1. What are your Start-Up Income Protection policy benefits? Your AIA Start-Up Income Protection policy can provide financial assistance in the event of total disability . Details of the benefit and the name of the life assured are shown in the schedule . The terms of your benefit are also contained in this policy. Provided your claim is accepted, AIA will pay the benefit to the policy owner . Your policy commences from the risk commencement date . To qualify for a benefit the life assured must be: > an owner of the business ; and > actively involved in their business on the risk commencement date ; and > residing and working in New Zealand at all times during the policy term . In addition, the life assured’s business must be operating at all times during the policy term . At three years after risk commencement date , the provisions of Section 8 will apply. 2. Enhancement Pass Back Benefit If at any time in the future, we make a change to a section and/or provision within a section of our AIA Start-Up Income Protection policy and the change is favourable to you, the enhanced section and/or provision will automatically be applied (passed back) to this policy, subject to the following: > At claim time AIA will compare the enhanced section and/or provision in the latest version of AIA Start-Up Income Protection with this policy and will apply the section and/or provision that is most favourable to you. AIA will not apply changes to sections and/or provisions set out in earlier versions of AIA Start-Up Income Protection which are not included in the latest version. > The enhanced section and/or provision will only be applied to this policy if it relates to a benefit for which you have cover under this policy. > The enhanced section and/or provision will be ‘applied’ to this policy with effect from the pass back date . > The enhanced section and/or provision will only apply if the claim event first occurs on or after the pass back date . Eligibility criteria for individual benefits will still apply. > If the claim event first occurred before the pass back date , then the claim will not be assessed or reassessed using the new wording. > Any underwriting exclusions or special terms that apply to this policy will not be altered by any enhanced section and/or provision. > Any associated increase in premium required will be applied when your premiums are next reviewed.
> Enhancements will not be passed back to built-in benefit sections and/or provisions that have subsequently become optional benefits within our AIA Start-Up Income Protection policy or no longer exist. For the avoidance of doubt, where the definition of a provision or provisions is enhanced under this benefit, the enhancement will only be applied in respect of that provision or the provisions you are making a claim for. If the nature of the change to a section and/or provision means that it cannot be determined at the time of submitting a claim whether the change will be clearly favourable to you or not, you will need to elect whether or not the change will apply to the claim. After you have made the election, this election cannot be changed. 3. When will AIA pay a benefit? AIA will pay a benefit if, in AIA’s opinion, at any time during the policy term , the life assured has become totally disabled and remains so for a continuous period greater than the waiting period . In addition, the life assured must be: > residing and operating their business in New Zealand immediately before becoming totally disabled ; and > actively involved in their business immediately before becoming totally disabled . The benefit is paid monthly in advance from the end of the waiting period until the life assured , in AIA’s opinion, ceases to be totally disabled , or until the occurrence of any one or more of the events set out in Section 13. Where the life assured has a waiting period of 8 weeks or less, is totally disabled due to injury and the nature of the injury is such that the life assured is expected to recover within a set period of time, AIA may choose to make a lump sum payment of up to 3 monthly benefit payments (after the waiting period and any offsets have been taken into account) and close the claim. This payment may be made during the waiting period . If the life assured is still totally disabled at the end of the expected recovery period corresponding with the lump sum payment, then AIA will reopen the claim and pay a benefit in accordance with the provisions of this policy. 4. What amount will AIA pay for a benefit? The amount that AIA will pay monthly is 1/12 th of the sum assured shown in the schedule . In addition, AIA will also pay any premiums due under this policy while a benefit is being paid. 5. What does totally disabled mean? In AIA’s opinion, the life assured is totally disabled, if as a direct result of sickness or injury, he or she is: > under the regular and personal care of a registered medical practitioner ; and
1180 A-SU IP version 3 Effective 23 July 2021
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