Updated: Oct 20
We have been specialising in LMC Midwives since 2012. You are our niche market and we enjoy giving you financial advice. We have attended your Midwifery Conference when it was staged at Claudelands Arena, Hamilton a few years ago.
My wife Jo came up with the idea of midwives as you are predominantly women, self-employed, work more than 30 hours per week and you don’t 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 structured to meet your specific budgetary requirements rather than pay an ACC levy based on your previous year's taxable earnings.
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.
You only have protection for an accidental injury that prevents you from working and the benefit is 80% of your previous year’s taxable earnings which may be more than you need.
Let’s say you reduce your benefit to $60,000 per annum (which is your budgetary requirement) by applying for ACC CoverPlus Extra. This is an agreed amount and does not have to be proved at time of claim. Even if your business continues to receive an income while you are unable to work and on claim or If you return to work part-time, you still qualify for 100% of the nominated benefit until you are back working full-time. Your ACC levy is adjusted accordingly.
You can then integrate your ACC CoverPlus Extra with private income protection. ACC is compulsory to all who work but pays if you have an accidental injury. Income Protection pays if you get ill and you can’t work and can also supplement your ACC claim.
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 you are 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 policy. Trauma insurance paid as a lumpsum if you suffer cancer or heart disease or a number of other serious and life-transforming critical conditions can boost your income protection or in some cases take its place.
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.