Corporate Insurance Guide Link IP

Transcription

1 Corporate Insurance Guide Link IP 30 MARCH 2019 Issued by CARE Super Pty Ltd (Trustee) ABN AFSL CARE Super (Fund) ABN MySuper authorisation

2 The information in this booklet forms part of the Product Disclosure Statement for CareSuper Corporate Insurance prepared on 30 March It is specific to employees of Link IP as the contributing employer sponsor. Disclaimer: When writing this document none of your personal financial needs, circumstances and objectives were considered, making all advice in this document general. Before making any super-related decisions, we recommend reading all available information, assessing your financial situation and seeking expert advice from a licensed or authorised financial adviser. We ve taken all reasonable care to ensure the accuracy of this information, as required by law, but to the extent permitted by law, do not accept liability for any loss, direct or indirect, as a result of reliance on the information in this document.

3 Contents CareSuper insurance 2 CareSuper has you covered 3 Your Corporate insurance arrangement 4 Tailoring your insurance cover 7 Insurance what do I need to know? 12 Claiming an insurance benefit 15 Definitions for insurance 18 Keeping in touch is easy 21 CALL

4 CareSuper insurance Your super benefit, and the insurance it may provide, is a vital component of your overall remuneration package. In recognition of its importance, insurance cover has been established for you (in conjunction with your employer) through your CareSuper membership. This is referred to as your Corporate insurance arrangement. Details of the Corporate insurance arrangement applicable to you are outlined in this guide. This arrangement will continue while your employer utilises this Corporate insurance arrangement, you are employed by your current employer and Superannuation Guarantee contributions continue to be paid to your account, subject to terms and conditions. In the event that you are no longer employed by your current employer or your employer decides to cease using this Corporate insurance arrangement, your insurance cover will continue as fixed cover within the CareSuper Employee Plan and the terms and conditions (including premiums) of the CareSuper Employee Plan will apply (please refer to the CareSuper Member Guide PDS available at caresuper.com.au/pds or by calling us on ). The ongoing cost of insurance premiums in the CareSuper Employee Plan will be payable by you and will be deducted from your CareSuper account from the date you stop working for your employer. Insurance premiums maybe higher in the CareSuper Employee Plan. GETTING ADVICE The advice in this Insurance Guide is of a general nature. It has been prepared without taking into account employers or members particular financial needs, circumstances and objectives. We recommend that members assess their own financial situation before making a decision about their insurance cover based on the information contained in this document. This may involve seeking the help of a licensed or authorised adviser. 2 CARESUPER.COM.AU

5 CareSuper has you covered You wouldn t think twice about insuring your car or your house, but your ability to earn an income is your biggest asset and it s what really creates financial security. If that was suddenly taken away, insurance cover could help reduce the impact on you or your family. CareSuper offers three types of insurance cover to eligible members: death, total and permanent disablement (TPD) and income protection Death cover provides a lump sum payment to your beneficiaries if you die (certain restrictions apply). This can help you to ensure the ongoing wellbeing of family members, even if you are not around to provide for them. Early release of the death benefit may also be available if you are terminally ill* (see the definition of terminal illness on page 19). You must be at least age 15 and under 70 and meet other eligibility criteria to obtain death cover. Total and permanent disablement (TPD) cover provides a lump sum payment if you are never able to work again due to illness or injury (specific definitions apply). This payment could be used to cover medical bills, rehabilitation expenses or medically required home modifications, and to ensure the overall security of your family and your home. You must be at least age 15 and under 70 and meet other eligibility criteria to obtain TPD cover. Income protection cover provides a temporary replacement income if you are unable to work due to illness or injury (specific conditions apply). This means you can continue to pay your bills while taking the time to recover and rehabilitate. You must be at least age 15 and under 65 and on an ongoing basis be earning at least $16,000 p.a. or working 15 hours or more per week to be eligible for income protection cover. * Terminal illness claims are subject to different maximum amounts than your total death benefit. IMPORTANT If you have previously been paid a TPD payment of any type as a result of a TPD claim, you will only be eligible for death cover with CareSuper, not TPD cover. If you have previously been paid a terminal illness benefit or have been diagnosed with an illness that reduces your life expectancy to less than 12 months, you will not be eligible for death or TPD cover with CareSuper. If you aren t eligible for cover as a result of a TPD payment, or terminal illness benefit or diagnosis, you will need to notify us or cancel your cover, otherwise premiums will continue to be deducted from your account despite the fact that you do not have cover. Death, TPD and income protection cover are explained in detail in the following pages. INSURANCE COVER If eligible, you receive default insurance cover as part of a Corporate insurance arrangement, however, limited default cover ( limited cover ) may apply in certain circumstances. See page 19 for the definition of limited cover. Should you wish to replace limited cover with full default cover, you will need to provide satisfactory health evidence and be accepted by the insurer. TAILORING YOUR COVER You also have the option to choose additional death and TPD cover including unit-based cover, where your cover amount decreases as you get older, and fixed cover, where your cover is set at a fixed dollar amount. The fixed cover you select must be in multiples of $1,000. With fixed cover, the amount you pay will generally increase with each birthday, but the amount of cover will remain the same. Fixed cover can also be indexed to increase by 5% on 1 July each year, offering added security against the rising cost of living. Further information about tailored cover is provided on the following pages. CALL

6 Your Corporate insurance arrangement When you participate in a Corporate insurance arrangement, insurance cover has been designed specific to your workplace. Under this arrangement eligible members automatically receive the default level of death and TPD cover set out in this guide (default cover) up to certain limits (called Automatic Acceptance Limits). You can also apply for income protection (see page 10). It s a good idea to assess your actual insurance needs, and top up your cover if necessary. If you would like additional death and TPD cover, see the following pages for information on tailoring your insurance cover. Also, you may be able to transfer death, TPD and income protection cover from another super fund into CareSuper. Default cover is subject to restrictions and exclusions described later in this guide. If you are not in active employment for all of the first 30 days from the date insurance cover commences, limited cover conditions apply. Refer to page 12 for details on when your cover commences, pages 15 to 17 for other important terms and conditions, and page 18 for the definition of active employment. A portion of the premiums that apply are contributed to CareSuper s General Reserve. The Reserve is used to cover the administration and management of CareSuper s insurance. DID YOU KNOW? As an authorised MySuper fund CareSuper meets the minimum insurance requirements and is an eligible default fund for employers compulsory super contributions (where an employee does not choose their own fund). It s important to think about insurance while you re fit and well, as it can be difficult to obtain if you ve suffered an illness or injury. All insurance cover (including default cover) is subject to the insurer s terms and conditions summarised in the following pages. 4 CARESUPER.COM.AU

7 DEFAULT DEATH AND TPD COVER Under your Corporate insurance arrangement, eligible members receive default death and TPD cover as outlined below. To be eligible for default death and TPD cover you need to be at least age 15 and under 70 and meet other conditions relating to the commencement of cover as described on page 12 of this guide. Default cover does not include income protection cover. Default death and TPD insurance cover details Benefit design Your default death and TPD cover is calculated as the greater of 5 x salary or 15% of salary multiplied by years and complete months to age 70. The amount you are covered for will change annually as it is based on years and complete months to age 70 and your salary, which is advised by your employer. # # The level of default TPD cover will reduce each year from when you reach age 61 until you reach age 70 when TPD cover ends as shown in the following table: Current age Proportion of TPD cover determined by the formula above. Example: John is 45 years old and earns $90,000 per year. His death and TPD cover is initially calculated as $13,500 (15% of $90,000) multiplied by 25 (the number of years until age 70). $13,500 x 25 = $337,500 death and TPD cover However, John s cover is subject to a minimum of 5 x salary (5 x $90,000), so his death and TPD cover will be: 5 x $90,000 = $450,000 Note: John s TPD cover is subject to tapering as described in the benefit design and will reduce from age or less 100% 61 90% 62 80% 63 70% 64 60% 65 50% 66 40% 67 30% 68 20% 69 10% 70 0 Automatic Acceptance Limit (AAL) Maximum benefit $1.3 million Death cover: Terminal illness claim:* TPD cover: $10 million $3 million $3 million Age default cover ceases Death (including terminal illness) cover: 70 TPD cover: 70 Additional TPD cover: 65 *This refers to terminal illness claims under the insured death cover. CALL

8 Your Corporate insurance arrangement (continued) HOW PREMIUMS ARE PAID The premiums (costs) for any default cover (or tailored fixed cover) you may hold are determined using annual premium rates and are deducted monthly on a pro-rata basis, based on the amount of cover you hold for the number of days in the month. Premium calculations are subject to any adjustments that are necessary, for example, changes in cover or age. Where you hold unit-based cover including any optional income protection cover, your premiums for this cover are calculated as an annual premium using the weekly premium rates. Unit-based premiums are deducted from your super account monthly on a pro-rata basis and are based on the amount of cover provided for the number of days in the month. Premium calculations for unit based cover are also subject to any adjustments that are necessary (for example, a change in cover or age as applicable). Premium deductions occur on the last calendar day of the month or on a full withdrawal. Insurance premiums are deducted from your account at the sell unit price. For information about investment unit prices see the Investment Guide available at caresuper.com.au/linkipcia. COST OF DEFAULT DEATH AND TPD COVER The cost of death and TPD insurance is determined by your age as shown in the following table. Annual death and TPD premium rates per $1,000 insured benefit Age Death Death & TPD Age Death Death & TPD 15 $0.18 $ $0.57 $ $0.22 $ $0.61 $ $0.25 $ $0.66 $ $0.29 $ $0.72 $ $0.31 $ $0.78 $ $0.33 $ $0.86 $ $0.33 $ $0.93 $ $0.33 $ $1.03 $ $0.32 $ $1.13 $ $0.32 $ $1.23 $ $0.32 $ $1.36 $ $0.31 $ $1.51 $ $0.31 $ $1.68 $ $0.30 $ $1.86 $ $0.30 $ $2.08 $ $0.30 $ $2.32 $ $0.30 $ $2.60 $ $0.31 $ $2.93 $ $0.31 $ $3.29 $ $0.32 $ $3.72 $ $0.33 $ $4.20 $ $0.35 $ $4.72 $ $0.37 $ $5.33 $ $0.38 $ $6.00 $ $0.43 $ $6.73 $ $0.45 $ $7.55 $ $0.48 $ $8.44 $ $0.52 $1.13 Note: Your default death and TPD cover will cease when you reach age CARESUPER.COM.AU

9 Tailoring your insurance cover How much cover you need depends on your individual circumstances. While you automatically receive the default level of cover as detailed in this guide if eligible, it s a good idea to assess your actual insurance needs, and adjust your cover accordingly. It also pays to review all of your insurance from time to time, to be sure that it changes with your needs. You can apply for cover up to the maximum levels below. Your insurance options (evidence of health required) Death Terminal illness cover TPD Income protection Up to $10 million Up to $3 million Up to $3 million Up to $40,000 per month* (unit-based only) * See page 10 for more information on the maximum monthly benefit. You can tailor your insurance cover by: Increasing your death and TPD cover either by adding units or a fixed cover amount, to a maximum of $10 million for death cover and $3 million for TPD. If you apply for additional unit-based cover you will need to determine the number of units you require. The amount of cover per unit depends on your age and occupational category. With unit-based cover, the same premium per unit applies each year, but your level of cover decreases after age 30 Indexing fixed insurance cover Applying for income protection cover Making sure you re in the right occupational category so you receive the applicable level of cover (for income protection and additional death and TPD cover only). Transferring cover from another super fund if you are under age 60 (maximum limits apply for transferred cover). The insurer may apply a medical exclusion and/or loading to your cover rather than decline your application. For more information call us on DEATH AND TPD COVER ADDING EXTRA COVER If you decide that the default amount of death and TPD cover doesn t meet your needs, you may want to apply for extra cover. To do this, you should work out how much additional cover you need and what it will cost. First determine your occupational category by answering the three questions on this page. Then use the tables and examples on pages 8 and 9 to calculate the extra cover to apply for and the cost of this cover. To apply to tailor your cover (for example, by adding units, a fixed cover amount, or indexing fixed cover) simply indicate your choices when filling out the Corporate insurance application form available from caresuper. com.au/linkipcia or by logging in to MemberOnline and going to the Insurance cover section. To calculate what and how much income protection cover you might need, take a look at page 10. OCCUPATIONAL CATEGORIES (INCOME PROTECTION AND ADDITIONAL DEATH AND TPD COVER ONLY) To reflect the different levels of risk associated with our members different roles and occupations, CareSuper has three different occupational categories. Each category has a different amount of cover per unit. The three categories are: General Office, and Professional. Your occupational category will be reviewed each time you complete a new application form or apply to vary your insurance cover. You may be required to provide further health evidence and once your application is assessed and if approved, additional cover may be subject to premium loadings and/or exclusions. To determine your occupational category, answer the following questions: 1. Are the duties of your occupation limited to professional, managerial, administrative, clerical, secretarial or similar white collar nature tasks which do not involve manual work and are undertaken entirely within an office environment (excluding travel time from one office environment to another)? 2. Are you earning* in excess of $100,000 p.a. from your profession? If you currently work part-time and your full-time equivalent salary is more than $100,000 p.a. you re eligible to answer yes to this question. 3. Do you: a) Hold a tertiary qualification or are you a member of a professional institute or registered as a practicing member of your profession by a government body? or b) Work in a management role? * To calculate your earnings, see the definition of total income on page 20. If you answered no to Q1, you qualify for the General occupational category. If you answered yes to Q1, you qualify for the Office occupational category. If you answered yes to Q1 and Q2, and to either Q3a or Q3b, you qualify for the Professional occupational category. APPLYING TO CHANGE YOUR OCCUPATIONAL CATEGORY When you apply to change your occupational category, you will need to answer a few simple health questions to ensure you re eligible to change your cover. You can apply to change your occupational category at any time by completing the Changing your occupational category form available at caresuper.com.au/linkipcia. Note: If changing your occupational category increases your cover, you will be subject to the active employment test. This means if you are not in active employment for all of the first 30 days from the date your cover increases, then limited cover conditions apply. See the definitions of active employment and limited cover on pages 18 and 19. CALL

10 Tailoring your insurance cover (continued) INTERIM ACCIDENT COVER If you are applying to increase death, TPD or income protection insurance, whilst your application is being assessed, you will only be insured for Interim accident cover as it pertains to your application. See page 18 for the definition of Interim accident cover. ADDING UNIT-BASED DEATH AND TPD COVER You can choose to add unit-based death and TPD cover to your existing cover. With unit-based cover, the same premium per unit applies each year, but your level of cover decreases after age 30. The amount of cover per unit of death and TPD is shown to the right. Additional TPD cover ceases at age 65. HOW MUCH IT COSTS The premium for 1 unit of death cover is $1.02 per week. The premium for 1 unit of TPD cover is $1.03 per week. The premium for 1 unit of death and TPD cover is $2.05 per week. These are the base premiums for all occupational categories. Premiums are subject to change but we will let you know before if the premiums go up. Example: Mark is aged 40 and qualifies for the General occupational category, so 1 unit provides $73,100 of cover. He has determined that he needs $550,000 of additional cover. $550,000 = 7.52 units $73,100 Therefore Mark needs to apply for 8 units of additional death and TPD cover. Amount of cover provided per unit of additional death and TPD ($) Current age General Office Professional , , , , , , , , , , , , , , , , , , , , , ,430 96, , ,320 91, , ,200 87, , ,100 85, , ,980 81, , ,870 76, , ,330 73, , ,390 69,380 97, ,860 66,800 93, ,910 63,220 88, ,970 59,750 83, ,230 56,490 78, ,390 53,020 74, ,870 50,070 70, ,820 46,390 64, ,980 43,030 60, ,030 39,450 55, ,510 36,500 51, ,460 32,820 45, ,830 29,670 41, ,990 26,300 36, ,040 22,830 31, ,520 19,780 27, ,570 16,310 22, ,730 12,830 17, ,630 10,310 14, ,630 10,310 14, ,630 10,310 14, * 8,340 9,050 12,690 *Death only cover Note: Your tailored TPD cover will cease when you reach age 65 and your tailored death cover (including terminal illness) will cease when you reach age CARESUPER.COM.AU

11 ADDING FIXED DEATH AND TPD COVER You can choose to add a fixed cover amount to your existing death and TPD cover. With fixed cover, your amount of cover will stay the same but the premium will generally increase as you get older as determined by your age and occupational category. You can also choose to have your fixed cover indexed meaning that it increases by 5% on 1 July each year to account for inflation. You must apply for a minimum of $10,000 of fixed cover and it must be in multiples of $1,000. Additional TPD cover ceases at age 65. To determine what your annual premium would be for fixed cover, divide your required level of cover by $1,000, and multiply by the premium that corresponds to your age and occupational category. Premium per year per $1,000 sum insured ($) Age General Office Professional Death TPD Death & TPD Death TPD Death & TPD Death TPD Death & TPD Example: Anna is aged 40, in the General occupational category and has applied for an additional $550,000 of fixed death and TPD cover. Her premiums at various ages are shown below (without indexation and assuming no other changes in premiums occur). Age 40 $550,000 x $1.44 = $ p.a. $1,000 Age 45 $550,000 x $1.92 = $1, p.a. $1,000 Age 50 $550,000 x $2.54 = $1, p.a. $1,000 Age 55 $550,000 x $3.87 = $2, p.a. $1, * 6.32 N/A N/A 5.84 N/A N/A 4.16 N/A N/A *Death only cover Note: Fixed cover is available to all members on application to the insurer. Your tailored TPD cover will cease when you reach age 65 and your tailored death cover (including terminal illness) will cease when you reach age 70. CALL

12 Tailoring your insurance cover (continued) INCOME PROTECTION COVER WHO CAN APPLY? Anyone aged at least 15 and less than 65 who is earning on an ongoing basis at least $16,000 p.a. or working 15 hours or more per week is eligible to apply for income protection insurance, including contractors, part time employees and casual employees. You will not be eligible for income protection cover if you have previously been paid a TPD benefit, have been paid a terminal illness benefit, or have been diagnosed with an illness that reduces your life expectancy to less than 12 months. HOW MUCH INCOME PROTECTION COVER DO I NEED? Income protection cover can be tailored to suit your circumstances with the following options to choose from: A waiting period of 30, 60 or 90 days, and A benefit period of either 2 or 5 years. The maximum amount of income protection cover you can apply for is determined by your income. See page 18 for the definition of income (for income protection purposes). How much you decide you need depends on your estimation of your required income if you are not working. Your cover will automatically increase by 5% on 1 July each year to account for inflation. Premiums will be based on the increased cover. The maximum monthly benefit is 85% of the first $423,530 p.a. of income for the entire benefit payment period, plus 60% of the next $200,000 p.a. of income for the first 2 years of the benefit payment period (even where you apply for a different benefit payment period). Each unit of income protection cover provides a benefit of $425 per month of which $375 (less tax) is payable as a benefit to you and $50 is payable to your CareSuper account as a super contribution. Continued contributions to super help to keep you on track to meet your retirement goals and help to maintain a sufficient balance in your account to continue covering your insurance premiums. If you need more cover, tailored income protection allows you to apply for as many units as you like up to the maximum monthly benefit. Tailored cover will be subject to assessment and acceptance by our insurer. Premium loadings and/or exclusions may apply to some members. HOW MUCH DOES INCOME PROTECTION COVER COST? The cost of income protection cover is based on your age, your occupational category, the waiting period you select (30, 60 or 90 days) and the benefit period you choose (2 or 5 years). The cost decreases if you wait longer to receive your benefit. If you do not make a selection the default waiting period is 30 days. The cost increases if you choose the 5-year benefit period. If you do not indicate a benefit period on your application form, the 2-year benefit period will apply. The premiums are deducted from your CareSuper account before contributions tax is deducted. This means you can pay for your insurance using your super contributions, in a tax effective manner that doesn t impact on your take-home pay. 10 CARESUPER.COM.AU

13 COST OF INCOME PROTECTION COVER Premium per week per unit of income protection cover (2-year benefit period) Waiting period General Office Professional 30 days 60 days 90 days 30 days 60 days 90 days 30 days 60 days 90 days Current age $ $ $ Premium per week per unit of income protection cover (5-year benefit period) Waiting period General Office Professional 30 days 60 days 90 days 30 days 60 days 90 days 30 days 60 days 90 days Current age $ $ $ Note: Income protection cover will automatically increase by 5% on 1 July each year to account for inflation. Pro-rata premiums will apply to the increased cover. CALL

14 Insurance what do I need to know? TRANSFERRING YOUR INSURANCE If you are at least age 15 and less than 60 you may be able to transfer your current super insurance arrangement to CareSuper without having to provide medical evidence. To transfer cover to CareSuper you must: Provide an up-to-date statement or certificate of currency as evidence of cover held. We must receive this within 6 months of the date of issue of the statement or certificate of currency, and Transfer the whole account balance from your former fund to CareSuper. Before you leave your other fund, you should check if it is the right decision for you as you will lose any insurance entitlements you have with that fund. You should also check whether your other fund will charge you an exit fee or other fees. Please note: If you are not in active employment for all of the first 30 days from the date your cover is transferred to CareSuper, limited cover conditions apply until you have been in active employment for 2 consecutive months. See pages 18 and 19 for the definitions of active employment and limited cover. To transfer your existing cover, please complete the Transfer your insurance form available at caresuper.com.au/ linkipcia or by calling us on and provide the required documentation. The maximum death only or death and TPD cover that can be in place in CareSuper without underwriting following a transfer is $2 million (inclusive of any existing death only or death and TPD cover you already have in CareSuper). If you want to transfer cover that would result in your total cover being greater than $2 million, you will need to be assessed and accepted by our insurer. If the insurer accepts your application, your existing amount of death/tpd cover (subject to maximum limits) as at the transfer date under your former fund/policy will be added to any existing death/tpd cover held with CareSuper by allocation to your CareSuper account of sufficient units rounded up to the next whole unit, or sufficient fixed cover rounded up to the nearest $1,000. The maximum amount that may be transferred for income protection is $10,000 per month. The waiting period and benefit payment period will be adjusted in line with CareSuper s insurance design. For example, if the income protection cover transferred has a to age 65 benefit period, you will be provided with a 5-year benefit period under CareSuper. The waiting period will be rounded up to the next highest waiting period under CareSuper (for example, a 45-day waiting period will be rounded up to 60 days under CareSuper). Transferred income protection cover is not added to any current CareSuper income protection cover. Transferred cover will replace any existing income protection cover you have in CareSuper. However, if the amount of the existing cover exceeds the amount of transferred cover, the existing cover will continue and the transferred cover will be invalid. Transferred cover will commence in CareSuper on the later of: The date the insurer accepts your application, and The date the existing insurance cover under your former fund is cancelled. This is generally the date your whole account balance is transferred to CareSuper. Limited cover may apply. Premium loadings and/or exclusions may also apply. WHEN DOES MY INSURANCE COVER COMMENCE? NEW CARESUPER MEMBERS Provided you are eligible, default insurance cover commences for new CareSuper members under a Corporate insurance arrangement on the later of: The first day of the period for which the first employer contribution is paid by your employer (usually the date you commence work with your employer), and The date 130 days before we receive your first employer contribution. Any additional or voluntary cover commences on the date we advise you in writing. EXISTING CARESUPER MEMBERS Existing CareSuper members joining the Corporate insurance arrangement will have the higher of their existing cover and the applicable default cover under the Corporate insurance arrangement. Any cover in excess of the Corporate insurance arrangement default cover will be treated as tailored cover (see page 7). Any increased cover for existing CareSuper members who commence as a new employee of a corporate employer will commence from the date we are notified that you are a new employee of the corporate employer (subject to eligibility). If you are not in active employment for all of the first 30 days from the date your cover commences, you will receive limited cover until you have been in active employment for 2 consecutive months. See pages 18 and 19 for the definitions of active employment and limited cover. Tailored or transferred cover commences on the date we advise you in writing. The first insurance premium payment deducted from your account will include all amounts accrued since your commencement date. CAN I CHANGE MY COVER LATER? Yes. You can apply to change the amount of tailored death, TPD and income protection cover you have. If you would like to increase or recommence your insurance cover, you will need to be approved by the insurer. 12 CARESUPER.COM.AU

15 To apply for tailored death and TPD cover, simply complete the Corporate insurance application form available from caresuper.com.au/linkipcia or by logging in to MemberOnline and going to the Insurance cover section. Your occupational category will be reviewed each time you complete a new application form or apply to vary your insurance cover. You may be required to provide further health evidence and once your application is assessed, any additional cover may be subject to premium loadings and/ or exclusions. If you opt out of the default cover, any future insurance cover is subject to assessment and acceptance by our insurer (which may require you to provide evidence of health). If you have been accepted for tailored cover (including income protection), you can reduce or opt out of this cover at any time by completing the Request to reduce or opt out of insurance cover form, available by calling us on IS THERE A COOLING OFF PERIOD? There is a cooling off period for tailored insurance cover you have 21 days from the date we tell you that we ve accepted your cover to tell us that you have changed your mind and wish to decline our offer. You must do this in writing. The cover will then be deemed never to have started and all premiums paid during the cooling off period will be refunded to your CareSuper account. There is no cooling off period for default cover. You may cancel or reduce your tailored insurance at any time by submitting a request via your online account, calling us on or via writing by completing the Request to reduce or opt out of insurance cover form. Your premiums will only cease when your request is received and accepted. TAX ON DEATH, TPD AND INCOME PROTECTION BENEFITS For information about taxation of insured benefits, go to ato.gov.au. WHEN DOES DEFAULT COVER STOP? Insurance cover will end on the earliest of the following: The date a terminal illness benefit is paid. However, if your death cover is greater than the terminal illness benefit paid, death cover will continue while you remain a CareSuper member and maintain sufficient balance to meet your insurance premiums. Your death cover will be reduced by the insured amount paid to you on terminal illness grounds The date a TPD benefit is paid; however, if your death cover is greater than your TPD cover, death cover will continue. Your death cover will be reduced by the amount of TPD cover paid to you The date you reach the maximum insurable age (see page 14) The date you are no longer a member of the Fund The date leave without pay exceeds 2 years The date the Fund s insurance policies are terminated or are cancelled for any reason The date of your death The date you are no longer employed by your current employer or your current employer ceases to use this Corporate insurance arrangement. In these situations your cover will continue as fixed cover within the CareSuper Employee plan, as long as you remain a CareSuper member. See What happens if my employment arrangement changes? for more information. CALL

16 Insurance what do I need to know (continued) The date we receive your completed Request to reduce or opt out of insurance cover form If there are insufficient funds in your account to meet premiums on the last calendar day of the month in which a premium deduction can be made from your account. If you have an account balance at a later date, you will have to pay the difference between the premium deduction made in that month and the premium due for that month. Depending on the type of contribution received your cover may not be reinstated as a result of this premium deduction In the case of income protection cover, the date you commence duty with the armed services of any country, other than the Australian Army Reserve (during scheduled Army Reserve exercises, but not if called up for active service) In the case of income protection cover, the date a death, terminal illness or TPD benefit is paid for you under a CareSuper Group Life policy Insurance cover may also cease in circumstances required by law, for example, if your account becomes inactive for a prescribed period. WHAT HAPPENS IF MY EMPLOYMENT ARRANGEMENT CHANGES? If your default cover under the Corporate insurance arrangement ceases because you are no longer employed by your current employer or your employer ceases to use this Corporate insurance arrangement, and you remain a member of CareSuper, you will transfer to the CareSuper Employee Plan and your existing cover will continue as fixed cover subject to the standard terms and conditions applicable to the CareSuper Employee Plan (if eligible). The ongoing cost of insurance premiums will be payable from your CareSuper account from the date you cease employment. Please refer to the CareSuper Member Guide PDS for further details about the CareSuper Employee Plan, available by calling us on or at caresuper.com.au/pds. CAN I RECOMMENCE MY COVER? If you have previously opted out of cover, you will not be eligible for reinstatement of past levels of cover, and all future applications for cover will need to be assessed and accepted by our insurer. If accepted, insurance cover begins when we confirm acceptance to you in writing. If your account balance reaches $0, you have 28 days from the end of the month that your account balance reaches $0 to make a contribution or roll-in to allow cover to be reinstated. The contribution can be a personal or employer contribution. Cover will recommence from the date your cover last ceased. The amount of cover will be the amount you had immediately prior to the cover lapsing. For income protection, the amount of cover, waiting period and benefit period will be the same as you had immediately prior to cover ceasing. If your account balance reaches $0 and a contribution is not received within the 28 day period advised above your cover may be reinstated if: An employer contribution is received within 6 months from the end of the month that cover ceased The commencement period of the contribution is within 6 months from the end of the month that cover ceased, and The employer contribution is paid on time according to legislative requirements. Cover will recommence from the beginning of the period covered by the employer contribution to the amount of cover you had immediately prior to the cover ceasing. For income protection, the amount of cover, waiting period and benefit period will be the same as you had immediately prior to cover ceasing. In all other circumstances where cover ceases due to your account balance reaching $0, cover will be reinstated to the amount of default cover. Cover will recommence from the date the employer contribution is received by the Fund. You are required to be in active employment for all of the first 30 days from the date your cover recommences. If you are not in active employment for all of the first 30 days from the date your cover recommences, limited cover conditions apply. See page 18 for a definition of active employment. AM I COVERED WORLDWIDE? Yes. You are covered while you are outside Australia, subject to the conditions of the insurance policy. However, income protection benefit payments are restricted to 12 months while overseas (unless otherwise agreed in writing). You are not required to advise the Fund or insurer before you travel overseas. MAXIMUM INSURABLE AGE Default cover death cover (including terminal illness) to 70 years, TPD cover to 70 years. Tailored cover death cover to 70 years, TPD cover to 65 years, income protection cover to 65 years. 14 CARESUPER.COM.AU

17 Claiming an insurance benefit HOW DO I QUALIFY FOR A DEATH OR TPD BENEFIT? A death benefit will be paid if you die (while insured) before reaching the maximum insurable age, unless the circumstances of your death are subject to the conditions set out on pages 16 and 17. If you become terminally ill, you may apply for early release of your death benefit (see page 19 for the definition of terminal illness). You may qualify for a TPD benefit if you suffer (while insured) an illness or injury that meets the definition of total and permanent disablement in the insurer s opinion (see page 19). If you have submitted a TPD claim and you die before the claim is finalised, your TPD claim may continue to be assessed as a posthumous TPD claim. A posthumous TPD claim is a TPD benefit that is paid to your beneficiaries after your death. In the event that your death cover is higher than your TPD cover, it will be assessed as a death claim and the death cover will be paid subject to eligibility. HOW DO I QUALIFY FOR A TERMINAL ILLNESS BENEFIT? If you become terminally ill you may apply for early release of your insured death benefit (see page 19 for the definition of terminal illness). The maximum terminal illness benefit payable is $3 million, even if you are insured for a larger amount of death cover. If your death cover is higher than $3 million, you will retain the balance of that cover following payment of a terminal illness benefit, subject to you remaining a member of CareSuper, and retaining an account balance sufficient to cover your insurance premiums and remaining eligible for cover. You should consider your options prior to making a terminal illness claim for your full benefit and closing your CareSuper account. HOW DO I QUALIFY FOR AN INCOME PROTECTION BENEFIT? You may qualify for an income protection benefit if you suffer an illness of injury while you re insured that meets the definition of total disability, and have been unable to work for your applicable waiting period. Refer to page 20 for the definition of total disability. If you qualify for a benefit, it will remain payable for up to 2 or 5 years (depending on the applicable benefit period) from the date payments commence, provided you continue to meet the benefit conditions. At the time of claim, members will receive the lesser of the following amounts: a) The amount provided by the number of units you have in place, and b) 85% of the first $423,530 p.a. of income for the entire benefit payment period, plus 60% of the next $200,000 p.a. of income for the first 2 years of the benefit payment period. No benefits are payable during the waiting period. After this, benefits will begin to accrue and will be payable monthly in arrears if you have met the requirements. The waiting period commences on the first day you are unable to work due to your total disability, and your condition is certified by a medical practitioner. If you are entitled to a benefit for part of a month, you will be paid 1/30th of the monthly benefit for each day you are entitled to a payment. You must be employed in order to apply for income protection cover. If after being accepted for cover you become unemployed (but wish to continue your cover to avoid reapplying), a benefit will not be paid should you become temporarily incapacitated during this time, unless you meet another condition of release. If you no longer require income protection cover, you must notify CareSuper. WHAT IF I AM RECEIVING INCOME FROM OTHER SOURCES? Your income protection benefit will be reduced by the amount of income you receive from any one of the following sources: a) Any income (other than benefits received under the policy) or commutation (lump sum payment) of income, paid or payable to you as a result of your sickness or injury including: Sick leave payments Any amounts payable under legislation such as workers compensation or motor accident compensation, and Any benefits payable under other income protection insurance policies b) Any SG contributions from your employer while disabled, and IMPORTANT INFORMATION ABOUT TERMINAL ILLNESS BENEFITS If you have been diagnosed with a terminal illness and are expected to live less than 24 months, you may apply to CareSuper for a full or partial early release of your CareSuper account balance. However, you should be aware that if you withdraw your full super account balance, any insurance cover through CareSuper will cease at that time, as you will no longer be a CareSuper member. In order to apply for an insured terminal illness benefit, which is based on a 12-month prognosis, you will need to maintain an account balance sufficient to cover your insurance premiums. This is due to a difference between the 24-month timeframe required by legislation and the 12-month timeframe relevant to your insurance cover. CALL

18 Claiming an insurance benefit (continued) c) Any income that, in the opinion of the insurer, you could reasonably be expected to earn in your occupation while disabled. However, where you are fit to return to work in a reduced capacity but such work is not available with the existing employer, the insurer will not offset any income you should be able to earn from this employer. Any income described in paragraph a) which is in the form of a lump sum (or is exchanged for a lump sum) is treated as a monthly amount equivalent to 1/60th of the lump sum over a period of 60 months. WHAT HAPPENS IF I DIE WHILE RECEIVING A BENEFIT? Your income protection benefits will cease upon your death, with a final payment equal to 3 times the monthly benefit. WHAT HAPPENS IF MY DISABLEMENT REOCCURS? If you have been receiving income protection benefits, subsequently recover and therefore cease benefits, then within 6 months of your recovery become totally disabled again due to the same cause or a related cause, this period of total disability will be treated as a continuation of the previous claim and there will be no further waiting period, provided you are still a member. After 6 months of ceasing to be either partially or totally disabled, normal waiting periods apply. The period in which benefits were paid previously will form part of the maximum benefit period for the relevant condition. WHAT HAPPENS IF I RETURN TO WORK AND EARN LESS? If you return to work and are earning an income that is less than your predisability income, as a result of being recently totally disabled, you may be eligible for a partial disability benefit. You must have satisfied the definition of total disability for at least 14 days and still have a reduced income at the end of the waiting period. EXCLUSIONS AND RESTRICTIONS For all types of cover (death (including terminal illness), TPD and income protection), the following applies: If you have two or more accounts with CareSuper, you will not be entitled to insurance cover from more than one account. In the event of a claim, the insured benefit of the oldest account is normally used. However, if the insured benefit of a newer account has been underwritten to a higher level, the insured benefit of the newer account will be used. The insurer has the right to alter rates in the event of war involving Australia. If you have previously been paid a TPD payment of any type as a result of a TPD claim, you will only be eligible for death cover with CareSuper; not TPD or income protection. If you have previously been paid a terminal illness benefit or have been diagnosed with an illness that reduces your life expectancy to less than 12 months, you will not be eligible for death, TPD or income protection cover with CareSuper. Default cover is automatically accepted by the insurer (subject to eligibility). However, automatic acceptance of cover may only occur once while you are a member of CareSuper. If you have received automatic acceptance on more than one occasion, the insurer may adjust the cover accordingly. If you do not become an insured member, and/or do not receive an employer contribution to CareSuper, within 120 days of becoming an employee of the employer, you will receive limited cover for 12 consecutive months. Full cover will then apply after 12 months, provided you were in active employment for all of the first 30 days from the date your cover commenced. However, if you were not in active employment for all of the first 30 days from the date your cover commenced, limited cover conditions apply. If you have not returned to active employment for 2 consecutive months, you will continue to receive limited cover until this requirement is met, at which point full cover will be provided. If you are covered under limited cover intentional self-inflicted injury or infection, and suicide (whether it is determined that you were or were not sane at the time) will not be covered for the first 12 months. You are able to apply to have limited cover removed at any time subject to the insurer s assessment requirements. Premium loadings and/or exclusions may apply to any cover that you apply for and have assessed by the insurer. DEATH AND TPD COVER SPECIFIC In addition to the all cover exclusions and restrictions outlined, the following also apply to death, terminal illness and TPD cover. In the event of pandemic outbreak, the insurer reserves the right to alter when cover commences for new members, in order to exclude any pandemic illness that could cause the member to die within 30 days of the date his or her cover commenced, provided the condition was present at the date the cover commenced. For tailored cover, no benefit will be payable where a claim is directly or indirectly caused by or attributed to: Suicide within the first 13 months of issue or reinstatement of cover, or Self-inflicted injury, at any time. 16 CARESUPER.COM.AU

19 The insurer will not pay a benefit for you if your death, terminal illness or TPD is caused directly or indirectly by an act of war. However, this condition will not disentitle you to a benefit should you die on war service. The war exclusion is only applicable to wars occurring during the policy period. Cover automatically ends once leave without pay exceeds 2 years. INCOME PROTECTION COVER SPECIFIC In addition to the all cover exclusions and restrictions outlined, the following also apply to income protection cover. Income protection must be applied for and is subject to acceptance by the insurer. No benefit is payable under CareSuper s income protection insurance policy if your illness or injury is directly or indirectly caused by: Intentional self-inflicted injury or infection, or attempt at suicide (whether it is determined that you were or were not sane at the time) Your service in the armed forces of any country Normal pregnancy or childbirth, or An act of war. CareSuper s insurer will not make a payment under the policy if the payment would cause them to infringe the Private Health Insurance Act 2007 (Cth), Private Health Insurance (Prudential Supervision) Act 2015 (Cth), Health Insurance Act 1973 (Cth), or the National Health Act 1953 (Cth), or any succeeding legislation in connection with health insurance. Benefits will only be paid for you for one disability at a time. The maximum length of time a benefit for disability resulting from any one or related cause will be paid is the number of months in the benefit payment period. The number of months in the benefit payment period will include any months in which the benefit is reduced or is calculated to be zero. The maximum time in total a benefit will be paid for while you are outside Australia is 12 months, unless otherwise agreed in writing. IMPORTANT Some restrictions or exclusions can only be determined or assessed at the time a claim is made. TREATMENT OF INSURANCE CLAIMS PROCEEDS Insurance claims proceeds (including death, TPD and Terminal illness) received from the Insurer will be invested in the Capital Secure investment option, pending payment either at your direction or as determined by the Trustee. CALL

20 Definitions for insurance ACTIVE EMPLOYMENT Active employment means you are employed to carry out identifiable duties, are actually performing those duties and, in the insurer s opinion, are not restricted by sickness or injury from carrying out those duties on a fulltime basis or the duties of your usual occupation on a full-time basis (even if not then working on a full-time basis). EMPLOYER CONTRIBUTION Superannuation Guarantee Contribution made by an employer on behalf of an employee or an employer contribution made under a certified or registered industrial authority or award, or a legally enforceable contract. INCOME (FOR THE CALCULATION OF INCOME PROTECTION BENEFITS) Means: a) The total salary package value of remuneration received by you from your employer averaged over the most recent 12 months immediately prior to becoming disabled (including overtime, bonuses and shift allowances). b) If you have been working with your employer for a period of less than 12 months immediately prior to becoming disabled, then the total monthly value of remuneration will be averaged over the period since you last commenced employment with your employer. c) If you are unemployed immediately prior to becoming disabled, the total monthly value of remuneration will be averaged over the lesser of the most recent 12 month period immediately prior to becoming disabled or the period since you last commenced employment with your most recent employer. d) If you are self employed then the total monthly value of remuneration means the pre-tax income that is generated by you or the business as a result of your personal exertion (i.e. income that would stop if you could not work due to illness or injury), and: (i) Includes any allowances or fringe benefits paid to you which you may convert into cash salary at your option, or which the insurer agrees to treat as part of your income, but (ii) Does not include any necessary business expenses incurred in producing that income. Paragraphs b) and c) above will be subject to a minimum averaging period of 3 months for casual employees. No minimum averaging period applies to permanent employees. Where you have multiple employment arrangements, the salaries (which may be either permanent or casual) will be combined to provide a total gross annual figure. INTERIM ACCIDENT COVER Interim accident cover applies while the insurer considers your request for insured cover. The insurer will provide interim accident cover from the date they are notified in writing of the request for insured cover as set out below. Accidental death cover The insurer will pay a benefit if the application received from you is for death cover and you die as a result of an accident that occurs during the interim accident cover period (as outlined below), provided your death occurs within 90 days of the date the accident occurred. Accidental total and permanent disablement cover The insurer will pay a benefit if the application received from you is for total and permanent disablement cover and you become totally and permanently disabled as a result of an accident that occurs during the interim accident cover period (as outlined below), provided the date of disablement is within 90 days of the date the accident occurred. Accidental income protection cover The insurer will pay a benefit if the application received from you is for income protection cover and you become totally disabled as a result of an accident that occurs during the interim accident cover period (as outlined below), provided the date of disablement is within 90 days of the date the accident occurred. Amount of benefit For death or total and permanent disablement, the benefit will be the amount of cover or additional insured cover you requested, as applicable. However, this benefit will not exceed the maximum accident cover of $1 million, less any amount of insured cover. For income protection, any maximum benefit will be the lesser of 85% of your pre-disability income, the total cover you applied for and $15,000 per month less any other disability income. The maximum benefit is either your existing cover period if you already hold income protection cover or 2 years in other circumstances. Interim accident cover period Interim accident cover will start on the application date and will end on the earliest of the following dates: a) The date the application for insured cover is withdrawn b) The date the insurer accepts the application for insured cover on standard or special terms c) The date the insurer rejects the application for insured cover d) The date the insurer cancels the interim accident cover e) 120 days from the date we receive the application for insured cover and f) The termination of the insurance policy. 18 CARESUPER.COM.AU

21 Interim accident cover benefit effect on application for cover If the insurer pays you a benefit under this condition, your application for cover or an increase in cover will be cancelled and you may not seek any further cover under the insurance policy. No doubling up of benefits A benefit for interim accident cover is generally only payable to you once. LIMITED COVER Limited cover means you are only covered for claims arising from: A sickness which first became apparent, or An injury which first occurred On or after the date the cover last commenced, recommenced or increased for you in CareSuper. SALARY (FOR THE PURPOSES OF DEFAULT DEATH AND TPD COVER) Means: 1) For permanent employees will be the total salary package received by you from your employer (excluding employer contributions) 2) For casuals/contractors will be annualised based on the total gross salary earned within the last 3 months immediately prior to the calculation effective date. Where the casual/contractor was not an employee at the beginning of that 3 month period, prospective work hours and remuneration rate will be projected for the balance of the 3 month period. TERMINAL ILLNESS You are able to apply for early release of your insured death benefit if you suffer from an illness which: a) Two medical practitioners, with at least one specialising in your terminal illness, certify in writing that despite reasonable medical treatment the illness will lead to your death within 12 months of the date of certification, and b) CareSuper s insurer is satisfied on medical or other evidence that despite reasonable medical treatment the illness will lead to your death within 12 months of the date of certification. The illness from which you suffer must occur, and the date of the certification referred to in a) must take place, while you are insured under the policy. TOTAL AND PERMANENT DISABLEMENT You are totally and permanently disabled if you are: Aged less than 65 years and have suffered: (i) The permanent loss of two or more limbs a limb being the whole hand or foot, or (ii) The complete and irrecoverable loss of sight in both eyes, or (iii) The loss of one limb and the complete and irrecoverable loss of sight in one eye; and In the insurer s opinion, on the basis of medical and other evidence satisfactory to the insurer, you are unlikely to be able to engage in any occupation whether or not for reward. Or Are aged less than 65 years and are an employee of the employer for at least 15 hours per week and as a result of sickness or injury, have been absent from all employment for 3 consecutive months from the date of disablement, and the insurer is satisfied on the basis of medical and other evidence that you are unlikely ever to be able to engage in any occupation, whether or not for reward. Or All of the following paragraphs (i), (ii), (iii) and (iv) apply to you: (i) You were, on the date of disablement, aged less than 65 years; CALL