30.
Key terms
and/or losses of the business (and/or associated entities) are divided between the life assured and any co-owners, partners, shareholders or beneficiaries of the business (and/or associated entities); and b) Any other remuneration, whether in the form of salary or wages, superannuation, director’s fees,
actively involved
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 trading
Undertaking any activity carried on for the production of income from selling goods or performing services.
allowances or any other monetary or nonmonetary
benefit term
The term for which the life assured is insured for the Disability Income Protection Benefit as stated in the schedule .
benefit, the life assured receives or is entitled to receive directly or indirectly from his or her employment or the business. The current year’s taxation liability excludes any tax losses which have been brought forward from previous years. For the purposes of this definition, the life assured is deemed to be in business rather than employment if he or she derives income (either realised or unrealised) from a company or other legal entity, and he or she has effective control, either directly or indirectly (e.g. through a trust, partnership or other legal structure) of more than 25% of the shares or ownership in that company or other legal entity. His or her income will be assessed in accordance with the amounts referred to in both (a) and (b) above.
benefit payment period
The maximum term for which the Disability Income Protection Benefit is payable as stated in the schedule .
For benefit payment periods of one, two or five years:
a) the benefit payment period commences at the end of the waiting period and ceases either one year, 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 one year, 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.
mental health disorder
A mental health disorder including but not limited to anxiety disorders,
chronic fatigue syndrome, depression, stress, fatigue,
disablement date
The date the life assured became totally disabled or partially disabled.
exhaustion, psychiatric complications of physical disorders, behavioural or any other mental or functional nervous disorder and/or the treatment or complications of that disorder. In the opinion of Sovereign, the life assured cannot and is unlikely to ever be able to perform again, at least two of the five Activities of Daily Living below without assistance from another person because of the effects of an illness or injury which caused the life assured’s disability (if the life assured can perform the activity on his or her own by using special equipment, then Sovereign will treat the life assured as being able to perform that activity).
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 . Any income that the life assured receives or is entitled to receive from his or her current or former employment or business/es. This includes: a) Life assured’s share of profits of the business (and/or any associated entities), after the deduction of business expenses, which are determined in line with the usual manner that profits
permanently disabled
income
807 TCP-DI version 13 Effective 12 May 2026
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