Date: 11th August 2010
Self-employed people can restructure their ACC Cover to reduce their levies, which frees up cash to cover them for being off work because of illness.
Most business owners and self-employed people are automatically put on ACC Cover Plus which pays 80% of taxable income up to around $80,000 pa, however, it’s not always the best option, as it only covers Accidents and it is taxable!
The Sickness benefit pays $9,000 pa approx. Could you live on this?
The alternative: ACC Cover Plus EXTRA provides shareholder/employees and self-employed people with the opportunity to gain additional Income Protection benefits from the ‘up to 40%’ saving in ACC levies.
As an experienced Financial Adviser, Malcolm can advise on how to match up existing personal Income Protection Insurance, with dialed back ACC Cover Plus EXTRA amount.
Example: Joe is a builder with a taxable income of $80,000 per year.
ACC Cover Plus
ACC Cover Plus Extra [at 40% of Joe’s taxable income]
Saving him $ 819.56 a year and Joe now knows that he and his family are fully insured!
Please note – not all personal Income Protection Insurance policies will allow a person to pick up the savings as outlined in the above example!!!!!
To ensure that you have adequate income protection cover in place if you cannot work because of an illness or accident check in with Malcolm.
Drop him a line at email@example.com
Hopefully this is a helpful tip for today!
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