The consultation and/or counselling must be paid for within 12 months following Sovereign paying the Total Permanent Disablement Benefit claim; and
requested increase to the amount of cover. You must include: − a valuation of the business or valuation of the life assured to the business (as provided by an independent qualified accountant or business valuer); and/or − evidence of the loan guarantee, and any other contractual or financial evidence we may request.
Sovereign must be provided with a receipt for the consultation and/or counselling being claimed.
The $2,500 is payable once per life assured per policy. This is in addition to the sum assured.
Any increase is subject to approval by Sovereign.
12. Optional Business Safeguard Facility
The method chosen to value the business or life assured must be in accordance with established business valuation practice for the industry. The independent qualified accountant or business valuer cannot be a family member, business partner, employee or employer of you or the life assured. The method of valuation and valuer must be satisfactory to Sovereign. In the first six months following an increase, the life assured will only be covered for the amount of the increase if the life assured’s death occurs as a direct and sole result of an accident . You cannot apply for an increase under this Facility if at any time the life assured has made, or was entitled to make, a claim under your Life Cover Benefit or Total Permanent Disablement Benefit.
The Optional Business Safeguard Facility applies only if shown in the schedule and if you have selected an accelerated Total Permanent Disablement Benefit. On each occasion that the life assured’s financial interest in the business increases, or their loan guarantee increases, or their value to the business increases you may write to Sovereign asking us to increase the accelerated Total Permanent Disablement Benefit for that life assured without the need to provide medical evidence, subject to the following conditions: The Total Permanent Disablement Benefit for a life assured under this policy after the use of this Facility cannot exceed the lesser of five times the original Total Permanent Disablement Benefit or $5 million. Example 1: Original benefit = $100,000 Original benefit x 5 = $500,000 Cover available after the use of this Facility cannot exceed $500,000 Total increase under this Facility cannot exceed $400,000 Example 2: Original benefit = $1,500,000 Original benefit x 5 = $7,500,000 Cover available after the use of this Facility cannot exceed $5,000,000 Total increase under this Facility cannot exceed $3,500,000 The Total Permanent Disablement Benefit for a life assured under this policy after the use of this Facility cannot exceed the Life Cover Benefit for that life assured.
Each Optional Business Safeguard Facility increase will require an increase in premium . This increase will be
calculated on the rates applicable at the time the Optional Business Safeguard Facility is used.
13. Waiver of Total Permanent Disablement Waiting Period
Sovereign will at its discretion waive the three month waiting period when assessing a Total Permanent Disablement Benefit claim if: In Sovereign’s opinion, the life assured has met all other requirements for payment of a Total Permanent Disablement Benefit; and
Sovereign expects the life assured to survive beyond three months after the incapacity began.
In exercising this discretion, Sovereign will consider whether the medical condition of the life assured enables an assessment to be made immediately in respect of whether the life assured has met all other requirements for payment of a Total Permanent Disablement Benefit. Sovereign will not waive the three month waiting period if, in our opinion, after considering suitable medical evidence, we believe that the life assured may die within three months after the incapacity began. A decision not to waive the three month waiting period will not affect our consideration of a Total Permanent Disablement Benefit claim for the life assured if the life assured survives for three months after the incapacity began.
After the use of this Facility, the Total Permanent
Disablement Benefit for a life assured under this policy plus any other Total Permanent Disablement cover held on the life assured with any provider cannot exceed $5 million.
In any 12 month period you can make only two increases under this Facility.
You must make the request within three months of the relevant business event.
To apply for the increase in cover, you need to write to Sovereign to satisfy us that the value of the life assured’s financial interest is at least equal to the
862 TCB-TPD version 9 Effective 12 May 2026
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