- Entry age is from age 16 to 59.
- The cover ceases at age 65.
Level of cover
- The maximum monthly benefit is $20,000, subject to financial and medical underwriting.
- Waiting periods of 2 weeks, 4 weeks, 8 weeks, 13 weeks, 26 weeks, 52 weeks or 104 weeks.
- Payable fortnightly, monthly, half-yearly or yearly.
- Premiums are fixed for one year at a time and will normally increase annually in line with age.
- This cover is suitable for small businesses and partnerships with less than five people in the business.
- Business Expenses Cover offers you cover for approved expenses incurred in running your business.
- The benefit is paid monthly after the waiting period.
- 50% of the first month’s benefit is paid in advance
- Thereafter the benefit is paid monthly in arrears.
- For the first year of claim 100% of approved expenses are covered up to the insured monthly benefit.
- If you are still disabled after the first 12 months you will be paid 50% of approved expenses for the next 12 months up to the insured monthly benefit.
- You can choose to have your cover increase – to a maximum of $20,000 cover – in line with the Consumer Price Index, regardless of health, to ensure your benefit keeps pace with inflation. We will advise you of the level of indexation each year.
- You will be paid the premiums on your policy while a disability claim is being paid.
- This benefit expires at age 65.
- Accounting and audit fees
- Advertising costs
- Bank charges
- Business-related insurance premiums excluding premiums for this policy
- Depreciation of equipment/plant
- Electricity, gas, heating, water, telephone, cleaning and laundry costs, postage and handling
- Employment of a locum
- Leasing costs of plant and equipment
- Motor vehicle costs
- Property rates and taxes
- Publications and subscriptions to professional associations
- Rent and the interest component of any mortgage or loan payments relating to the business.
- Salaries and other related costs (e.g. payroll tax, superannuation contributions, FBT) for non-income generating employees of the insured person’s business.
- Such other fixed expenses incurred in the day to day running of the insured person’s business.
- Salaries and other related costs (eg tax, superannuation, FBT) for the insured person or his or her replacement and income generating employees of the business.
- Salaries and other related costs for any of the insured person’s relatives unless that relative was employed for at least 60 consecutive days prior to the insured person’s disability.
- Commissions or bonuses payable to the insured person.
- Costs of a capital nature including the cost of any books, equipment, fittings, fixtures, furniture, goods, implements, merchandise or stock.
- Depreciation on real estate.
- Expenses that are recoverable, reimbursable or indemnifiable from internal or external sources.
- Losses on investments.
- Repayments of principal of any loan or other finance agreement.
- Taxes levied by the Inland Revenue Department.
Waiver of premium
Shared expenses are apportioned based on your earned income as a proportion of the total earned income of all those people who are sharing expenses.
Prepaid or accrued business expenses will be apportioned over the period to which they relate.