1. What are your Start-Up Income Protection policy benefits? Your Sovereign Start-Up Income Protection policy can provide financial assistance in the event of total disability . Details of the Start-Up Income Protection Benefit (benefit) and the name of the life assured are shown in the schedule . The terms of your benefit are also contained in this policy. Provided your claim is accepted, Sovereign Assurance Company Limited (Sovereign) will pay the benefit to the policy owner.
3. What amount will Sovereign pay for a benefit? of the sum assured shown in the schedule . In addition, Sovereign will also pay any premiums due under this policy while a benefit is being paid. The amount that Sovereign will pay monthly is 1/12 th
4. What does totally disabled mean?
In Sovereign’s opinion, after considering the advice of a Registered Medical Practitioner and other relevant information, the life assured for the benefit is so seriously incapacitated by illness or injury that they are: > unable to follow the occupation or carry on the business they were involved in immediately before the disablement date for more than 10 hours per week; or > unable to perform the key income producing duties of the role they were involved in immediately before the disablement date for more than 10 hours per week; and > in each case, not in fact working, or engaged in any other business for reward, financial or otherwise.
Your policy commences from the risk commencement date .
To qualify for a benefit the life assured must be:
an owner of the business ; and
>
actively involved in their business on the risk commencement date ; and
>
> residing and working in New Zealand at all times during the policy term . In addition, the life assured’s business must be operating at all times during the policy term . At three years after risk commencement date , the provisions of Section 6 will apply.
5. What is the Recurrent Disablement Benefit?
The waiting period will be waived if in Sovereign’s opinion, after considering the advice of a Registered Medical Practitioner and other relevant information, the life assured becomes totally disabled again and this is caused by the same or a related illness or injury as the original period of total disablement, not later than 12 months after benefit payments related to the original claim ceased. The provisions in Sections 2, 3 and 4 will apply to any benefit claimed. All claims resulting from the same or a related disability will be considered to be the same claim in respect of the benefit payment period . 6. What happens when you have had your policy for three years? On the third anniversary of your risk commencement date , Sovereign will require you to provide financial accounts for your business (if you have not already done so) in order for the agreed value basis of your cover to continue. If you provide financial accounts, the provisions of your policy (including section 3) will continue to apply but Sovereign may change your sum assured based on your financial information. If you do not provide financial accounts, the provisions of your policy will continue to apply except that section 3 will be replaced by:
2. When will Sovereign pay a benefit?
Sovereign will pay a benefit if, in Sovereign’s opinion, at any time during the policy term , the life assured has become totally disabled and remains so for a continuous period greater than the waiting period .
In addition, the life assured must be:
> residing and operating their business in New Zealand immediately before becoming totally disabled ; and > actively involved in their business immediately before becoming totally disabled . The benefit is paid monthly in advance from the end of the waiting period until the life assured, in Sovereign’s opinion, ceases to be totally disabled , or until the occurrence of any one or more of the events set out in Section 11. 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 at the end of the expected recovery period corresponding with the lump sum payment, then Sovereign will reopen the claim and pay a benefit in accordance with the provisions of this policy.
The amount that Sovereign will pay monthly is the lesser of:
1/12 th of the sum assured shown in the schedule less offsets as described below; or
>
420 Start-Up IP version 7 Effective 06 March 2017
Page 2 of 8
Powered by FlippingBook