1 PERSONAL INSURANCE SIMPLY THE ESSENTIALS TotalCareMax Essential Disability Income Protection
2 SOMETHING TO THINK ABOUT While your health may suffer a setback, your finances and lifestyle shouldn t have to. If illness or injury leave you unable to work, income protection helps to protect you and your family from the financial impact. WHAT IS ESSENTIAL DISABILITY INCOME PROTECTION? Essential Disability Income Protection provides a monthly income should you be disabled (as a result of suffering one of 41 defined critical health conditions) and unable to work for more than 10 hours a week. It s ideal for individuals whose occupations prevent them from purchasing Disability Income Protection, or for those who seek a lower-cost option. WHAT DOES IT OFFER ME? > Indemnity: The sum you are insured for is linked to your income rather than an agreed amount. The maximum benefit you can apply for is 75% of your gross income. However, the benefit can not exceed 75% of pre-disability income at the time of claim. The amount paid under the benefit may be reduced by ACC and other insurance benefits you are entitled to receive, and any income you earn. > Benefit payment periods: Either five years, or to age 65. > Waiting period: The benefit is payable after a waiting period of eight weeks after you become disabled. > Waiver of waiting period: Should you suffer a recurrence of the same disability within six months of your benefit ceasing, the waiting period will be waived and benefit payments will restart immediately. > Partial Disability Income: This benefit provides for additional income if, owing to the disability continuing, you are unable to earn at least 75% of pre-disability income; have been totally disabled for a period of at least two weeks and return to work at a reduced level. > Worldwide Coverage: The cover provides 24-hour protection anywhere in the world. > Children's Benefit: Without any additional cost, should any child of yours (by birth or adoption) aged between three and 18 suffer sickness or injury (under specified circumstances) they will automatically be protected for up to $500 per month each, or 50% of the Essential Disability Income Protection benefit, whichever is less. > Waiver of Premium: Can remove the burden of paying premiums when you are unable to work due to total disability, saving you money when you need it most. Depending on your financial situation, you can choose from a range of waiting periods before your premiums are waived.
3 WHY TOTALCAREMAX ESSENTIAL DISABILITY INCOME PROTECTION? Essential Disability Income Protection covers 41 critical health events. Essential Disability Income Protection is designed to pay a benefit when you are disabled as a direct result of suffering or undergoing any one of the following serious conditions listed in the table below: ESSENTIAL DISABILITY INCOME PROTECTION CONDITIONS Alzheimer s disease and dementia Angioplasty three vessels or more Aplastic anaemia Cancer > Malignant tumours > Carcinoma-in-situ surgery > Prostate cancer surgery Chronic liver failure Chronic lung disease Chronic renal failure Creutzfeldt-Jakob disease Heart attack HIV Loss of functionality > Loss of independent existence > Permanent blindness > Permanent loss of speech > Permanent loss of hearing > Permanent loss of limbs Major burns Major cardiovascular disease > Aortic surgery > Cardiomyopathy > Coronary artery bypass surgery > Heart valve surgery > Out-of-hospital cardiac arrest > Pulmonary hypertension Major neurological disease (other than stroke) > Benign brain tumour > Coma > Encephalitis > Idiopathic Parkinson s disease > Intensive care > Major head trauma > Meningitis > Motor neurone disease > Multiple sclerosis > Muscular dystrophy > Peripheral neuropathy Major transplant surgery Paralysis > Diplegia > Hemiplegia > Paraplegia > Quadriplegia Stroke
4 THE FACTS^ OPTIONAL ADD-ON BENEFITS At the time of the last census 20% of New Zealanders lived with a disability 1 Every year, about 8,000 people in New Zealand have strokes (22 people per day). 2 You can choose to extend your Essential Disability Income Protection cover with the following options Disability Survey, Statistics New Zealand, The Stroke Foundation of New Zealand, 2010 ^ most up-to-date statistics, as at the time of printing Retirement Protection Benefit: Helps you to continue making KiwiSaver contributions while you are on total disability claim. It pays an agreed amount directly to Inland Revenue which enables you to continue receiving the member tax credits. Specialist and Diagnostic Testing: Gives you the freedom to select the best specialist available and helps you avoid a long wait for essential treatment. This benefit is designed to pay for your specialist consultations, such as oncologist and cardiologist consultations, as well as diagnostic procedures such as MRI and CT scans. It covers up to $3,000 per life assured, per policy year. It also gives you access to Best Doctors providing you with leading medical advice from around the world. Find out more at
5 FOR SAFEGUARDING YOUR INCOME
6 SOVEREIGN.CO.NZ Sovereign House 74 Taharoto Road, Takapuna, Auckland 0622 Private Bag Sovereign, Victoria Street West, Auckland 1142 Telephone: Fax PROTECTING WHAT MATTERS MOST WHY SOVEREIGN? Our passion for service excellence coupled with our proven financial strength makes Sovereign New Zealand s leading life insurer. In times of uncertainty, it s good to know who you can trust. Sovereign has an A.M. Best financial strength rating of A+ (Superior)*, and year on year we pay out more claims than any other New Zealand life insurance provider. As a values-based company, we believe in putting people first. That means not only our customers but also our staff and the wider community. We re building a sustainable long-term business, to ensure we re there for our customers today, and for generations to come. So, no matter how life changes, you can depend on Sovereign * Given by A.M. Best Inc., an approved insurance rating agency. A copy of the scale, of which this rating forms part of, is available from Sovereign. OTHER THINGS YOU SHOULD KNOW The availability of insurance cover is subject to your application being approved. All applications are subject to individual consideration. Special conditions, exclusions and premium loadings may apply. This insurance is underwritten by Sovereign Assurance Company Limited ( Sovereign ). For full details of the products and benefits offered by Sovereign, please refer to the policy document(s) which are available from Sovereign. Sovereign, the policy insurer, is part of the Commonwealth Bank of Australia Group and is a related company of ASB Bank Limited and its subsidiaries ( the Banking Group ). None of the Banking Group, the Commonwealth Bank of Australia, any of their directors, or any other person, guarantees Sovereign or its subsidiaries, or any of the products issued by Sovereign or its subsidiaries. The information contained in this publication is general in nature and is not intended as advice. It may not be relevant to individual circumstances and before making any insurance decision, you should consult a professional adviser. Copies of our disclosure statements are available on request, free of charge.