Page 8 - ACI World Wide Salary Continuance Insurance

08 | Making Possibilities Happen

Mary’s story

After years of study and training, Mary was looking forward to starting
her career in nursing. But after just a few days on the job, she was
diagnosed with breast cancer. Fortunately the cancer was detected
early, but Mary would not be able to work for several months while she
underwent treatment.

Mary was covered under a group salary continuance As you can see, the Total Disability Benefit payable
insurance policy paid by her employer and held to Mary is a little less than 75% of her actual salary
outside superannuation. She lodged a claim for the of $50,000 per annum – the difference being
Total Disability Benefit, which was accepted and after $538.79. Mary would have needed to apply for extra
a 60 day waiting period Mary started receiving Total cover, if she wanted her Total Disability Benefit to
Disability Benefit payments. cover 75% of her actual salary.

Mary’s income at the time she had to stop working So, Mary received a Total Disability Benefit of
was $50,000 per annum. The Automatic Acceptance $2,586.21 which was paid directly into her bank
Limit (AAL) that Mary’s employer had chosen was account, plus a Super Contribution Benefit of
$3,000 per month and Mary was also entitled to a $413.79 was paid to her Super Fund every month.
12% Super Contribution Benefit. So, Mary’s total
insured benefit was equal to 87% of salary (i.e. 75%
While Mary could not work, she did not have to worry
Totally Disability Benefit plus 12% Super Contribution
about her daily living expenses. Instead, she could
Benefit). Since Mary only had automatic cover, her
focus her energy on recovery and regaining her
monthly benefit was restricted to the AAL, as follows:
strength after her treatment.

Total Disability benefit 75% x $50,000 = $37,500
Super Contribution benefit 12% x $50,000 = $6,000
Entitled cover $43,500 per annum or $3,625 per month
AAL: $3,000 per month Final monthly benefit is restricted to $3,000 per month

Benefit to Mary
$3,000 per month / 0.87 x 75% = $2,586.21 per month (to Mary’s bank account)
$3,000 per month / 0.87 x 12% = $413.79 per month (to Mary’s super account)
Total payable = $3,000 per month