Critical Illness Insurance

Quick Key

Eligible Ages
Minimum age: 16
Maximum age:55

Eligible Occupations
All

Cover Options
Level or CPl linked

Term of Cover
Renewable to age 100

Benefit Period
This is a once-only lump-sum payment.

Get a quote now.

Do you know anyone who has suffered a stroke, heart attack or cancer?

A Critical Illness Insurance Benefit pays a lump sum in the event of you suffering one of number of major medical conditions. See Jim's case study below.

It is also known as living or trauma insurance and is payable on diagnosis.

Did you know

Did you know that 2 out of 5 of us will suffer a critical illness before reaching the age of 65? However 80% of people who suffer a critical illness will survive to age 65.*
*NZ Life Tables 90-92 Public Hospital and Selected Morbidity Data, 1994.

• at 25 you have a 1 in 3 chance of disability lasting 3mths + before 65
• for every mortgagee sale due to death there are 16 for disability
• for every person killed, 10 are injured yet 5 out of 6 long term disabilities are due to sickness.

This benefit is designed to pay a lump sum in the event of you suffering one of the following critical conditions.

Critical Illness Insurance Conditions*

• Cancer
• Heart attack
• Coronary artery bypass surgery
• Stroke

Built In Features

Provides a lump sum benefit of up to $300,000.

Critical Illness Insurance can be included in an Sovereign Essentials plan as an early payment of the life cover in the event of you suffering or undergoing any one of the above list of critical conditions.
When a Critical Illness Insurance benefit is paid, the Life Insurance benefit for that life assured will decrease by the same amount. A comprehensive definition of each critical illness can be found in the policy document.

* Please note that special conditions apply, see the policy document.

To qualify for the Critical Illness Insurance benefit, the Life Insured must, in addition to being found to have one of the Critical Illness Insurance conditions, meet all of the criteria detailed in the policy document.

Sovereign will only make one payment for a Critical Illness Insurance benefit for each life assured.

Exclusions

Sovereign will not pay any benefit where the life assured participates in any criminal act which (either directly or indirectly) causes or contributes to the condition of the life assured.

Critical Illness Insurance Case Studies

Historical Claims paid by Sovereign to 30 June 2005 for the benefits listed were:

The Case studies recorded below are taken from actual claims processed and paid by Sovereign.

Case Study 1

At 52 years old, Jim had everything going for him. Happily married with two sons, he worked at a distinguished Auckland secondary school as Deputy Headmaster and was coach of the New Zealand Junior weightlifting team. He didn't smoke, drank alcohol moderately, exercised regularly and had a health assessment every six months. In November 1997, however, everything changed for Jim - he suffered two strokes within three days.

He spent four weeks in hospital, unable to walk, or swallow food and liquids. His wife gave up her busy career as a real estate agent to care for him full time.

Fortunately, he had Critical Illness (Living Assurance), as part of his Sovereign Risk Protection Plan. His financial adviser arranged the claim with Sovereign and a payment of $50,000 was promptly paid. Jim commented, "The receipt of this payment was the turning point for us in what was an extremely stressful situation".

Case Study 2

Kate worked as a charge nurse manager at an Auckland hospital. In August 1995, she had tests carried out by her doctor as she had not been feeling right for a while. The tests indicated that Kate had endometrial cancer. Surgery followed, leaving Kate unable to work for six weeks. She returned to work for a short period of time but then had to take a further week off to recover from follow-up radiotherapy.

Kate had Critical Illness (Living Assurance), as part of her Sovereign Risk Protection Plan. A claim was made through her financial adviser and she promptly received a lump sum of $20,000. This was used to fund an overseas trip with her children.

Kate is currently in good health and having regular check ups to ensure that all the cancer has been removed. She is concentrating on maintaining a more relaxed lifestyle.

Case Study 3

As a 30 year old librarian Kathy didn't feel she had need for extensive cover at this point in her life. However, it was important to have some protection in place to put her mind at ease. In conjunction with her life cover Kathy took out a Living Assurance benefit that would pay out $75,000 in the event of a serious illness. This was in July of 1992.

During a routine examination in October 1994 blood tests indicated the presence of leukemia. By November the disease was confirmed and she underwent treatment.

Sovereign was able to pay Kathy her benefit making a significant contribution to her continuing treatment. As of today Kathy is doing well although not completely rid of the leukemia. We were very pleased to be able to assist in her time of need.

Other clients we have assisted include:

• Seamstress
  Immigrated to NZ as refugee. Female, aged 40. Stroke. $30,000 to reduce mortgage and buy machines to work from home. Only partial recovery and still unable to work.
• Technical Manager
  Male aged 58, Heart attack. $100,000 now back at work.
• Truck Driver
  Male aged 47. Prostate cancer. $187,000. Paid off mortgage, repaired house and bought boat. Successful operation - now returning to work.

If you would like to work out how much Critical Illness Insurance you need? Click here.

Get a quote now.