Did You Know……..

ACC provides Accidental Death Cover.

If you are currently working and were to suffer an injury causing death, your partner and dependants may be entitled to a weekly benefit from ACC to provide ongoing financial support. Funeral grants may also be available.

How much will ACC pay?

ACC will decide how much you will get by calculating the amount that the deceased would have been paid if they were injured and unable to work.

Example: John Smith, self-employed builder has a taxable income of $75,000 Pa, is in a defacto relationship and has four children (youngest 8 yrs old), dies is a car accident on the way to work.

The benefit payable (If claim is accepted by ACC) generally would be calculated as follows…..

80% of John’s taxable income, $75,000 equates to a benefit of $60,000 Pa less tax.

The benefit is divided between the surviving dependants as follows

  • The surviving partner receives up to 60% ($36,000 less tax) of the benefit payable.
  • Surviving children under age 18 will each receive up to 20% of the benefit calculated, ($12,000 each less tax)
  • A benefit may continue to be paid if the surviving child / children remain in full-time study
  • Benefits will discontinue once the surviving child / children reach 21 or complete their full-time study.
  • If more than two children or other dependants the remaining 40% of the calculated benefit will be divided equally. In John’s case each child would receive $6,000 Pa less tax.
  • If the surviving children are under age 16, the benefit will be paid to the caregiver.
  • If John had changed over to CoverPlus Extra his family would receive 100% of the agreed amount less tax, so if John had Lost Earnings Cover of $75,000 agreed , his partner would receive 60% of 75K ($45,000) and so on.
  • Note: conditions apply, visit www.acc.co.nz for full details.

Some Interesting Statistics…..

The chances of dying in an accident are very low as highlighted by Fidelity Life’s 2012 – 2014 Statistics

ClaimStats2014-DeathandDisabilityAccidental Death Insurance is the cheapest form of Life Cover available as the percentage of claims are very low!