Crisis recovery insurance is the same as trauma or critical illness insurance, only the names are different. It is an insurance cover that pays a lump sum benefit if you unfortunately suffer from any of the major illnesses that are specified in the policy. It is an important cover to have if you are stuck with any big medical expenses resulting from your illness, especially when you are no longer able to work in order to earn an income. It will also enable you to pay off any debts so you can create a better cash flow that better fits in with your reduced earnings.

The AIA Crisis Recovery Plan can be purchased as a stand alone insurance policy or as an additional benefit attached to your Life Cover insurance. If you prefer to have it as an additional cover the amount of cover you want can not exceed that of the life cover benefit you already have, or intend to have. Any successful claim you make under the crisis recovery plan will reduce your life cover benefit by the same amount.

Reasons For Taking Out a Crisis Recovery Plan Insurance Cover

There are many benefits to be derived by signing up to an AIA Crisis Recovery plan some of these include the following:

• You will be covered for crisis events. These events include illnesses such as cancer, a stroke, heart attack, loss of the use of your arms, legs or eyes, among many other ailments that are listed in the policy, as such diseases strike anybody without discrimination.
• AIA will pay out a lump sum benefit. If you are diagnosed as suffering from any of these events you will receive your agreed benefit in the form of a lump sum payment.
• Crisis recovery cover will ease financial stress. It will be a stressful time if you are ever unfortunate enough to be diagnosed with such a traumatic ailment. Having financial protection such as a Crisis Recovery plan in place will at least take care of the money side of things.
• The providing of sufficient funds for necessary lifestyle changes. When diagnosed with such a serious life threatening or disabling ailment, you can be certain some lifestyle changes will have to be made. If you have an AIA crisis recovery plan to fall back on, the making of such changes will be much easier.

Built in Benefits

The following benefits are part of an AIA Crisis Recovery plan:

• Death cover. Your nominated beneficiary will receive an amount of up to $5,000 if you should die (stand alone plan only).
• Benefit payments in advance. If your diagnosis can be confirmed in regard to certain of the approved critical events AIA will pay you an advance payment. These events include; Motor Neurone disease, Multiple Sclerosis, Muscular Dystrophy and Parkinson’s disease. The payment made will be 25 percent of your insured cover up to a maximum of $25,000. The amount paid will reduce you final payment by the same amount. This advance payment will be paid once only.
• Converts to loss of independence at age 70. When you reach 70 years of age your AIA crisis recovery benefit will cease. However rather than allowing the benefit to expire it will be converted to a ‘Loss of Independence’ benefit. It will remain that way until you reach the age of 100 years. This benefit change only applies if your cover is attached as part of your Life Cover insurance plan (does not apply if you are covered under a Crisis Recovery stand alone policy).
• Complimentary family protection. If you have children aged from two to 18 years, they will also be covered under your AIA Crisis Recovery Plan. Benefits will be paid if the child is diagnosed with one or more of the ailments listed in the policy as well as if the child dies. This complimentary benefit covers all your children but the maximum benefit paid will be whatever is the lower of the sum insured under the plan and $20,000. Only one payment will be made per each of your children although the total amount can not exceed the amount of insurance cover you have taken out under the plan.

Qualifying Period

AIA Crisis Recovery benefits will not be paid if the claim of having suffered from one of the listed events is made within three months of obtaining the cover. This qualifying period will be waived however if your new policy is a replacement policy with the same or lower sum insured amount and the qualifying period has already been served. If you have your cover as a stand alone policy plan AIA will pay the benefit after you have survived the ailment for 14 days after being first diagnosed.

If you have suffered a pre-existing condition of the type listed as being covered under your AIA Crisis Recovery plan and you do not inform AIA of this condition before the cover being approved, or in the case of any improvement in the benefit, reinstatement, or increase of the insured amount, the benefit will not be paid if a later claim is made because of you being diagnosed with that complaint.