A story about why ACC is screwed

This is a true story, it is about a mate who sadly was killed just one month ago. Only the names have been changed.

My mate Steve was killed last month in a freak accident. His head was crushed in an accident on an industrial property. Luckily another good friend of mine had counseled Steve when he had children to take out life insurance. The insurance company was a great help to his family and now his house mortgage is paid off and his wife and family receive a payout from the insurance company as well. She is doing well considering the tragic circumstances of his death.

Now this is where it gets real interesting. As the family were coming to grips with Steve’s detah and after having their financial worries taken care of by some sensible advice to take out an insurance policy when Steve had a child, they got an added bonus. They didn’t seek out this added bonus. ACC actually sought them out.

You see ACC is now paying 80% of Steve’s earnings from last year to his daughter until the day she turns 18. She is not even 2 years old now. I don’t know the exact figures but my mate who originally advised Steve to take out his insurance in the first place says that even just sticking the money in the bank and allowing for annual adjustments for inflation Steve’s daughter stands to have an account just short of a million dollars on the day she turns 18. All paid for by you and me via ACC.

Steve wife’s expectation was that she was adequately taken care off by the sensible precautions of her now deceased husband. To now have the added bonus, and there is no other description for it that fits, is almost like winning Lotto when your husband has tragically lost his life.

If this isn’t a story about how screwed ACC is then I don’t know what is?