The Difference between Income Protection Insurance and Worker’s Compensation

Not everybody is covered by Worker’s compensation. That is where income protection insurance New Zealand is vital because of the need for workers safeguard their incomes and their future income earnings. Income protection insurance supplements Worker’s compensation and increases benefits during injuries that occur at the work place while providing benefits for illnesses or injuries incurred away from work.

Of course, there is a cost incurred in taking out a policy on income protection insurance New Zealand. But, the cost tends to be much lower than is generally perceived. In some cases, it only comprises 2% of an employee’s income depending on the cover an individual opts for. In situations where challenges may arise due to cash flow or cost and any other circumstance, there is the availability of income protection insurance on superannuation.

It is all down to the real benefits derived. You can get all of you income currently or opt for a marginal difference of 2% that would contribute to your premium under income protection so that in the event of illness or injury, you can get up to 75% years later. That is what makes income protection worthwhile.