If you are self-employed, then choosing the correct ACC Cover is vital for own personal long term protection. Most of us will just accept the default option or not consider the longer-term benefits of each ACC Cover Option.
Did you know you have two ACC Cover options?
That’s right, there are 2 very important and distinctive ACC Cover options for self-employed. Each option does its own job and works in a different way at claim time.
What you get from your ACC Cover at claim time depends on what you do now and how you set it up.
What you receive depends on a number of criteria. For example, if you are self-employed, do you draw wages or do you take drawings? The two options of how you are actually paid will dramatically determine how much you can insure for with ACC, how much you could receive from ACC and for how long.
This also means that you need to be on the correct ACC Cover option and you should consider the following questions because the answers to these questions will determine which cover you should be on.
- How long have you been self-employed
- Do you take wages and pay PAYE or do you take Drawings
- Do you have current financial accounts
- How much is your taxable income
- How much can ACC Cover you can apply for
- What is your occupation code/class
- Do you have dependent children
- What are the current ages of your dependent children
These are just some of the questions I go through with some of my self-employed clients when I help then assess what is the best ACC Cover option for them, and how it works alongside their own personal disability insurance protection. Of course, it is also important that I work with their accountant so we usually work together for the best possible outcome for our mutual client.
Do I need Personal Disability Insurance?
ACC Cover and personal disability insurance work “hand in hand” it is not a matter of this one or that one, but rather a blend and setting this up correctly from the outset will provide you better and broader protection over the short and long terms.
Remember that ACC Cover generally pays for accident-related disability so your own personal disability income protection is still vital to your overall protection of your household cash flow because it is not always accident which stops us from working and sickness or even serious illness conditions also stop up from working, and this is where ACC does not pay.
Degenerative conditions and conditions which cannot be linked to a particular event are also very difficult and at times impossible to receive any income from ACC. So the answer to the question “do I need personal disability insurance”? is a resounding YES!
Do you need assistance?
If you need help assessing the correct ACC Cover please contact me so I can also work with your other professional advisors to work what you need and help you set up the best ACC Cover for you.