Page 5 - Axicom Salary Continuance Insurance - Staff 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 30 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 $3,000 per
month. So, Mary’s total insured benefit was equal to 75%
Totally Disability Benefit. However since Mary only had
automatic cover, her monthly benefit was restricted to
the AAL, as follows:

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

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

Final monthly benefit:
= $3,000 (restricted due to the AAL) So, Mary received a Total Disability Benefit of $3,000 per
month which was paid directly into her bank account.

As you can see, the Total Disability Benefit payable to
Mary is a little less than 75% of her actual salary of While Mary could not work, she did not have to worry
$50,000 per annum – the difference being $125 per about her daily living expenses. Instead, she could focus
month or $1,500 per annum. Mary would have needed her energy on recovery and regaining her strength after
to apply for extra cover, if she wanted her Total Disability her treatment.
Benefit to cover 75% of her actual salary.

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