Case Studies

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

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

BenefitTotal ClaimsMaleFemaleAvg AgeTotal Value
Critical Illness72147125048$55,920,436
Income Protection3191232986245*$64,898,034

* Note: Of total Income Protection claims, 36% were for accidents, and 64% due to sickness.

Life Policies

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.

Back to top

Critical Illness Insurance

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.

Back to top

Total Permanent Disablement

Case Study

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:

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.

Male, aged 32. Amputation. $148,000 used to clear debts and assist in purchasing special equipment.

Male aged 43. Motor Neurone Disease. $400,000 used to clear debt and invest for future.

Back to top

Income Protection

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.

Case Study 3

Dave started his own business in 2000 working as an auto glazier, having had 14 years experience in the industry. In September of 2004, at the age of 30, he suffered a lower back injury which put him out of work.

Through his Sovereign Risk Protection Plan, Dave was entitled to an agreed value benefit of $2,000 per month, after a four week waiting period. The claim was approved within two days of Sovereign receiving the necessary information. Sovereign paid Dave $1,374.22 per month, which is the agreed value benefit less the payments he received from ACC. However, in June of 2005 his ACC payments ceased, so his benefit from Sovereign increased to $2,025 per month. Dave's injury was such that he will not be able to work as an auto glazier again.

He has, however, commenced a computer course at the Bay of Plenty Polytech and plans future work in this area.

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.

Female aged 45. Diagnosed Multiple Sclerosis. $1050 per month ongoing. Used to assist with mortgage

Male aged 35. Broke arm whilst on holiday in Australia. $3600 per month until he returned to work.

Back to top