Why recommend Zurich s income replacement policies?

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1 Why recommend Zurich s income replacement policies? Zurich Life Risk D100% ISABLEMENT DEFINITION GENUINE THREE-TIERED

2 The leading income protection policy keeps getting better! Our income replacement policy has long been recognised for its winning combination of comprehensive coverage, flexibility and competitive pricing. But if you stand still in today s market you get left behind. That s why Zurich remains committed to continuous, customer focused innovation, ensuring you can always offer your clients the highest quality cover and outstanding value for money. We call it the Zurich difference, and with it, you can really put your business in the express lane to success. 1

3 The Zurich Difference Authentic three-tiered disablement definition makes it easier for your client to claim a benefit Not all disablement definitions are equal. Our genuine three-tiered disablement definition means more ways for your client to qualify for a benefit, and more flexibility around returning to work without jeopardising benefits. It s the ultimate protection for maximum peace of mind. 3 cover levels (standard, comprehensive, and premier) for more flexibility Our three cover levels make it easier to tailor cover to your clients unique needs and budgets (from blue collar to high-earning professionals). Day one partial benefits so your client can claim even if not totally disabled (comprehensive and premier cover only) Unlike policies which require your client to be totally disabled before partial benefits can be paid, Zurich recognises that your client may only ever be partially disabled and yet still have their income reduced. Twice monthly claim payments are better for your client s cash flow Claims are paid twice monthly, not monthly, which is much better for your client s cash flow, and stress levels. For clients with a 30 day wait, they can start to receive payments after 45 days rather than 60. Simplified business expense option in the same policy Simplified business expense protection is now offered as an option within our income replacement policy (rather than as a standalone policy). It is easier to apply for and easier to claim against PLUS the sum insured counts towards the large sum insured discounts available. A bigger choice of benefit periods including Age 70 Zurich recognises that many of your clients are choosing to work beyond 65, and our Age 70 benefit period option means many can do so, depending on their occupation, with the peace of mind that their income is still protected. More generous offset provisions for white collar and professional occupations We have an improved offsets approach for A1, A1(M) and A2 occupations so that workers compensation and other similar benefits are not offset against claim payments (provided the maximum amount received does not exceed 100% of pre-disability income). Generous and comprehensive graduate offer Zurich recognises the unique circumstances faced by young professionals who are just establishing themselves in their chosen career. With one of the most generous and wide ranging graduate offers in the market, Zurich makes it even easier for graduates to get quality cover with minimum fuss. 2

4 Zurich Income Replacement is the ideal solution to your client s concerns Continually improving limits We are constantly reviewing our medical and financial limits along with maximum case sizes to ensure they remain as competitive as possible. Check with your Zurich risk specialist BDM for the most up-to-date limits. Zurich makes the perfect top-up cover Zurich is the perfect top up cover for those employees with some sort of salary continuance through their employer. Zurich allows policy owners who leave such an employer to reduce the waiting period on their standalone top-up policy without underwriting (subject to qualification criteria). Tailored super structuring By linking or relating two income policies (one agreed value and one indemnity) owned by external trustees, you can optimise the balance between the breadth of cover and access to benefits. Future insurability option can be exercised annually Makes it easier for businesses and professionals experiencing rapid income growth to ensure they have the right level of cover. Temporary cover reduction feature Allows clients on maternity/paternity leave to reduce cover for up to two years and then reinstate without medical underwriting. SCENARIO 1 My client can do all of their duties, but only some of the time Unlike policies with a strict duties based definition, our loss of income definition means your client would be eligible for a benefit based on the loss of income resulting from their disablement. SCENARIO 2 My client has become only partially disabled, but their income has still suffered Unlike policies which won t pay partial benefits until the client has been totally disabled first, Zurich recognises that your client may only ever be partially disabled and yet their income still suffers. Depending on the level of cover selected, the policy can pay a partial benefit from day one, which we believe is fairer and gives your clients extra peace of mind. SCENARIO 3 My client wants to spend a few hours a week to keep their business ticking over but is worried about jeopardising their claim The three-tiered definition means a benefit is definitely paid if your client can t perform their important income producing duties for any more than 10 hours per week, but can also be paid if they work more than 10 hours but have still suffered a loss of income. The combination of 10 hour, duties and loss of income definitions gives your clients the ultimate in protection, flexibility, and peace of mind. SCENARIO 4 My client is concerned about the effect of passive income on their benefit One of the concerns often raised about a loss of income policy is the effect passive income may have on benefit entitlements. In fact, passive income won t reduce benefits at all. Zurich s income replacement policies only look at the ability to generate income through personal exertion. This means that to be insurable and assessable income must be actively generated as a result of the life insured s personal services. 3

5 Three-tiered definition of disablement; the gold standard in income protection Your client deserves the ultimate peace of mind. Zurich led the way when it introduced the three-tiered definition of disablement several years ago, and it still represents the gold standard in income protection today. With this definition, offered across all levels of Zurich Income Replacement cover, your client will automatically be assessed against three measures of disablement at claim time: loss of income one duty 10 hours We will then use whichever definition gives the best result for the claimant. Regardless of the definition applied, your client can earn up to 10% of their pre-disability income for up to three months and still be eligible for benefits. Three-tiered definition in action Waiting period Loss of income* Pre-disability income has reduced by 20 per cent or more due to sickness or injury OR One duty Become unable to perform one or more income earning duties due to sickness or injury OR 10 hours Become unable to perform income earning duties for more than 10 hours per week. Benefit period Benefits are paid until client is able to return to full pre-disability income position. *Please note that for loss of income the 20 per cent impact is only during the waiting period. Once benefits commence there is no minimum income reduction requirement. If client works for 10 hours or less per week, full benefits are payable. 4

6 Download our free LifeXpress Mobile app today Enjoy the convenience of true quotes on-the-go functionality, plus BMI calculators, blood pressure tables and other handy field underwriting tools. For iphone and ipad For Android Other resources Adviser guide ZU20263 Zurich Income Replacement ZU20250 Zurich Wealth Protection PDS ZU11611 Guide to Zurich Wealth Protection products ZU12601 Facts about Zurich Claims ZU11727 Important information This publication is dated 1 March 2013 and is of a general nature and does not take into account any personal objectives, situation or needs. This information is a summary for financial advisers only and there are relevant exclusions and conditions that you should consider before making a decision or recommendation about the product. You should refer to the Zurich Wealth Protection Product Disclosure Statement (PDS) dated 1 March 2013 for further information or to apply for any products in the PDS. Zurich Australia Limited ABN , AFSLN and Zurich Australian Superannuation Pty Limited ABN AFSLN are issuers of Zurich Wealth Protection. To find out more, contact your Zurich risk specialist BDM on or visit zurich.com.au/life SWIN ZU20006 v5 03/13 Zurich Australia Limited ABN , AFSLN Blue Street North Sydney NSW 2060 Zurich Service Centre Client Enquiries: