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,
820 TCP-MIP version 8 Effective 12 May 2026
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