TotalCareMax Customer guide TOTALCAREMAX Life. Take charge. sovereign.co.nz
IT S IMPORTANT TO PROTECT YOUR FINANCIAL FUTURE We d all like to think we re invincible. But accidents do happen, and we do age and can become sick. If you had an accident or illness that affected your ability to earn, what would happen to your partner, children, business, home and lifestyle? Would you be able to pay the mortgage and the monthly bills? How long would you or your family cope drawing on savings or using retirement savings to fund daily living expenses? Life can be a risky business, and that's why it s important to take steps to protect your financial future. Did you know? Cardiovascular disease (heart, stroke and blood vessel disease) is still the leading cause of death in New Zealand, accounting for 30% of deaths annually. 1 24 Every day about New Zealanders have a stroke. A quarter occur in people under 65. 2 3,000 New Zealand men are diagnosed with prostate cancer every year. 3 Every 58 day, there are new cancer cases 23 registered and deaths from cancer in New Zealand. 4 Every 90 minutes a New Zealander dies from coronary heart disease. 1 Source 1 Ministry of Health (2014) Mortality and Demographic data 2011. Wellington: Ministry of Health. 2 The Stroke Foundation of New Zealand, 2014. 3 Prostate Cancer Foundation, New Zealand, 2015. 4 Ministry of Health 2012: New registrations and deaths 2010 (latest available). 2 Sovereign TotalCareMax
ARE YOU PREPARED? It s really important to consider how your family would cope in different situations for instance; What would happen if you were to suffer one of the following? 1 Too sick or injured to work Disease and illness are the most common causes of disability for adults in New Zealand. 1 But, if your health were to suffer, your financial wellbeing doesn t have to. When illness or an accident leaves you unable to work, Disability Income Protection can help to protect you and your family from the financial consequences. 2 Critical illness or major trauma We all get sick, and sometimes seriously. The cost of recovery from a critical illness or major trauma can have a huge impact and that's when the support of Living Assurance or Progressive Care cover can help. 3 Permanent disability Life may not turn out the way we plan it. Sometimes we get ill or have an accident and if it s serious, we might be left unable to work. Total Permanent Disablement insurance can help you pay off long-term debt, preserve your lifestyle and secure your family s future. 4 Terminal illness or death None of us likes to dwell on the possibility, but the reality is that some of us will die prematurely. Take charge now to ensure that your dependants are not left with family or business debts. Life Cover can take care of financial commitments such as your mortgage and make sure that any long-term goals for your family or business can be achieved. In each case, the issues you need to consider are: Short-term How to: > Cover immediate unexpected costs > Support your dependants > Fund your current lifestyle choices > Service your debts > Cover ongoing medical costs > Pay your insurance premiums. Long-term How to: > Reduce/eliminate long-term debt > Protect/enhance your net disposable income > Achieve your long-term goals > Build retirement savings > Pay for your children s education. In addition How you would cover final expenses, including legal, accounting, taxes, medical and funeral. Why take out life insurance? > Personal insurance will not solve everything but it can provide invaluable help when you need it most > It can buy you time, providing you with recovery options > It can provide you with a financial safety net, so you don t have to deplete hard-earned savings > It can allow dependants to look ahead with some degree of certainty, even if you can t be there for them. 1 Statistics New Zealand, Disability Survey, June 2013. Sovereign TotalCareMax 3
PROTECT YOUR FAMILY WITH TOTALCAREMAX What can you do to protect yourself and your family s future? Sovereign s TotalCareMax is a total insurance solution designed to protect you and your family. You can be sure that whatever your lifestyle, circumstance or occupation, we ve got you covered. In times of uncertainty, it s good to know who you trust. Sovereign has an A.M. Best financial strength rating of A+ (Superior).* For you to choose: > LIFE COVER Important cover for anyone with family, business or other financial commitments that could be put at risk in the event of their death. We will pay a lump sum if you die, assisting those left behind. > FAMILY PROTECTION Should you die, we will pay your beneficiaries a monthly income for the period you select. > ACCIDENTAL DEATH This cover is ideal for younger people with more active lifestyles, for whom death by illness is less likely. > LIVING ASSURANCE Helps guard against financial hardship should you suffer one of a number of critical specified conditions, such as cancer and heart attack. Pays a lump sum ideal for covering immediate expenses. > PROGRESSIVE CARE Provides you with a lump sum(s) in line with the severity of your medical condition, should you suffer one of a specified number of critical conditions. > TOTAL PERMANENT DISABLEMENT We will pay you a lump sum if you are totally and permanently disabled through sickness or injury. > DISABILITY INCOME PROTECTION This guards your greatest asset your power to earn. The benefit is a monthly payment if you cannot work because of sickness or injury. This can provide invaluable support if your partner or family depends on your income. > ESSENTIAL DISABILITY INCOME We will make a monthly payment if you are diagnosed with a specified critical condition and you are unable to work as a direct result. > SPECIALIST AND DIAGNOSTIC TESTING Specialist and Diagnostic Testing gives you the freedom to select the best specialist available and helps you to avoid a long wait for essential treatment. > MORTGAGE AND INCOME PROTECTION Mortgage and Income Protection insurance can help cover your monthly mortgage instalments or rent payments and other expenses if your earning capacity is seriously affected by illness, disability or redundancy. The above descriptions of benefits are summaries only. For more information, please refer to the benefit sheets and policy wordings. Most benefits are subject to exclusions, and other terms and conditions will apply. All references in this brochure relate to TotalCareMax unless otherwise stated. * Given by A.M. Best Inc, an approved insurance rating agency. A copy of the scale, of which this rating forms part of, is available from Sovereign. 4 Sovereign TotalCareMax
TOTALCAREMAX MAKES IT EASY Customer-focused products Our benefits and cover options are flexible enough to meet most of our prospective customers' needs, and are designed to be affordable both now and in the future. Applying for your cover We aim to give you the best possible terms, while making the application process as simple and efficient as possible. Sovereign was the first New Zealand company to introduce the HealthScreen service, free to you. Our consultants are experienced, registered nurses whose job it is to collect the medical information we need to process your application as quickly as possible. This is done efficiently, conveniently and professionally. Customer service Sovereign invests in highly trained staff so that we can deliver excellent service to you and to the Advisers who sell Sovereign products. Claims payment Our goal is to ensure we meet all valid claims as quickly as possible, to minimise financial pressures on claimants, their partners and their families. Calculating your cost Sovereign calculates your premiums (the amount you pay) based on your age, sex, smoking status, state of health and occupation category (for disability benefits). Sovereign TotalCareMax 5
HOW TOTALCAREMAX WORKS There are a number of situations in which the premium may change and we will advise you of any new premium before the change is effected: Your premium may change each year depending on the premium option you selected. If you have elected to have some or all of your benefits indexed by the consumer price index, then the premium cost of those benefits will also increase. The underlying premium rates from which your premium is calculated are guaranteed for varying periods of time, from the first premium due date, depending on the type of benefit and premium selected. This means that Sovereign cannot review these applicable premium rates during the guarantee period, unless you voluntarily make alterations to your policy or benefits or a change in the law requires us to do so. The underlying premium rates for Life Cover and Family Protection Benefits can be guaranteed for 10 years, to age 65 or to age 80, depending on the premium option. The underlying premium rates for all other TotalCareMax benefits are guaranteed for one year from the first premium due date. Your premium payment choices Our policies are designed to be flexible so you can design a policy and make payments in a way that best suits your needs. You have several payment options, including credit card, direct debit and debit card. Your frequency of payment You can choose to pay your premiums weekly, fortnightly, monthly or annually. If you choose annual payments, we will give you an annual discount of 5%. No cash value Sovereign s TotalCareMax is a suite of benefits to provide insurance cover only. It is not a savings or investment product none of the benefits accumulates a cash value. Availability The policies are open to people over the age of 10 for Life Cover and Family Protection (maximum age and limitations apply) or over the age of 16 for other benefits, who meet the current underwriting criteria. Your residency status will be taken into consideration as part of the underwriting process. 6 Sovereign TotalCareMax
SOVEREIGN SOLUTIONS When planning for your financial protection and investment needs, you can choose from a comprehensive portfolio of specialist Sovereign products. Financial planning TOTALCAREMAX Personal: for you and your family > Life Cover > Family Protection > Accidental Death > Disability Income Protection > Essential Disability Income Protection > Living Assurance > Progressive Care > Total Permanent Disablement > Waiver of Premium > Specialist and Diagnostic Testing > Mortgage and Income Protection Insurance. Business: for you and your business > Business Continuity > Business Overheads > Locum Cover > Rural Continuity > Business Income Support (available with Rural Continuity) > Specialist and Diagnostic Testing > Life Cover > Living Assurance > Progressive Care > Total Permanent Disablement > Waiver of Premium. PRIVATE HEALTH Private Health Cover and Private Health Plus have been designed to take care of the significant costs of hospitalisation and surgery that many New Zealanders face during their lives. This means you can be diagnosed faster, have treatment promptly and have a better chance of recovering and returning to your life. > Separate cancer care benefit up to $300,000 per year.* > Cover for surgery up to $300,000 per year.* > Medical hospitalisation up to $300,000 per year.* > Major diagnostic imaging and tests are covered whether or not related to a surgery or hospitalisation up to $100,000 per year.* INVESTMENTS Select Wealth Management: an investment administration and reporting service to make sophisticated investing easy. HOME LOANS Go Home Loan:** a flexible, cost-effective way to fund the purchase or build of a home or property. Why Sovereign? After taking care of New Zealanders for the past 25 years, Sovereign is turning insurance on its head by dedicating ourselves to helping you take charge of your health. From now on we ll be doing our bit to help you keep healthy, and encouraging you to do yours. As a values based company, we believe in putting people first. That means not only our customers but also our staff and the wider community. For more information visit sovereign.co.nz * Limitations do apply to these benefits, see the Policy Document for full details. ** All home loans are subject to our home loan lending criteria. Early repayment adjustments may apply. Mortgage indemnity insurance may be required for home loans over 80% of the property's valuation. The lender is ASB Bank Limited via its nominee Mortgage Holding Trust Company Limited. The transactional account for Sovereign s Go Home Loans is provided by ASB Bank Limited. Sovereign TotalCareMax 7
0800 500 108 sovereign.co.nz Sovereign House 74 Taharoto Road, Takapuna, Auckland 0622 Private Bag Sovereign, Victoria Street West, Auckland 1142 Telephone: +64 9 487 9000 Fax +64 9 487 8003 Life. Take charge. sovereign.co.nz Other things you should know: The availability of insurance cover is subject to your application being approved. All applications are subject to individual consideration. Special conditions, exclusions and premium loadings may apply. This insurance is underwritten by Sovereign Assurance Company Limited ( Sovereign ). For full details of the products and benefits offered by Sovereign, please refer to the policy document(s) which are available from Sovereign. Sovereign, the policy insurer, is part of the Commonwealth Bank of Australia Group and is a related company of ASB Bank Limited and its subsidiaries ( the Banking Group ). None of the Banking Group, the Commonwealth Bank of Australia, any of their directors, or any other person, guarantees Sovereign or its subsidiaries, or any of the products issued by Sovereign or its subsidiaries. The information contained in this publication is general in nature and is not intended as advice. It may not be relevant to individual circumstances and before making any insurance decision, you should consult a professional Adviser. Copies of our disclosure statements are available on request, free of charge. 00803 0315