What is Complete Disablement Cover?
Complete Disablement Cover is an insurance that pays you a lump sum amount if you become completely disabled due to illness or injury.
Why do you need Complete Disablement Cover?
If you become completely disabled through illness or injury, you may only receive limited ACC cover or a basic sickness benefit. If you lose your income, you may face extra costs to assist with your daily living such as alterations to your house or paying for care. Having Complete Disablement Cover can help minimise the financial impact and allow you to make choices about the care or treatment you may require.
How does it work?
You will receive a lump sum amount and it's your choice how you use the money. Some examples of how this money can help are:
- Subsidise a lost income
- Cover day-to-day expenses (e.g. power, phone, food, petrol)
- Help cover debts e.g. mortgage, credit cards
- Assist with medical costs associated with recovery
- Seek alternative treatments
- Pay for home alterations, rehabilitation and home help
What's not covered?
- Intentional self-inflicted harm including attempted suicide
- Participating in a criminal activity
Benefit details
Complete Disablement Cover provides several benefits that are built-in to the cover as well as some options you can choose to add at an additional cost, so it's easy to tailor your Complete Disablement Cover to suit your needs and budget.
Built-in benefits
Complete Disablement Cover provides the following benefits that are built-in:
Partial Disablement Benefit
What is it?
A partial payment for loss of sight in one eye or the loss of use of one limb.
How it works:
If you suffer the complete and irrecoverable loss of sight in one eye or the complete and permanent loss of use of one limb, 25% of the sum insured up to $75,000 may be payable.
Why it's important:
Allows you to receive a partial payment if you don't qualify for the full sum insured.
Return to Home Benefit
What is it?
Cover for transport costs, up to $10,000, to get back to New Zealand if you become completely disabled while overseas.
How it works:
If you have been residing outside of New Zealand for more than three consecutive months and become completely disabled, this benefit provides a reimbursement of the cost of returning to New Zealand, up to $10,000.
Why it's important:
Peace of mind knowing that if you have an accident or suffer an illness that results in you being completely disabled while overseas you can get home immediately.
Support Person Accommodation Grant and Transfer Benefit
What is it?
Reimbursement of costs incurred when a support person is required to accompany you outside your residential region for treatment that is necessary but not available locally.
How it works:
An appropriate medical practitioner must confirm a support person is required. The accommodation cost that may be payable up to a total of 10 days, is a maximum of $200 per day. Reimbursement for support person transport costs may be payable provided that those costs are the usual, reasonable and customary costs for public transport directly to and from the treatment destination.
Why it's important:
You don't have to worry about the additional costs of having your loved one with you if treatment is unavailable locally.
Financial and Legal Advice Benefit
What is it?
An additional payment of $2,500 for reimbursement of financial planning or legal advice fees.
How it works:
The benefit is paid as a reimbursement of fees for financial planning and/or legal advice obtained by you for the use and protection of the Complete Disablement Cover.
Why it's important:
Allows for consultation of a financial planner or legal professional if you require financial or legal advice in regards to how to invest the benefit paid.
Life Events Benefit
What is it?
Ability to increase your cover by up to $250,000 after certain 'life events' without providing any further evidence of your health.
How it works:
These events include marriage or civil union, divorce or legal separation, full-time care of a dependent relative, having a child, increase in annual salary, taking out a mortgage, purchasing property. For a full list of events covered, please refer to policy wordings. The maximum increase under the Life Events Benefit during the duration of the contract is limited to 75% of the original Complete Disablement Cover sum insured. You must apply for the Life Events Benefit within 180 days of the event occurring, or within 60 days of the policy anniversary date after the event occurring. This benefit expires on your 60th birthday.
Why it's important:
Allows you to keep your insurance up to date with your changing lifestyle, without providing any further evidence of your health.
Optional benefits
Optional benefit that you can choose to add for an additional premium:
Optional Guaranteed Insurability
What is it?
Allows you to increase your cover every 2 years by up to 20% or $50,000 (whichever is the lesser) without providing any further evidence of your health.
How it works:
The total maximum increase available is 2 times the underwritten Complete Disablement Cover sum insured, up to $500,000. The Optional Guaranteed Insurability must be exercised within 30 days of the applicable policy anniversary date. This option expires on your 60th birthday.
Why it's important:
Allows you to keep your insurance up to date with your changing lifestyle, without providing any further evidence of your health.
Optional Life Cover Buy-Back (accelerated only)
What is it?
You can 'buy back' your Life Cover (that has been reduced) if you've made a claim on your accelerated Complete Disablement Cover.
How it works:
The Optional Life Cover Buy-Back allows for the 'buy back' of Life Cover that has been reduced as a result of a claim payment for the full accelerated Complete Disablement Cover sum insured, without providing any further evidence of health. Once 12 months have passed since the claim was paid you have 60 days to exercise this option.
Why it's important:
Allows you to repurchase your Life Cover after a Complete Disablement Cover claim has been paid.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.
