Page 6 - Axicom Salary Continuance Insurance - Executives

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 to
insurance policy paid by her employer and held outside Mary is a little less than 75% of her actual salary of
superannuation. She lodged a claim for the Total $50,000 per annum – the difference being $125 per
Disability Benefit, which was accepted and after a 30 day month or $1,500 per annum. Mary would have needed
waiting period Mary started receiving Total Disability to apply for extra cover, if she wanted her Total Disability
Benefit payments. Benefit to cover 75% of her actual salary.

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

75% x $50,000 = $37,500

$37,500 ÷ 12 months = $3,125 per month

Final monthly benefit:
= $3,000 (restricted due to the AAL)

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