We were asked this question by a customer the other day – and the answer is no!
Income Protection insurance can help by providing you with a regular monthly payment to help replace your income if you are unable to work due to illness or injury.
Given that every year over 50,000 New Zealand households have someone who is unable to work for 3 months or more, this type of insurance can help you and your family through a tough time.
While ACC covers accidents, it may not replace all your income - and it won't provide for your family - or cover your mortgage - if you become ill and can't work - which is why protecting your income is so important. At Pinnacle Life we have a range of options that you can tailor to best meet your needs.
Health insurance can cover the cost of treatment that might be needed to get for a health or medical issue. People choose health insurance to get faster access to treatment through private providers, as well as reducing the costs of any private treatment for certain medical conditions. Also, as certain medical conditions can require quite expensive procedures, health insurance helps with these large unexpected costs.
While New Zealand has a public healthcare system that will look after critical needs, and the Accident Compensation Commission scheme to cover accidental injury, many people still opt for the peace of mind of health insurance.
So in summary:
- Income protection insurance provides a monthly payment to help with the day to day bills if you can’t work due to illness or injury.
- Health insurance can cover the cost of treatments for a health or medical issue which can not be immediately dealt with in the public health system. These can often be quite expensive, and more than your day-to-day living costs.