overheads
relation to the business:
9. Exclusions – When Sovereign won’t pay a benefit Sovereign will not pay a benefit under this appendix for any period before being notified of a claim for this benefit. Sovereign will not pay a benefit under this appendix where any of the following directly or indirectly cause or contribute to the life assured being totally disabled :
Rent of business premises.
Interest on business loans.
The gross amount of salaries and related costs for employees who are totally unable to earn income for the business while the life assured is totally disabled .
The life assured deliberately injures himself or herself or attempts to do so.
Insurance premiums.
The life assured engages in or is part of any conduct that is criminal.
Cost of obtaining normal business services such as electricity, gas, water, telephone, laundry, cleaning and maintenance.
Pregnancy of, or childbirth by, the life assured, unless the disability lasts for more than 90 days after the end of pregnancy, in which case the waiting period will start from the 91 st day. The life assured does not comply with the treatment recommended by the attending treatment providers. If the life assured is imprisoned for any reason, no benefit will be payable under this appendix during the term of imprisonment.
Accounting and audit fees, advertising expenses and professional subscriptions.
Equipment or motor vehicle lease costs (of an expense nature).
Depreciation of business equipment.
Any other fixed expenses that are normal and customary in the conduct of that particular business .
10. Key terms
actively involved
Working an average of more than 30 hours per week in the six months prior to the disablement date , inclusive of any periods of approved leave.
But do no include:
Salary, fees or any other amounts paid or payable from the business to:
–
the life assured; or
–
any person engaged to replace the life assured or any member of the life assured’s family unless that person or member was employed in the business for at least 30 days immediately before the disablement date .
benefit term
The term for which the life assured is insured for the Business Overheads Benefit as stated in the schedule .
benefit payment
The maximum term for which the
period
Business Overheads Benefit is payable as stated in the schedule . The benefit payment period commences at the end of the waiting period and ceases either 12 or 24 months (whichever is stated in the schedule ) later or when the life assured reaches the end of the benefit term , whichever is the earlier. The 12 or 24 month period (whichever is stated in the schedule ) is the total period for which benefits will be payable for all claims arising from the same or related illness or injury.
The repayment of any mortgage or loan principal.
Any costs or expenses of a capital nature (including the cost of equipment, fittings, fixtures, furniture and vehicles).
The costs of any trading goods or other stock.
totally disabled / total disablement
See Section 3 of the appendix for the
meanings of these key terms.
waiting period
The period stated as such in the schedule For which no Business Overheads Benefit is payable.
business
The business of the ‘Policy Owner’ named in the schedule .
you/your
The “Policy Owner” named on the schedule.
disablement date
The date the life assured became totally disabled .
eligible business
The following expenses incurred in
857 TCB-BCBOV version 4 Effective 21 May 2019
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