Plum Super BHP Billiton Superannuation Fund (Plan) Spouse Division Insurance Guide

Transcription

1 Plum Super BHP Billiton Superannuation Fund (Plan) Spouse Division Insurance Guide Preparation date 1 July 2016 Issued by The Trustee NULIS Nominees (Australia) Limited ABN AFSL The Insurer TAL Life Limited ABN AFSL The Fund MLC Super Fund ABN

2 This guide gives you information about the insurance available through your super. A financial adviser can help you decide if this insurance is right for you. Or you can assess if you have adequate insurance using our free advice calculator, available when you log in to superau.bhpbilliton.com

3 Contents Your insurance 4 Death and TPD cover 6 Other important information 10 Cost of insurance 11 The information in this Insurance Guide forms part of the Product Disclosure Statement dated 1 July Together with the Fee Definitions Flyer and Investment Menu, these documents should be considered before making a final decision to invest. They are available on superau.bhpbilliton.com 3

4 Your insurance We offer flexible insurance in the Fund so you can make sure you have the cover that suits your needs. TAL Limited is the Insurer and we deduct premiums to pay them for your insurance cover. We can change the Insurer at any time if we believe this is in the best interest of members. Overriding insurance policy Payment of an insured benefit is subject to the terms and conditions of the applicable insurance policy. This guide provides a summary of the main features of the insurance policy covering the Fund. Other conditions may apply. This guide should not be relied upon as a full and complete description of the terms and conditions of the insurance cover. Your benefit may be reduced if the Insurer refuses or restricts your cover or does not pay out all or part of the insured benefit when a claim is made. Contact us on for a copy of the Fund s insurance policy. Types of cover Standard cover You will automatically receive a level of standard death and total and permanent disablement (TPD) cover when you join the Fund, subject to your eligibility. You can then choose to tailor your level of cover to suit your needs. Voluntary death and TPD cover Voluntary death and TPD cover allows you to add extra insurance to your account in addition to your standard death and TPD cover, subject to your eligibility. Automatic Acceptance Limit (AAL) Where you are eligible for standard insurance cover, the Insurer will provide automatic acceptance and increases of that cover up to a limit without you having to provide health evidence. This is referred to as the automatic acceptance limit (AAL). The AAL for standard cover is 2 units. Making sure you re eligible for cover You are generally eligible for cover if you: have a sponsoring spouse who is an insured member of the Fund, or will become insured with 120 days of commencing employment and you have applied for spouse membership within 120 days of your sponsoring spouse commencing employment with the employer; are under age 65; and are an Australian resident. Employer contributions or member contributions must be received in your spouse account within 180 days of your sponsoring spouse commencing employment. Australian resident means that you: permanently reside in Australia; or are a temporary resident of Australia on a temporary working visa which is acceptable to us and the Insurer. 4

5 If you are not At work on the day you are first eligible for cover, or you have previously received a terminal illness or TPD benefit under this Policy or any other life insurance policy, then at the time when default cover commences under the Fund: terminal illness will not be available; a restricted TPD definition will apply limiting cover to definitions (a), (b) and (c) ii. of the TPD definition; and Limited cover will apply indefinitely. At work means for a person who is employed, you are actively performing or capable of actively performing all of the duties and hours of your usual occupation with your employer free from any limitation due to illness or injury; or if you are on approved leave, the leave is not due to reasons related to injury or illness. For a person who is unemployed or self employed, you are actively performing, or capable of actively performing, all of the duties and hours of your usual occupation free from any limitation due to illness or injury. For a person engaged exclusively in unpaid domestic duties, you are actively performing, or capable of actively performing, all of your unpaid duties on a full-time basis, free from any limitation due to illness or injury. You must not be restricted by injury or illness from being capable of performing the duties of your usual occupation on a full-time basis, even if you are not currently working on a full-time basis. You must not be receiving or entitled to receive income support benefits from any source including workers compensation benefits, statutory transport accident benefits and disability support benefits. Limited cover means that you will only be eligible for a TPD benefit in respect of an illness that first becomes apparent or an injury which first occurred on or after the date cover commenced. Changing your cover You can change or cancel your insurance cover at any time, simply complete the BHP Billiton Superannuation Fund (Plan) Insurance form. Any request for voluntary cover will be subject to health evidence being provided to and accepted by the Insurer. To provide health evidence you will need to complete the personal statement available by contacting a Member Services Consultant on If we need any further information from you we will let you know. If you decrease or cancel your insurance cover and later change your mind, you can reinstate your insurance, but you will need to provide satisfactory health evidence. When will your insurance cover start? If you apply for voluntary cover, your new level of cover will commence from the date the Insurer accepts your application and premiums are payable from that date. The Insurer may decline or place conditions or restrictions on your insurance cover as result of it s assessment of the health evidence you provide. 5

6 Death and TPD cover Death and TPD cover can help you and your family remain financially secure if the unexpected happens. This cover provides a lump sum benefit to your beneficiaries or your legal personal representative if you die or to you if you are diagnosed with a terminal illness or suffer total and permanent disablement. Standard death and TPD cover Standard death and TPD cover is available to you through the Fund if you are under age 65. Voluntary death and TPD cover You are eligible to apply for units of voluntary death and TPD cover if you are under age 65. Your standard death and TPD cover is calculated according to the below formula: Number of units x Insurance cover per unit You will automatically receive 2 units of standard death and TPD cover when you join the Fund, subject to your eligibility. There is no maximum number of units you may hold, however the maximum level of your total cover, that is, the sum of your standard cover and voluntary cover cannot exceed the maximum insured benefit limit. If you hold both standard and voluntary cover and your total cover would exceed a maximum benefit limit, your voluntary cover will be reduced. There is no maximum insured benefit limit applicable to death cover, but the maximum benefit limit for TPD cover is $3 million. Level of death and TPD cover Age next birthday One unit of cover ($) Age next birthday One unit of cover ($) , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,000 6

7 Example of a death and TPD benefit John is aged 40, (41 age next birthday). His account balance is $60,000 and his standard death and TPD cover is 2 units. He has also applied for 1 additional unit of voluntary death and TPD cover, which was accepted by the Insurer. John s standard death and TPD insured component would be: 2 units x $34,900 = $69,800 John s voluntary death and TPD insured component would be: 1 unit x $34,900 = $34,900 His total death and TPD benefit would be: Standard cover $69,800 Voluntary cover $34,900 Account $60,000 Death and TPD benefit $164,700 Features of death and TPD insurance Terminal illness benefit Leave of absence Cover while overseas The Insurer may pay your insured death cover if you are diagnosed with a terminal illness, subject to a maximum of $3 million. Where you have an insured death benefit which is higher than $3 million, the difference between $3 million and your insured amount will become your new death cover if a Terminal illness benefit is paid. Premiums will be required to be paid on the reduced level of insurance cover. Terminal illness means a condition which is certified in writing by two Medical practitioners, one of whom specialises in your illness, as a condition which despite reasonable medical treatment, will lead to your death within 12 months from the date of the certification, and which the Insurer is also satisfied will lead to your death within 12 months of the date of certification. Medical practitioner means a medical practitioner who is legally qualified and registered to practice in Australia, other than you, the Trustee, your relatives, business partners, shareholders or employees. If the Medical practitioner is outside Australia, they must have qualifications equivalent to Australian standards. Your death and TPD cover will continue if you commence employer approved leave (such as maternity or study leave) provided: premiums continue to be paid; you remain an employee of your employer. In the event of your TPD, the full definition of TPD will apply for the first 24 months of leave and, thereafter, only parts (a) and (b) will apply. During the first 24 months of leave, your occupation and work hours performed immediately before going on leave are the relevant ones for the purposes of the definition of TPD. Your insurance cover will continue while you are residing outside of Australia, as long as your premiums continue to be paid and you remain employed. Your cover continues for up to three years if you are an Australian resident, or three months if you hold a temporary working visa. Longer periods of cover may be agreed with the Insurer before the cover expires. You may be required by the Insurer to return to Australia at your own expense to be assessed for TPD or Terminal Illness. 7

8 Death and TPD cover Features of death and TPD insurance continued Interim accident insurance Guaranteed future insurability option If you have an accident (ie, an unforeseen, violent, external and visible event that occurs accidentally) and you die or suffer TPD while the Insurer is assessing your application for voluntary cover the Insurer will pay you a lump sum benefit equal to the amount of death and TPD cover you ve applied for, subject to a maximum of $1 million for cover. Cover will commence from the date the Insurer receives a fully completed personal statement and declaration of health from you. Cover will cease on the earliest of: 90 days from the date the Insurer receives your fully completed application; or the day your request for cover is withdrawn, approved or declined by the Insurer; or you turn age 65; or the policy is terminated; or you no longer satisfied the eligibility requirements. Interim accident insurance cover is not provided if a claim arises directly or indirectly as a result of intentional self-inflicted injury or suicide, or due to a pre-existing condition or an illness or injury that the Insurer would have declined cover for or excluded as a condition of otherwise approving the application for insurance. Under this option, you are able to apply for additional units of cover without providing health evidence to the Insurer. You can do this when one of the events listed below occurs as long as you: are aged 55 or less at the time of the relevant event; do not already have insurance cover which is subject to a premium loading or exclusion; are not entitled to make a claim for TPD or Terminal Illness benefit; apply for the increased cover within 60 days of the event occurring; and have not already applied for an increase in cover under this option in the past 12 months. Allowable events for this option include: the birth or adoption of a child; marriage or divorce; you take out a mortgage on the purchase of a home (either alone or jointly with another person), or increase an existing mortgage for the purposes of building or renovation on the home (the mortgage must be on your primary place of residence); or the first occasion any dependent child starts secondary school. You can apply to increase your total sum insured by the lesser of: 25% of the original sum insured; the amount of the new mortgage or the amount of the increase in your existing mortgage; and 25% of your standard insurance cover amount. The total of all of your Guaranteed future insurability increases cannot exceed your original total amount of cover, or $1 million (subject to the maximum cover limits which apply under the policy). Note that any increased cover is not payable in the event of intentional self-inflicted injury or suicide occurring in the first 13 months after the increase. For the first six months, the increased cover is not payable on claims arising from a preexisting condition, and for the first 13 months the increased cover is not payable where a claim arises from suicide or intentional self-inflicted act or injury. 8

9 Definition of TPD You are considered to be totally and permanent disabled if the Trustee and Insurer of the Fund are: reasonably satisfied that your ill-health (whether physical or mental) makes it unlikely that you are ever going to engage in any gainful employment for which you are reasonably qualified by education, training or experience; and satisfied that you meet the definition of one of parts (a), (b) or (c) in the table below. Employment status On any basis Definition of TPD (a) You have suffered an injury or illness and, solely as a result of the injury or illness, you suffer the total and irrecoverable loss of the: use of two limbs (where limb is defined as the whole hand below the wrist or whole foot below the ankle); sight in both eyes; or use of one limb and sight in one eye. (b) i. Solely because of illness or injury you have suffered loss of Cognitive and Intellectual Function. OR ii. Solely because of illness or injury you are unlikely to ever again perform at least two of the following Activities of Daily Living without physical assistance of another adult person: bathing the ability to wash or shower; or dressing the ability to put on and take off clothing; or mobility the ability to get in and out of bed and in and out of a chair; or feeding the ability to get food from a plate into the mouth; or toileting the ability to use the toilet, including getting on and off. Cognitive and Intellectual Function means the permanent loss of cognitive and intellectual function that has resulted in you requiring ongoing care and supervision by another adult person. (c) i. You suffer illness or injury and immediately prior to the illness or injury you worked 10 or more hours per week (averaged over the preceding 13-week period or on a pro-rata basis if you had worked for less than 13 weeks) and solely because of that illness or injury: you have not worked for six consecutive months; and at the end of the six-month period after consideration of all relevant evidence, you are disabled to such an extent as to render you unlikely to ever again be engaged in any occupation for which you are reasonably suited by education, training or experience. OR ii. You suffer illness or injury and immediately prior to the occurrence of the Illness or injury, you were not Gainfully Employed and were at home performing unpaid Domestic Duties, and solely because of that illness or injury you: have been unable to perform those domestic duties for a period of six consecutive months; are under the care of a Medical practitioner; are unable to leave home without assistance; and at the end of the six-month period you are, after consideration of all relevant evidence, disabled to such an extent as to render you unlikely to ever again perform Domestic Duties, leave home without assistance, or engage in Gainful Employment. Domestic Duties means the tasks performed by a person whose main occupation is to maintain their family home. These tasks include, cooking of meals for their family, cleaning of the home, shopping for their family s food, doing their family s laundry and taking care of dependent children (if applicable). Domestic Duties do not include duties performed for salary, reward or profit. Gainful Employment means the performance of work for reward or in the expectation of economic benefit to you or a person or entity connected with you. 9

10 Other important information When might you need to provide health evidence? You may, in certain circumstances, be required to provide health evidence to the Insurer, including: if you do not meet the eligibility terms or the terms of automatic acceptance; if you elect to apply for voluntary cover; if your standard cover exceeds the Automatic Acceptance Limit (AAL) or any other limits as detailed in the group insurance policy; if an AAL does not apply; if you cease to be a member of the Fund and then subsequently re-join the Fund and apply for cover; or any other circumstances outlined in the policy. We will advise you if health evidence is required. This may be in the form of a personal medical statement and/or various medical examinations as required. The Insurer may decline or place conditions or restrictions on your insurance cover as a result of this medical evidence. Your sum insured could be reduced or a benefit declined by the Insurer if you provide inadequate medical evidence or false or misleading information to the Insurer. Insurance cover exclusions Insurance benefits will not be paid for claims arising directly or indirectly from the following: a five year pre-existing condition, that is, an illness which first becomes apparent; or an injury which first occurred, within five years prior to cover commencing; or war or acts of war, whether declared or not while you are outside Australia; or service in the armed forces of any national or international organisation including active service and training exercises within national or international armed reserve units while you are outside Australia; or any self-inflicted act or intentional self-inflicted injury; or, other terms as detailed under the policy. Cessation of insurance cover Death and TPD Death and TPD cover ceases immediately under the insurance policy, on the earliest of the following: you reach age 65; the date you cease to be a member of the Spouse Division; the date a terminal illness or TPD benefit is paid which is not less than the amount of the death benefit; the date of your death; your account balance becomes insufficient to pay a premium instalment for any voluntary insurance cover; you are an Australian resident and after working for BHP Billiton outside of Australia for more than three years, unless otherwise agreed by the Insurer; you hold a temporary working visa and after working for BHP Billiton outside of Australia for more than three months, unless otherwise agreed by the Insurer; you request to cancel your cover; and any other terms under the group insurance policy. 10

11 Cost of insurance Cost of insurance Your insurance premiums are deducted from your account. Premiums are calculated based on a specified cost per unit of cover, as the following table shows. Type of cover Cost of cover per unit per week Death & TPD $0.79 The premium calculated for you is inclusive of any statutory charges including stamp duty. Example of premiums Standard cover In our earlier example John, aged 40, had death and TPD cover of 2 units. John s standard insurance premium would be calculated as follows: Paid by John 2 units x $0.79 x 52 weeks = $82.16 pa or $6.85 per month Voluntary cover In our earlier example John had been approved for 1 unit of voluntary death and TPD cover. John s voluntary insurance premium would be calculated as follows: Paid by John 1 unit x $0.79 x 52 weeks = $41.08 pa or $3.42 per month 11

12 Contact us For more information visit superau.bhpbilliton.com or call us from anywhere in Australia on between 8am and 7pm AEST (8pm daylight savings time) Monday to Friday. Postal address Plum Super GPO Box 63 Melbourne VIC 3001 Registered office Ground Floor, MLC Building Miller Street North Sydney NSW 2060 NULIS Nominees (Australia) Limited ABN AFSL Part of the National Australia Bank Group of Companies. An investment with NULIS Nominees (Australia) Limited is not a deposit or liability of, and is not guaranteed by, National Australia Bank Limited ABN AFSL (NAB). NAB does not guarantee or otherwise accept any liability in respect of this product. A