Frequently Asked Questions
We get asked a lot of questions, and we love it. Here are the ones that come up most often. If yours isn't here, just get in touch and we'll give you a straight answer.
Insurance
Do I need income protection insurance if I already have ACC?
ACC is fantastic, but it only covers accidents -- not illness. And the reality is that most working-age New Zealanders are far more likely to be off work due to something like cancer, a heart condition, or burnout than a workplace injury. Income protection fills that gap by covering you when illness keeps you from earning. For most people, ACC and income protection work together rather than replacing each other.
What's the difference between life insurance, trauma insurance, and income protection?
They cover different situations. Life insurance pays a lump sum to your family if you die. Trauma insurance pays you a lump sum if you're diagnosed with a serious illness like cancer or a heart attack, while you're still alive, when you need funds most. Income protection replaces a portion of your income if you can't work due to illness or injury. Most people benefit from some combination of all three, depending on their situation.
How much does insurance cost?
It varies quite a bit depending on your age, health history, job, and how much cover you want. What we can tell you is that the cost of not having cover is almost always higher. The best way to get a realistic picture is to have a free chat with one of our advisers, we'll walk you through what's available and what it would actually cost for you, with no pressure to proceed.
Can self-employed people get income protection insurance?
Yes, and it's arguably more important for self-employed people than anyone else. If you're employed, you might have sick leave or an employer to fall back on. If you're running your own business, there's no safety net unless you've built one. Income protection for the self-employed can be structured around your actual drawings or business income, so it reflects what you'd genuinely lose if you couldn't work.
Will EFS help me if I need to make a claim?
Absolutely! This is one of the most important things we do. Making an insurance claim can be a stressful and confusing process, especially when you're already going through something difficult. We advocate on your behalf, help you understand what you're entitled to, and work with the insurer to make sure your claim is handled properly. You won't be doing it alone.
Why do my insurance premiums go up every year?
Most insurance policies in New Zealand are 'age-stepped', which means the premium increases each year as you get older, because statistically, the older you are, the more likely you are to make a claim. Some policies have different structures that can reduce or smooth out those increases. If your premiums are climbing and you're not sure whether your policy still makes sense, it's worth getting a review, we do these for free.
KiwiSaver
How do I know which KiwiSaver fund is right for me?
The right fund depends on how long you have until you plan to use the money, and how you'd feel if your balance dropped significantly in the short term. Someone in their 30s saving for retirement is in a very different position to someone hoping to use their KiwiSaver to buy a first home in three years. A KiwiSaver adviser can look at your situation and help you land on a fund that suits your timeline and your temperament, not just a generic recommendation.
What is the KiwiSaver member tax credit and how do I get it?
The member tax credit (officially called the Government Contribution) is essentially free money from the government, up to $260.72 per year, added to your KiwiSaver account. It works as a 25 cent top-up for every dollar you personally contribute, up to a maximum of $1,042.86 between 1 July and 30 June each year. You don't need to apply, your KiwiSaver provider does it automatically after 30 June, and the funds usually land in your account by late July or August.
If you're not contributing enough through your wages to hit the $1,042.86, you can make a voluntary top-up directly to your provider before 30 June. Even partial contributions get a proportional match, so every dollar counts. It's one of the simplest ways to boost your retirement savings and a lot of people miss out simply because they don't know about it.
Can I withdraw my KiwiSaver early?
There are a few situations where early withdrawal is possible: buying your first home, experiencing significant financial hardship, a serious illness or disability, moving overseas permanently, or if your life expectancy is significantly reduced. Each of these has specific criteria, and not all providers handle the process the same way. If you think you might qualify, it's worth talking to an adviser before applying, we can help you understand whether you're eligible and what to expect.
I'm self-employed, do I still need to contribute to KiwiSaver?
If you're self-employed, KiwiSaver contributions aren't automatic, you have to make them voluntarily. That means it's easy to let it slide, and many self-employed Kiwis find they've significantly under-saved by the time retirement comes around. The good news is you can contribute any amount, any time, and you'll still qualify for the government's member tax credit as long as you put in the minimum each year. Getting a plan in place early makes a big difference.
ACC
What is ACC CoverPlus Extra and is it worth it?
ACC CoverPlus Extra (CPX) is an optional product for self-employed people and shareholder-employees that lets you agree your weekly compensation amount upfront, rather than having ACC work it out from your tax returns after an accident. That means faster, more predictable payments if you're injured, and for many people, lower levies too. Whether it's worth it depends on your income, your business structure, and how you've set things up. It's one of the things we look at closely when we work with self-employed clients.
Does ACC cover me if I can't work due to illness?
No, ACC only covers accidents, not illness. If you're off work because of cancer, a heart condition, a mental health crisis, or any other medical reason that isn't the result of an accident, ACC won't pay out. This is exactly why income protection insurance matters, particularly for self-employed people who don't have an employer's sick leave to fall back on.
Can I reduce my ACC levies as a self-employed person?
Potentially, yes. ACC CoverPlus Extra allows you to set your compensation level, and if you choose a level lower than your actual income, your levy reduces accordingly. This needs to be done carefully, because setting it too low could leave you underinsured if you have an accident. The right approach is to look at ACC alongside any income protection cover you have, so the two work together to give you proper protection without overpaying.
Wills & Estate Planning
Do I really need a will?
If you have a partner, children, property, or any assets you care about, then yes, a will matters. Without one, the law decides how your estate is distributed, and it may not reflect what you actually wanted. It can also create significant stress and cost for the people you leave behind at an already difficult time. The good news is that getting a will sorted doesn't have to be complicated or expensive.
How does EFS help with wills and estate planning?
We're financial advisers, not lawyers, so we don't write wills ourselves. What we do is make it easy for you to get one sorted by connecting you with trusted, affordable providers. We work with SimpleWills for straightforward online wills, and offer discounted referrals to Footprint Wills for more complex situations. If you're not sure which is right for you, just ask, we'll point you in the right direction.
Working with EFS
Is EFS advice independent?
Yes. EFS is a FMA-licensed Financial Advice Provider (FSP635869), and we work across multiple insurers and providers rather than being tied to any one of them. That means when we make a recommendation, it's because we genuinely think it's the best fit for your situation, not because of any commercial arrangement with a particular company. We're required by law to act in your best interests, and it's also just how we work.
How do I get started with EFS?
The easiest way is to book a free, no-obligation chat with one of our advisers. We'll ask a few questions about your situation, explain what we think could help, and give you a clear picture of your options. There's no pressure to do anything on the spot, we're here to help you make a good decision, not a fast one.
