Income Protection Insurance

Quick Key

Eligible Ages
Minimum age: 16
Maximum age:55

Eligible Occupations
Most. However, some high risk occupations are uninsurable. To confirm eligibility, please contact us.

Insurance Options
Level or CPl linked

Term of Insurance
To age 65.

Benefit Period
2 years.

Get a quote now.

This insurance benefit guards your greatest asset - your power to earn. It provides for a monthly payment to be made to an individual who is unable to work due to sickness or injury. It is essential for anyone with a spouse or a family dependent on the insured's income for the maintenance of their lifestyle. It is also for those who need to make regular payments for a house or car and would lose it if the payments were not made. See Michael's case study below.

• Guaranteed continued income for up to 2 years per claim to age 65.
• Agreed value up to 50% of gross income to $4000/month
• Waiting period 4 or 13 weeks
• Guaranteed renewable

This Income Protection Insurance Cover is for New Zealand only. (For Worldwide cover click here)

This income protection insurance policy is agreed value. Evidence of income is required with the application so you do not have the hassle of having to produce it on claim when you are ill, or incapacitated. This means that it will pay the agreed sum on claim without any further financial evidence being required unlike many other policies.

Built In Features

Agreed Value - Income Protection For Essentials

The Income Protection benefit provides for a benefit of up to 50% of the gross remuneration package to a maximum level of $4,000 per month. This will be paid regardless of pre-disability income but will not exceed the monthly benefit for which the life assured is insured.

Any income you receive or are entitled to receive in conjunction with the disability or as a result of being involved in or carrying on business (other than unearned income such as investment income) will be taken into account when calculating the income protection benefit.

If the life assured was unemployed for more than 3 months prior to becoming disabled, the maximum benefit Sovereign will pay is $1,000 per month.

Choice of Waiting Periods

Income Protection Benefit offers a choice of waiting periods: 4 or 13 weeks.

Waiver of Premium

This benefit is automatically added to your Income Protection policy. It takes away the burden of paying premiums or contributions when you are unable to work due to illness or accident, saving you money when you need it most.

Indexed Benefit Option

The monthly benefit is indexed by the annual CPI.

Definition of Disability

A life assured is 'totally disabled' under the policy (if their occupation class is other than class 5) when:

• in Sovereign's opinion, after considering the advice of a Registered Medical Practitioner and other relevant information, the life assured 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 before becoming totally disabled for more than 20 hours per week.

For Occupation Class 5, the life assured is totally disabled when:

• in Sovereign's opinion, after considering the advice of a Registered Medical Practitioner and other relevant information, the life assured is so seriously incapacitated by illness or injury that they are continuously confined under full-time care to the life assured's home or a medical institution.

If a life assured has been on leave without pay for more than 12 months or was unemployed for 3 months immediately before become totally disabled, the life assured automatically becomes Occupation Class 5.

Exclusions

Sovereign will not pay any of the benefits where any of the following (and in each case either directly or indirectly) causes or contributes to the disability:

• The life assured deliberately injuring himself or herself or attempting to do so.
• The life assured participating in any criminal act.
• The life assured does not comply with the treatment prescribed by the attending treatment professionals.
• The life assured is living outside New Zealand.
• The life assured deliberately taking or using non-prescribed drugs, other than for proper therapeutic or medical purpose and in accordance with the manufacturer's directions for use, or the deliberate misuse by the life assured of prescribed drugs.

The following conditions are not covered:

• Complications of pregnancy or childbirth of the life assured, unless the disability lasts for more than 90 days after the pregnancy, in which case the waiting period will start from the 91st day.
• Any disease or disorder of, or injury to the spine, invertebral discs, nerve roots or supporting musculature, including their treatment or complications thereof.
• Any mental disorder including, but not limited to, anxiety disorders, chronic fatigue syndrome, depression, stress, fatigue, exhaustion, psychiatric complications of physical disorders, behavioural or any other mental or functional nervous disorder, their treatment or complications thereof.

If the life assured is imprisoned for any reason while they are totally disabled, no monthly benefit will be payable during the term of imprisonment.

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

Your lifetime income could amount to over 2 million dollars. Just think about how much money you are likely to receive over your lifetime from working.

Calculate it now - (Input your current income and multiply it by the number of years you have until retirement plus inflation - age 65, to give you an approx figure).

Why take the risk when you can insure your future income!

Income Protection Insurance, can remove these risks and provide an income if you are ever too sick, or injured, to work. For a small portion of your current income, you can provide the protection you need. This provides for a continuation of a regular income, and is essential for all self employed with financial commitments.

For a Income Protection quote use our handy online form.

Income Protection Insurance Case Studies

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

Case Study 1

It seemed to be a day like any other. A busy senior partner in a successful accounting firm, Michael, 45 years of age, thought he was in pretty good shape. However, in May 1994 he suffered a serious stroke.
Michael, having selected a 13 week waiting period, received approximately $3,800 per month from September 1994.

After his fight for survival the last thing he needed to worry about was how the bills were to be paid. Sovereign settled the claim quickly, helping Michael get back on his feet. After only three months of receiving the full Disability Income benefit Michael was able to get himself 'up and running', taking on non-strenuous tasks and returning to work part-time until he fully recovered.
His initial premium was $59 per month.

Case Study 2

John, 49 years old, was a company director of a jewellery manufacturing business he owned. While on business in Perth, Australia in February of 2005, John suffered a right-sided stroke and has since been unable to work. At this early stage it seems he may never return to full employment. His income, as confirmed by his accountant, was $70,000 per annum.

John currently receives an inflation-adjusted Disability Income benefit of $55,106 per annum, by direct credit on a monthly basis.

Other clients we have assisted include:

• Company Director
  Male aged 54. Injured whilst chasing car thief. Paid $4000 a month for 3 months until able to return to work.
• Secretary
  Female aged 45. Diagnosed Multiple Sclerosis. $1050 per month ongoing (now 6+ yrs). Used to assist with mortgage.
• Plumber
  Male aged 35. Broke arm whilst on holiday in Australia. $3600 per month until he returned to work.
• Operations Manager
  Female aged 51. Needed hip replacement. $3800 per month until fit to return to work.

If you would like to work out how much Income Protection Insurance you need? Click here.

Get a quote now.