Total Permanent Disablement Insurance

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Eligible Ages
Minimum age: 16
Maximum age:55

Eligible Occupations
Most. Some hazardous occupations are uninsurable - to confirm eligibility please contact us if unsure.

Insurance Options
Level or CPl linked
As Total Permanent Disablement is an accelerated benefit, the indexation option under Life Insurance applies.

Term of Insurance
Renewable to age 65.

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

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If accident or illness permanently stopped you from working would you sleep easier knowing that you'll receive a lump sum payment of up to $500,000 that you could use as you needed? See George's case study below.

Built In Features

A Total Permanent Disablement (TPD), Insurance benefit can be included in an Sovereign Essentials plan as an early payment of the life cover in the event of you becoming totally and irreversibly disabled.

When a TPD Insurance benefit is paid, the Life Insurance benefit for that life assured will decrease by the same amount.

TPD Limits

TPD is restricted to a maximum insurance benefit of $500,000.

TPD Defined

The life assured is totally and irreversibly disabled, with the effect that they are unable as a result of sickness or injury, to perform without assistance at least three of the following activities for themselves;

1. Bathing and showering
2. Dressing and undressing
3. Eating and drinking
4. Using a toilet
5. Moving from place to place by walking, in a wheelchair, or with a walking aid.

Alternatively, the life assured is unable to perform two of the above and his or her intellectual capacity has reduced or deteriorated to such an extent that the life assured requires permanent and constant supervision.

Any condition that Sovereign has reasonable grounds to expect can be reversed or improved by surgery or other treatment will not be considered to be a Total Permanent Disablement.

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

Exclusions

Sovereign will not pay any Total Permanent Disablement Insurance benefit where any of the following (and in each case directly or indirectly) causes or contributes to the disablement;

• The life assured deliberately injuring himself or herself or attempting to do so.
• The life assured participating in any criminal act.
• 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.

These exclusions apply to any subsequent insurance benefit increase you make.

Total Permanent Disablement Insurance Case Studies

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

Case Study 1

George was 38 years old. He was a builder.

In 2002, he was involved in a motor vehicle accident, resulting in spinal injuries which paralysed him. He was treated in the spinal unit and received extensive rehabilitation. He is however now confined to a wheel chair.

After extensive medical treatment it was determined the condition was permanent and he would be unable to work again. Sovereign paid him $400,000. This was used to assist in the financing of a special vehicle and alterations to his home so that he could move around easily. The balance has been invested for retirement.

While he received ACC and now a disability benefit, his wife has had to return to work and he looks after the home and children.

Other clients we have assisted include:

• Manager
  Male, aged 57. Stroke. $55,000 used to clear debts. Only partial recovery and still unable to work.
• Retail Shop Assistant
  Female, aged 50. Cancer. She was a smoker. $135,000 used to reduce debts.
• Printer
  Male, aged 32. Amputation. $148,000 used to clear debts and assist in purchasing special equipment.
• Accountant
  Male aged 43. Motor Neurone Disease. $400,000 used to clear debt and invest for future.

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

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