Sovereign to help customers who lose their jobs

Media Statement

6 March 2009

Sovereign to help customers who lose their jobs

Sovereign is working to help customers affected by the economic downturn.

As the recession bites it is expected that unemployment will rise and household spending will be cut or redirected to the ‘must-haves’. Sovereign believes it has a part to play in reducing some of the pressures and concerns on families in these challenging times.

Therefore, Sovereign term life insurance policies can now be put on hold for up to 12 months if the person paying the premiums is made redundant between 9 March 2009 and 31 March 2010. During the 12 months, premiums on the policy will not need to be paid and claims will not be accepted. At the end of the 12 months, or earlier, the policy can be restarted without the life assured having to provide additional medical information. To be eligible, the policy must be in force on 1 April 2009.

In addition, to ensure that families continue to have some protection while the policy is on hold, Sovereign will provide free Accidental Death cover on the life assured, up to a maximum of $250,000.

This offer will also be available to any member of the immediate family of a person who is made redundant and can no longer afford to pay the premiums on an eligible Sovereign term life insurance policy because of the redundancy.

“Our aim is to give peace of mind to the quarter of a million New Zealanders who hold term life insurance with Sovereign by removing a potential worry from their list. It’s also about providing very real help to those who are made redundant”, says Sovereign Managing Director, Simon Blair.

“This will help our customers reduce their monthly bills and remain protected”, explains Mr Blair. “Sovereign is here to help protect the things that are important to its customers. We don’t want to see them compromise long-term security to deal with a potential short-term problem.”

This new offer adds to the options customers already have with Sovereign to reduce costs and maintain cover. These include increasing excesses, lengthening the period they wait before receiving a benefit, or altering the period over which a benefit is paid.

Individual situations will differ. Sovereign recommends that customers contact Customer Services or speak with their adviser about the options available.

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