How smart restructuring of ACC CoverPlus Extra can save you thousands of dollars and give you better income protection.

If you’re self-employed or a business owner in New Zealand and paying over $3,000 a year in ACC levies, you may not realise that there’s a smarter way to structure your cover.

Most people stick with the default ACC Cover and end up paying hefty levies for income protection that only covers accidents - not illness. Yet statistically, you’re far more likely to experience an illness that prevents you from working than an accident.

The good news is that you may be able to restructure your cover to save money and achieve broader protection.

At Compound Wealth, we regularly help clients explore this. Here’s how the process typically works:

1. Restructure Your ACC (CoverPlus Extra)

Rather than paying ACC’s default levy, you can apply for CoverPlus Extra - which allows you to agree on a specific level of cover for ACC purposes.

By selecting a lower insured amount under CoverPlus Extra, it’s often possible to significantly reduce ACC levies. This can free up funds to invest in more comprehensive personal insurance protection.

2. Save $1,000s in Levies

It’s common for clients to save $1,000–$2,500 per year by reviewing and restructuring their ACC settings.

Rather than relying purely on ACC (which covers accidents only), these savings can be redirected to personal insurance that provides cover for both accidents and illnesses — offering much broader protection.

3. Put in Place Income Protection That Covers Accident + Illness

A modern Income Protection insurance policy provides an ongoing income if you’re unable to work — regardless of whether the cause is an accident or an illness (such as cancer, heart attack, or stroke).

By combining a more efficient ACC structure with personal Income Protection, clients often achieve:

Broader protection (accident + illness)
Greater flexibility in cover terms and benefit periods
Potential overall cost savings

4. Protect Your Family with Life & Trauma Cover

As part of this review, we recommend reviewing any Life Insurance and Trauma Cover.

Trauma Cover provides a lump sum to help you recover were you to suffer a major illness or injury, requiring tome of work.

The trauma cover allows you and your family and/or business financial breathing space as you recover. Life Insurance ensures your family’s financial security if the worst were to happen.

Summary

If you’re paying $3,000+ in ACC levies annually, it may be worth reviewing your structure:

Restructure ACC with CoverPlus Extra
Save $1,000s in levies
Put in place Income Protection (accident + illness)
Fully protect your family with Life & Trauma Cover

Want help reviewing your cover?

At Compound Wealth, we help business owners and self-employed clients explore whether restructuring their ACC settings and insurance cover is right for them.

Book a complimentary chat - we’ll explain the process and whether this approach could be suitable for your situation.

Disclaimer: This article is general in nature and does not constitute personalised financial advice. You should not act on any recommendation without first receiving advice specific to your own circumstances. If you would like personalised advice, please get in touch and we will be happy to assist you through our regulated financial advice service.

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