Aviation Cover Product Summary by lindahy


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									Aviation Cover
Product Summary
Income Care – Personal Insurance Portfolio

Pilots, Flight Engineers and Flight Attendants are responsible for people’s lives
when they’re up in the air. But down on the ground, it becomes more personal.
Maintaining a lifestyle can be a real challenge if things go wheels up.
What is Aviation Cover?                                                                               Commercial
Aviation Cover forms part of CommInsure’s Income Care Range          Optional extras under            Pilots and Flight   Flight
and is designed specifically for pilots, flight engineers and        Income Care Plus                 Engineers           attendants
flight attendants.
                                                                     Overseas Assist Benefit
It helps by replacing up to 75% of your income if your clients are   Rehabilitation Expense Benefit
grounded due to sickness or injury. This cover offers a wide range
of complementary and optional benefits, and can be customised        Death Benefit
to meet specific needs.                                              Specific Injuries Benefit
                                                                     Crisis Benefit
  Your clients should consider Aviation Cover                        Bed Confinement Benefit
  if they:
                                                                     Accommodation Benefit
      Have a mortgage or other debt
                                                                     Transport Benefit
      Have a family and associated responsibilities                  Family Support Benefit

      Have insufficient cash reserves to cover unexpected            Home Care Benefit
      medical and hospital bills.
                                                                                                      Pilots and Flight   Flight
What is provided under Aviation Cover?                               Features at a glance             Engineers           attendants
                                  Pilots and Flight   Flight         Minimum Entry Age                20 (next birthday) 20 (next birthday)
Benefits at a glance              Engineers           attendants
                                                                     Maximum Entry Age                55 (next birthday) 55 (next birthday)
Total Disability based on
‘own’ occupation                                                                                      60 (minimum five    60 (minimum five
                                                                     Expiry Age                       year policy         year policy
Partial Disability of two years                              ✘                                        duration)           duration)
Choice of Agreed Value
or Indemnity                                                         Minimum Waiting Period           30 days             60 days
Automatic Indexation Benefit
                                                                                                      $30,000             $30,000
Guaranteed Insurability Benefit                                                                       per month           per month
Worldwide Cover                                                      Maximum Cover                    $2,000,000          $2,000,000
Premium Waiver Benefit                                                                                for duration        for duration
                                                                                                      of cover            of cover
Recurrent Disability Benefit
Waiver of Premium if Unemployed
                                                                                                      2 years, 5 years
or on Maternity Leave                                                Benefit Period                                       2 or 5 years
                                                                                                      or to age 60
Reward Cover Benefit
Rehabilitation Benefit
Waiver of Waiting Period for
Specific Conditions
Strategy: Combining Income Care cover with Loss of
Licence cover*
Many pilots believe in the validity of Loss of Licence insurance,
should they be grounded due to accident or illness. However,
there can be some limitations to being protected by Loss of
Licence alone.
Like Income Protection, Loss of licence insurance covers a
Pilot or Flight Engineer if unable to work in the capacity for which a
licence is held due to accident or illness. Where the two types of
cover differ significantly can be seen below. Loss of Licence offers:
• A maximum of 12 month benefit period
• Lower maximum sums insured – $500,000
• Pays the lesser of 75% of income or $10,000 per month
• Waiting periods of 90 days or 180 days
• Death benefit of $100,000, but only if by accident
• Cancellable policy – at discretion of insurance company every
  12 months.

Income Care offers:
• Benefit period of 2 years, 5 years or to age 60
• Higher maximum sums insured – $2,000,000
• Pays the lesser of 75% of income (plus ancillary benefits) or
  $30,000 per month
• Waiting period of 30 days or 60 days
• Death benefit of $75,000 or 4x monthly benefit, by accident or
  injury or illness
• Yearly renewable policy – provided the client pays premiums the
  policy cannot be cancelled by the insurance company
• Tax deductible premiums.

A good strategy is to view Loss of Licence insurance as a form
of TPD cover for pilots that can pay up to $500,000 if the pilot has
permanent total disablement resulting in loss of licence. Income
care can then be used as a complementary insurance coverage
that may replace salary up to age 60 (subject to maximum limits).

* Loss of Licence cover is available for Pilots and Flight Engineers only.
  It is not applicable to Flight Attendants.

  What are the odds?

  n Every working Australian has a 1 in 3 chance of becoming disabled for more than 3 months before turning 651.

  n More than half of all serious accidents happen outside of work, so Workers Compensation doesn’t apply2.

  n 51% of people are generally unaware of the tax benefits associated with income protection3.

  1. Interim Report of the Disability committee, Institute of Actuaries of Australia, 2000.
  2. ABS, National Health Survey 1995.
  3. Newspoll Survey, January 2008.

   For more information about CommInsure’s Aviation Cover, you can visit
   adviser.comminsure.com.au or contact your comminsure BDM or Business Growth Services
   Technical Team on 1800 761 067 from 9 am to 5 pm (Sydney time), Monday to Friday.

Important information
Income Care Cover is a component of the Personal Insurance Portfolio, issued by CommInsure, a registered business name of The Colonial Mutual Life Assurance Society
Limited ABN 12 004 021 809 AFSL 235035 (CMLA) a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124. As this
advice has been prepared without considering your objectives, financial situation or needs, you should before acting on this advice, consider its appropriateness to your
circumstances. A Product Disclosure Statement issued by CMLA for Personal Insurance Portfolio is available from your financial adviser, by calling 13 10 56 or from
comminsure.com.au and should be considered in making any decision about the product.
CIL890 201108

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