TelstraSuper Personal Plus Insurance Guide. 1 July 2018

Transcription

1 TelstraSuper Personal Plus Insurance Guide 1 July 2018

2 This Guide is issued by Telstra Super Pty Ltd ABN AFS Licence , the trustee of the Telstra Superannuation Scheme ABN (TelstraSuper). This Guide forms part of the TelstraSuper Personal Plus Product Disclosure Statement dated 1 July 2018 (PDS). You should read the information in this Guide before applying for or changing your insurance cover. Telstra Super Pty Ltd is referred to throughout this Guide as the Trustee, our, we or us. Telephone Facsimile: contact@telstrasuper.com.au Telstra Super Pty Ltd 02

3 About this Guide This Guide contains important information about the insurance cover available through TelstraSuper. The insurance cover is provided by TAL Life Limited ABN AFS Licence (TAL). The Guide provides a summary of the main features of the Death, Total & Permanent Disablement (TPD) and Income Protection cover and the insurance policy terms and conditions. The complete terms and conditions are set out in the TAL insurance policy (TAL Policy). All insurance cover is subject to TAL Policy. You can request a copy of the TAL Policy at no charge by calling us on Contents 01 TelstraSuper Personal Plus insurance cover Flexible insurance options with TelstraSuper Determining how much insurance you may need Changing your insurance cover Insurance premiums When are insurance benefits paid? On leave or overseas? Leaving TelstraSuper Need more information about insurance cover? Definitions of medical conditions Glossary 20 Please read this Guide carefully to ensure that you understand the terms and conditions of the TelstraSuper insurance cover before deciding whether the insurance cover is appropriate. Glossary To help you understand some of the terms used in this Guide there is a glossary on pages 20 to

4 01 TelstraSuper Personal Plus insurance cover TelstraSuper recognises the importance of adequate levels of insurance and we are committed to providing our members with comprehensive, affordable and convenient cover. Types of insurance cover available TelstraSuper offers you the following types of insurance cover. Death and Total & Permanent Disablement (TPD) cover Death & TPD insurance cover means that you, your dependant/s and/or your legal personal representative could receive a lump sum insurance payment, paid in addition to the balance of your super account in the event of your death or total and permanent disablement. Terminal illness benefit In the unfortunate circumstance you are diagnosed with a terminal illness you can apply to be paid a terminal illness benefit. You don t have to have stopped working to qualify for this benefit. This is the early payment of your death benefit. For information about Terminal illness benefit and Access to super for members with a terminal medical condition refer to page 15. Income Protection cover Income Protection insurance provides you with a replacement income while you re temporarily unable to continue performing the regular duties of your occupation. The replacement income is up to 75% of your income excluding super, with an additional 10% of your income excluding super to be paid to your super account. You can receive payments for either two years or five years, after your chosen waiting period, provided you continue to meet the definition of total disability or partial disability in the Policy. Default * base Death & TPD cover Default cover means base Death or base Death & TPD cover determined by satisfactorily completing the relevant questions on the membership application form. This does not include existing members transferring from another TelstraSuper corporate product who had a transfer of cover to TelstraSuper Personal Plus. Default base cover is determined by your age next birthday as at the last 1 July. Table 1 on page 5 shows the amount of age-based Death & TPD cover eligible members can receive for a cost of $2.36 per week. Death cover is $1.23 per week on the same scale. Example If you turned 25 years old on 1 December 2016 and today is 1 January 2017, your age next birthday as at the last 1 July is 25 years old, which means you can receive $155,194 of Death cover and $155,194 of TPD cover. If you're not eligible to apply for default base Death or Death & TPD you may still apply for insurance cover by completing an Insurance Telephone Application Request form, which is available from our website. You should refer to the Insurance in your super section in the TelstraSuper Personal Plus Product Disclosure Statement for information regarding your default insurance as this depends on a number of different factors. The TelstraSuper Personal Plus PDS is available at telstrasuper.com.au/pds Top-up Death & TPD cover You can apply to increase your level of insurance to meet your personal needs. Annual top-up premium rates are based on each $1,000 sum insured and are shown in Table 2 on page 6. The example on page 5 shows how to calculate premiums for top-up cover. Refer to the Insurance premiums section on page 14 for further information. * Members with an age next birthday 76 or over are ineligible for default Death insurance cover. Members with an age next birthday 66 or over, or who have not satisfactorily completed the relevant questions in the insurance declaration section of the application for membership, are ineligible for default Death & TPD cover. New employees of Telstraapproved employers (Telstra Stores) are subject to the At work test and other provisions contained in the Policy. All references to age are age next birthday as at the last 1 July. 04

5 Example How premiums are calculated Naomi will be turning 35 next birthday. When she joined TelstraSuper Personal Plus she received age-based base Death & TPD cover providing insurance cover of $134,681. For added peace of mind, Naomi would like to apply for an extra $500,000 of top-up Death & TPD cover. To work out how much this would cost her, Naomi refers to Table 2 and uses the following information: Age next birthday 35 Top-up Death & TPD amount Base Death & TPD premium Top-up Death & TPD premium $500,000 = $2.36 x 52 (weeks per year) = $ = Elected amount of cover 1,000 x Top-up Death & TPD premium rate = $500,000 1,000 x $0.58 = $290 per year Total premium payable = Base Death & TPD premium + Top-up Death & TPD premium = $ $290 = $ per year Naomi receives total insurance cover of $634,681 for Death & TPD at a premium of $ per year. Case study TPD cover helps a family recover Less than a year after taking out her additional Death & TPD cover, Naomi was injured in an accident which resulted in her total and permanent disablement. Naomi s husband, James was working full-time and daughter Emma was about to start school. The TPD cover Naomi had through TelstraSuper Personal Plus helped repay the family s home loan and covered the cost of Emma s education. In addition, it gave the family access to funds to pay their living expenses while James helped Naomi during her initial recovery and transition period, before he returned to full-time work. Table 1: Age-based Death & TPD cover Age next birthday* Death cover TPD cover Age next birthday* Death cover TPD cover , , ,511 61, , , ,524 56, , , ,109 52, , , ,413 48, , , ,718 44, , , ,204 41, , , ,868 37, , , ,533 34, , , ,376 31, , , ,095 29, , , ,335 25, , , ,451 22, , , ,980 19, , , ,000 18, , , ,585 16, , , ,760 14, , , ,964 13, , , ,244 13, , , ,794 12, , , ,254 12, , , , , , , , , , , , , ,415 96, , ,686 90, , ,484 84, , ,696 78, , ,898 73, , ,134 68, ,676 0 * As at last 1 July. 05

6 Handy hints To check your current level of insurance cover visit your online account or call us. To view, nominate or update your beneficiary details, visit your online account or complete a Nomination of Beneficiaries form available at telstrasuper.com.au/forms To estimate your insurance cover and how much it will cost, use our Insurance premium cover calculator available at telstrasuper.com.au/calculator Occupational loadings for class Occupation Death only Death & TPD White collar Light blue Medium blue Heavy blue Table 2: Top-up Death and TPD rates annual cost per $1,000 sum insured Age next Death only Death & TPD birthday* Male Female Male Female * As at last 1 July. 06

7 Interim accident cover If you apply for additional insurance cover, you will receive interim accident cover for the period of time whilst your application is being assessed (known as the interim accident cover period). If you have an accident during the interim accident cover period which results in your death or TPD or total disability, you will be covered for the applied amount (up to the maximum interim accident benefit of $1.5 million for Death or TPD and $15,000 per month for Income Protection) for the period starting from the date we receive your completed application and will end on the earliest of the following dates: 1. your application is withdrawn, accepted or rejected 2. the Policy is terminated 3. TAL cancels your interim accident cover 4. you reach cover cessation age, which is 65 for TPD, 75 for Death cover, and the date you turn 65 for Income Protection 5. for interim accident cover for TPD - the death of the applicant 6. the date any existing cover under the Policy ceases days has passed. Income Protection cover If you are under age 65 and currently employed working at least 15 hours per week, you can apply for Income Protection cover. Premiums for this cover will be deducted from your TelstraSuper Personal Plus account at the end of each quarter, when you leave the fund or when you transfer your super to a different TelstraSuper membership category. Income Protection covers you in the event of total disability or partial disability, meaning you are temporarily unable to continue performing the regular duties of your occupation. It provides you with an income of up to 75% of your income excluding super, with an additional 10% of your income excluding super to be paid to your super account. Payments are made for the duration of the applicable benefit period (either two or five years), distributed in arrears after your chosen waiting period (either 30, 60, 90 or 120 days), provided you continue to meet the definition of total disability or partial disability in the Policy. You do not have to be permanently unable to work to be eligible for income protection payments and you may be eligible for payments while you are waiting for your TPD claim to be assessed. Your level of Income Protection cover is dependent upon your income and is calculated as follows: Income protection benefit 75% x income excluding super = Annual income protection benefit 12 = Monthly income protection benefit Super contribution 10% x income excluding super = Annual super contribution 12 = Monthly super contribution Benefits are subject to a maximum monthly benefit of $50,000 for a two year benefit period and a monthly benefit of $30,000 for a five year benefit period. Income protection payments will be reduced by the amount of any other payments you receive for the payment period (such as sick leave payments or workers compensation payments). Social security benefits and motor accident compensation are not offset against benefits. Depending on your level of Income Protection cover requiring assessment, TAL has different medical requirements. The initial requirements are outlined in Table 5 on page 14. Your annual income protection premium is calculated as: Annual income protection benefit 1,000 x Premium rates per $1,000 sum insured = Annual income protection premium To tailor your insurance to suit your needs you can apply for either a two or five year benefit period* and a waiting period of either 30, 60, 90 or 120 days. Refer to Table 3 on page 9 for premium rates applicable to the various benefit and waiting periods. If you hold Income Protection cover with other insurance providers you also have the option to postpone the TelstraSuper waiting period. This allows you to receive an income protection benefit from another insurance provider first, and defer TelstraSuper benefits until these payments are complete. You can apply to change your existing waiting period and/ or benefit period at any time. See page 12 Changing your insurance cover. * Members employed in a heavy blue occupation are unable to increase their benefit period to five years. 07

8 Applying for Income Protection cover When applying for Income Protection cover you will need to provide evidence of your current salary in the form of a Year to Date payslip and cannot be underwritten for an amount greater than your current salary. Should you subsequently receive an increase in salary you will need to apply to be underwritten for this increase. To increase your Income Protection cover see page 12 Changing your insurance cover. If you claim an income protection benefit you will also be required to provide evidence of your current salary at the time of claim. For this reason it is imperative that you review your insurance arrangements on a regular basis to ensure that you have sufficient cover. You can find out more about the cost of insurance or changing your cover on our website or by calling us. Existing members transferring from another TelstraSuper product TelstraSuper Corporate Plus, TelstraSuper Division 5 and Sensis Super Plus Defined Benefit members with existing Income Protection cover will have that cover automatically transferred to TelstraSuper Personal Plus. For former Defined Benefit members, your Income Protection cover will be 75% of your income excluding super, with an additional 10% of your income excluding super to be paid to your super account (this already applies to TelstraSuper Corporate Plus members). For the cover to be retained you will need to receive a Superannuation Guarantee (SG) contribution from your new employer, along with details of your new salary and occupation within 120 days of you leaving your previous employer. Details of these requirements are outlined in the TelstraSuper Personal Plus welcome letter. Where cover is cancelled due to non-receipt of salary or occupation information or SG contribution within 120 days of leaving your former employer, any premiums paid for the 120 days will be refunded. You will need to re-apply for cover after the 120 day period if you wish to obtain cover. Eligible members transferring from TelstraSuper Division 2 can apply for Income Protection cover, as outlined above. Subject to the At work requirements and other eligibility criteria and exclusions contained in the Policy. Handy hints Many of the insurance forms referred to in this Guide are available on our website at telstrasuper.com.au/forms or by calling Alternatively, visit your online account to access a pre-populated form. Example Calculating Income Protection* premiums and benefit payable Jack is a TelstraSuper Personal Plus member. He is 26 years old next birthday, a white collar worker and his salary excluding super is $42,000. Jack has little savings since returning from an overseas trip. Aware that he would be in financial hardship should he be unable to earn his income, Jack decides to take out Income Protection insurance with TelstraSuper Personal Plus with a benefit period of two years and 90 day waiting period. Jack s income protection benefit is calculated as: Annual income protection benefit = Salary excluding super x 75% = $42,000 x 75% = $31,500 Monthly income protection benefit = $31, = $2,625 (before tax) per month Annual super contribution = Salary excluding super x 10% = $42,000 x 10% = $4,200 Monthly super contribution = $4, = $350 per month Jack s annual income protection premiums are: Annual income protection benefit 1,000 x premium rates = ($31,500 + $4,200) 1,000 x $1.88 = $67.12* Case study How Income Protection helped Jack get back on his feet Jack loves the outdoors and regularly goes rock climbing. However, one weekend while climbing, Jack falls and seriously injures his back. After an initial hospital stay of two months, Jack s doctor informs him he will need four months of in-hospital rehabilitation and a further nine months at home recuperating, before he can safely resume work. Jack immediately submits an income protection claim. After the 90 day waiting period, Jack is advised of its acceptance and receives $2,625 per month (before tax) from his Income Protection insurance plus an additional $350 paid into his super account. This covers Jack s living expenses, allowing him to focus on his recovery. * Stamp duty is payable in addition to the income protection premiums above and varies depending on your state of residence. 08

9 Table 3: Annual Income Protection premium rates per $1,000 sum insured* Benefit period Waiting period 2 Years 5 Years 30 days 60 days 90 days 120 days 30 days 60 days 90 days 120 days ANB Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Occupational loadings Occupation Income Protection White collar 1.00 Light blue 1.40 Medium blue 2.50 Heavy blue 2.50 * Stamp duty is payable in addition to the income protection premiums above and varies depending on your state of residence. Age next birthday as at last 1 July. 09

10 02 Flexible insurance options with TelstraSuper Life Events cover - keeping pace with life s significant changes When a significant event occurs in your life, such as getting married, buying a home, milestone birthdays or welcoming a new child to the family, it s an opportune time to consider if your insurance cover is adequate for your increased financial obligations. With TelstraSuper s Life Events cover you can apply to increase your Death only or Death & TPD cover upon the occurrence of a specified Life Event, without providing any medical evidence. To take advantage of Life Events cover, apply within 90 days* (excluding the day on which the Life Event occurred) of any of the following specified events: Birth of a child/ren Adoption of a child/ren Marriage Commencement of a recognised relationship ^ Divorce Cessation of a recognised relationship ^ Effecting a new mortgage for the purchase or construction of a primary residence or investment property in Australia (either alone or jointly with another person) Financing renovation/improvement to a primary residence or investment property in Australia (minimum cost $30,000) Death of a spouse Child starting primary or secondary school Buying a business with a business loan greater than $100,000 30th, 35th, 40th and 45th birthdays. You also have a second opportunity to apply for Life Events cover between 1 July and 30 September for a Life Event that occurred in the previous financial year. Insurance cover provided through Life Events will be subject to the annual top-up premium rates set out in Table 2 on page 6. The following table shows the amount by which you can apply to increase your existing Death only or Death & TPD cover. The total amount of cover you have after you have been granted Life Events cover must be within the maximum cover limits (unlimited for Death cover and $5 million for TPD cover). Existing sum insured (including base & top-up) Maximum additional insurance (top-up) Up to $100,000 $25,000 $100,001 up to $200,000 $75,000 $200,001 up to $300,000 $100,000 $300,001 up to $400,000 $125,000 $400,001 up to $500,000 $150,000 Over $500,000 $250,000 * To find out when the 90 days commences for each Life Event, please call us on ^ A relationship is recognised if it has been registered and meets the following conditions: a significant relationship for which deeds of relationship have been registered under the Relationships Act 2003 (Tas) a registered domestic relationship within the meaning of the Relationships Act 2008 (Vic) a civil partnership under the Civil Partnerships Act 2008 (ACT) a registered relationship within the meaning of the Relationships Register Act 2010 (NSW) registration under any other similar State based registration scheme. Applying for Life Events cover To apply for additional Death only or Death & TPD insurance cover simply complete and submit a Life Event Insurance Application form available at telstrasuper.com.au/forms along with the required certified supporting documentation. You must be under the age of 65 to apply. You can obtain Life Events cover up to three times during your membership. Upon completion of assessment you will be advised in writing of the acceptance or decline of the application. A Life Event application will generally be accepted where the member satisfies the eligibility criteria and the member is able to provide satisfactory documentation supporting the occurrence of the Life Event. The Life Events cover will commence on the date the cover is accepted in writing. It may be subject to the same exclusions and other special conditions which apply to your existing cover. After the acceptance of a Life Event application, you cannot submit another Life Event application (whether for the same type of Life Event or not) until 12 months have elapsed from the date of commencement of the additional cover. No claim will be payable on the additional cover if the death or disablement is due to intentional self-inflicted injury in the first 13 months. For further information on increasing your insurance cover due to a specified Life Event, please call us. 10

11 Case study Extra security for an expanding family David is a TelstraSuper Personal Plus member. He is 30 years old. As part of his TelstraSuper membership he currently has $134,681 of age-based Death & TPD cover and $250,000 of top-up cover. David and his partner Julia have two young children and are delighted to find out they are expecting a third child. David and Julia review their insurance cover and decide that, in light of their expanding family, they would like to increase David s insurance cover. Within 90 days of new baby, Chloe, being born, David submits a Life Events application for $125,000. No medical reports are required enabling the busy new father to submit the application quickly and easily. David s application is successful, giving the family total cover of $509,681. Transfer your insurance to TelstraSuper If you currently have Death only or Death & TPD insurance with another super fund or life insurance company, you can apply to transfer that cover to TelstraSuper. You cannot transfer Income Protection cover, however you can apply for cover and be assessed by TAL. By consolidating your insurance with TelstraSuper you can take advantage of our bulk insurance rates, potentially saving on premiums, while simplifying your insurance arrangements. To take advantage of this handy feature, simply complete the Transfer External Insurance Application form available at telstrasuper.com.au/forms or by calling us. If your application is successful, you will be provided with the equivalent amount of top-up cover in TelstraSuper as provided by your previous super fund or insurer (the annual top-up rates in Table 2 on page 6 apply). Case study Saving on insurance with TelstraSuper Sarah is a current TelstraSuper Personal Plus member. She is 40 years old next birthday, a white collar worker and has $96,415 of age-based Death & TPD cover as part of her membership. Sarah also has $250,000 Death insurance with another insurer which costs her $20 per month. Sarah decides to see how much her additional Death insurance would cost if she transferred it to TelstraSuper. She refers to Table 2 on page 6 and uses the following calculation to determine her premiums: Sarah s age next birthday = 40 Death insurance amount to be transferred = $250,000 Annual top-up death premium per $1,000 insured = $0.52 Top-up death premium payable = $250,000/1000 x $0.52 = $130 per year or $10.83 per month. Sarah applies to transfer her Death cover to TelstraSuper and her application is accepted. By transferring her insurance to TelstraSuper, Sarah saves $9.17 per month or $110 per year. In addition, Sarah enjoys simplified financial arrangements, with all insurance premiums conveniently deducted from her TelstraSuper account at the end of each quarter. Any transferred Death only and/or Death & TPD cover will apply in addition to any existing cover you currently hold with TelstraSuper. A cap of $2,000,000 on all transfers applies.* It is important that you do not cancel your existing cover with your current super fund or insurer until you have received written confirmation that your insurance transfer application has been accepted. * Certain occupations are not eligible for insurance transfers. 11

12 03 Determining how much insurance you may need Determining how much cover you may need is as important as having the insurance cover itself. 95% of families do not have adequate levels of insurance 1. So, how do you determine an adequate level of insurance for your needs? Essentially your level of insurance cover should be able to replace your projected income over your working life. This lump sum amount would then need to be invested to provide the required cashflow to maintain you and/or your family s standard of living or to ensure your estate is not left in debt. The table to the right provided by TAL illustrates your total potential lifetime earnings in today s dollars*. While your level of insurance cover may not need to match this amount, you need to carefully consider how you would fund this loss of income. Calculate the level of cover you require Step 1 Check your current level of cover by visiting your online account or by calling us. Step 2 To help determine the level of insurance cover you may require, refer to the following table and factor in the potential costs: ongoing costs to maintain your family s lifestyle and home children s education (primary, secondary and tertiary) existing debts (mortgage, credit cards, personal loans or car loan) other expenses such as hospital/medical costs, rehabilitation, home repairs or upgrades as a result of permanent disablement funeral expenses. The above costs can be offset by your existing assets (including your super balance, savings and any investments) to determine the insurance cover you may require. Current age Current annual income $35,000 $65,000 $85,000 $100,000 $125,000 $150, ,034,000 1,920,000 2,511,000 2,954,000 3,692,000 4,431, ,000 1,769,000 2,314,000 2,722,000 3,402,000 4,083, ,000 1,603,000 2,097,000 2,467,000 3,084,000 3,700, ,000 1,421,000 1,858,000 2,186,000 2,732,000 3,279, ,000 1,220,000 1,595,000 1,877,000 2,346,000 2,815, , ,000 1,306,000 1,536,000 1,920,000 2,304, , , ,000 1,161,000 1,452,000 1,742, , , , , ,000 1,123, , , , , , ,000 * Assumes interest at 5% and salary inflation at 3%. 04 Changing your insurance cover Apply for or increase cover Complete the Insurance Telephone Application Request form to apply for or increase your cover over the phone with our insurer TAL. You can choose to: apply for or increase top-up Death only or Death & TPD cover apply for Income Protection cover increase Income Protection cover change your existing Income Protection waiting period and/or benefit period. Handy hints It is important to note that if you cancel any insurance, and wish to reapply at a later date, evidence of your occupation, health and lifestyle will need to be provided to TAL for assessment. TAL may place an exclusion or premium loading on cover or may decline cover as a result of their assessment. If you already have insurance cover and there is a difference between your current level of cover and your required level of cover, consider applying to increase your insurance cover. 1. Lifewise/NATSEM Underinsurance Report

13 The Insurance Telephone Application Request form is available at telstrasuper.com.au/forms or by calling us. Depending on the level of cover you apply for, TAL may have different medical requirements to assess your application. Tables 4 and 5 outline the initial requirements. You'll be advised when any medical tests or examinations are required. Once all the information is supplied to TAL and they've assessed your application, we'll advise you of the outcome. TAL may accept cover, place exclusions on cover, charge higher premiums or decline your application. If within 14 days of the commencement of cover you advise in writing that you wish to cancel the cover, you can request a refund of any premium you may have paid. Cancel or reduce cover You can cancel or reduce your insurance cover at any time by ing underwriting@telstrasuper.com.au or calling us on Alternatively, you can complete a Cancel or Reduce Insurance form available at telstrasuper.com.au/forms If you wish to re-apply for insurance cover in the future, you ll need to supply detailed health and other personal information as part of your application, which will be assessed by our insurer. Any cancellations of cover received within 30 days of you joining TelstraSuper Personal Plus will not incur premiums. Table 4: Initial requirements Death & TPD cover applications Under age 55 Age 55 and over Member s total sum insured Death & TPD Up to $1,500,000 $1,500,001 up to $2,000,000 $2,000,001 up to $3,000,000 $3,000,001 up to $5,000,000 $5,000,001 up to $10,000,000 Initial requirements Personal statement Personal statement and blood tests Personal statement, blood tests and mini health check Personal statement, blood tests, medical examination by own doctor, Personal Medical Attendants Report (PMAR) (if TPD) and financial questionnaire Personal statement, blood tests, medical examination by a specialist, medical report, financial questionnaire and tax return and assessment notices for the last 2 years $1,500,000 Personal statement $1,500,001 up to $2,000,000 $2,000,001 up to $3,000,000 $3,000,001 up to $5,000,000 $5,000,001 up to $10,000,000 Personal statement and blood tests Personal statement, blood tests, mini health check and PMAR Personal statement, blood tests, medical examination by own doctor, PMAR and financial questionnaire Personal statement, blood tests, medical examination by a specialist, stress ECG, medical report, financial questionnaire and tax return and assessment notices for the last 2 years 13

14 Table 5: Initial requirements for Income Protection cover applications Under age 55 Age 55 and over Monthly benefit Up to $12,000 $12,001 up to $15,000 $15,001 up to $20,000 $20,001 up to $25,000 $25,001 up to $30,000 $30,001 up to $60,000 Up to $12,000 $12,001 up to $20,000 $20,001 up to $30,000 $30,001 up to $60,000 Initial requirements Personal statement Personal statement and blood tests Personal statement, blood tests and mini health check Personal statement, blood tests, mini health check, financial questionnaire and tax returns and assessment notices for the last 2 years Personal statement, blood tests, medical examination by own doctor, PMAR, financial questionnaire and tax returns and assessment notices for the last 2 years Personal statement, blood tests, medical examination with a specialist, PMAR, financial questionnaire and tax returns and assessment notices for the last 2 years Personal statement Personal statement, blood tests, mini health check and PMAR Personal statement, blood tests, medical examination by your own doctor, PMAR, financial questionnaire and tax returns and assessment notices for the last 2 years Personal statement, blood tests, medical examination by a specialist, PMAR, financial questionnaire and tax returns and assessment notices for the last 2 years 05 Insurance premiums Insurance premiums will be deducted from your TelstraSuper Personal Plus account at the end of each quarter, or if you leave the fund or transfer your super to another TelstraSuper product. Premiums for Income Protection cover obtained through a super arrangement are not tax deductible and are paid directly out of your super account. Your premiums will vary annually with changes to your age and income. See Table 2 on page 6 for the annual applicable top-up premium rates for Death only and Death & TPD insurance, based on every $1,000 sum insured. See Table 3 on page 9 for the applicable annual premium rates for Income Protection cover, based on every $1,000 sum insured. Top-up and income protection premium rates are applicable to white collar employees and additional occupational and health loadings may apply depending on your occupation and health status. See Table 6 below. Members given a premium loading or exclusion at the conclusion of the assessment process will be given an opportunity to cancel their application if they don't wish to proceed. Table 6: Occupational loadings Occupation Death only cover Death & TPD Income Protection White collar Light blue Medium blue Heavy blue

15 06 When are insurance benefits paid? Death benefit Your base level of cover and any top-up insurance means your dependants or legal personal representative (as applicable) could receive a lump sum insurance benefit in addition to the balance of your super account, in the event of your death. Terminal illness benefit You will qualify for a terminal illness benefit if you suffer from a sickness or injury which: two medical practitioners (one of whom specialises in an area related to your illness or injury) believe will lead to your death within 12 months of the date of written certification, despite reasonable medical treatment, and TAL is satisfied, on medical or other evidence, will lead to your death within 12 months of the date of the certifications, despite reasonable medical treatment. The amount of the benefit that is paid is the insured Death cover amount (up to $5 million) and your account balance. Access to super for members with a terminal medical condition You can apply to TelstraSuper for the release of your account balance if you have a terminal medical condition. A terminal medical condition exists if: two registered medical practitioners have certified, jointly or separately, that you are suffering from an illness, or have incurred an injury, that is likely to result in your death within 24 months of the date of certification at least one of the registered medical practitioners is a specialist practicing in an area related to your illness or injury the certification period has not ended for each of the certificates. Benefits released during the certification period are received as a tax-free lump sum payment. The certification period is 24 months from the date of certification. You should consider leaving enough funds in your super account to cover your insurance premiums otherwise your insurance cover will cease. Leaving sufficient funds to ensure your insurance cover continues means you may be eligible for a terminal illness benefit, which is based on a 12 month prognosis. TPD benefit To obtain a benefit for TPD you must have TPD cover and satisfy the requirements of the TelstraSuper Trust Deed and TAL Policy and have: ceased work with your employer (and been off work for at least three months*) if the Unable to Work TPD definition applies; or satisfied one of 19 specified medical conditions (see pages 18 and 19) in which case there is no waiting period to receive the benefit (referred to as the Day 1 TPD definition); or been unable to perform any Domestic Duties for three consecutive months since the date of disablement if the Domestic Duties TPD definition applies; or be unable to perform certain Activities of Daily Working without the physical assistance of another person if the Activities of Daily Working TPD definition applies. The applicable TPD definition you must satisfy will depend upon whether at the date of disablement you were working, not working or performing Domestic Duties. Generally, the Unable to Work TPD definition or the Day 1 TPD definition applies if you were working for a minimum of 15 hours per week on average for the six months prior to the date of disablement (or such shorter period where applicable). The Domestic Duties TPD definition applies if you were not working and you were engaged in Domestic Duties for a minimum of 15 hours per week on average for the six months prior to the date of disablement (or such shorter period where applicable). The Activities of Daily Working TPD definition applies if you were not working and engaged in Domestic Duties or work for less than 15 hours per week on average for the six months prior to the date of disablement (or such shorter period where applicable). Income Protection When are payments made? To obtain monthly payments for income protection, you must have Income Protection cover and: have been working a minimum of 15 hours or more per week averaged over the six consecutive months prior to your date of disablement or if you have been working for less than six months, the period since your cover commenced; and have been unable to work for your employer (and off work) for the applicable waiting period; and satisfy the Policy definition of total disability or partial disability * TAL may exercise its discretion and waive any requirement that the member be absent from all active work for at least three consecutive months. 15

16 You may be eligible to receive partial disability payments if: you are totally disabled for no less than seven of the first 12 consecutive days of the applicable waiting period; and you are either partially or totally disabled for the rest of the applicable waiting period; and you decide to return to work on a reduced capacity resulting in a reduction in your income; and you are under the ongoing care of a registered medical practitioner. If eligible, income protection payments are paid: from the end of the applicable waiting period after the day you last worked for your employer monthly in arrears for a period of two or five years (as applicable) providing you continue to meet the definition of total disability or partial disability. Up to 75% of your salary (excluding super) is paid directly to you, and 10% is paid to your TelstraSuper Personal Plus account. Income protection payments will be reduced by the amount of any other payments you receive during a payment period (such as sick leave payments or workers compensation payments). Social security benefits and motor accident compensation are not offset against insurance benefits. Where a member is receiving income protection payments over a five year benefit period without a break*, payments are indexed annually by the lesser of 5% or the CPI increase (for the 12 months ending 30 September in each year). Under current legislation your income protection payments are treated as income and will be taxable. Premiums are waived by TAL while you are receiving income protection payments. When do benefits stop? Your income protection benefits cease upon occurrence of one of the following conditions (whichever occurs first): you return to work you have received payments for the total benefit period you cease to satisfy the definition of total disability or partial disability you reach age 65, or you die. 07 On leave or overseas? On leave Subject to satisfying the relevant Policy conditions, Death & TPD cover is provided 24 hours a day, seven days a week for insured members while on paid or unpaid leave. Income Protection (if applicable) is provided for insured members for a period of up to two years while on unpaid leave. If overseas Subject to satisfying the relevant Policy conditions, Death & TPD cover and Income Protection cover are provided 24 hours a day, seven days a week for insured members who are Australian residents while overseas. If you make an insurance claim while overseas, the Insurer may require you to return to Australia at your own expense in order for the claim to be assessed. Australian resident means an Australian or New Zealand citizen or person with the unrestricted right to permanently reside in Australia. This includes persons with the right to reside in Australia on a de facto or work type visa, but only during the period they reside in Australia. 08 Leaving TelstraSuper If you decide to withdraw your benefit from TelstraSuper Personal Plus and leave the fund, any Death & TPD insurance cover you have will continue for a period of 60 days. If you leave TelstraSuper, any outstanding premiums will be deducted from your account at that time. Income protection payments are subject to the continued approval of your eligibility by TAL and the Trustee. * Any period in which a benefit was payable but is calculated to be zero does not amount to an interruption to an entitlement to a disability benefit. Partial disability benefits may be payable depending upon your income. The Trustee will presently meet the cost of this extended insurance cover but reserves the right to pass this cost on to members in the future. Members will be advised of any change. Extended cover excludes income protection benefits once you leave your employer. 16

17 09 Need more information about insurance cover? Call us on Visit telstrasuper.com.au Find out everything about your current insurance arrangements on our website. Your insurance needs are covered with TelstraSuper Comprehensive We offer Death, TPD and Income Protection insurance cover. You also have the option to apply to transfer any Death only or Death & TPD external insurance cover you may have, or to apply for extra cover when significant changes occur in your life. You cannot transfer Income Protection cover, however you can apply for cover and be assessed by TAL. Our insurance cover is provided 24 hours a day, seven days a week whether at work or play, offering genuine peace of mind. A ff o r d a b l e We ve negotiated bulk insurance rates to cover our members, potentially saving you hundreds of dollars per year in premium payments compared to insuring yourself individually. Convenient Having your insurance and super with the one provider simplifies your financial arrangements, with premiums conveniently deducted from your super account at the end of each quarter. 17

18 10 Definitions of medical conditions The following words or expressions used in the Day 1 TPD definition have the meanings set out below. blindness The permanent loss of sight in both eyes, whether aided or unaided, due to sickness or accident to the extent that visual acuity is 6/60 or less in both eyes or to the extent that the visual field is reduced to 20 degrees or less of arc, as certified by an ophthalmologist. cardiomyopathy Condition of impaired ventricular function of variable aetiology (often not determined) resulting in significant physical impairment, i.e. Class 3 on the New York Heart Association classification of cardiac impairment. chronic lung disease Permanent end stage respiratory failure with FEV1 test results of consistently less than one litre, requiring continuous permanent oxygen therapy. dementia and Alzheimer s disease Clinical diagnosis of dementia (including Alzheimer s disease) as confirmed by a consultant neurologist, psycho-geriatrician, psychiatrist or geriatrician. The diagnosis must confirm permanent irreversible failure of brain function resulting in significant cognitive impairment for which no other recognisable cause has been identified. Significant cognitive impairment means a deterioration in the person s Mini-Mental State Examination scores to 24 or less and deterioration would continue but for any effective treatment. Dementia related to alcohol, drug abuse or AIDS is excluded. diplegia The total loss of function of both sides of the body due to sickness or accident where such loss of function is permanent. hemiplegia The total loss of function of one side of the body due to sickness or accident, where such loss of function is permanent. loss of hearing Complete and irrecoverable loss of hearing, both natural and assisted, from both ears as a result of sickness or accident, as certified by a specialist we consider appropriate. loss of speech The total and irrecoverable loss of the ability to produce intelligible speech as a result of permanent damage to the larynx or its nerve supply or the speech centres of the brain. The loss must be certified by an appropriate medical specialist. major head trauma Injury to the head resulting in neurological deficit causing either: a permanent loss of at least 25% whole person function (as defined in the American Medical Association publication Guides to the Evaluation of Permanent Impairment 4th Edition or an equivalent guide to the evaluation of impairment approved by us); or the permanent and irreversible inability to perform without the assistance of another person any one of the following activities of daily living: dressing the ability to put on and take off clothing toileting the ability to use the toilet, including getting on and off mobility the ability to get in and out of bed and a chair feeding the ability to get food from a plate into the mouth continence the ability to control bowel and bladder function as certified by a consultant neurologist. motor neurone disease Motor neurone disease diagnosed by a consultant neurologist. 18