This page answers a range of questions about Life Cover.
You are eligible to apply for Sovereign TotalCareMax Life Cover if:
Yes. Regardless of your occupation (or even if you have no job at all right now), you are eligible to apply for Life Cover.
We are not able to say how much Life Cover you should apply for, as this website does not provide personalised advice. You need to determine that yourself, either independently or in combination with any advice which you might obtain.
However, you may find our life insurance calculator helpful when assessing your needs.
Yes, you can. Our online quoting tool is limited to a maximum of $2 million in Life Cover, but if you would like a higher amount of cover, simply contact us. The maximum amount of Life Cover you can apply for is $100 million.
You can increase your cover in the following ways:
In each case an increase in cover attracts an additional premium.
Yes, you are. Regardless of where you travel in the world, the reason for your travel or for how long you are away, you will be covered. This means that you remain covered even if you decide to leave New Zealand to live or work overseas.
Yes, you will. You will be covered for any dangerous sport which you decide to take up after your policy is issued, without any requirement to notify Sovereign. You would not of course be covered if you intended to take up that sport before applying for Life Cover, and you did not disclose that in your application.
Yes, you can. If your circumstances or your financial responsibilities change, you can reduce your Life Cover at any time.
No it will not. Your Life Cover will not expire at any age or date. This means that provided you continue to meet the policy terms and pay your premiums, you will continue to be covered, irrespective of your age. There is no upper age limit.
For questions about our Life Cover quotes, please see our Quote FAQs.
You should apply today. If you don’t, you might find that you don’t apply at all, and then when you need the cover it would be too late. What’s more, you should apply while you can still be readily accepted, and not run the risk of developing a medical condition which could result in an exclusion being added to your policy or cause your application to be declined.
Yes, it’s very easy. Simply get a quote and apply online. It takes most people less than 20 minutes.
There is usually no paperwork at all. You apply for cover entirely online, and your application can be processed and your policy issued without you having to complete any paper forms.
In addition to your name and contact details, the application form has questions about your residency, your occupation and activities, your health, any other life or health insurance you might have, and payment details.
No medical examinations or tests are normally required. However, if you are requested to have either, then there would be no cost to you at all. In that event Sovereign’s HealthScreen service could be offered to you. This consists of a registered nurse visiting you at your home or office at a time which is convenient to you. It’s all very low key.
As soon as you submit your application a confirmation email will be sent to you. The email will outline what happens next, and it will have contact details in the event that you wish to contact us while your application is being processed. We will keep you updated at each step, right through to the acceptance and issue of your policy.
All applications undergo initial processing right away, and the majority are fully processed within a matter of days. If there are any details missing from your application, or if further information is needed, then that may extend the time required to process your application.
All premiums are paid directly to Sovereign. You can pay your premiums by any of the methods below:
You can change your payment method at any time.
You can pay your premiums weekly, fortnightly, monthly or annually. If you pay your premiums weekly or fortnightly, you can choose which day of the week your premiums are deducted. If you pay monthly, you can choose which date your premiums are deducted each month. You change your payment frequency at any time.
You will be notified before your first premium will be deducted. In any event, your first premium will not be deducted until at least 10 days after your policy is issued.
Yes, you do. If you pay your premiums annually you will receive a discount of approximately 4.8% on the total benefit cost (everything except the policy fee). This discount is automatically calculated when you get a quote and select an annual payment frequency.
Don’t panic. Your cover will not immediately stop if you happen to miss a premium payment. Your policy provides 31 days’ grace for any premium due. If you miss a premium payment you should contact Sovereign as soon as possible and make arrangements to pay the missed premium. If you do nothing, and the premium remains outstanding beyond the 31-day grace period, then Sovereign is entitled to cancel your policy by providing notice to you in writing.
As soon as your policy has been issued, an amount equal to 25% of your first full year’s premiums will be direct-credited to your nominated bank account as a Cash Bonus. The Cash Bonus is normally paid before your first premium is due. The Cash Bonus is a one-off payment which applies only in the first year of your policy.
If you cancel your policy before you have paid the first 12 months’ premiums, then you must repay your Cash Bonus in full. If you cancel your policy after you have paid the first 12 months’ premiums, you are not required to repay your Cash Bonus.
Yes, you can. You may cancel your policy at any time.
All of our policies come with a 15-day free-look period. If, at any time within the first 15 days of receiving your policy, you do not wish to continue your cover (for whatever reason), you may cancel your policy and get a full refund of any premiums paid.
You may still cancel your policy at any time after this free-look period, but you will not receive a refund of any premiums paid.
Sovereign may cancel your policy in any of the following situations:
Yes, you can. You may change the owner of your policy at any time. All existing and any new policy owners must agree to the change. For example, you could change the policy owner from just yourself to joint ownership between yourself and your partner. In order to change the policy owner, simply complete a Change of Ownership Form.
If you need to make a Life Cover claim, please read our guide to making a claim.
All benefits under your policy are payable to the policy owner. If you, as the life insured, are the only policy owner and you die, then the benefit will be paid to your estate (and be covered by the provisions of your will, if you have one). If your policy is owned jointly by yourself as the insured and your partner, and you die, then the benefit will be paid to your partner.
No. Under current New Zealand tax legislation there is no tax payable on any Life Cover benefit which is paid under this policy.
Life Cover policies have a built-in Financial Advice Benefit. This benefit allows you to claim reimbursement for up to $2,500 (including GST) for financial planning advice which you obtain following receipt of a Life Cover benefit. In order to be eligible for this benefit, you must pay for the advice yourself, the advice must be obtained from an accredited adviser approved by Sovereign, and you must claim the Financial Advice Benefit within 3 months of receipt of the Life Cover benefit.
Please refer to the Life Cover Policy wording for further details about this benefit and the full terms and conditions under which it is available.
Yes. If, within the first 13 months of the commencement date (or any reinstatement date) of the policy, the life insured dies or becomes terminally ill as a direct or indirect result of an intentional self-inflicted act (and whether sane or insane), then no benefit is payable under the policy. This exclusion also applies to any benefit increase made under the policy.
All Sovereign TotalCareMax policies contain a Guaranteed Enhancement Benefit. This means that if at any time in the future, Sovereign makes a change to the standard policy wording, and that change would be favourable to you, then the enhanced section will automatically be applied to your policy, subject to the conditions specified in your policy.
No you do not. You are not required to notify anyone and it will not affect your cover. However, if you develop a terminal illness or a specified terminal condition, you can apply for an early payment of up to 100% of your life cover. In that event, you would need to notify Sovereign of your condition in order to be able to apply for and receive that benefit.
No. The premiums for your policy provide risk cover only, and any other special benefits as set out in your policy. Your policy does not acquire any surrender or cash value at any time.
Sovereign is the largest life insurer in New Zealand. Sovereign has an A+ (Superior) financial strength rating from international credit-rating agency A.M. Best. There is no life insurance company in New Zealand which has a higher financial strength rating. View the A.M. Best Company rating scale.
The above provides a summary only of the benefits, terms and conditions of the policy. Please refer to the policy wording, including the policy appendix and schedule, for full details of the policy benefits and the terms and conditions under which they are provided.