In NZ the average weekly household expenditure is around $1300 a week .
Have you thought about what your family spends each week just to live? If you don’t know it’s worth taking the time to find out. Either keep track for a few weeks of your spending or jump online and go through your transactions. Categorise them, at least, into housing, bills, food and transport, but also think about whether they are costs you can control or are fixed. For example you can’t change your rent but you might be able to spend less on food and transport if things were tight.
Once you’ve got a number, work out how many weeks you could go with reduced or no income coming in.
An FSC (Financial Services Council) survey  showed that once sick leave and annual leave ran out:
Which means that most of us would not have enough money to pay rent (or the mortgage), buy enough food, or pay the bills (like power) after 4 weeks of being unable to work. Talk about stressful.
In NZ we’re lucky enough to have ACC. ACC covers accidents and will help in many situations, but it may not replace all your income and it can’t help if you become ill. For example if you have a heart attack or stroke, or you need treatment for breast cancer, then that is not covered by ACC.
Just like you prepare your civil defence kit, prepare your financial survival kit and consider your options before you need it. This might include:
Don’t put your head in the sand and hope it won’t happen to you. Work out a plan for how your family would cope with no income and then you can relax knowing that they’ll be ok if you’re off work.
You can get a no-obligation quote for income protection here, so take a moment and get started thinking about it.