Life Investment Corporation NZ LTD.

ACC and Your Business 

Can You Rely on ACC 100%?


Most people will know that ACC will replace 80% of your income if you have an accident and can’t return to work after 7 days.

It seems very straightforward, and often it is, But there are  reasons why you can’t rely on ACC Only.


ACC pays out only if due to accidents


But two-thirds of all disabilities affecting working aged New Zealanders are caused by illness!

So if you have a heart attack, stroke, or cancer, you get nothing from ACC! But even less life threatening disabilities like glandular fever, occupational overuse syndrome or repetitive strain injuries, are not covered.

Increasingly we are hearing about people suffering back or shoulder injuries and being told by ACC they are not accidents, but ‘gradual wear and tear”!

The reality is that the most of the disabilities that you are likely to get that will stop you from working will NOT be covered by ACC.

Q.Will ACC continue paying for long-term disability?


Ans.ACC only pays out while you are rehabilitating – or recovering – to return to work.

If you suffer a significant accident which means you will never be able to work ever again in any job, then you are no longer rehabilitating.

ACC will at some point, stop paying you and refer you to WINZ for a sickness benefit, this pays about $9,000p.a.


Q.Will ACC pays while you can’t work in ANY job?

Ans.If you still can’t return to work in your own occupation, BUT you can work in some other job (e.g. Labourer, Receptionist, etc) then ACC will stop paying you.

… and for self employed …


Q.Will ACC pays me 80% of my income based on my most recent tax return?

Ans. That tax return could be well over 12 months out of date and reflect quite a different income from what you are earning at the time of your accident.

But worse than that, you ALSO have to prove that you have a loss of income!

§  So if you have accounts sent out prior to your accident and now they are being paid, your business is still receiving income and ACC may pay you nothing

§  If you have staff that are able to continue working and generating income to the business, ACC may pay you nothing.

§  If you employ someone to replace you so that your business can continue without you, ACC may pay you nothing.

§  And if you split your income with your spouse/partner for tax purposes, ACC will only pay 80% of the income you declared, ACC will not pay any of the income split off to your spouse/partner .


If You are Self Employed and Looking for Solution.


If you are self employed (or a shareholder/employee) you MUST pay ACC, you have no choice. BUT, you CAN choose HOW MUCH you pay to ACC!!!

When you begin self employment, you are automatically put into the default ACC scheme called ACC Cover Plus which pays 80% of your income as explained above.

You can however CHOOSE to change to ACC Cover Plus Extra which pays 100% of any income level YOU choose, anywhere between $21,216 & $89,335 p.a.!

If you have an accident and lodge a successful claim with ACC, under ACC Cover Plus Extra, you will receive the exact amount you are covered for, and you do NOT have to prove loss of income!

If you cover yourself for the same level of income you are currently covered for, or a higher level of income, then your ACC levy will be around the same as you currently pay, or higher. If you want to cover yourself for a higher amount, you have to provide ACC with some justification of why you think your income will be increasing.


We Have a Solution for all the above Questions.


ACC Cover Plus Extra + Business Income Protection Plan


If you are self employed, and in good health, you can change to ACC Cover Plus Extra, AND reduce your ACC cover to the minimum of $21,216 p.a.

For e.g:- If you are currently covered for $42,000 p.a. you are reducing your cover by 50%, AND that will result in your ACC levies reducing by about 50% also! You will make that saving each and every year!!

The disadvantage of doing this of course is that if you do go on an ACC claim, you will only get paid $21,216 p.a.

you can use the savings you have made from reducing your ACC levies to purchase a Business Income Protection insurance benefit.

ü  An Income Protection benefit can solve and you don’t have to rely on ACC 100%: -      Income Protection can replace up to 75% of your income if you are unable to work, due to ANY illness or injury, not just accidents!

ü  Income Protection can be set up so that it continues replacing your income right through to age 65, or even to age 70.

ü  Income Protection keeps paying as long as you can’t work in the job you were doing at the time your disablement started. You can’t be forced to return to any other job.

ü  Income Protection allows you to choose (from several options) how your ‘income’ is calculated so that it works to your best advantage, giving you certainty of how much you will be paid.

 Contact Us Today to cut Down your ACC levies to Half  Click here.

Or Call Saul Mohan 0221884077 now.

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