Most people don't prepare - take a look at these, my favourite income protection stats:
- In the last five years about 18% of households have had a period of between 3 and 6 months when someone was unable to work
- Most people thought they might get ACC, but, they were more than twice as likely (2.2 times more likely) to to be as a result of a serious illness than a serious accident. As many as one in five people think that ACC covers illness - it doesn't.
- Two thirds thought they might be entitled to the jobseeker benefit, but about half of them were unaware that their partner's income would affect their eligibility
So with benefits not being very helpful, what about savings?
- 54% of people would be unable to maintain their spending rate just four weeks after their sick leave and annual leave had run out. 47% said they would be unable to pay their rent or their mortgage.
- Apparently the average household (in 2015) needed $683 each week to cope with loss of income due to illness.
According to a study done by Horizon Research for the New Zealand Financial Services Council in 2015.