> unable to:
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.
- 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
5.
What is the amount of the Partial Disability Income Benefit?
The amount that Sovereign will pay monthly is the greater of calculation (i) or (ii) below, up to a maximum of 1/12 th of the benefit amount shown in the schedule :
> not working or engaged in any other occupation or business.
(1/12 th of the benefit amount shown in the schedule ) less offsets shown below; or
For occupation class five:
( pre-disability income less offsets shown below) x 75%
In Sovereign’s opinion, the life assured is:
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
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 income will be based on the life assured’s income immediately before the life assured went on leave, as set out in Section 30 “Key Terms” .
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.
Offsets:
> Any other income replacement or mortgage protection benefits that any person receives or is entitled to receive from any sources in relation to the life assured and in respect of the same or a related disability (for example payments from ACC or another insurer), with the following provisions: – Where the life assured is covered by income replacement or mortgage protection benefits held with more than one provider, Sovereign will negotiate with the other provider(s) to determine the amount to be offset. Sovereign will not seek to apply offsets under this sub-clause in respect of income replacement or mortgage 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.
4.
When will Sovereign pay a Partial Disability Income Benefit?
If the life assured has been totally disabled or partially disabled a Partial Disability Income Benefit may apply. The following conditions must be satisfied:
> the reduction in earning capacity results from the continuation of the disability; and
> because of the reduction in earning capacity, the life assured earns less than 75% of their pre-disability income ; and
> 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; and > where a lump sum payment has been made in lieu of monthly benefit payments as set out in Section 1, the benefit period to which the lump sum corresponds 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 earning at least 75% of their pre-disability income, or until the end of the benefit payment period , whichever is the earlier.
– Benefits payable under a Sovereign Key Person Disability Income policy will not be offset.
– If the life assured is entitled to receive a benefit from ACC but is not receiving that benefit because the life assured has either not applied for the benefit, or has not provided all of the requirements necessary to assess the benefit, or the benefit has been stopped due to any non-compliance with ACC requirements, Sovereign will offset the full ACC entitlement regardless of whether the life assured is receiving a payment or not. > Any income before income tax, as a result of the life assured being actively involved in or actively carrying on business, other than passive income such as investment income, rental income or income earned by the business which cannot be attributed to the active involvement of the life assured.
819 TCP-LOE version 9 Effective 12 May 2026
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