Updated: May 9, 2020
We have been specialising in LMC Midwives for the last 5 years. You are our niche market and we enjoy giving you financial advice. We have advertised for 5 years in your quarterly publication Midwifery News and we have also attended your Midwifery Conference and that was an election year.
My wife Jo came up with the idea of midwives as you are self-employed, work more than 30 hours per week and generally do not pay PAYE and in our opinion, you are unsung heroes.
You qualify for ACC CoverPlus Extra where you can nominate the level of benefit you receive if you suffer a loss of earnings accidental injury claim. The benefit can be reduced to a minimum sum assured of around $30,000 per annum and a correspondingly minimal levy providing there is private income protection to support ACC. New Zealanders as a whole are grossly under-insured. If you are self-employed, you have no generous employer to pay not only sick pay but also for additional time off like annual leave and other discretionary time off.
Hence, if you cannot work because of any disability, what is your Plan B.
There are insurance companies who we represent that provide income protection without ACC offsets and the benefit is also agreed and tax paid and the overall cost can be less than the original ACC levy.
For example, if your taxable earnings are $90,000 per annum and you are a self-employed midwife (LMC), your ACC CoverPluslevy is approximately $2000 per annum.
You only have protection for an accidental injury that prevents you from working and the benefit is 80% of your taxable earnings which is $6000 per month gross.
Let’s say you reduce your benefit to $30,000 per annum by applying for ACC CoverPlus Extra. This is an agreed amount and does not have to be proved at time of claim. If you return to work part-time, you still qualify for 100% of the nominated benefit. The cost is more like $600 per annum.
You then integrate your ACC CoverPlus Extra with private income protection. 40% of your taxable income which is $3000 per month is also agreed, tax paid and there are no ACC offsets. You have an accidental injury loss of earnings claim and you get $2500 per month gross from ACC CoverPlus Extra and $3000 per month from your income protection plan. If you get ill, you get $3000 per month from your income protection and another top up of potentially $19,750 per annum for which you pay extra.
We have had a number of income protection claims and a lot of them are mental health issues where ACC does not play a part. As an LMC midwife you lead a frenetic lifestyle and often working through the night and early hours of the morning, eating on the run and possibly eating more than you can chew literally and metaphorically. Income protection is vital as you are insuring your greatest asset which is your ability to earn an income.
There has been a myth that income protection is expensive. However, you don’t have to have a short waiting period before the benefit kicks in and you don’t have to have a long payment period. And as I have shown, you can integrate income protection with ACC CoverPlus Extra and create a really effective Plan B particularly if you are self employed.
Having income protection in a minimal form is better than none at all. It means that you don’t have to take drastic measures like selling valuable assets, stealing from friends and family and hence retain your independence.
We consider income protection as probably your most valuable insurance benefit and number one priority.
We provide valuable and experienced advice and we place ourselves in your shoes in recommending the appropriate solution.
You may be a newly graduated LMC or someone who has been around since the 90s. We can give you some excellent advice just in case the unthinkable were to happen. If you are new, we can show you a Start Up income protection plan as you have no financials available at that stage and after a couple of years when financials are available, you can be upgraded to a comprehensive product. If you are over 60 and still ambitious and hard-working, we can show you a trauma product which pays a lump sum based on the severity of your medical condition and there are more than 60 critical conditions across 5 major categories.
Give us a call on 021 718 093 or email firstname.lastname@example.org or google Tony Gill for more information. We are passionate in advising as many New Zealanders as possible.
You may refer to us as Brokers and you may define Brokers as independent insurance agents. According to the Act, Brokers handle cash. We do not handle cash but we do represent a number of the mainstream insurers although we do have a primary insurer.
It is important to have a primary insurer from your point of view. We know so much more about that company than the excellent secondary insurers and that can be advantageous as far as you are concerned. The primary insurer knows how you operate and a lot about you as a result of all the applications which have been submitted.
Give us a call on 0 2or email g of service to you and by the way we travel throughout New Zealand to meet you face to face.02