Fidelity Life has released an offer for new farmers to help cover the cost of a replacement if they are hit by illness or injury early in their career.
Designed for farm owners, managers, sharemilkers and contract milkers who are new to the industry, the new Key Person Cover features include:
- An agreed cover contract – no financials are required at claim time
- No ACC offsets, meaning the farmer can still get ACC and it won’t affect the benefit amount
To qualify, a minimum 12 months’ experience is required and the farmer must meet other revenue and ownership criteria.
Fidelity Life Chief Distribution Officer, Adrian Riminton, says the early years in business for new farmers can be financially risky and involve high debt levels.
“If illness or injury strikes them or a key employee and they’re unable to work, they could struggle to keep their business going. Key Person Cover for Farmers helps cover the cost of a replacement while they recover,” Riminton explained.
“The sustainability of the rural economy relies on new talent coming through. Previously it’s been difficult for this group, particularly if they’re young, to apply for income protection or key person cover because they don’t have enough business experience or the financial track record.”
The insurer highlighted that farming is considered one of New Zealand’s most dangerous industries; 20 per cent of farm accidents caused by manual handling, with injuries to the lower back and spine the most common and most expensive.
“With its less onerous application criteria, we expect this new cover to have real appeal,” said Riminton.
“With its less onerous application criteria, we expect this new cover to have real appeal.”
The launch of Fidelity Life’s Key Person Cover for Farmers closely follows its financial relief offer for farmer customers impacted by Mycoplasma bovis which it stated reinforces the company’s long-standing support for the rural sector (see: Fidelity Life Announces Special Offer…).