TotalCare Income Protection

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Eligible Ages
Minimum age: 16
Maximum age: 55 or to age 60 if working in a managerial, professional, or clerical job (Individual consideration above this age group)

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

Cover Options
Level or CPl linked

Benefit Period
1 year, 2 years, 5 years, to age 65, or to age 70

Premium Guarantee
1 year

TotalCare Income Protection Policy Wording:
Agreed Value
Indemnity Value

Income Protection Needs

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Start Up Income Protection

Essential Disability Income

This benefit protects 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 partner or a family dependent on your income for the maintenance of their lifestyle.

Built in Features

Benefit Type*

Indemnity

The Indemnity option provides for a benefit of up to 75% of the gross remuneration package, less offsets. However, the payment will not exceed 75% of pre-disability income at the time of claim. If the life assured is employed as a homemaker, the maximum cover available is 75% of the costs incurred in hiring home care up to a maximum of $2,500 per month.

Indemnity Extra

The Indemnity Extra option provides for a benefit of up to 75% of the gross remuneration package. However, the payment will not exceed 75% of pre-disability income at the time of claim. If the life assured is employed as a homemaker, the maximum cover available is 75% of the costs incurred in hiring home care up to a maximum of $2,500 per month.

Agreed Value

The Agreed Value option provides for a benefit of up to 55% of the gross remuneration package. 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 total Disability 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.

Waiting Period*

Disability Income Protection offers a choice of seven waiting periods: 2, 4, 8, 13, 26, 52 and 104 weeks.

Waiver of Waiting Period*

If, after returning to work, the client has a further period of disablement from the same, or related cause within 6 months, the selected waiting period will be waived.

Rehabilitation Benefit*

Provides for a lump-sum benefit of up to 6 times the monthly benefit to pay for approved specialist equipment or home alterations, that have become necessary because of the life assured's disability.

Partial Disability Benefit*

This benefit provides a reduced benefit to be paid if the life assured:

• has been totally disabled for a period of at least 2 weeks and is still partially disabled at the end of the waiting period.
• is solely, because of the continuation of disability, unable to earn at least 75% of pre-disability income.
• is not in Occupation Class 5 at the time of becoming totally disabled.

The reduced benefit will continue to be paid until the disability no longer prevents the life assured from earning at least 75% of pre-disability income, or the end of the benefit payment period, whichever is the earlier.

The calculation of the partial disability benefit differs between Indemnity and Agreed Value. The Agreed Value policy now offers 2 calculations, please see the policy documents for more detail.

Enhanced Partial Disability Benefit*

Sovereign will pay an enhanced partial disability benefit if:

• a life assured has been receiving a total disability income benefit under this policy; and
• the life assured is no longer disabled; and
• the life assured is entitled to a partial disability income benefit.

This is an additional payment of up to 25% of the selected monthly benefit amount.

Bed Confinement Benefit*

If a life assured is confined to bed, at home, or in a hospital, under the daily supervision of a Registered Medical Practitioner, they will be eligible for a benefit for each complete 24 hour period after the first 72 hours of bed confinement.

Leave Without Pay Benefit*

If a life assured becomes totally disabled while on leave without pay due to pregnancy, maternity, paternity or work sabbatical, then Sovereign will pay a monthly benefit. If they have been on leave for more than 12 months before the disability then the benefit payable will be limited to $1,000 per month.

Suspension of Cover Benefit*

A life assured is able to suspend their cover for up to 12 months while on parental leave, sabbatical leave, study leave or leave without pay. No Disability Income Protection benefit will be payable during the suspension period, and no benefit will be paid for any disability which occurs during the suspension period.

They may reinstate their Disability Income Protection benefit within 12 months of commencing leave as long as they return to work for at least 30 hours per week in the same occupation class. If the life assured does not reinstate their Disability Income Protection benefit within 15 months of commencing leave, their Disability Income Protection benefit will cease.

Future Insurability Benefit*

Under this benefit, a life assured is able to apply to increase their Level Disability Income Protection cover every three years without medical underwriting up until age 55. They must apply in writing and provide evidence of income satisfactory to Sovereign, within 30 days of the anniversary date.

A life assured may increase their Agreed Value Disability Income Protection benefit by up to the lesser of $12,000 per annum or 10% of the disability income protection benefit for the life assured set out in the schedule. This benefit will only apply if the Disability Income Protection benefit is less than $240,000 per annum.

Sovereign will not accept an application to increase this benefit if a life assured is entitled to or is receiving payment of a claim for a disability suffered on or before the date of the application.

Vocational Retraining Benefit*

Provides for a lump sum of up to 12 times the monthly benefit while the life assured is on an approved course of retraining to get back to work in an occupation which requires new skills. This benefit is restricted to a maximum of 6 times the monthly benefit if a 1 year, 2 year or 5 year benefit is selected.

Advance Payment Incentive*

Sovereign will pay an Advance Payment Incentive of 50% the first month's total Disability Income Protection benefit at the end of the selected waiting period, if after becoming disabled, the life assured remains totally disabled for a continuous period of the waiting period. Additionally, Sovereign must be provided with the claims assessment information and accept the claim within the waiting period.

Sovereign will estimate the offsets for the month following the waiting period. Any Advance Payment Incentive paid will be deducted from the first month's benefit for the life assured.

Back to Work Payment*

The back to work payment is a lump sum payment of 3 times the life assured's monthly benefit for the last full month immediately before the claim ceased. Sovereign will pay a back to work payment if:

• a Disability Income Protection benefit has been paid for a life assured for a continuous period of longer than 12 months, but less than 24 months; and
• the life assured engages in work or carries on a business; and
• the life assured is no longer totally or partially disabled; and
• the life assured has ceased to be on claim with Sovereign.

The back to work payment does not apply if a 1 or 2 year benefit payment period is selected.

Guaranteed Renewable

Cover is guaranteed renewable up to age 70, regardless of claims, health or occupation.

Worldwide Coverage

Cover provided anywhere in the world 24 hours a day.

* Please note that special conditions apply; please refer to the Policy Document Definition of Disability

Occupation Classes other than 5

In Sovereign's opinion, after considering the advice of a Registered Medical Practitioner and other relevant information, the life assured for the benefit 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 the disablement date for more than 10 hours per week; and
• not in fact working, or engaged in any other occupation or business.

For Occupation Class 5

In Sovereign's opinion, after considering the advice of a Registered Medical Practitioner, and other relevant information, the life assured for the benefit 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.

Additional Benefits

This cover may be written in conjunction with the full range of Sovereign's other protection benefits. However, with Disability Income Protection, Waiver of Premium must always be present.

Mental Health Limitation*

The life assured may select a mental health limitation, which will result in a reduction in premium. This option is only available with a benefit payment period of to age 65 or to age 70, and Sovereign will only pay a claim due to a mental health disorder for a maximum of 2 years throughout the life of the policy. The mental health limitation only applies if no mental health exclusion applies to the policy.

Premier Option

Premier option provides all of the standard features and benefits of Disability Income Protection benefit and also includes additional benefits of:

• Extra Cash Benefit (Premier Only)*
  Provides an additional benefit equivalent to one third of the monthly benefit for 3 months after the waiting period.
• Permanent Disablement Benefit (Premier Only)*
  Provides an additional benefit of equivalent to one third of the monthly benefit if the life assured is permanently disabled and has been paid a total disability income benefit for 24 consecutive months.
• Home Care Benefit (Premier Only)*
  Provides a benefit of up to $2,500 per month (in addition to the disability benefit) if the life assured is totally disabled, and is any occupation class other than 5, and requires full-time care at home or in a hospital.

Waiver of Premium*

The premium is automatically waived while on claim.

* Please note that special conditions apply; please refer to the Policy Document.

Exclusions*

• The life assured deliberately injuring himself or herself or attempting to do so.
• The life assured participating in any criminal act.
• Pregnancy or childbirth of the life assured, unless the disability lasts for more than 90 days after the end of pregnancy, in which case the waiting period will start from the 91st day.
• The life assured does not comply with the treatment prescribed by the attending treatment providers.
• 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.

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

* Please note that special conditions apply; please refer to the Policy Document.

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