Life Insurance

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Eligible Ages
Minimum age: 10
Maximum age: 70

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.

What does the family live on when an income earner suddenly dies? How does a business survive when the owner or a key person dies? Who pays the hire purchase, credit card debts, funeral expenses, children's future education or mortgage etc.? See Marianne's case study below.

We all have a choice of trying to provide for the above events by ourselves, or by joining with others through an insurance company to share the risk at a minimal cost.

This insurance benefit provides a lump sum payment in the event of death. It is an essential foundation for anyone with a spouse or family who are dependent on the insured for the maintenance of their lifestyle. As a minimum all debts should be covered.

Built in features

Provides a lump sum insurance benefit of up to $1,000,000 using online application. (If more is required, a more complete application form needs to be completed — use the TotalCare Application here.)
Provides Terminal Illness, Bereavement Support and Childs Funeral benefits
Special events increase facility and Financial Advice benefit

Renewable Insurance to Age 100

Insurance may be renewed to age 100 without further medical evidence.

Terminal Illness Insurance Benefit

Pays up to 100% of the Life Insurance Benefit if you are diagnosed as being terminally ill and unlikely to survive for 12 months. The Life Insurance Benefit will be reduced by any Terminal Illness Insurance Benefit paid.

Bereavement Support Insurance Benefit*

This insurance benefit pays an immediate lump sum of $10,000 on death of the Life insured. This insurance benefit can be used for grief counseling, estate advice, flights and accommodation for family members to attend the funeral, or to offset funeral expenses, or whatever your executors deem appropriate at the time. This insurance benefit is an early payment of part of your Life Insurance Benefit. The Life Insurance Benefit payable will be reduced by $10,000 on payment of this insurance benefit. You are entitled to one bereavement support benefit for each life assured.
* Please note that special conditions apply, see the policy document.

Children’s funeral benefit

Sovereign will make a children’s funeral benefit payment if a child of the life assured dies as a result of injury caused by violent, accidental, external and visible means, within 90 days after the date on which the injury happened. The benefit is payable only if the child is aged between three years and 10 years at the time he or she first suffers from the injury. The amount of the benefit is limited to NZ$2,000.

Special events increase facility

On each occasion when the financial responsibilities of a life assured for the benefit increase because of the life assured:

having a child (by birth or legal adoption);
becoming married or entering into a civil union;
becoming divorced or the dissolution of the life assured’s civil union;
moving home and as a result taking out or increasing a home loan; or
becoming responsible for the full-time care of a close relative,

You may write to us or Sovereign asking to increase the life cover benefit for that life assured.

You do not need to produce any medical evidence regarding the life assured when you request this increase, but any special events increase is subject to the conditions and limits — see the policy document.

Financial advice benefit

If Sovereign pays a claim under this life cover benefit, then Sovereign will reimburse you for fees up to $1,500 including GST (in total) that you pay for financial planning advice.

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

Exclusions

Sovereign will not pay any insurance benefit where any of the following (and in each case either directly or indirectly) causes or contributes to the death or terminal illness of the life assured;

The life assured committing or attempting to commit suicide, whether sane or insane, within 13 months of the risk commencement date.
The life assured participating in or preparing for flying other than as a bona-fide, fare paying passenger on a recognised air route.
The life assured participating in or preparing for motor racing.
War (whether war is declared or not), civil war, rebellion, revolution, civil unrest, riot, hostilities, participation in any armed force or peace keeping activities.
Any person acting on their own or on behalf of or in connection with any group or organisation to influence by force any group, corporation, or Government by terrorism, kidnapping, attempted kidnapping, attack or any other violent means.

Life Insurance Case Studies

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

Benefit	Total Claims	Male	Female	Avg Age	Total Value
Life	1783	1208	575	52	$209,740,025

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

Case Study

Marianne was 46 years old. She worked in the banking industry and as part of her employment package had Life Cover provided by Sovereign.

In March of 1997, she went to see her doctor as she hadn't been feeling well for some time. Her doctor diagnosed her condition as cancer of the gall bladder. The doctor also advised that her illness was terminal and that unfortunately she was unlikely to live longer than 12 months.

Marianne was suddenly faced with the prospect of trying to make the most of the time she had left, as well as ensuring that the loved ones she would inevitably leave behind would be provided for by her estate.

A letter from her doctor was sent to Sovereign confirming that Marianne had less than 12 months to live. With this in hand, the following day Sovereign paid her a lump sum terminal illness benefit of $93,000, which equated to the total amount of her Life Cover.

Other clients we have assisted include:

Executive
Male 55. Cancer. $350,000 Terminal illness (death expected within 12 mths), payment made for total Life cover which enabled payment of mortgage and other debts plus some funds for holiday.
Computer Sales Engineer
Male aged 27. Died in motor bike accident. $213,000. To his mother to clear debts and cover costs.
Housewife
Female aged 31. Cervical cancer. Paid Critical Illness $30,000 on diagnosis and later another $20,000 on death. Left husband and one child.
Engineer
Male aged 27. Died in car accident whilst on holiday overseas. $200,000 used to bring back body for funeral and clear debts, plus enable surviving wife to start a new life.

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

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