Key facts

Ages

• Entry age is from age 17 to age 59.
• The policy ceases at age 65 or at age 70.

Level of cover

• The maximum monthly benefit is $20,000, subject to financial and medical underwriting.

Premiums

• 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.
• Our current understanding is that for Indemnity Value policies, premiums are tax-deductible and benefits are assessable as income. For Agreed Value policies, premiums are non-deductible and benefits are not assessable as income.

Two variations of cover

Indemnity Value – up to 75% of your gross annual income can be insured if you select this benefit.

• If you are disabled we will pay the monthly benefit until the period of disablement ends, the benefit period expires, you reach age 65, or you die. We do not pay a monthly benefit during the waiting period.
• For the first 6 months (less the waiting period) of any claim, the benefit will be based on the specified monthly benefit less other income.
• The monthly benefit applied for must be substantiated at either application time or claim time.
• In calculating the amount of benefit, other income replacement benefits being received (such as ACC) may reduce this amount
• After 6 months, the amount of the benefit will be the lesser of the specified monthly benefit or 75% of your pre-disability earnings at the time of the claim.

Agreed Value – up to 62.5% of your total gross annual income if it is no greater than $70,000; up to 60% if it is between $70,001 and $99,999; or up to 55% if it is $100,000 or more; (averaged over the last three years for self-employed persons), can be insured if you select this benefit.

• We will pay the monthly benefit until the period of disablement ends, the benefit period expires, when you reach age 65, or you die.
• We do not a pay monthly benefit during the wait period.
• Proof of income must be provided at application time.

Standard features

Partial advance payment – We will pay 50% of the first month’s monthly benefit after the end of the wait period. Any advance payment will be deducted from the first month’s monthly benefit. Thereafter the monthly benefit will be paid in arrears. Conditions apply.
Benefit payment period – When you take out this policy you can decide the maximum period of any claim payment. The shorter the benefit period, the lower your premium will be. The available benefit periods are: 2 years, 5 years, to age 65.
Waiting period – You can also select the period for which you are prepared to self-insure. The longer the waiting period, the lower your premium will be. We offer seven waiting periods: 2 weeks, 4 weeks, 8 weeks, 13 weeks, 26 weeks, 52 weeks and 104 weeks.
Partial disability benefit – Where you have been totally disabled for at least 14 continuous days, and subsequently can work part-time but with a reduction in earnings, a partial benefit may be payable.
Family member support benefit – If you are confined to bed, this provides financial support for immediate family members who provide care and whose own income ceases as a result. It will replace the family member’s foregone income, with a maximum of half of the monthly benefit (limit $3,000 per month) for three months.
Hospitalisation/nursing care benefit – This provides additional financial support for bed care during the waiting period for up to 90 days.
Rehabilitation benefit – This is payable in addition to the monthly benefit, if you undertake an approved rehabilitation programme for the purpose of retraining or re-education. The maximum is 50% of the monthly benefit for up to 12 months.
Recovery support benefit – This is payable in addition to the monthly benefit, to assist in recovery and rehabilitation costs such as buying a wheelchair, prosthetic devices, and house and car modifications. The maximum benefit payable is six times the monthly benefit.
Waiver of premium benefit – Premiums due under the benefit are waived during a claim and also during the waiting period.
Death benefit – A lump sum of three times the monthly benefit is payable if you die while on claim.
Recurring claim benefit – The waiting period is waived on claims which result from a relapse or recurrence of the same or related illnesses within 12 months of returning to work.
Waiver of waiting period – The waiting period of a new unrelated claim is waived in certain circumstances.
Unemployment benefit – Benefits can still be paid even though you are unemployed, though the definition of disability changes.
Specific injury benefit – A benefit for listed specific injuries, payable whether you are working or not.
Claims escalation benefit – While on claim, your benefit will be linked to the Consumer Price Index (CPI) and adjusted every quarter.
Relocation benefit – This covers the cost of economy airfare back to New Zealand if disabled whilst overseas (maximum $5,000).
Future Insurability – This option allows you to increase the monthly benefit by up to 10% without further medical evidence. Financial evidence will be required. This option is available every three years.
Replacement benefit – If you are self-employed at claim time you may choose to employ a replacement and claim the cost of that person (up to a maximum of $5,000 per month) rather than receive the disablement benefit. This enables your business to continue uninterrupted.

Optional benefits

Inflation-proofing – To ensure your benefit keeps pace with inflation, you can choose to have your cover increase each year in line with the Consumer Price Index, regardless of health. Each year we will advise the level of indexation, which you can choose to accept or decline. There is no limit on the number of times you decline this option. If you accept the indexation offer, premiums will be increased to reflect any adjustment.
Back/Stress limitation – If you limit the benefit period for a mental disorder or back claim to 2 years, you will qualify for a premium reduction of up to 20%.
Extended benefit – Income Protection benefits normally cease at age 65. However by adding this option to your plan, your benefits will continue if you have been disabled for at least three months prior to your 65th birthday and you are unable to perform two or more activities of daily living.
Booster benefit – This option increases your benefit by one third during the first three months of your claim when the costs associated with your disability are often higher.