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ACC Won’t Pay For Your Cancer Scare · That Home Loan Hub

• 0:10
  SPEAKER_01: ACC is the most expensive safety net in New Zealand because everyone thinks they have one.
• 0:16
  SPEAKER_01: Well, guess what?
• 0:18
  SPEAKER_01: ACC is not your safety net.
• 0:20
  SPEAKER_01: Hello, Rebecca.
• 0:21
  SPEAKER_01: Hello.
• 0:22
  SPEAKER_01: We've entered this really interesting topic here.
• 0:25
  SPEAKER_01: Because did you know that most New Zealanders, most Kiwis, they think that ACC will cover them if something happens in life?
• 0:34
  SPEAKER_00: I actually have noticed more of a trend of it the longer I'm in the industry when I talk to people.
• 0:38
  SPEAKER_00: So I'm not actually that surprised.
• 0:41
  SPEAKER_01: It's the most misunderstood topic of New Zealand because they don't realize that ACC only covers accidents.
• 0:49
  SPEAKER_01: This is what it actually stands for: accident compensation scheme.
• 0:54
  SPEAKER_01: It's not to cover your illnesses, which is actually, did you know the percentages?
• 0:59
  SPEAKER_01: It's 80% of long-term illnesses, absences from work are caused by illness, not by accident.
• 1:09
  SPEAKER_00: Which is insane.
• 1:10
  SPEAKER_00: That is mind-boggling, really, isn't it?
• 1:14
  SPEAKER_00: If you think about like you said, everyone's first thought is, well, if I can't work ACC.
• 1:20
  SPEAKER_00: Yeah.
• 1:21
  SPEAKER_00: To know that it's that high for illness.
• 1:23
  SPEAKER_01: Yeah, it's crazy.
• 1:24
  SPEAKER_01: I mean, a single cancer diagnosis can keep someone away from work six to eight months.
• 1:30
  SPEAKER_01: Easy.
• 1:31
  SPEAKER_01: Because by the time they get diagnosed, by the time they get through chemotherapy or radiation, whatever, that's six to eight months of work not earning anything.
• 1:40
  SPEAKER_01: Yeah, people don't have that much sick leave.
• 1:41
  SPEAKER_01: So And I know people will go, as you say, you know, I have sick leave.
• 1:44
  SPEAKER_01: Well, you only have what 20 days of maximum.
• 1:47
  SPEAKER_01: If you accumulated some, okay, cool.
• 1:49
  SPEAKER_01: Well, you might have a one month to two months.
• 1:51
  SPEAKER_01: What are you gonna do for another six?
• 1:52
  SPEAKER_01: Exactly.
• 1:53
  SPEAKER_00: And then if something else happens and you've got nothing left, not to be a downer, but you use up all of your leave, all of everything you've got.
• 2:02
  SPEAKER_00: And if something else happens, you've got nothing.
• 2:05
  SPEAKER_01: Because the thing is, but people also don't realize they go, well, I'll get a mortgage holiday.
• 2:09
  SPEAKER_01: Well, mortgage holidays are not free, they do cost you money.
• 2:12
  SPEAKER_01: Yep, call the bank can try to pause your mortgages.
• 2:15
  SPEAKER_01: But what you take as a holiday actually adds back onto your mortgage.
• 2:19
  SPEAKER_01: And for how long can you be taking that?
• 2:21
  SPEAKER_01: That's one.
• 2:22
  SPEAKER_01: Insurance is won't pause, rates won't pause, buying food won't pause.
• 2:25
  SPEAKER_01: Like you still have to, and probably this is the most important time of your life to be eating healthier than ever.
• 2:31
  SPEAKER_01: If you if you're sick, right, you probably want to be eating more fresh fruit and vegetables and nicer organic food or whatever, you know, to get your health back where it needs to be.
• 2:44
  SPEAKER_01: But people can't afford that.
• 2:46
  SPEAKER_00: No, and that's the thing, which shocker is where insurance comes in.
• 2:54
  SPEAKER_01: So tell me more.
• 2:55
  SPEAKER_01: So, how can someone get covered if if they get diagnosed with cancer?
• 2:59
  SPEAKER_01: And to be honest, as I'm looking at the statistics, it says one in four new cancers registrations in New Zealand involves someone under 59 years of age.
• 3:08
  SPEAKER_01: So it's no longer, oh, when I get old, I'll get sick or you know, something will happen to me.
• 3:12
  SPEAKER_01: Not at all.
• 3:13
  SPEAKER_01: Like it's it's actually affecting a lot of younger families these days.
• 3:16
  SPEAKER_00: Absolutely.
• 3:16
  SPEAKER_01: And people that just probably took out mortgages, yeah.
• 3:19
  SPEAKER_01: Or have a mortgage.
• 3:20
  SPEAKER_01: Yeah.
• 3:20
  SPEAKER_01: So, so how can someone benefit from having insurance?
• 3:24
  SPEAKER_01: Let's talk about a good positive outcome.
• 3:26
  SPEAKER_01: That if someone did have insurance, what will happen for them?
• 3:29
  SPEAKER_00: Well, I mean, I can I can talk about a client I had who interestingly enough took out trauma cover.
• 3:36
  SPEAKER_00: She was a single mum.
• 3:38
  SPEAKER_00: She'd recently she's self-employed.
• 3:40
  SPEAKER_00: She had bought a house, I think about eight months before.
• 3:45
  SPEAKER_00: Uh, we took out trauma cover for her based on her budget.
• 3:50
  SPEAKER_00: That was the best option for her at the time.
• 3:53
  SPEAKER_00: She went with an insurer who was currently offering three months free.
• 3:57
  SPEAKER_00: Three months after she took out the cover, almost to the day, she got diagnosed with cancer.
• 4:03
  SPEAKER_02: Wow.
• 4:03
  SPEAKER_00: Now trauma cover has the stand down for cancer, so she was actually very lucky that it was past that three months.
• 4:08
  SPEAKER_00: If it had been earlier, there could have been an issue.
• 4:11
  SPEAKER_00: So she got a payout of I think ended up around the$300,000 mark and not having paid a premium.
• 4:19
  SPEAKER_00: Wow.
• 4:20
  SPEAKER_00: She was 43, so you know, under the age you're talking about.
• 4:25
  SPEAKER_00: She had no direct family that had had, like major, you know, sometimes if your family's had a lot of cancer, you're a bit more careful about it.
• 4:33
  SPEAKER_00: Nothing like that.
• 4:34
  SPEAKER_00: It was completely unexpected.
• 4:36
  SPEAKER_00: It was an easily treatable cancer, luckily.
• 4:39
  SPEAKER_00: So she was back at work within a reasonable time.
• 4:41
  SPEAKER_00: But I mean, that alone, she was able to pay off, I think it was a third of her mortgage.
• 4:47
  SPEAKER_02: Wow.
• 4:47
  SPEAKER_00: And also not have to worry about her job until she could get back to it.
• 4:51
  SPEAKER_02: Yeah.
• 4:51
  SPEAKER_00: I mean, so that alone, that's a massive one right there.
• 4:54
  SPEAKER_00: But you know, you have people who have there's a lot of different products in the insurance world that can assist with this type of thing.
• 5:03
  SPEAKER_00: Where the trauma cover, which I just said, which is critical condition cover.
• 5:09
  SPEAKER_00: So if you're put off work for a major illness, I mean, if you're you know diagnosed with a major illness, there's a list, depending on the insurer, depends on how many, you get a lump sum payout.
• 5:18
  SPEAKER_00: Yeah.
• 5:18
  SPEAKER_00: Right?
• 5:19
  SPEAKER_00: There's mortgage or income protection.
• 5:22
  SPEAKER_00: That one is if you were put off work due to illness or injury, where you could get a payout.
• 5:29
  SPEAKER_00: That one becomes a bit more interesting, and that's where we revert back to the ACC sort of thing.
• 5:34
  SPEAKER_00: Income protection is offset with ACC, which means if ACC does pay, you'll either get none of or a tiny portion of your income protection as a top-up.
• 5:48
  SPEAKER_00: And I mean, you can't guarantee sometimes ACC doesn't pay.
• 5:51
  SPEAKER_00: If you've got some sort of pre-exist, like something that was caused by something else years ago, and then like a weakness in your leg from something, right?
• 6:01
  SPEAKER_00: Like you're maybe you were born with something with an issue with your leg, and then there's an accident that happens, and that if they can relate it, if they can relate it back to it, they're not gonna pay, right?
• 6:11
  SPEAKER_00: And of course they're gonna find a way not to pay.
• 6:14
  SPEAKER_00: Yeah, exactly.
• 6:14
  SPEAKER_00: So you can't even rely on ACC to pay for that accident.
• 6:18
  SPEAKER_00: You can't rely on it for an injury.
• 6:21
  SPEAKER_00: So your income protection will pay out, then obviously, because ACC's not paying.
• 6:26
  SPEAKER_00: Mortgage protection, same thing as income protection, except up to a certain value, no ACC offsets.
• 6:33
  SPEAKER_00: So illness, you're gonna get your mortgage protection no matter what, same as income protection.
• 6:38
  SPEAKER_00: Accident, you're gonna get both.
• 6:41
  SPEAKER_00: Which is an interesting one.
• 6:43
  SPEAKER_01: It does.
• 6:43
  SPEAKER_01: But look, I have some friends that have been on ACC, and what ACC always tries to do is get them offered.
• 6:49
  SPEAKER_01: And they will try their best to get you off it versus insurance doesn't do that to you.
• 6:53
  SPEAKER_01: So if insurance pays, insurance will just pay.
• 6:55
  SPEAKER_00: Yeah.
• 6:56
  SPEAKER_00: Your doctor says you cannot work, you cannot work.
• 6:59
  SPEAKER_00: Like there's no forcing.
• 7:00
  SPEAKER_00: They'll help you with like rehabilitation to get you back into work because they've noticed that that's the best thing for people mentally and things like that, but they're not forcing you to either like even take a different job that you're not skilled at or that is not enjoyable.
• 7:15
  SPEAKER_00: Yeah.
• 7:15
  SPEAKER_00: They're not trying to get you off it as soon as possible.
• 7:18
  SPEAKER_01: Yeah, absolutely.
• 7:20
  SPEAKER_01: Absolutely.
• 7:21
  SPEAKER_01: So yeah, it blew my mind.
• 7:22
  SPEAKER_01: I mean, when I first came to New Zealand, it did blow my mind how many people were relying on ACC or anything was ACC, like oh, ACC will cover me, ACC will do this and that.
• 7:32
  SPEAKER_01: But but they don't realize actually one number one killers in New Zealand is cancer.
• 7:35
  SPEAKER_01: Like exactly.
• 7:36
  SPEAKER_00: And it's becoming more prevalent.
• 7:38
  SPEAKER_00: I mean, that is because our like the scans and stuff are getting better and are picking it up sooner, obviously.
• 7:44
  SPEAKER_00: But it is becoming, like you said, in the the age range, like a lot of younger people, especially, you know, young families just had a just bought a house, just did this, that, or the other.
• 7:55
  SPEAKER_00: When they need it most, that is when they need it the most.
• 7:58
  SPEAKER_00: Later in life, when they've got you know no debt, their kids are grown.
• 8:03
  SPEAKER_00: What do you I mean?
• 8:05
  SPEAKER_00: Yeah.
• 8:05
  SPEAKER_00: The likelihood of needing it as much is is a lot slimmer.
• 8:09
  SPEAKER_00: I think the other big thing is talking about government help, as it were, people talk about the sickness benefit as well, being, you know, like, oh, I can rely on that.
• 8:18
  SPEAKER_00: How much do you get for the sickness benefit, really?
• 8:21
  SPEAKER_00: Right?
• 8:21
  SPEAKER_00: And again, it's trying to get you back to work.
• 8:24
  SPEAKER_00: It's not it's not a safety net either.
• 8:28
  SPEAKER_01: No.
• 8:29
  SPEAKER_00: I mean, obviously it's great to have.
• 8:31
  SPEAKER_01: But also is the whole budget cuts.
• 8:33
  SPEAKER_01: Like you just don't know every government that comes in, that changes cutting the benefits and stuff.
• 8:38
  SPEAKER_01: So um, so yeah, you cannot rely.
• 8:40
  SPEAKER_01: I mean, they'll they're talking about removing pensions soon, you know.
• 8:43
  SPEAKER_01: So it's like, do you really think they're gonna be looking after all the other benefits?
• 8:47
  SPEAKER_01: So you just have to start protecting yourself.
• 8:49
  SPEAKER_01: 100% as much as you can.
• 8:50
  SPEAKER_01: Awesome, Rebecca.
• 8:51
  SPEAKER_01: Well, thank you so much.
• 8:52
  SPEAKER_01: Such an important topic for people to know.
• 8:54
  SPEAKER_01: So remember ACC is not covering illnesses, only accidents and only with conditions.
• 9:02
  SPEAKER_01: Thank you.