provides you with an additional lump sum payment if an illness or injury leaves you permanently disabled
- Additional financial support for return costs to NZ if you have been disabled overseas
- Can waive the waiting period if your disability returned within 12 months
- Access to Cigna Client Benefits
- No cover for pregnancy or pregnancy complications
- Lower cover as compared with other insurers
3) Fidelity Life Redundancy Insurance
For Redundancy Insurance with Impartial Advisers
Fidelity Life will not only help you put your finances in order but also help you get back on your feet. They’ll draw up a recovery plan enabling your body to heal inside and out.
They will even permit you to work up to 10 hours every week, without reducing your payout.
Above all, their expert financial advisers will guide you as to what you would have to include in your insurance. After all, they are committed to protecting their clients.
- Independent financial advice
- Helps you get back on your feet with a rehabilitation plan
- You are permitted to work up to 10 hours per week without your payout being affected
- Amiable staff
- Higher premiums than other insurers
- Strict claim process
Fidelity Life garnered an average rating of 3.9 out of 5 star from numerous reviews on Google. Some clients cited that the insurance advisers were friendly and easy to deal with.
Other than that, here’s EK’s review of them:
“A great insurer to deal with. Fantastic products, well-priced and a nice team to work with.”
4) Asteron Life Redundancy Insurance
For Tailored Redundancy Policy
Asteron Life prides itself on giving you a tailored insurance product and customised advice based on your needs and budget.
Every benefit has its own terms and conditions. An impartial insurance adviser—not from Asteron Life—will take you through all the technicalities and explain them in detail.
Asteron Life’s income protection cover has benefits that others don’t. These include family assistance, return-to-work bonus, elective surgery benefit, and grief support.
Parental waiver is also included in the package. This means that, while you’re away to look after your kids, your premium payments of 6 months will be paid.
And lastly, you can also purchase the Asteron Loss of Earnings benefit. This tops up the amount of what ACC pays you in case you’ve been involved in an accident.
- Tailored insurance policy
- Customised advice
- Third-party financial advisers
- Rehabilitation and retraining support
- Asteron Life’s Loss of Earnings tops up the amount you receive from ACC
- Bonus benefit if you’re able to return to work
- Family assistance cover
- Parental leave premium waiver
- Slow customer service
5) Partners Life Redundancy Insurance
For Redundancy Insurance with Great Customer Service
Looking for an insurer that has tailored redundancy policies and easy claiming processes? For this and more, the Partners Life Redundancy Policy is your best bet.
They offer short and long-term cover, even up until your retirement. The cover will be paid to you monthly to compensate for your income if you become terribly sick or injured.
Their range of policies encompass income cover, mortgage repayment cover, and household expenses cover.
Since everyone’s background, risks, and needs are unique, the insurance advisers will make sure to customise your policy so that you’ll get the most out of it.
Partner Life is a respected health and life insurance company known for its simple claims process, giving you a quick and hassle-free experience.
- Tailored insurance protection
- You can choose from short specific term to long-term cover until retirement age
- Excellent insurance advisers
- Great communication and service
- Limited benefits
According to policyholders, their team is prompt in answering and replying to calls and enquiries.
One customer wrote this:
“Great company. Fast service and replies relating to my claims, no matter how large or small they are! Thank you for caring PL!”
Also, here’s what Andre said about the company:
“A great company with great products that are designed to pay out much better at claimtime.”
And there you have it for redundancy insurance in NZ. You can continue to work with peace of mind knowing that you’ll be protected when you need it.
Do you have any questions or suggestions about our list? If you have any, please let us know by leaving a comment below, and we’ll check them out as soon as we can.
Also, you may want to check out loans for unemployed NZ residents. In case you’re too late in getting income protection insurance, our suggestions here can help you get a loan without leaving you financially worse.