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TOTALCAREMAX PERSONAL
OPTIONAL BENEFIT APPENDIX
Mortgage and Income Protection Benefit
This appendix only applies if cover under the schedule includes the Mortgage and Income Protection Benefit. This appendix forms part of and is incorporated into your TotalCare Max policy, the terms of which apply to this appendix . This is a Mortgage and Income Protection Benefit. Details of the benefit and the names of the people insured for the benefit (called the life or lives assured) are shown in the schedule .
1. When will Sovereign pay a Total Disability Income Benefit? Sovereign will pay a Total Disability Income Benefit if in Sovereign’s opinion, at any time during the benefit term , the life assured: has been totally disabled or partially disabled during the waiting period ; and
received. Sovereign will not seek to apply offsets under this clause in respect of mortgage or income protection benefits held with other providers which were accurately disclosed in your application, and provided that your or the life assured’s circumstances have not changed.
3.
What does totally disabled mean?
The definition of totally disabled that applies for a life assured depends on the life assured’s occupation class. The occupation class for each life assured is shown in the schedule . However, if a life assured has been on leave without pay for more than 12 months or was unemployed for three months or more immediately before becoming totally disabled , that life assured is automatically classed as occupation class five. For each occupation class, the degree of incapacity which constitutes total disablement is as follows:
is totally disabled at the end of the waiting period.
We will pay you the monthly benefit less offsets monthly in advance from the end of the waiting period until the earliest of:
the life assured is no longer totally disabled, or
the benefit term ends, or
the cover ends.
Any payment for a period of less than one month is calculated on a pro-rata basis.
For occupation classes other than occupation class five:
In Sovereign’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
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, Sovereign 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 or partially disabled at the end of the expected recovery period corresponding with the lump sum payment, then Sovereign will reopen the claim and pay either the Total Disability Income Benefit or a Partial Disability Income Benefit in accordance with this appendix .
unable to:
– perform at least one important income producing duty of the role they were involved in immediately before the disablement date and is not working in that role; or – engage in the occupation they were involved in immediately before the disablement date for more than 10 hours per week; and not working or engaged in any other occupation or business.
2.
What amount will Sovereign pay for a Total Disability Income Benefit?
For occupation class five:
In Sovereign’s opinion, the life assured is:
The amount that Sovereign will pay monthly is 1/12 th of the benefit amount shown in the schedule less offsets shown below.
disabled to such an extent that necessitates confinement to the home under medical supervision or to a recognised medical institution and necessitates receiving regular medical care, or
Offsets:
as a result of sickness or injury, he or she is unable to perform at least two of the activities of daily living without the assistance of an adult; and not working in any gainful occupation or engaged in voluntary work.
Any mortgage or income protection benefits that you or your mortgage provider receive or are entitled to receive in relation to the life assured and in respect of the same or a related disability. This excludes Accident Compensation Corporation (ACC) benefits received or entitled to be
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For example :
4.
When will Sovereign pay a Partial Disability Income Benefit?
pre-disability working hours
37.5 hours
If the life assured has been totally disabled or partially disabled then a Partial Disability Income Benefit may apply. The following conditions must be satisfied: the reduction in work capacity results from the continuation of the disability; and because of the reduction in work capacity, the life assured is working less than 75% of pre-disability working hours ; and
post-disability working hours
15 hours
Benefit amount shown in the schedule
$72,000 per annum ($6,000 per month)
Offsets
Nil in this example
the waiting period is over; and
the life assured is in an occupation class other than occupation class five at the time of becoming totally disabled or partially disabled ; and if applicable, the period in respect of which a Total Disability Income Benefit has been paid in advance has expired. The Partial Disability Income Benefit will be paid monthly in arrears until, in Sovereign’s opinion, after considering the advice of a registered medical practitioner and other relevant information, the disability is no longer preventing the life assured from working at least 75% of their pre-disability working hours , or until the end of the benefit payment period , whichever is the earlier. A Partial Disability Bridging Benefit (as set out in Section 6) will also be paid if you have been receiving a Total Disability Income Benefit under this appendix before you commence receiving a Partial Disability Income Benefit.
Calculation:
1/12 th x $72,000 x (37.5 – 15) 37.5 = $6,000 x 0.6
= $3,600 per month ($43,200 per annum)
6.
What is the Partial Disability Bridging Benefit and when will Sovereign pay it?
Sovereign will pay you a Partial Disability Bridging Benefit if:
you have been receiving a Total Disability Income Benefit under this appendix ; and
the life assured is no longer totally disabled ; and
based on the information provided to, and requested by Sovereign, we reasonably expect that a Partial Disability Income Benefit (as set out in Section 4) will be payable for that life assured for the first month after the life assured ceased to be totally disabled. The Partial Disability Bridging Benefit is a lump-sum payment equivalent to 1/3 rd (33.3%) of the final monthly Total Disability Income Benefit paid before the life assured ceased to be totally disabled. The Partial Disability Bridging Benefit is paid at the end of the final month in respect of which a Total Disability Income Benefit was paid for the life assured. Payment of the Partial Disability Bridging Benefit does not affect the amount of the Partial Disability Income Benefit (as set out in Section 5). The Partial Disability Bridging Benefit is payable once for all claims resulting from the same or a related injury or illness. The Partial Disability Bridging Benefit is not payable where a lump sum payment has been made in lieu of monthly benefit payments, as set out in Section 1.
5.
What is the amount of the Partial Disability Income Benefit?
The amount that Sovereign will pay monthly is calculated in the following way:
1/12 th of the benefit amount shown in the schedule ×
( pre-disability working hours – post-disability working hours ) pre-disability working hours
less offsets shown below.
If the life assured was on parental leave for 12 months or less or on a work sabbatical when the life assured became totally disabled , then pre-disability working hours will be based on the working hours immediately before the life assured went on leave, as set out in Section 27 “Key Terms” .
Offsets:
Any mortgage or income protection benefits that you or your mortgage provider receive or are entitled to receive in relation to the life assured and in relation to the same or a related disability. This excludes ACC benefits received or entitled to be received. Sovereign will not seek to apply offsets under this clause in respect of mortgage or income protection benefits held with other providers which were accurately disclosed in your application, and provided that your or the life assured’s circumstances have not changed.
7.
What is the Recurrent Disablement Benefit?
The waiting period will be waived if not later than 12 months after the benefit payments related to the original claim ceased, the life assured becomes disabled again and, in Sovereign’s opinion, after considering the advice of a registered medical practitioner and other relevant information,
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this is caused by the same or a related illness or injury as the original period of total disablement or partial disablement. The provisions of Sections 1, 2, 3, 4 and 5 of this appendix will apply to any benefit claimed. If the benefit payment period is two or five years, all claims resulting from the same or a related illness or injury will be considered to be the same claim in respect of the benefit payment period .
Any benefit which Sovereign may agree to pay is to be reduced by any programme costs you or the life assured recover or are entitled to recover from any other source.
10. What is the Home Modification or
Equipment Expenses Benefit and when will Sovereign pay it? Sovereign may agree to pay you an additional lump sum payment of up to 12 times the monthly benefit amount calculated in Section 2. This payment is to cover the cost of buying specialised equipment or completing home alterations that, because of the life assured’s total disablement, have become necessary, in Sovereign’s opinion after considering the recommendation of an occupational therapist or an appropriate specialist approved by Sovereign. You must apply in writing to Sovereign before incurring these costs. Any benefit that Sovereign may agree to pay for the specialised equipment or home alterations will be reduced by any costs of buying specialised equipment or completing home alterations you or the life assured recover, or are entitled to recover from any other source. 11. What is the Property Special Event Facility? The Mortgage and Income Protection Benefit sum assured for the life assured may be increased if one of the following property special events has occurred for the life assured:
8.
Rehabilitation and Support
On receiving notification of a new or potential claim, we will appoint the life assured a Case Manager, who will work with the life assured to understand their personal situation and assist them with the claims process. They will work with the life assured to consider what rehabilitation or functional support could assist the life assured's return to work or improve their capacity to work, either during or after the waiting period as appropriate in the opinion of Sovereign. Acceptance of any costs associated with the agreed rehabilitation and functional support by Sovereign does not mean that we will accept liability for any other benefit under this appendix and are accepted at the sole discretion of Sovereign. 9. What is the Vocational Retraining Benefit and when will Sovereign pay it? Sovereign may agree to pay you a Vocational Retraining Benefit. The benefit payable will be the cost of a programme of vocational training for the life assured provided: the programme is approved in advance by Sovereign, and reviewed regularly; and the sole purpose for the programme is to assist the life assured to return to gainful employment at an earlier date than would otherwise have been possible; and the life assured actively participates and complies with the programme; and the cost of the programme is limited to the fee charged by the institution providing the programme and does not include the cost of text books, equipment and stationery, accommodation and transport costs; and the total amount which Sovereign will pay as a Vocational Retraining Benefit is limited to 12 times the monthly benefit amount as calculated in Section 2, except if the benefit payment period is two or five years, where the total amount is limited to 6 times the monthly benefit amount as calculated in Section 2; and vocational retraining must take place within New Zealand, or the country in which the life assured was residing for 6 months before becoming disabled; and the life assured is receiving the Total Disability Income Benefit when the programme begins.
an increase to an existing mortgage;
the purchase of a new home;
the purchase of a holiday home; or
the purchase of a bare block of land zoned as residential.
You do not need to produce any medical evidence regarding the life assured when you request this increase, but any property special event increase is subject to the following conditions: You must make the request in writing and provide Sovereign with suitable evidence of the occurrence of the property special event. You must make the request within 6 months of the relevant property special event occurring. The increase to the Mortgage and Income Protection Benefit sum assured for the life assured cannot exceed 115% of the increase in the mortgage repayment or $750 per month, whichever is the lower. The total maximum benefit amount payable for your Mortgage and Income Protection Benefit, including all increases, cannot exceed $6,000 per month across all Sovereign mortgage protection benefits. Sovereign may not accept an application or pay a claim on the increase under this Property Special Event Facility to increase cover for a life assured if you are entitled to or are receiving payment of a claim for a disability that the life assured suffered on or before the date of the application.
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After a property special events increase has been made, Sovereign will not pay the increased benefit amount if within six months of the increase, the life assured is entitled to or receives payment of a claim. A life assured over the age of 55 is not eligible for any Property Special Event Facility increases.
Cover for the life assured will be suspended from the date set out in Sovereign’s written acknowledgment. No premium will be payable during the period that the cover is suspended. No claim under this Mortgage and Income Protection Benefit appendix will be payable during, or for any disability that occurs during, the period that the cover is suspended. A claim may only be payable if the life assured first meets the criteria for an eligible claim under this policy after their cover is reinstated. Cover under this Mortgage and Income Protection Benefit appendix may be reinstated at the end of the suspension period in accordance with this Section without the need to provide further medical evidence, provided that the benefit has been suspended for no longer than 12 months. At the end of the suspension period, the benefit will be automatically reinstated for the life assured. Cover for the life assured will be reinstated from the date set out in Sovereign’s written acknowledgement. The premium payable for the reinstated benefit will be based on Sovereign’s premium rates at the time of the reinstatement. If the life assured becomes entitled to a Partial Disability Income Benefit within 12 months following the reinstatement of cover under this Mortgage and Income Protection Benefit appendix , then the amount of benefit payable will be calculated using Section 5 of this appendix , provided that the 12 month period used for calculating the life assured’s pre- disability income will be a combination of: the period from the date of reinstatement to the date of disablement ; and the period immediately prior to the commencement of the suspension event, that is needed to make up the balance of the 12 month period. 14. What is the Pregnancy Premium Waiver? Sovereign will waive the premium for this Mortgage and Income Protection Benefit for six consecutive months at any stage between the second trimester and six months after the life assured’s pregnancy finishes if the life assured becomes pregnant while this Mortgage and Income Protection Benefit is in force provided: the life assured provides Sovereign with a confirmation of pregnancy from an appropriate registered medical practitioner ; and the birth of the child occurs at least 12 months after: − the risk commencement date ; or − the most recent reinstatement of this Mortgage and Income Protection Benefit; and
Only one increase can occur every 3 years.
Sovereign will increase the Mortgage and Income Protection Benefit sum assured for a life assured from the date we accept your request. Any increase under the Property Special Event Facility will require an increase in premium . The premium increase will be based on Sovereign’s premium rates applicable at the time the Property Special Event Facility is exercised. Any loadings, exclusions or special terms on the original sum assured will be applied to the increased amount. 12. What is the Bed Confinement Benefit and when will Sovereign pay it? If, at any time during the waiting period , the life assured is confined to bed under full-time care for more than three days and is in an occupation class other than five, then Sovereign will pay a Bed Confinement Benefit for each complete 24 hour period after the first 72 hours of bed confinement. This benefit will be a daily benefit equivalent to 1/365 th of the benefit amount shown in the schedule , which you would be entitled to if the life assured was totally disabled and the waiting period was over. Sovereign will continue to pay the benefit until the waiting period is over, or until the life assured is no longer confined to bed under full-time care , whichever is the earlier. 13. When can you suspend cover and when will Sovereign reinstate cover? A life assured can suspend their cover under this Mortgage and Income Protection Benefit appendix for up to 12 months if they: go on parental leave;
go on leave without pay for any reason;
become unemployed or redundant;
experience at least a 20% reduction in pay (comparing the most recent payslip against a previous payslip from the same year); or if self-employed, experience a 30% reduction in revenue (by comparing one month’s revenue against the same month for the previous year),
provided that:
you notify Sovereign within three months of one of the above listed suspension events occurring and provide evidence to Sovereign of the suspension event; and
the life assured is on maternity leave .
You must notify Sovereign in writing when the premium is to be waived.
> Sovereign acknowledges in writing receipt of that notification.
This Pregnancy Premium Waiver will cease when six
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17.
What is the Waiting Period Reduction Benefit?
consecutive months premium have been waived.
15. What is the Return to Home Benefit?
If this Mortgage and Income Protection Benefit has a waiting period of 26, 52 or 104 weeks the life assured can reduce this waiting period , without providing any further medical evidence, if the life assured’s Business Overheads, Business Continuity, Rural Continuity or Locum Cover is cancelled due to the life assured no longer being actively involved in the business or the business is sold or the business is no longer actively trading . The waiting period for this Mortgage and Income Protection Benefit will reduce to align with the waiting period on the cancelled Benefit. The reduced waiting period on this Mortgage and Income Protection Benefit will apply to the lesser of: the monthly benefit for the Business Overheads, Business Continuity, Rural Continuity or Locum Cover at the time it was cancelled; or
If the life assured is outside of New Zealand and suffers, for the first time a total disability, upon acceptance of the claim we will pay the lesser of:
three times the monthly benefit specified in the schedule ; or
a single standard economy flight back to New Zealand for the life assured and one support person.
In total the maximum Sovereign will pay over the life of the Policy under the Return Home Benefit is $10,000. No payment will be made if the life assured is covered for the same event with a travel insurance provider.
16. What is the Childcare Support Benefit?
Sovereign will pay a Childcare Support Benefit in the following circumstances: the life assured is totally disabled or partially disabled and is receiving a monthly benefit; and as a direct result of the life assured’s total disability or partial disability, additional childcare costs are incurred over and above any childcare arrangements which existed prior to the life assured becoming totally disabled or partially disabled, in respect of any dependent child who is under the age of 14 years old; and the additional childcare services are not being provided by you or an immediate family member, in Sovereign’s sole opinion. The amount Sovereign will reimburse under the Childcare Support Benefit is the lesser of:
the monthly benefit for this Mortgage and Income Protection Benefit.
For example:
A life assured has the following:
Mortgage and Income Protection with a $2,500 per month benefit and a 52 week waiting period ; and Business Continuity with a $1,000 per month benefit with a 13 week waiting period . When Business Continuity is cancelled the Mortgage and Income Protection Benefit waiting period would be reduced to a: 13 week waiting period with a $1,000 per month benefit; and
52 week waiting period with a $1,500 per month benefit.
the actual additional childcare costs; or
The following conditions apply:
$800 per month per dependent child under the age of 14 years old.
Within 60 days of the cancellation of cover the life assured must notify Sovereign in writing with supporting evidence that the life assured is no longer actively involved in the business or the business has been sold or the business is no longer actively trading; the life assured must be no longer actively involved in the business due to reasons other than retirement, redundancy, ill health or incapacity;
This Childcare Support Benefit is payable until the earlier of:
the life assured no longer being totally disabled or partially disabled; or six monthly Childcare Support Benefit payments have been made; or
the end of the benefit payment period is reached; or
the life assured must be under the age of 60;
the end of the benefit term is reached.
if the life assured has had a claim paid or is entitled to be paid a claim under any policy with us or any other insurance company the request will be referred to a Sovereign underwriter and full underwriting terms and conditions may apply; the payment premiums must be up to date and are not being waived for any reason. If Sovereign agrees to reduce the waiting period , the following applies:
You will need to provide evidence satisfactory to Sovereign each month of the additional childcare fees that have been paid before Sovereign will make a payment under the Childcare Support Benefit.
This payment is in addition to the monthly benefit.
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premiums will increase with any reduction in waiting period ; only one reduction in waiting period under this benefit is allowed without evidence of health; any loadings, exclusions or special terms on the cancelled policy will be applied to the reduced waiting period benefit. 18. What is the Concurrent Waiting Period Benefit? If the life assured is disabled and able to receive a Mortgage and Income Protection Benefit under this policy, and they also hold a Business Overheads, Business Continuity, Rural Continuity or Locum Cover policy, then the waiting periods applicable to the life assured under each policy will be served concurrently from the disablement date . If during the waiting period under this policy, the life assured is able to claim the Recurrent Disablement Benefit under a Business Overheads, Business Continuity, Rural Continuity or Locum Cover policy, the portion of their waiting period for their Mortgage and Income Protection under this policy will be considered to have been continuous and only the remaining period will apply. 19. What is the Optional Claim Indexation Benefit? The Optional Claim Indexation Benefit applies only if “CPI Linked” is specified in the schedule . Where the Optional Claim Indexation Benefit is selected, the Mortgage and Income Protection Benefit sum assured shown in the schedule will increase on each anniversary date , by the same percentage as the percentage increase in the consumer price index for the preceding year ending 30 September. If the consumer price index falls in any year, the Mortgage and Income Protection Benefit sum assured will not decrease. Any increase as a result of an increase in the consumer price index will be subject to the maximum benefit amounts allowable under this benefit.
The Back to Work Payment is a lump-sum payment equivalent to 3 times the life assured’s monthly disability benefit for the last full month immediately before the claim ceased, as calculated in accordance with Section 2 for a total disability, and Section 5 and (if applicable) Section 6 for a partial disability. Sovereign will only pay the Back to Work Payment once per claim across all policies where AIA New Zealand Limited is the insurer, and it will not be paid where the benefit payment period is one or two years. If the life assured suffers a recurrence of the same or a related illness or injury within 12 months of a Total or Partial Disability Income Benefit ceasing, then any Back to Work Payment made in respect of that claim will be deducted from the amount of the Total or Partial Mortgage and Income Benefit payable. 21. What is the Optional Mental Health Limitation? The Optional Mental Health Limitation applies only if it is shown in the schedule and if no mental health exclusion applies for this appendix . If the Optional Mental Health Limitation applies, Sovereign will only pay a claim due to a mental health disorder for a maximum of two years throughout the life of this benefit. The Optional Mental Health Limitation payment period will commence if in Sovereign’s opinion, after considering the advice of a registered medical practitioner and other relevant information, the life assured is deemed to be totally disabled or partially disabled as a result of a mental health disorder .
22. How to make a claim
To make a claim, the relevant procedures in the section of your TotalCare Max policy entitled ‘How to make a claim’ must be followed. In addition, for a Mortgage and Income Protection Benefit claim, Sovereign will require: the life assured to be examined by a registered medical practitioner acceptable to Sovereign, before accepting liability for a claim; and a Sovereign claims form completed by the life assured and a registered medical practitioner (at your expense); and other information which Sovereign may reasonably request to help assess the claim, which may include evidence of monthly earnings, taxable income, business accounts, ACC details or similar; and the life assured to undergo medical and/or surgical treatment (including any operation or vocational, medical and/or social rehabilitation programme) at your expense which the life assured’s registered medical practitioner or a registered medical practitioner approved by Sovereign considers necessary; and any other information that Sovereign may deem relevant to the assessment of the claim (this may include evidence of the life assured’s mortgage amount).
20. What is the Back to Work Payment and when will Sovereign pay it?
Sovereign will pay you a Back to Work Payment if:
a Total or Partial Mortgage and Income Protection Benefit has been paid for a life assured for a continuous period of longer than 12 months but less than 24 months; and the life assured engages in work or carries on business; and the life assured is no longer totally disabled or partially disabled; and the life assured has ceased to be on claim with Sovereign.
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23. Ongoing claims requirements
The waiting period will be waived for the new claim.
If the benefit payment period is two or five years, the original claim and the new claim will be considered to be the same claim in respect of the benefit payment period .
For ongoing claims Sovereign will require:
Completion of a monthly medical certificate by a registered medical practitioner (at your expense) in a form from time to time approved by Sovereign for the purposes of determining ongoing entitlement to payment of a Mortgage and Income Protection Benefit. Completion of a monthly individual declaration by the life assured in a form from time to time approved by Sovereign, which may include completion of daily activity logs detailing the life assured’s functional activities for the purposes of determining ongoing entitlement to payment of a Mortgage and Income Protection Benefit. Proof of any remunerated or non-remunerated work completed during the claim period. Any other information that Sovereign may deem relevant to the ongoing assessment of the claim.
No monthly benefit payments will be payable retrospectively for any period of time before the date that the life assured subsequently complies with the relevant requirement(s).
25. When will this appendix terminate for a life assured? This appendix will terminate and eligibility for the Mortgage and Income Protection Benefit will cease for a life assured: At the expiry of the benefit term as shown in the schedule .
When the life assured dies.
When the benefit is cancelled.
26. Exclusions – when Sovereign won’t pay a benefit Sovereign will not pay any of the benefits listed in this appendix where any of the following directly or indirectly cause or contribute to the disability: The life assured deliberately injures himself or herself or attempts to do so. The life assured engages in or is part of any conduct that is criminal. 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 monthly benefit will be payable during the term of imprisonment.
24. When will Sovereign cease paying a benefit?
Sovereign will cease paying a benefit if:
(a) The life assured fails to undergo and complete:
any surgical operation; and/or
−
− any medical rehabilitation programme; and/or
any social rehabilitation programme; and/or
−
any vocational rehabilitation programme,
−
which a registered medical practitioner approved by Sovereign considers reasonably necessary.
(b) The life assured fails to undertake any medical examinations that Sovereign requires the life assured to have, at our expense. (c) The life assured fails to comply with the requirements of Section 23 above. (d) Sovereign determines that the life assured is no longer totally disabled or partially disabled. (e) The benefit payment period expires in relation to the life assured. (f) The life assured or anyone acting on behalf of the life assured makes a false or fraudulent statement in respect of a claim or supports any claim with false evidence.
(g) The life assured is in prison for any reason.
(h) The life assured dies.
If Sovereign ceases paying a benefit in accordance with paragraphs (a), (b) or (c) and the life assured subsequently complies with the relevant requirement(s), then: The date that the life assured complied with the relevant requirement(s) will, subject to the provisions of this appendix, be treated as the disablement date for a new claim.
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27. Key terms
post-disability working hours
The number of hours per week that the life assured is able to work while disabled, as determined by Sovereign on the basis of medical certification or demonstrated ability. The average number of hours per week that the life assured worked in the three months immediately prior to becoming totally disabled . However, if the life assured becomes totally disabled when the life assured has been on parental leave for 12 months or less or on a work sabbatical , then the pre-disability working hours is the average number of hours per week that the life assured worked in the three months immediately before the life assured went on leave.
Working an average of more than 30 hours per week in the six months prior to cancellation of Business Overheads, Business Continuity, Rural Continuity or Locum Cover.
actively involved
pre-disability working hours
Undertaking any activity carried on for the production of income from selling goods or performing services.
actively trading
The term for which the life assured is insured for the Mortgage and Income Protection Benefit as stated in the schedule . The maximum term for which the Mortgage and Income Protection Benefit is payable as stated in the schedule . For benefit payment periods of two or five years: (a) the benefit payment period commences at the end of the waiting period and ceases either two years or five years (whichever is stated in the schedule ) later or when the life assured turns 65, whichever is earlier; and (b) the two year or five year 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 a related illness or injury.
benefit term
benefit payment period
totally disabled / total disablement
See Section 3 of this appendix for the meanings of these key terms.
Unemployed
A person who is not engaged in remunerated work or business activities, for 10 hours or more a week. This definition does not include a person on leave without pay, parental, study, long service or sabbatical leave. The period stated as such in the schedule for which no Total Disability Income Benefit or Partial Disability Income Benefit is payable.
waiting period
The date the life assured became totally disabled .
disablement date
work sabbatical
Voluntary leave without pay, approved by the employer, and where the life assured has the
full-time care
Care for 16 hours per day or more, provided by a nursing service approved by Sovereign whose profession it is to provide nursing services or provided by a registered medical practitioner .
employer’s agreement to return to the same role within 12 months or less.
The 'Policy Owner' named in the schedule .
you/your
mental health disorder
A mental health disorder including but not limited to anxiety disorders,
chronic fatigue syndrome, depression, stress, fatigue,
exhaustion, psychiatric complications of physical disorders, behavioural or any other mental or functional nervous disorder and/or the treatment or complications of that disorder.
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