ACC Cover Plus Extra

ACC will normally pay you up to 80% of your taxable income if you are disabled by an accident. Effectively it is just another insurance policy, but the difference is that it’s compulsory.
Self employed people who work on average 30 hours per week and do not pay PAYE can select Cover Plus Extra instead of the standard Cover Plus. Which means that either you can reduce your cover and save money, or increase your cover if you need more.

Cover Plus Extra has many advantages over Cover Plus which include:

1) It’s an agreed amount that you are paid so you do not have to prove your loss if you make a claim. Proving your loss can be difficult and often involves getting up-to-date accounts prepared by your accountant (which is expensive).

2) You can (to a certain extent) choose how much money you want. The range is 40% to 120% of your taxable income. This means that you can select to take a lower benefit and use the savings for private income protection insurance (which covers illness as well as accident), or if you are income splitting to reduce taxable income, increase your ACC cover.

ACC Cover Plus and Cover Plus Extra also include some life insurance for death by accident. If you elect to use Cover Plus Extra to reduce your ACC levies, you will also reduce your life insurance entitlement. You will therefore need to consider increasing your personal cover which includes death by any cause, not just death by accident.

Want to find out how much you can save on ACC levies?

Should you wish to know more please simply complete the following form and we shall be in touch.