6.
Repatriation Benefit
EXAMPLE 1:
Original benefit = $100,000 Original benefit x 5 = $500,000 Cover available after the use of this Facility cannot exceed $500,000 Total increase under this Facility cannot exceed $400,000
If the life assured dies, Sovereign will reimburse you for the costs of returning the life assured's body to New Zealand or their home country upon receipt of evidence acceptable to Sovereign. If the life assured is the sole policy owner, Sovereign will reimburse the person that has paid for the costs of repatriation upon receipt of evidence acceptable to Sovereign. The maximum amount of the Repatriation Benefit across all Sovereign policies and AIA New Zealand policies for that life assured is the lower of:
EXAMPLE 2:
Original benefit = $2,500,000 Original benefit x 5 = $12,500,000 Cover available after the use of this Facility cannot exceed $10,000,000 Total increase under this Facility cannot exceed $7,500,000 The Optional Business Safeguard Facility cannot be exercised within six months of the risk commencement date .
The Life Cover Benefit; or
$25,000.
The Repatriation Benefit will be treated as an early payment of the Life Cover Benefit. The Life Cover Benefit will then be reduced by the amount paid.
In any 12 month period you can make only two increases under this Facility.
7.
Premium Conversion Facility
You must make the request within three months of the relevant business event.
You may at any time:
To apply for the increase in cover, you need to write to Sovereign to satisfy us that the value of the life assured’s financial interest is at least equal to the requested increase to the amount of cover. You must include: − A valuation of the business or valuation of the life assured to the business (as provided by an independent qualified accountant or business valuer); and/or
Convert all or part of your Life Cover Benefit from the premium shown in the schedule to a Level premium structure. The Life Cover Benefit under your policy will be reduced by the sum assured amount converted; or Convert a Level premium Term to a further Level premium Term, of which duration may be the same or less than current Level premium Term. Sovereign will not require you or the life assured to produce further medical evidence at the time of conversion. The terms and conditions of the new policy will be those which are then offered by us to the general public. Premiums will be calculated on the current age of the life assured . Any special terms, exclusions or premium loading that applied to your existing Life Cover Benefit will apply to your new Life Cover Benefit.
− Evidence of the loan guarantee, and any other contractual or financial evidence we may request.
Any increase is subject to approval by Sovereign.
The method chosen to value the business or life assured must be in accordance with established business valuation practice for the industry. The independent qualified accountant or business valuer cannot be a family member, business partner, employee or employer of you or the life assured. The method of valuation and valuer must be satisfactory to Sovereign. In the first six months following an increase, the life assured will only be covered for the amount of the increase if the life assured’s death occurs as a direct and sole result of an accident . You cannot apply for an increase under this Facility if at any time the life assured has made, or was entitled to make, a claim under the Life Cover Benefit.
8.
Optional Business Safeguard Facility
The Optional Business Safeguard Facility applies only if shown in the schedule .
On each occasion that the financial interests of a life assured in the business increases, or their loan guarantee increases, or their value to the business increases, you may write to Sovereign asking us to increase the Life Cover Benefit for that life assured without the need to provide medical evidence, subject to the following conditions: The Life Cover Benefit for a life assured under this policy after the use of this Facility cannot exceed the lesser of five times the original Life Cover Benefit or $10,000,000.
Each Optional Business Safeguard Facility increase will require an increase in premium . This increase will be
calculated on the rates applicable at the time the Optional Business Safeguard Facility is used.
851 TCB-LIFE version 8 Effective 12 May 2026
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