Are you a self-employed professional seeking comprehensive protection and flexibility for your business and personal well-being? Look no further! At Work it out, we understand the unique challenges individuals like you face. That’s why we offer help understanding what you can do with ACC Cover Plus Extra.

Understanding the Difference Between Cover Plus and Cover Plus Extra

Before diving into the advantages of ACC Cover Plus Extra, let’s clarify the distinction between Cover Plus and Cover Plus Extra. While both options are available for self-employed individuals, they have different characteristics.

Cover Plus: With Cover Plus, your ACC levy is based on your previous year’s earnings. Although this offers certainty regarding your levy payments, it can be inflexible if your income fluctuates yearly. When you have an accident, ACC will determine your income based on your previous year’s tax return.
Cover Plus Extra: ACC Cover Plus Extra allows you to set your levy based on an agreed amount of income, which you can adjust annually. This flexibility is a significant advantage as it lets you align your levy with your current financial situation and ensures you’re well-paying and under-protected. If you have an accident, there is no argument over what they pay you.
Understanding Your CU Code
Your CU (Classification Unit) code determines the associated risk level of what you do for work. Before registering as self-employed, verifying that your CU code accurately reflects your business activities is essential. Accurate classification is vital because it directly influences the levy you pay to ACC. Throughout your journey as a self-employed individual, periodically reviewing your CU code is equally important. As your business evolves, your work activities may change, impacting the risk associated with your operations. Ensuring your CU code accurately represents your work allows you to maintain appropriate coverage and levy payments.

The Flexibility of Cover Plus Extra for Self-Employed Professionals

ACC Cover Plus Extra provides unparalleled flexibility, empowering you to make choices that align with your financial goals and risk tolerance:
Adjusting Your Level of Cover: With ACC Cover Plus Extra, you can determine the amount of income you wish to protect. You can set an agreed amount that suits your needs.
Combining with Private Cover: Some self-employed professionals combine ACC Cover Plus Extra with private income protection insurance. This approach allows them to tailor their coverage to specific circumstances while keeping their levy payments in check.

Savings on Levies: Choosing a lower level of cover can reduce your ACC levy payments. Through a careful assessment of your financial situation and risk exposure, you can strike a balance between protection and cost-effectiveness.

Investing in Private Income Protection: With potential savings on ACC levies, some self-employed professionals choose to invest in private income protection insurance with the money they save each year by lowering their ACC cover. This strategy provides additional financial security, ensuring a stable income stream in unforeseen circumstances and includes sickness cover, which ACC does not pay out on.

The Importance of Advice: our dedicated team of experts is ready to guide you in selecting the best insurance solution for your needs. We understand that every self-employed individual has a unique situation, and thus we tailor our services to help you achieve peace of mind and protect what matters most to you.

Important: Please do not use any of this information on this site as advice. This is only general information to guide you to the right adviser to help you, at no cost, with the best option.

If you want to determine what you could save, click here to see how much you can save.