Terminal Rate (or Lump Sum)

Terminal entitlement pays your (War) Disablement Pension at maximum rate, whatever your impairment rating.


To be paid terminal entitlement, you must have a progressive disease that’s been:

Getting paid

Terminal entitlement is paid as either Terminal Rate or Terminal Lump Sum. You choose which you prefer.

Terminal Rate

Terminal Rate pays (War) Disablement Pension fortnightly, but at maximum rate. Entitlement is from day we got your application, and ends 28 days after your death.

Terminal Lump Sum

Terminal Lump Sum is 12 months of (War) Disablement Pension at maximum rate, paid as a lump sum. Entitlement is from day we got your application, till the earlier of:

  • end of 12-month period
  • day of your death (your estate needn’t pay back any of the lump sum, but won’t be due any rate-increase).

If you’re on (War) Disablement Pension when applying for the lump sum, we’ll:

  • keep paying your pension till a lump sum’s awarded; then
  • deduct, from the lump sum, any pension-payment made since we got your application.

Should you die before payment of your lump sum, we:

  • can’t pay it to your estate; but
  • may be able to grant Terminal Rate instead (for limited period, as above).

Transfer (between payment types)

If on Terminal Rate, you can choose to transfer to the lump sum. You can do so at any time, so long as we’re able to pay the lump sum before your death.

If on Terminal Lump Sum, you’ll be transferred to Terminal Rate should you survive your lump-sum period. You can’t then apply for the lump sum again (as it may be paid only once).

Rate increase

Maximum rate of (War) Disablement Pension may increase once in a year, to reflect inflation. You’ll get any increase, from the applicable date:

  • for Terminal Rate, as an increase in your pension-payments
  • for Terminal Lump Sum, as an extra payment reflecting the increase.


Terminal entitlement isn’t taxed within New Zealand.

If you’re living outside New Zealand, we recommend checking with your local authorities about any tax or income-testing responsibilities you may have.


If you have difficulty applying yourself, someone with legal authority to act for you can apply on your behalf.

To action your application, we must get it before your death.

Applying for Disablement Pension

Application form (for Disablement Pension) must be completed, if you haven’t already applied for or been awarded (War) Disablement Pension for the condition.

You can send this at the same time as your application for terminal entitlement.

Applying for terminal entitlement

 Application form (terminal entitlement) [PDF, 382 KB] must be completed, to either:

  • apply for terminal entitlement (indicate whether you want Terminal Rate or Terminal Lump Sum)
  • transfer (from Terminal Rate to Terminal Lump Sum).

Finding out more

One-page summary

Related information

Relevant legislation