Options for Trades People and Farmers

No one ever took out a Life Insurance policy without hoping to be paid if the need arises. So it is when it comes to replacing a person’s income in the event of sickness, the most important part of the contract is the income, right? For self employed Trade’s People and Farmers, this may be the start of the problems. That is why there is now a developing market catering to these people in New Zealand.

In the past insurance contracts that were designed to replace income were designed on overseas models where there are lot more employed people than there are here in the land of the business “Do It Yourselfer”.

For the Trade’s person, or Farmer the real need is for a simple formula of payment when you are off work fully, and a simple formula when you are back to work part time. Traditional Income Protection products will not achieve this. Until recently there was actually very little available in the market in New Zealand to fulfil both those requirements but now there is.

For small businesses, of 4 staff, plus the insured person, (5 including yourself) you can get claim money from the insurer paid to you, which you can use to suit your needs. You can pay staff and continue to draw an income from the business, or you can stop the business and take the money, which is under current law, tax free at claim time.

AIA (AIG Life) have a contract that looks and feels like similar to that, but it does not pay if you are off work only part time. The AIA (AIG Life) Key Person Benefit is extremely good, and I work with AIG Life, but this is not what I am referring to here.

If you know someone who is a self employed Trade’s Person, or owns a Rural Business and operates as a Contract Milker or Farmer please pass on this article and have them contact me. You can call me on 03 323 4241 , ask for Neil Smith or have them reply this email (if you received this as an email).

Everyone wants to know that they know what they will be paid if they require insurance to replace part of their income due to sickness. Not everyone’s income protection plan can guarantee that for a number of reasons. But there are answers out there. I’m available to talk about them and implement them as well. I work as Financial Risk Adviser.

A disclosure statement is available, upon request and free of charge.