Page 5 - Harrison Manufacturing Salary Continuance Insurance

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 insurance policy paid by her
employer and held outside superannuation. She
lodged a claim for the Total Disability Benefit,
which was accepted and after a 90 day waiting
period Mary started receiving Total Disability
Benefit payments.
Mary’s income at the time she had to stop
working was $50,000 per annum. The Automatic
Acceptance Limit (AAL) that Mary’s employer
had chosen was $10,000 per month and Mary
was also entitled to a 9.5% Super Contribution
Benefit. So, Mary’s total insured benefit was
equal to 84.5% of salary (i.e. 75% Totally
Disability Benefit plus 9.5% Super Contribution
Benefit) as follows:

TOTAL DISABILITY BENEFIT
75% x $50,000 = $37,500 per annum So, each month Mary received a Total Disability
Benefit of $3,125 which was paid directly into her
($3,125 per month) bank account, plus a Super Contribution Benefit

of $395 was paid to her Super Fund.
SUPER CONTRIBUTION BENEFIT While Mary could not work, she did not have to
9.5% x $50,000 = $4,750 per annum worry about her daily living expenses. Instead,
($395 per month) she could focus her energy on recovery and
regaining her strength after her treatment.

ENTITLED COVER
$42,250 per annum
or $3,520 per month

AAL:
$10,000 per month
05 | Harrison Manufacturing