What Are the ACC Life Cover Benefits?
In New Zealand the Accident Compensation Corporation (ACC) provides a no-fault insurance scheme that supports individuals who suffer personal injuries. In the unfortunate event of a fatal accident ACC extends its support to the deceased's family through various financial benefits. Understanding these benefits can help families navigate the challenging times following a loss.
ACC Life Cover Benefits
Funeral Grants
ACC offers financial assistance to cover funeral and memorial costs when someone dies due to an accident. As of the latest information, the funeral grant can be up to $7,024.80. This grant can be used for various expenses including funeral director fees, caskets, and other related costs.
Survivor Grants
To support the immediate financial needs of the deceased's family ACC provides one-off, tax-free payments known as survivor grants. These payments are made to the deceased's partner, children, and other dependants. The exact amount varies and is determined based on the circumstances of each case.
Ongoing Income Support
If the deceased was earning an income at the time of death, ACC may provide weekly compensation to their dependants. This compensation can be up to 80% of the deceased's earnings and is designed to help the family maintain their standard of living. The distribution of this compensation among the partner, children, and other dependants is assessed on a case-by-case basis.
Childcare Assistance
For families with young children ACC may offer additional support. If the deceased had children under the age of 14 ACC can provide assistance with childcare costs for up to five years. This support aims to help the surviving parent or guardian manage childcare responsibilities during a challenging period.
Accessing ACC Life Cover Benefits
To access these benefits, the family or representative of the deceased should contact ACC directly. While there is no strict time limit for applying it's advisable to reach out as soon as possible to ensure timely support. ACC will guide applicants through the process, including the necessary documentation and assessments required.
Complementing ACC with Personal Insurance
While ACC provides substantial support in the event of accidental death it does not cover deaths resulting from illnesses or natural causes. Therefore, individuals may consider complementing ACC coverage with personal life insurance policies. Such policies can offer broader protection ensuring financial security for families regardless of the cause of death.
Understanding Your Options
Navigating the aftermath of a loved one's death is challenging. Understanding the support available can alleviate some of the burdens. ACC's Life Cover Benefits are designed to provide financial assistance during such times ensuring families have the resources they need to cope and rebuild. By being informed about these benefits and considering additional insurance options individuals can make proactive decisions to protect their loved ones' futures.