Insurance FIRST

Total Permanent Disablement

This valuable benefit provides financial peace of mind with a lump-sum in the event of total permanent disablement through accident or illness.

If you had an accident or illness that seriously affected your ability to work, what would happen to your partner, children, business, home or lifestyle?

The financial impact can be serious if an income-earner became totally disabled and unable to work for the rest of their life.

In some cases the hardship experienced would be even more profound as ongoing daily living and medical costs for the disabled person could be significant.

The Facts are:

One in eight people will have a stroke. It is the leading cause of major disability in New Zealand and the third most common cause of death. Every year, about 7,000 people in New Zealand have a stroke (20 people per day).1

Twenty-nine per cent of New Zealanders have a diagnosed long-term illness or disability. 3

The Facts are:

The University of Auckland has revealed a 40% decline in the number of deaths after stroke in the total population of Auckland, New Zealand over the past 25 years.

However, as the death rate declines, there's a significant rise in the number of patients with an impaired level of consciousness and

mobility following a stroke. 2

The Facts are:

Males have a 2 in 5 chance of suffering a critical illness between the ages of 30 and 64. 5

Females have a 1 in 4 chance of suffering a critical illness between the ages of 30 and 64. 5

One major New Zealand insurer has paid a total of $4.5 million in Total Permanent Disablement claims. 4

Sources:

1 The Stroke Foundation of New Zealand, 2007
2 The George Institute for International Health, in collaboration with Auckland City Hospital and The University of Auckland, 2007
3 Statistics New Zealand, 2004
4 Sovereign Limited Claims, 2007
5 General Cologne Life Re Australia, 2002

Depending on the insurer, benefits paid, can be based on:

	Own Occupation: incapacitated by illness or accident to the extent can no longer carry out their own occupation
	Cannot perform at least two of the following "activities of daily living" without the physical assistance of someone else: • Bathing and showering • Dressing and undressing • Eating and drinking • Using a toilet • Moving from place to place by walking, in a wheelchair, or with a walking aid

	Any Occupation: incapacitated by illness or accident to the extent can no longer carry out any occupation
	Total Permanent Disablement Accelerated: Can be deducted from that insurers life cover and therefore the premiums are slightly lower
	Total Permanent Disablement Stand Alone: This leaves the existing life cover intact. The premiums are slightly higher

Loss of limbs

Loss of sight

Financial Advice:

Where needed, this benefit can provide a small sum of up to $1500 in some cases to help fund some of the costs of obtaining professional advice.

How it can help:
	PAY FOR HOUSE MODIFICATIONS Imagine if, being wheelchair bound meant that the home you live in had to be modified to be wheelchair friendly and bathrooms remodelled as complete wet areas

	CREATE AN INCOME GENERATING INVESTMENT If you are incapacitated and cannot earn the income you were accustomed to, investing a lump sum benefit payment that generates an income, is valuable.

	MEETING THE COST OF MEDICAL ATTENTION If urgent medical attention is required and being on a Public Health waiting list is not the preferred option, then a lump sum payment to help cover the medical costs and specialist equipment is invaluable.