PROTECTION PERSONAL. Live your life, while we protect your future. A quick guide for looking after you and yours.

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1 PROTECTION PERSONAL Live your life, while we protect your future A quick guide for looking after you and yours.

2 Personal Cover Protecting your financial wellbeing Recognise the risks There are five key areas of risk that everybody needs to think about: 1. Health problems requiring hospitalisation. 2. Being unable to work for several weeks or months. 3. Suffering a trauma (illness or accident). 4. Being unable to work ever again. 5. Premature death. Key Benefits At AIA New Zealand we offer the following benefits: Special Events Increase If you have AIA New Zealand Life Cover, Trauma Cover or Total and Permanent Disability Cover, you can easily increase your cover without any underwriting for the following special events: marriage or civil union; divorce or legal separation; birth; adoption; taking full-time care of a dependent; tertiary education of a child; salary increase for a career change; taking out or increasing a mortgage. Funeral Benefit Financial Planning Benefit The Financial Planning Benefit can help your family access professional financial advice when you need it most.

3 Personal Cover Summary of Risks The first risk Risk management for hospitalisation Health insurance is designed to complement New Zealand s public health system, by paying for surgery and treatment in private hospitals. People with health insurance can avoid waiting lists. They get to decide when, where and how they get treated, which means that sickness will have less impact on their financial security. The second risk Risk management for being unable to work An accident, illness or temporary disability at some time during your working life is a very real possibility. After an agreed waiting time, Income Protection Cover pays you an income either until you are well or until your benefit period is reached. The third risk Risk management for trauma A trauma is a serious illness or disability, such as critical cancer, heart attack or paralysis. Statistics tell us that two in five people (40%) will experience a critical illness before age Trauma Cover pays a lump sum when specific conditions, as specified in the policy wording, are diagnosed. The sum can help you and your family to get through a difficult time. The fourth risk Risk management for never working again Statistics tell us that for every death in our country, 17 people will become disabled to the point where they can t work 2. When working life comes to a premature stop, financial responsibilities continue. Total Permanent Disability Cover is designed to pay a lump sum if you are permanently disabled due to illness or accident. The money can be used to eliminate debt or replace income. The fifth risk Risk management for premature death In New Zealand, one in six men and one in nine women over 30 will die between the ages of 30 and While it s easy to say that won t be me, denying the possibility of premature death could threaten your family s future security. Life Cover pays out if you die prematurely. It also gives you the option of 50% payment if you are diagnosed as terminally ill. The lump-sum payment can repay debt or be invested to provide ongoing income. References: 1. Gen Re, Australia BERL Disablement Research, National Health Statistics Centre. 3. Statistics New Zealand (2004), New Zealand Life Tables

4 Personal Cover Case Studies Insuring against the five risks Insurance pays for $60,000 heart scare At age 42, Greg discovered he had high blood pressure during a routine health check. His GP sent him to a cardiologist for tests and advice. Greg started taking daily medication and made some lifestyle adjustments, but eight months later started to experience angina pains in his chest. His cardiologist sent him for an angiogram (a test that shows blood flow through the heart arteries), which revealed that his best hope for a long life was coronary bypass surgery. Over a period of 12 months, Greg s specialist and surgery bills totalled more than $60,000. Fortunately he had health insurance, which covered the full cost less a $500 excess. The first risk Long illness made easier with income protection 58-year-old Dave was rushed to hospital with severe chest pain. He had angioplasty (surgery that restores normal blood flow through a clogged artery), but continued to have ongoing pain despite his treatment. Normally, Dave could have expected to be back at work within weeks following his surgery, but his recovery was not as quick as he d hoped. Ten months following his first hospitalisation, he was still unwell with unforseen complications and unlikely to be able to return to his construction job in the near future. While all this was going on, Dave s income protection insurance helped to cover mortgage payments and living expenses for his family. Lump sum helps cancer survivor After a doctor s examination, 31-year-old Marie was told she had haemorrhoids. She was referred to a specialist. The specialist performed a sigmoidoscopy and discovered what he believed was a rectal carcinoma, a form of bowel cancer. Marie had more tests, which confirmed the specialist s diagnosis. After an initial major surgery, Marie had several follow-up surgeries over a period of 12 months. Her trauma benefit paid a lump sum that enabled her to reduce her liabilities and pay for alternative therapies that aided recovery. The second risk The third risk Permanently disabled but financially secure 53-year-old Robbie was on his way to work when a commercial van pulled out in front of him. The ensuing collision gave Robbie a fractured tibia requiring external fixation; he also suffered several fractured ribs. Robbie developed a chronic compartment syndrome in the lower portion of his damaged leg. After three surgeries he was left with a significant permanent disability and an ongoing need for medical care. He was unable to return to his teaching job. The fourth risk Because he had an own occupation total permanent disability policy, he was able to make a claim which provided him with the funds to help plan for his future. Mum leaves family secure A 29-year-old mum with two children under 10, Lisa could only afford trauma cover and life cover. As it turned out, she made a wise choice because a year later she was diagnosed with breast cancer and had to have a double mastectomy. While Lisa was able to claim on her trauma cover, tragically the cancer returned and brought with it a terminal diagnosis. By claiming the terminal illness benefit of her life cover, Lisa was able enjoy her final months with her family without the pressure of financial worries and even took them to Disneyland. She died at age 32 knowing their future was financially secure. The fifth risk

5 Our Lifestyle Check can help you achieve your goals We are all familiar with the concept of maintaining physical health, but how often do you think about your long-term financial health? Similar to a medical check-up our Lifestyle Check aims to identify your current financial strengths and weaknesses. It will you and your Insurance Adviser to make good decisions about risk management solutions to best meet your needs. To find out more about the Lifestyle Check

6 About AIA New Zealand AIA New Zealand is the trading name of American International Assurance Company (Bermuda) Limited. Since the company arrived in New Zealand in 1981, we ve consistently provided the market with innovative personal and business insurance products that suit the Kiwi way of life. Today we offer a complete range of risk management products that focus on the needs of our customers. AIA New Zealand is based in Auckland with regional offices in Wellington, Hamilton and Christchurch. However, through our Insurance Adviser network, we reach every corner of the country. AIA New Zealand is a member of the Investment Savings and Insurance Association (ISI), the Insurance and Savings Ombudsman Scheme (ISO) and the Health Funds Association of New Zealand (HFANZ). About the AIA Group The AIA Group is a leading pan-asian life insurance organisation with a unique heritage of serving the world s most dynamic region for 90 years. It provides consumers and businesses with products and services for life insurance, retirement planning, accident and health insurance as well as wealth management solutions. Through an extensive network of 250,000 agents and 20,000 employees across 15 geographical markets, the AIA Group serves over 20 million customers in the region. The AIA Group has branch offices, subsidiaries and affiliates located in jurisdictions including Australia, Brunei, China, Hong Kong, India, Indonesia, Macau, Malaysia, New Zealand, Singapore, South Korea, Taiwan, Thailand and Vietnam. Subject to regulatory approvals, AIG intends to incorporate the Philam Group of Companies, based in the Philippines, into the AIA Group. Disclaimer This insurance brochure has been designed to provide general information only and should not be regarded as a full explanation of the contract or as a substitute for obtaining professional advice related to your individual circumstances. Please refer to the terms and conditions of the relevant policy document for full details of the contract and the limitations and exclusions that apply. AIAMK CD5543-V8-08/09 American International Assurance Company (Bermuda) Limited, trading as AIA New Zealand.