Page 5 - AS Harrison & Co 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
($3,125 per month) Benefit of $3,125 which was paid directly into her
bank account, plus a Super Contribution Benefit of
Super Contribution benefit $395 was paid to her Super Fund.
9.5% x $50,000 = $4,750 per annum
($395 per month) While Mary could not work, she did not have to
worry about her daily living expenses. Instead, she
Entitled cover could focus her energy on recovery and regaining her
$42,250 per annum strength after her treatment.
or $3,520 per month
AAL:
$10,000 per month

05 | A S Harrison & Co