Glossary of Terms
Pays a lump sum in the event of the death or terminal illness of the life assured.
Life Income Cover (Family Protection)
Provides for a regular payment to be made in the event of the death or terminal illness of the life assured.
Complete Disablement Cover (TPD)
Allows for the payment of a lump sum in the event the life assured is totally and permanently disabled.
Trauma Cover (Living Assurance, Critical Illness)
Provides for the payment of a lump sum in the event of a serious medical condition or trauma – such as a heart attack, major burns or cancer diagnosis.
Income Protection (Disability Income, Loss of Earnings, Income Cover)
Provides for an income benefit to be paid if you are unable to work because of a disability or illness.
Medical Cover (Health Cover)
Provides for the reimbursement of significant medical expenses.
Waiver of Premium (Premium Cover)
Pays your premium if you are not working as a result of accident or illness.
Mortgage Repayment Cover
Provides for your mortgage repayments to be paid on a monthly basis direct to your mortgage provider during any period that you are totally disabled due to illness or injury.
The purpose of a shareholder protection policy is to be able to fund the deceased or disabled shareholders value within the company without placing unnecessary financial burden on the company. Each shareholder is provided with certainty as to what their estate or family will receive should a premature death or disability occur, as the value of shareholding is clearly established and reviewed regularly.
Key Person Protection
A 'Key Person' is defined as any person working within a business who has an effect on income. Key Person Protection is designed to protect the business should a premature death or disability occur. It assists the business to maintain its financial commitment to stay solvent and protects the profitability of the business.
This agreement deals specifically with insurance policies and the transfer of shares should a claim arise. It binds all parties to ensure a fair and equitable result occurs. It also establishes a clear process for dealing with claims and stipulates the review timeframe.