If you became totally and permanently disabled, and you were unable to ever work again, you could receive a lump sum payment to take care of all those current expenses which won’t go away, and all the new ones which come as well.
Permanent disability insurance (also known as Total Permanent Disablement insurance or TPD insurance) is a policy which pays a non-taxable lump sum benefit if you are unable to work in your own occupation due to illness or injury, and you are unlikely to ever be able to resume that occupation.
AIA Living Total Permanent Disablement
Total Permanent Disablement pays a lump sum if you become totally and permanently disabled and are unable to work as a result of an accident or illness. A payment may also be made if you are partially disabled.
The disability definition is based on not being able to work in your own occupation, not just any occupation that you might be able to perform.
From a financial point of view, permanent disablement is more catastrophic than death itself. Not only has your income-earning potential gone, but you remain alive and you have all the day-to-day consumption needs that everybody else has, such as feeding, clothing, caring, housing, heating, treating, transporting, communicating and entertaining. Permanent disablement is an expensive way to live.
Total Permanent Disablement insurance includes a comprehensive range of benefits:
Total Permanent Disablement Benefit
Receive a lump sum benefit payment if you become totally incapacitated through illness or injury, and you are considered unlikely to ever be able to resume work.
Receive a partial permanent disablement benefit of 25% of your total permanent disablement benefit up to a maximum of $100,000, if you suffer a partial permanent disability as detailed in the policy.
Financial and Legal Advice Benefit
After you receive a claim payment, get reimbursed for up to $2,500 (including GST) for financial planning fees paid to an accredited adviser or for legal advice from a legal professional approved by AIA.
Receive reimbursement of up to $15,000 (including GST) to cover the cost of purchasing specialist equipment, completing home alterations or modifications to your vehicle which are necessary as a result of the illness or accident leading to a claim.
Get reimbursed for up to $2,500 (including GST) for the cost of a psychiatrist or psychologist consultation and/or counselling where the support treatments and/or consultations directly relate to a claim under the Total Permanent Disablement Benefit.
Special Events Increase Facility
You can increase the amount of cover under your policy following certain life events, without any medical questions, examinations or tests. A premium will be applied to the additional cover.
Future Insurability Benefit
Increase your Total Permanent Disablement Benefit by up to 20% (subject to a maximum increase of $200,000) at every third policy anniversary without the need to provide further medical evidence.
Suspension of Cover Benefit
Flexibility to suspend your cover for up to 12 months if you:
Go on parental leave;
Go on leave without pay for any reason;
Become unemployed or redundant;
Experience a reduction in pay of 20% or more (comparing the most recent payslip against a previous payslip from the same year); or
Are self-employed and experience a reduction in revenue of 30% or more (by comparing one month’s revenue against the same month for the previous year).
No premium will be payable during the period that cover is suspended. No claim will be payable for any claim event that occurs during the period that cover is suspended.
Premium Conversion Facility
At any time before age 65, you can convert all or part of your Total Permanent Disablement Benefit from a Rate for Age premium structure to a Level premium structure without needing to produce further medical evidence.
Please refer to the Policy Wording for full details of all benefits and any associated terms and conditions.
Total Permanent Disablement insurance includes the following features:
The policy is underwritten by AIA New Zealand Limited, New Zealand’s largest life insurer. AIA New Zealand Limited has an AA (Very Strong) financial strength rating from Fitch Ratings.
24 x 7 Worldwide Cover
Whether you’re at home, travelling or working anywhere for any period (including overseas, even if you move overseas permanently), you remain insured.
If any change is made to the underlying AIA Living policy in the future, and that change would be favourable to you, then the Enhancement Pass Back Benefit means that the enhanced change will automatically be applied (passed back) to your policy. Conditions apply.
If at any time during the 15 days following receipt of your policy you do not wish to continue with your cover (for whatever reason at all), you can return your policy for a full refund of all premiums paid.
Please refer to the Policy Wording for full details and any associated terms and conditions.
AIA Vitality is a science-backed health and wellbeing program that supports and rewards you for making healthier choices.
Premiums for eligible insurance policies that cover you may be discounted in certain circumstances based on your membership and participation in the AIA Vitality program. You’ll receive an initial 10% premium discount in your first year.
A membership fee of $11.50 per month per member applies.
The above identifies and provides a brief summary only of the principal benefits under the policy. Please refer to the Policy Wording for full details of all benefits and the terms and conditions under which they are provided. Cover is subject to underwriting and approval by AIA.
AIA New Zealand Limited has been given an AA (Very Strong) insurer financial strength rating by Fitch Ratings, an approved rating agency. View details
Financial Strength Rating
AIA New Zealand Limited has been given an AA (Very Strong)1 insurer financial strength rating by Fitch Ratings, an approved rating agency. A rating of AA means AIA New Zealand Limited has a very strong capacity to meet policyholder and contractual obligations.
AAA (Exceptionally Strong)
BB (Moderately Weak)
AA (Very Strong)
CCC (Very Weak)
CC (Extremely Weak)
Note: “+” or “-” may be appended to a rating to indicate the relative position of a credit within the rating category. Such suffixes are not added to ratings in the AAA category or to ratings below the CCC category.