Total and Permanent Disability Cover
While for most people the death of the main income earner would cause serious financial strain for those left behind, the financial impact would be just as serious if that person were to become totally disabled and unable to work for the rest of their life. In some cases the hardship experienced would be even more profound as the ongoing daily living and medical costs for the disabled person could be significant.
Please note that not all disablement is caused by an accident and in these cases you wouldn't be covered by ACC.
Contact us and we will work through the details with you and calculate the sum you should be covered for.
STAND-ALONE - Any claim payment made under this stand alone trauma cover benefit will into affect the life cover benefit - It is treated as a stand alone/seperate benefit and can be acquire by itself.
ACCELERATED - Any claim payment made under this accelerated trauma cover benefit will instantly reduce the life cover benefit payable for that life assured by the amount of accelerated TPD cover benefit paid. Accelerated means that the TPD is linked to a life cover benefit with a particular insurer.
LIFE COVER BUY-BACK - Allows the original Life Cover benefit to be reinstated without the need to provide further medical evidence following an accelerated TPD benefit claim. *Conditions do apply
TPD COVER BUY-BACK - If a claim is paid under this TPD cover benefit amount, then you have the option to re-purchase up to 100% of the TPD benefit amount that was paid. *Conditions do apply
Total & Permanent Disability – TPD "Any Occupation" Definition
Disablement by illness or injury to the extent that the life assured is completely unable to work in the occupation they were employed in just prior to becoming disabled and is unlikely to ever be able to work in that occupation or any other occupation that they are reasonably suited to by way of education, training or experience. The benefit will be payable, after the life assured has been totally and permanently disabled for more than six uninterrupted months and the insurer has accepted the claim. The total and permanent disability coverage expires at age 65.
Total & Permanent Disability – TPD "Own Occupation" Definition
Disablement by illness or injury to the extent that the life assured is completely unable to work in the occupation they were employed in just prior to becoming disabled and is unlikely to ever be able to work in that occupation or any other occupation that is, in the insurers opinion, the same as their pre-disability work. The benefit will be payable, after the life assured has been totally and permanently disabled for more than six uninterrupted months and the insurer has accepted the claim. The total and permanent disability coverage expires at age 65.
And the number of disabled adults is predicted to rise, with the Stroke Foundation reporting that while death from stroke is falling, the incidence of stroke is increasing, leading to a rising burden of stroke-related disability over the next decade.
Stroke is currently the biggest cause of disability in New Zealand2.
Many disabled adults are then forced to rely on the invalid’s benefit from the Government in order to provide for their basic needs such as rent/mortgage, food and other bills.
The table below shows the maximum benefit amounts per week that people with permanent disabilities are able to receive.
For many, this is less than what they were previously earning, considering the fact that the average household spends $956 a week on expenses such as rent/mortgage, food and transport3
1. Statistics New Zealand, 2006 Disability Survey (latest available)
2. Stroke Foundation of New Zealand, www.stroke.org.nz
3. Statistics New Zealand, Household Economic Survey for Year Ended 30 June 2007.
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MAXIMUM INVALID BENEFIT RATES - CLICK HERE
Other family related benefits may also be available depending upon personal circumstances
See www.ird.govt.nz for more information about tax codes.
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