AIA Living Income Protection There are three options available to choose from, Agreed Value, Indemnity or Loss of Earnings. Each option varies slightly with regards to the proportion of your income that can be insured and how the monthly benefit payment is calculated at claims time: • Agreed Value Cover – benefit payments are based on an amount agreed at the time the cover is taken out. This provides you certainty about the amount of monthly claim benefit payments in the event of a claim. • Indemnity Cover – benefit payments are based on a proportion of your income at the time you make a claim. • Loss of Earnings Cover – this option allows you to choose how your benefit payments are calculated at the time you make a claim. This can be either agreed value or indemnity, whichever is higher. This option provides flexibility if your income fluctuates. Your monthly benefit payment is reduced (or offset) by the amount of any other income replacement or mortgage protection benefits that you are entitled to receive, as well as any income you receive from being actively involved in a business and sick leave payments.
AIA Living Mortgage, Income or Rent Cover
Replace a portion of your income, or help meet your mortgage or rental payments, if you are unable to work due to illness or injury. With Mortgage, Income or Rent Cover, there are two ways your monthly benefit amount can be calculated – simply choose the one that’s right for your situation. 1. Up to 115% of your contractual mortgage repayments or rental obligations on your residential property; or 2. 45% of your gross income. The monthly benefit payment is reduced by any mortgage or income protection benefits that you or your mortgage provider receive or are entitled to receive in respect of the same or a related disability. How can ACC affect my Income Protection or Mortgage, Income or Rent Cover benefit payments If you are receiving or entitled to receive ACC payments and have taken out Income Protection, the amount you receive from ACC will be deducted from your payment amount (known as ACC offsets). If you have Mortgage, Income or Rent Cover, the amount you are receiving or entitled to receive from ACC or Work and Income New Zealand (WINZ) will be offset from benefit payments amounts above $7,500 per month, calculated across all AIA mortgage type products. If you hold multiple Income Protection policies, speak to your adviser to understand how offsets apply at claim time.
Income Protection Insurance
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