Getting the Best Return from your ACC levies
Out of every 1,000 builders off work through disability, 900 will be laid up due to illness not accident. And yet ACC only provides compensation for accidental injury, not illness. Most self - employed people switch from the default ACC plan to something called Cover Plus Extra. There are a number of benefits in doing this, including:
1. Saving money on the levies paid for administrative ( non-building) staff.
2. Agreeing on a set income level on which your compensation and levy is based.
3. Dialling down your levy payments and using the saving to broaden the cover you get.
Dialling down your ACC cover and broadening your cover by going private. Cover Plus Extra also allows you to dial down your ACC levy contributions to a minimum level. These savings are then used to buy income protection (also called loss of earnings) insurance, which gives cover for both accident and illness, substantially broadening the cover you get to include the events that are most likely to keep you off work (you ’ re more likely to be off work through illness rather than accident).
While employees don ’ t pay their own ACC levies, they can still benefit from income protection insurance if they ’ re forced off the job through illness. If you want to review the cover you have, get in touch with your financial adviser, or contact Builtin Insurance. They 'll arrange for you to have a chat with an adviser and put some options on the table.
You can request a review here.