1113 AL-RED version 1 Effective 5 August 2019
AIA LIVING - PERSONAL OPTIONAL BENEFIT APPENDIX
Redundancy Benefit
This appendix only applies if cover under the schedule for your policy includes the Redundancy Benefit and if you have a current AIA Living Mortgage or Income Protection Benefit. This appendix forms part of and is incorporated into your AIA Living policy, the terms of which apply to this appendix.
This is a Redundancy Benefit. Details of the benefit and life/lives assured are shown in the schedule
1.
When will AIA pay a Redundancy Benefit?
28 days of the redundancy; or
If you or the life assured knew or ought to have known at the risk commencement date that the life assured could be made redundant.
AIA will pay a Redundancy Benefit if the life assured has become redundant . AIA will pay the Redundancy Benefit monthly in arrears to you, with the first payment made one month after the end of the waiting period. Subject to the other terms of this policy, the Redundancy Benefit will be paid until the earliest of the following: Six months after the date the Redundancy Benefit commenced; The life assured begins working again as a casual, part- time or full-time employee, a contractor or becomes self employed;
4.
When AIA may cease to pay a Redundancy Benefit
AIA may cease to pay a Redundancy Benefit:
If, while you are receiving a Redundancy Benefit , you do not provide any information requested by AIA within the time reasonably specified by AIA ; If, in AIA ’ s opinion, the life assured does not make reasonable efforts to obtain employment – this includes but is not limited to registering with a recruitment agency, WINZ or any equivalent government agency; or If the life assured leaves New Zealand for a continuous period of 28 days or more.
The life assured is 65 years old; or
The life assured dies. 2
2.
What amount will AIA pay for a Redundancy Benefit?
5.
How to make a claim
To make a claim, you must follow the relevant procedures in the section of your AIA Living policy entitled “How to make a claim ”. In addition, for a Redundancy Benefit claim, AIA will require evidence of:
The amount that AIA will pay monthly is:
The redundancy sum assured shown in the schedule ; minus Any other mortgage or income protection benefits that the life assured receives or is entitled to receive from any other sources in connection with the same
Redundancy ;
Income received by the life assured for the six weeks immediately prior to the redundancy;
redundancy , excluding any unemployment benefit paid by Work and Income New Zealand (WINZ) or equivalent.
The life assured ‘s continuing unemployment;
3.
Exclusions – When AIA will not pay a redundancy benefit
Any earnings received by the life assured during the claim period; Any work completed by the life assured during the claim period (e.g. remunerated or non-remunerated); and
AIA will not pay any benefit under this appendix :
If the life assured is made redundant within six months following the risk commencement date; If the life assured was not an earner for the six months immediately prior to the life assured’s redundancy; While the life assured is completing a sentence of imprisonment or home detention; If the life assured is made redundant whilst outside of New Zealand and does not return to New Zealand within
Income received by the life assured from all other sources.
1113 AL-RED version 1 Effective 5 August 2019
6. Key Terms
earner
A person who is employed for financial reward in a permanent position for an average of at least 20 hours per week.
redundant or redundancy
A situation where an employer ends the life assured’ s employment wholly or mainly because the position filled by the life assured has become surplus to the needs of the employer (including where the employer is going into liquidation). Redundancy does not include a situation where the life assured voluntarily elects redundancy or where the employer is owned or controlled by you, the life assured , or a close relative of yours or the life assured .
unemployment
A person who is not engaged in remunerated work or business activities, for 10 hours or more a week.
waiting period
The waiting period will commence on the date the life assured’ s redundancy takes effect.
The waiting period will be the greater of the following:
Four weeks; or
The number of weeks (up to a maximum of 13 weeks) for which any redundancy payment(s) from the life assured’ s employer could reasonably provide income. Such period is calculated as follows: the total after tax amount of any redundancy payment(s) from the life assured’s employer to the life assured in respect of the relevant redundancy ; divided by the life assured’ s average weekly income, net of tax for the six weeks immediately prior to the date that the relevant redundancy took effect.
1113 AL-RED version 1 Effective 5 August 2019
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