What is the difference between cover plus & cover plus extra?
Did you know that you have a choice when it comes to the ACC package you sign up to as a self-employed Kiwi? The two most popular options are Cover Plus (the default option) and Cover Plus Extra. It’s up to you as the business owner to select which option suits you best.
There are a few key differences between these two packages you need to be aware of and by supplementing them with private insurance you can save money and actually get better protection for your family.
There are a few key differences between these two packages you need to be aware of and by supplementing them with private insurance you can save money and actually get better protection for your family.
What are the Main Differences Between the Two?
ACC CoverPlus (CP) decides what your levy will be based off your earnings from the previous year, combined with the level of daily risks you face at work. ACC CoverPlus Extra (CPX) decides your levy based off your risks at work and a negotiated rate of compensation that you will get if you take time off work because of an accident.
The main difference between the two ACC cover options is the amount of compensation you will receive for lost earnings (and therefore the amount of the levies you have to pay). If there’s an accident and you need time off work the default programme ACC Cover Plus will pay you out based on 80% of your previous year’s earnings, but they won’t process any payments until you provide them proof of what your income was. This can be a major issue if your accounts haven’t been processed yet, or if you are bedridden and unable to compile the evidence that ACC requires.
ACC CoverPlus Extra will pay you 100% of the amount you negotiated with ACC when you set up your account, less the mandatory tax. There is no need to prove what your earnings were for the previous year and ACC can begin paying you compensation as soon as your application is processed.
What do ACC CoverPlus and ACC CoverPlus Extra Have In Common?
For both options financial assistance will only be provided in the event of an accident (illnesses cannot be claimed on). In the event of an injury ACC will provide financial support for your medical treatments and rehabilitation costs.
In the event you were to die as a result of an accident ACC can provide your family and dependants with weekly financial support. The support is calculated at 80% of what your earnings were for the year previously and is spread out across the various approved family members. Also if you died as a result of an accident your family can apply for a grant, where ACC can help them to pay for the costs of your funeral.
How Can I Save Money & Get More Cover?
It’s possible to game the system by mixing Government ACC cover with private insurance and walk away with cheaper risk protection that covers you for more than just accidents.
All you have to do is talk to a registered financial advisor on how you can gear your ACC CoverPlus Extra so that you pay lower levies in return for a lower rate of compensation if you have an accident. Then you can take the money you’ve saved and take out private insurance that will protect you from illness, injury and/or a loss of income. There are a number of different and affordable private insurance options available that can save you money and give you peace of mind that whatever happens your family is sorted.
ACC CoverPlus (CP) decides what your levy will be based off your earnings from the previous year, combined with the level of daily risks you face at work. ACC CoverPlus Extra (CPX) decides your levy based off your risks at work and a negotiated rate of compensation that you will get if you take time off work because of an accident.
The main difference between the two ACC cover options is the amount of compensation you will receive for lost earnings (and therefore the amount of the levies you have to pay). If there’s an accident and you need time off work the default programme ACC Cover Plus will pay you out based on 80% of your previous year’s earnings, but they won’t process any payments until you provide them proof of what your income was. This can be a major issue if your accounts haven’t been processed yet, or if you are bedridden and unable to compile the evidence that ACC requires.
ACC CoverPlus Extra will pay you 100% of the amount you negotiated with ACC when you set up your account, less the mandatory tax. There is no need to prove what your earnings were for the previous year and ACC can begin paying you compensation as soon as your application is processed.
What do ACC CoverPlus and ACC CoverPlus Extra Have In Common?
For both options financial assistance will only be provided in the event of an accident (illnesses cannot be claimed on). In the event of an injury ACC will provide financial support for your medical treatments and rehabilitation costs.
In the event you were to die as a result of an accident ACC can provide your family and dependants with weekly financial support. The support is calculated at 80% of what your earnings were for the year previously and is spread out across the various approved family members. Also if you died as a result of an accident your family can apply for a grant, where ACC can help them to pay for the costs of your funeral.
How Can I Save Money & Get More Cover?
It’s possible to game the system by mixing Government ACC cover with private insurance and walk away with cheaper risk protection that covers you for more than just accidents.
All you have to do is talk to a registered financial advisor on how you can gear your ACC CoverPlus Extra so that you pay lower levies in return for a lower rate of compensation if you have an accident. Then you can take the money you’ve saved and take out private insurance that will protect you from illness, injury and/or a loss of income. There are a number of different and affordable private insurance options available that can save you money and give you peace of mind that whatever happens your family is sorted.
