For those clients who are earning an income, some may rarely take a moment to think about how their lives would be if their income was suddenly to stop. So it comes as no surprise to hear many people in New Zealand don’t protect one of their most important assets – their income.
What would happen to your client if their income was suddenly to stop? What impact would this have to their current lifestyle choice and personal assets? How long would their savings support themselves and their family? These are all simple but important questions that can be asked when thinking about putting Income Protection cover in place.
Providing a no-nonsense solution
Income Protection cover provides an income if your clients can no longer earn one. It can help provide the reassurance of knowing that if they are unable to work due to sickness or injury, a portion of their income will still continue for a limited time or until they are well enough to go back to work (depending on the cover chosen).It can help to make sure bills can get paid and that essential day-to-day basics are covered – helping to ensure the client’s standard of living isn’t seriously compromised.
Insurance needs can vary at different stages of life due to circumstances changing. Some of these circumstances could be:
level of debt or level of savings have changed;
income may have increased;
client may have decided to start a family; or
they have recently bought a house.
Both AXA’s and AMP’s Income Protection options are flexible and can be tailored to suit your client’s individual needs – to help choose the level of protection they need for their current and future life stages.
Careful planning can assist clients to get the most out of an income protection policy and can help to ensure they have the right cover in place. Many people would most likely struggle to survive on just their savings for an extended period. It’s never too late for a client to put an income protection plan in place – being prepared for whatever the future may hold, makes perfect sense.
This is general information only and is not intended to be financial advice. For information about AXA products or a copy of Policy Documents including definitions, terms & conditions and exclusions, please ask your financial adviser or contact AXA. Applications will be subject to approval by AXA Underwriting. AXA New Zealand (The National Mutual Life Association of Australasia Limited). A disclosure statement is available from your financial adviser on request and free of charge.
Important Note: The information contained in this article is based on AXA’s current understanding of the legislation. This is general information only and is not intended to be financial advice. For information about AXA products or a copy of Policy Documents including definitions, terms & conditions and exclusions, please ask your financial adviser or contact AXA. Applications will be subject to approval by AXA Underwriting. AXA New Zealand (The National Mutual Life Association of Australasia Limited). A disclosure statement is available from your financial adviser on request and free of charge. www.axa.co.nz