Lump Sum Protection

Document Sample
Lump Sum Protection Powered By Docstoc
					At a glance
                      Protecting your future to
Lump Sum Protection   make the most out of life.
     Why Protection?
     With Aviva’s Protectionfirst you have peace of mind knowing that you and
     your family will be financially secure and protected in the event of any
     unforeseen situations occurring during your lifetime. Our Life and Recovery
     Money policies pay a lump sum benefit to you or your loved ones. If you
     are unable to work because of injury or illness, our Income Protection
     policies can pay you a percentage of your regular income.


     Why Aviva?
     Aviva Australia* (previously known as Norwich Union) has over 150 years
     of continuous operation in Australia. Today our main activities are life
     insurance, investments and superannuation.

     We are proud to be one of the most stable and innovative life insurance,
     investments and superannuation companies in Australia, and together with
     your financial adviser, we are passionate about providing you with financial
     prosperity and security.
     ■    420,000 customers throughout Australia
     ■    have a reputation for high quality service, highly rated products and
          a strong track record of claims payments
     ■    Aviva’s investments and superannuation platform was established in 1990
     ■    Aviva has $17.1 billion funds under management and administration
          (as at 30 June 2009)




* This is through its life company Norwich Union Life Australia Limited (NULAL) ABN 34 006 783 295 AFSL 241686. NULAL and its related entity form the
  Aviva Australia Group (‘Aviva Australia’).



                                                                          2
                                                                                                      Aviva Protection – Life
                                                                                                      provides a lump sum if you:
      Protection – Life                                                                               ✓ lose your life, or

      Protection for the people you love most                                                         ✓ become terminally ill, or
                                                                                                      ✓ become totally and
                                                                                                         permanently disabled
      Life is short. Too short. So you want to make sure you protect                                     (optional at additional cost)
      the people that matter most while you can. With Aviva
      Protection – Life, not only are your loved ones protected
      in the unforeseen event you lose your life, but you can also
      be covered if you suffer from a terminal illness.




      Benefits of life insurance with Aviva                                     Extra benefits for extra protection
      ■   receive an advanced benefit payment if you                            For an additional cost you can choose these options:
          become terminally ill 1
                                                                                1. receive a lump sum if you become totally and
      ■   take care of your family financially if you lose                         permanently disabled (known as ‘Disability Benefit’
          your life                                                                or ‘TPD’)
      ■   enjoy automatic annual increases in your cover in
                                                                                2. waive your premiums if you become retrenched
          line with inflation2
                                                                                   or totally disabled (known as ‘Waiver of Premium’)
      ■   enjoy automatic renewal of your policy until it
                                                                                3. insure yourself for an additional amount should
          expires (providing you continue to pay premiums)
                                                                                   you lose your life as a result of an accident (known
      ■   increase your cover when significant events happen
                                                                                   as ‘Accident Death Benefit’)
          e.g. marriage (known as ‘Future Insurability’) 3
                                                                                4. increase death and/or disability cover yearly
      ■   freeze your premiums after your 30th birthday
                                                                                   to reflect your revised business value (known as
          (known as the ‘Economiser Option’) 4
                                                                                   ‘Business Protection Option’)
      ■   we’ll automatically upgrade your policy if the policy
          improves (known as ‘Upgrade Guarantee’) subject                       5. re-purchase insurance for loss of life after a TPD
          to there being no change in relevant premium rates                       claim (known as ‘Disability Buy Back’)
      ■   option to hold your policy with superannuation,                       6. protect up to five children or grandchildren
          which may allow the premium to be tax deductible                         under age 16 by insuring each of them for
      ■   receive up to $10,000 as an advance payment to                           up to a maximum of $200,000 if they become
          meet your funeral costs                                                  critically ill or lose their life5 (known as ‘Child
                                                                                   Critical Illness Benefit’)
      ■   be automatically protected whilst we consider your
          application (known as ‘Interim Cover’)                                7. extend your cover and receive an additional
      ■   receive up to $2,000 towards preparation of a                            benefit should you be unable to perform daily
          financial plan (know as ‘Financial Planning Benefit’)                    living activities (known as ‘Activities of Daily Living’)




Note: conditions and restric tions apply to all insurance and options .

1   As defined in the policy terms and conditions.
2   Minimum CPI is 5% p.a.
3   Conditions apply.
4   Fixing the premium will result in a reduction to your level of cover.
5   The child must be at least two years old.



                                                                            3
                Protection – Life (continued)


                How much cover can you apply for?
                                                                                                 Did you know? The most common death claim in
                Insurance for loss of life (including terminal illness):
                                                                                                 2008 was due to heart disease, closely followed by
                There are no limits to death cover.                                              cancer. This was for both men and women. Interestingly,
                                                                                                 the majority of all death claims received are made from
                Insurance if you become totally and permanently
                                                                                                 policies that have been with Aviva for over 10 years.
                disabled (optional at additional cost):
                                                                                                 Source: Aviva claims paid in 2008
                Apply for up to $5,000,000 1




                         Richard, aged 39, is a self employed IT consultant                  …something happened to Charlotte?
 What if? a case study




                         earning $84,000 per annum. Charlotte, aged 35,
                                                                                             Richard is not the only person who needs cover. In the
                         is not employed as she has stopped working to
                                                                                             event of Charlotte’s death or disablement, it’s unlikely
                         raise their three children aged 8, 6 and 3. Their
                                                                                             that Richard could stop work without sacrificing some
                         home has a mortgage of $410,000 and they have
                                                                                             or all of his current income. He may potentially have
                         just put a deposit on a holiday house in Noosa to
                                                                                             to look after the children himself or pay for additional
                         spend their Christmas holidays in each year.
                                                                                             childcare expenses. Sufficient protection for Charlotte
                         If Richard were to die, an appropriate amount of                    is vital for the continual management of the family
                         life insurance would cover such things as debt                      household in the event of her death or disablement.
                         repayment in full on both properties, every day
                         living expenses for Charlotte and the children,
                         childcare expenses if Charlotte were to go back
                         to work, as well as the cost of the children’s
                         ongoing education.


                But what would happen if…
                … Richard becomes totally and
                permanently disabled?
                If Richard had a serious accident and was paralysed, or
                became severely handicapped, Total and Permanent                             … Richard dies?
                Disability (TPD) cover would allow Charlotte to meet                         If Richard were to die without adequate life insurance,
                the costs of providing Richard with the medical                              most likely Charlotte would not be financially secure.
                attention he needed. It would also allow Charlotte                           She would need to return to work to continue mortgage
                and Richard to make the necessary modifications to                           repayments, pay for the children’s education and finance
                their home to make life easier for Richard.                                  everyday living expenses. The right level of protection
                                                                                             will ensure Charlotte and the children are financially
                … Richard suffers a Critical Illness?                                        secure and have adequate funds to continue life as
                If Richard had a heart attack and had to undergo                             they know it. If Richard dies in an accident and he has
                bypass surgery and was unable to return to work for                          purchased the Accident Death Benefit option with his
                seven months, Critical Illness cover can help meet the                       Aviva Life policy, his estate could receive an additional
                medical expenses and Richard’s foregone income.                              $1,000,000.

                The above information is prepared by Norwich Union Life Australia Limited (NULAL) ABN 34 006 783 295 AFSL 241686. The information is general
                in nature and does not take into account your particular objectives, financial situation or needs. The facts in this case study are fictional. Any
                similarity of this case study to your personal financial situation is coincidental. It is recommended that you seek professional advice before acting
                on any information contained within this document.



Note: conditions and restric tions apply to all insurance and options .
1 For any TPD amount above $3 million, the Activities of Daily Living definition will apply.


                                                                                         4
                                                                                                          Aviva Protection – Recovery
                                                                                                          Money provides a lump sum
                                                                                                          if you:

     Protection – Recovery Money                                                                          ✓ become critically ill, oR
                                                                                                          ✓ become terminally ill,# oR
     Protect everyone who is important to you
                                                                                                          ✓ lose your life,# oR
                                                                                                          ✓ become totally and
     With Protection – Recovery Money from Aviva, not only                                                    permanently disabled
     are you insured for up to 37 illnesses – ranging from cancer                                             (optional at additional cost)
     to major burns – but you’re also covered for loss of life.                                           # Under the associated Aviva
     You even have the option to upgrade your cover for                                                     Protection Life policy.

     disability. You can relax knowing that should the worst
     happen to you, you’re covered by Aviva.


     Benefits of Recovery Money                                                Extra benefits for extra protection
     with Aviva                                                                For an additional cost you can choose these options:
     ■   receive automatic, ‘no questions asked’ $10,000                       1. waive your premiums if you become retrenched
         cover for your dependant child1 in the event they                        or become totally disabled (known as ‘Waiver
         suffer a defined Critical Illness or lose their life                     of Premium’)
         (known as ‘Child Support Benefit’)
                                                                               2. peace of mind with the ability to reinstate 100%
     ■   receive up to $10,000 as an advance payment to                           of your Critical Illness cover after a Critical Illness
         meet your funeral costs                                                  claim (known as ‘Critical Illness Reinstatement’)
     ■   receive an advance death benefit payment if you
                                                                               3. insure yourself for an additional amount should
         become terminally ill2
                                                                                  you lose your life as a result of an accident (known
     ■   enjoy automatic annual increases in your cover in                        as ‘Accident Death Benefit’)
         line with inflation3
                                                                               4. protect up to five children or grandchildren
     ■   enjoy automatic renewal of your policy until it
                                                                                  under age 16 by insuring each of them for up to
         expires (providing you continue to pay premiums)
                                                                                  a maximum of $200,000 if they become critically
     ■   increase your cover when significant events happen                       ill or lose their life6 (known as ‘Child Critical
         e.g. marriage (known as ‘Future Insurability’)4                          Illness Benefit’)
     ■   also increase your Critical Illness cover when a
                                                                               5. severe illness – if you are under age 70 and
         significant event such as the above occurs (known
                                                                                   insured for over $100,000 for Critical Illness, we
         as ‘Future Insurability – Critical Illness’)
                                                                                   will make an advance one-off partial payment if
     ■   freeze your premiums after your 30th birthday                             you are diagnosed with a certain illness or suffer
         (known as the ‘Economiser Option’)5                                       certain injuries e.g. Severe Osteoporosis (known as
     ■   we’ll automatically upgrade your policy if the policy                    ‘Severe Illness Benefit’)
         improves (known as ‘Upgrade Guarantee’) subject
                                                                               6. protection against occupationally acquired
         to there being no change in relevant premium rates
                                                                                  Hepatitis B and C is available for all occupations
     ■   be automatically protected whilst we consider your                       up to $500,000
         application (known as ‘Interim Cover’)
     ■   receive up to $2,000 towards preparation of a
         financial plan (known as ‘Financial Planning Benefit’)



Note: conditions and restric tions apply to all insurance and options .
1 Conditions apply or available only where Critical Illness cover is           4 Conditions apply.
  $100,000 or greater.                                                         5 Fixing the premium will result in a reduction to your level of cover.
2 Terminal illness is when you are diagnosed as likely to lose your life       6 The child must be at least two years old.
  within 12 months.
3 Minimum CPI is 5% p.a.


                                                                           5
                               Protection – Recovery Money (continued)


                              7. increase death and/or disability and/or                                             How much cover can you apply for?
                                 Critical Illness cover yearly to reflect your
                                 revised business value (known as ‘Business                                          Insurance if you become critically ill:
                                 Protection Option’)                                                                 Apply for up to $2,000,000.

                                8. extend your cover and receive an additional                                       Insurance for loss of life (including terminal illness):
                                   benefit should you be unable to perform                                           There are no limits to death cover.
                                   daily living activities (known as ‘Activities of                                  Insurance if you become totally and
                                   Daily Living’)                                                                    permanently disabled (optional at additional cost):
                                                                                                                     Apply for up to $5,000,000.1
  W h at M a k e s av i va s ta n D o u t




                                            “Aviva took care of us when we                                           Be prepared
                                             needed them most”                                                       Emma wholeheartedly agreed. “We added the Buy
                                                                                                                     Back Option when we signed up for Peter’s policy.
                                            When Peter had open heart surgery it was
                                                                                                                     After payment of the Critical Illness benefit, our
                                            also devastating for his wife Emma, but not as
                                                                                                                     financial adviser gave us a call and asked if we wanted
                                            devastating as it could have been because after
                                                                                                                     Peter’s policy for loss of his life. We couldn’t believe it.
                                            he had been paid his Critical Illness benefit he
                                                                                                                     We can still benefit from having insurance.”
                                            could still buy back his Aviva cover.

                                            Insurance is important
                                            “Even though I’m better now, I’m still open to
                                             other risks,” said Peter. “When something like
                                             this happens to you, you realise the importance
                                             of insurance even more.”

                                            The above information is prepared by Norwich Union Life
                                            Australia Limited (NULAL) ABN 34 006 783 295 AFSL 241686.
                                            The information is general in nature and does not take into
                                            account your particular objectives, financial situation or needs.
                                            The facts in this case study are fictional. Any similarity of this
                                            case study to your personal financial situation is coincidental.
                                            It is recommended that you seek professional advice before
                                            acting on any information contained within this document.




Note: conditions and restrictions apply to all insurance and options.

1 For any TPD amount above $3 million, the Activities of Daily Living
  definition will apply.



                                                                                                                 6
                                                                                                                Aviva Protection – Flexible
                                                                                                                Recovery Money provides a
                                                                                                                lump sum if you:

      Protection – Flexible                                                                                     ✓ become critically ill, oR
                                                                                                                ✓ become terminally ill,# oR
      Recovery Money                                                                                            ✓ lose your life,# oR

      Protect yourself and the people in your life                                                              ✓ become totally and
                                                                                                                     permanently disabled
                                                                                                                     (optional at additional cost)
      There are always a few bumps in life. Often when we least                                                 #
                                                                                                                    Under the associated Aviva
      expect it. With Protection – flexible Recovery Money in                                                       Protection Life policy.
      conjunction with Life cover from Aviva, not only are you insured
      for up to 37 illnesses – ranging from cancer to heart attacks –
      but you’re also covered for loss of life. You even have the option
      to pay some of your premiums using your super contributions
      to save tax. You can’t get more flexible than that!


      Benefits of Flexible Recovery Money                                           ■   hold your Critical Illness cover outside of your
                                                                                        super, with your life and TPD cover within super
      ■   receive automatic, ‘no questions asked’ $10,000
                                                                                        under the associated Aviva Life Protection policy
          cover for your dependant child 1 in the event
                                                                                    ■   be automatically protected whilst we consider your
          they suffer a defined Critical Illness or lose their
                                                                                        application (known ‘Interim Cover’)
          life (known as ‘Child Support Benefit’)
                                                                                    ■   receive up to $2,000 towards preparation of a
      ■   receive up to $10,000 as an advance payment
                                                                                        financial plan (known as ‘Financial Planning Benefit’)
          to meet your funeral costs2
      ■   receive an advanced death benefit payment if
          you become terminally ill 2,3                                             Extra benefits for extra protection
      ■   enjoy automatic annual increases in your cover                            For an additional cost you can choose these options:
          in line with inflation4                                                   1. protection against occupationally acquired
      ■   enjoy automatic renewal of your policy until it                              Hepatitis B and C is available for all
          expires (providing you continue to pay premiums)                             occupations up to $500,000
      ■   increase your cover when significant events happen                        2. waive your premiums if you become
          e.g. marriage (known as ‘Future Insurability’)2,5                            retrenched or become totally disabled (known
      ■   freeze your premiums after your 30th birthday                                as ‘Waiver of Premium’)
          (known as the ‘Economiser Option’) 6
                                                                                    3. protect up to five children or grandchildren
      ■   we’ll automatically upgrade your policy if                                   under age 16 by insuring each of them for up
          the policy improves (known as ‘Upgrade                                       to a maximum of $200,000 if they become
          Guarantee’) subject to there being no change                                 critically ill or lose their life 1 (known as ‘Child
          in relevant premium rates                                                    Critical Illness Benefit’)




Note: conditions and restric tions apply to all insurance and options .

1   The child must be at least two years old. Conditions apply or available only where Critical Illness cover is $100,000 or greater.
2   Under the associated Aviva Protection Life policy
3   Terminal illness is when you are likely to lose your life within 12 months.
4   Minimum CPI is 5% p.a.
5   Conditions apply.
6   Fixing the premium will result in a reduction to your level of cover.



                                                                                7
     Protection – Flexible Recovery Money (continued)


     4. increase death and/or disability and/or                                   7. extend your care and receive an additional
        Critical Illness cover yearly to reflect your revised                        benefit should you be unable to perform
        business value (known as ‘Business Protection                                daily living activities (known as ‘Activities of
        Option’)                                                                     Daily Living’)
     5. re-purchase insurance for loss of life (known as
       ‘Disability Buy Back’ or ‘Critical Illness Buy Back’)                      How much cover can you apply for?
        or 100% of your Critical Illness insurance (known
                                                                                  Insurance if you become critically ill:
        as ‘Critical Illness Reinstatement’) after a claim
                                                                                  Apply for up to $2,000,000.
     6. severe illness – if you are under age 70 and
                                                                                  Insurance for loss of life (including terminal illness)1:
        insured for over $100,000 for Critical Illness, we
                                                                                  There are no limits to death cover.
        will make a one-off partial payment if you are
        diagnosed with a certain illness or suffer certain                        Insurance if you become totally and
        injuries eg. Severe Rheumatoid Arthritis (known                           permanently disabled (optional at additional cost):
        as ‘Severe Illness Benefit’)                                              Apply for up to $5,000,000.2

     TIP: This policy can only be held in conjunction with an approved Aviva Protection – Life policy.



     What makes Aviva stand out?
     “You can insure up to five children or grandchildren for a defined Critical Illness.”
     This is known as the ‘Child Critical Illness Benefit’.




Note: conditions and restric tions apply to all insurance and options .

1 Under the associated Aviva Protection Life policy.
2 For any TPD amount above $3 million, the Activities of Daily living definition will apply.



                                                                             8
                                                                                                           Aviva Protection –
                                                                                                           Stand Alone Recovery
      Protection – Stand Alone                                                                             Money provides a lump sum
                                                                                                           if you:
      Recovery Money                                                                                       ✓ become critically ill, oR

      Protection for whatever is around the corner                                                         ✓ become totally and
                                                                                                             permanently disabled


      Sometimes we all need peace of mind. Protection – stand
      alone Recovery Money is an extra level of insurance that
      can cover you for up to 37 illnesses – ranging from cancer to
      heart attacks. You can even insure yourself for total and
      permanent disability.

      Benefits of Stand Alone                                                       Extra benefits for extra protection
      Recovery Money                                                                For an additional cost you can choose these options:
      ■   pays a lump sum of $5,000 if you lose your life                           1. re-purchase 100% of your Critical Illness
          (known as ‘Death Benefit’)                                                   insurance (known as ‘Critical Illness Reinstatement’)
      ■   receive up to $2,000 towards preparation                                  2. protect up to five children or grandchildren
          of a financial plan (known as ‘Financial                                     under age 16 by insuring each of them for up
          Planning Benefit’)                                                           to a maximum of $200,000 if they become
      ■   receive automatic, ‘no questions asked’ $10,000                              critically ill or lose their life 5 (known as ‘Child
          cover for your dependant child 1 in the event they                           Critical Illness Benefit’)
          suffer a defined Critical Illness or lose their life                      3. protection if you become totally and permanently
          (known as ‘Child Support Benefit’)                                           disabled (known as ‘Disability Benefit’)
      ■   enjoy automatic annual increases in your cover                            4. severe illness if you are under age 70 and
          in line with inflation 2                                                     insured for over $100,000 for Critical Illness, we
      ■   enjoy automatic renewal of your policy until it                              will make a one-off partial payment if you are
          expires (providing you continue to pay premiums)                             diagnosed with a certain illness or suffer certain
                                                                                       injuries eg. Severe Rheumatoid Arthritis (known
      ■   increase your Critical Illness cover when significant                        as ‘Severe Illness Benefit’)
          events happen, e.g. marriage (known as ‘Future
          Insurability – Critical Illness’)3                                        5. increase disability and/or or Critical Illness
                                                                                       cover (if you have a business) yearly to reflect
      ■   freeze your premiums after your 30th birthday                                your revised business value (known as ‘Business
          (known as the ‘Economiser Option’)4                                          Protection Option’)
      ■   we’ll automatically upgrade your policy if                                6. waive your premiums if you become
          the policy improves (known as ‘Upgrade                                       retrenched or become totally disabled (known
          Guarantee’) subject to there being no change                                 as ‘Waiver of Premium’)
          in relevant premium rates
                                                                                    7. protection against occupationally acquired
      ■   be automatically protected whilst we consider your                           Hepatitis B and C available for all occupations
          application (known as ‘Interim Cover’)                                       up to $500,000



Note: conditions and restric tions apply to all insurance and options .

1   Conditions apply or available only where Critical Illness cover is $100,000 or greater.
2   Minimum CPI is 5% p.a.
3   Conditions apply.
4   Fixing the premium will result in a reduction to your level of cover.
5   The child must be at least two years old.



                                                                                9
Protection – Stand Alone Recovery Money (continued)




How much cover can you apply for?
Insurance if you become critically ill:
Apply for up to $2,000,000.

Insurance if you become totally and permanently
disabled (optional at additional cost):
Apply for up to $3,000,000.




                                                  10
                                To find out more, talk to your financial adviser.




Disclaimer: This document is issued by Norwich Union Life Australia Limited (‘NULAL’) ABN 34 006 783 295 AFSL 241686. The information in this document
is general in nature and does not take into account your particular objectives, financial situation or needs. Before making a decision to acquire or dispose
of a financial service product you should consider the relevant Product Disclosure Statement (PDS) and consider whether it is appropriate for your particular
objectives, financial situation or needs. Applications to obtain insurance under Protectionfirst must be made by completing the application form attached
to the Protectionfirst PDS which is available from your financial adviser or from aviva.com.au. The Aviva name and logo are used under licence from the
Aviva plc Group.
The above information is current as at the date of publication. While every attempt has been made to ensure the accuracy and reliability of the information,
it is not guaranteed in any way. The information reflects our understanding of existing legislation, proposed legislation, rulings etc as at the date of issue.

Issue date: September 2009

                                                         norwich union Life australia Limited
                                                           ABN 34 006 783 295, AFSL No. 241686
                                                       Level 6, 509 St Kilda Road Melbourne VIC 3001
                                      Client Services 1300 4 AVIVA (1300 4 28482) • Fax 03 9820 1534 • aviva.com.au
                                         nuLis nominees (australia) Limited ABN 80 008 515 633 AFSL 236465
                                               norwich union superannuation trust ABN 31 919 182 354



                                                                              11
AV774U 09.09




   12

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:20
posted:5/4/2010
language:English
pages:12
Description: Lump Sum Protection