PERSONAL PRODUCT INSURANCE GUIDE

Transcription

1 PERSONAL PRODUCT INSURANCE GUIDE Prepared: 1 June 2018 The issuer and Trustee of The Executive Superannuation Fund (ABN: , RSE Registration R , Unique Superannuation Identifier ( USI ): ) is Equity Trustees Superannuation Limited, ABN: , RSE Licence L , Australian Financial Services Licence ( AFSL ) No: , Address: GPO Box 2307 Melbourne VIC Ph: (03) , Fax: (03) The Administrator of The Executive Superannuation Fund is OneVue Super Member Administration Pty Ltd, ABN: , AFSL No: , Address: PO Box 67, Australia Square NSW Ph: address: execsuper@onevue.com.au Plan website:

2 The information in this document forms part of the Product Disclosure Statement ( PDS ) for members in the Personal Product of The Executive Superannuation Fund ( the Fund ), dated 1 June The information provided in the PDS and this Insurance Guide ( this Guide ) is a summary of the benefits and terms and conditions of the Personal Product, however, the terms of the trust deed governing the Personal Product have precedence over anything in the PDS and this Insurance Guide. To the extent that the PDS and Insurance Guide provide general advice, the advice does not take into account your individual financial situation, circumstances or needs. You should take these into account when making decisions about your benefit in this product, and consult an appropriately qualified financial adviser where required. The Trustee does not guarantee the payment of an insured benefit or the performance of the Fund s insurer. Contents Insurance in your super... 3 Death/Terminal Illness Benefit... 7 TPD Benefit... 9 Additional / Voluntary Death, TPD and Income Protection Cover Cost of Death and TPD cover Life Events Cover Individual transfer terms Limitations on Death and TPD cover Income Protection Cover Explanation of Terms Cost of Income Protection cover Duty of disclosure Insurance policy terms and conditions Further information and how to contact us The Executive Superannuation Fund Personal Product Insurance Guide 2

3 Insurance in your super The Death only or Death and Total and Permanent Disablement ( TPD ) insurance cover provided to eligible members in the Personal Product is provided under insurance arrangements with the Fund s relevant insurer ( insurer ). Any death cover includes cover for terminal illness. The payment of the insured part of these benefits is, therefore, subject to the terms and conditions of the applicable insurance policy and the acceptance of any claim by the insurer. Any insured benefits can only be paid to you from the Personal Product if permitted under the trust deed and superannuation legislation (for more information about when benefits can be accessed from the Personal Product, see section 1 of the Reference Guide). The insured benefits available, or provided to members of the Personal Product depend on whether: they have been transferred to the Personal Product from the Fund s Employer Sponsored Product or ACE Australia Super, Meriton Staff Super or Valvoline Australia Super (other Employer Sponsored Products in the Fund) on or after 1 April 2016 and, if so, the membership category in which they were participating immediately prior to their transfer to the Personal Product; they have been transferred to the Personal Product under a successor fund arrangement from a fund known as EquitySuper, with effect from 1 April 2016 (referred to in this Guide as the 1 April 2016 Successor Fund Transfer ); or they have joined the Personal Product as a result of completing the Application for membership Personal Product accompanying the PDS. Former members of the ASC Superannuation Plan and their associated spouses/dependants Any Death and TPD insurance cover held by a former member of the ASC Superannuation Plan of the Employer Sponsored Product of the Fund will be automatically continued upon transfer of the member (on cessation of employment or other role with their employer) to the Personal Product subject to the following: any other relevant restrictions, exclusions or premium loadings as applicable to your insurance at the date of cessation of employment and transfer to the Personal Product; a reduction of the TPD cover amount after age 60 (see further information below); and cover has not ceased for some other reason (for example, you have reached the cover cessation age or you request that cover cease). Any insurance cover will be provided within the Personal Product as fixed cover and treated as voluntary insurance cover, the cost of which will be deducted from your account balance in accordance with the age-based premium rates applicable to insurance cover provided in the Personal Product. If your former employer previously met the cost of insurance premiums associated with your account in the Employer Sponsored Product, your former employer will no longer meet the cost of any part of your insurance cover. Please refer to the age-based premium rate tables later in this Guide for more information regarding the cost of insurance cover applicable to your membership within the Personal Product. Your insurance cover will be continued at the same level as that which applied as at the date of transfer to the Personal Product (subject to the reduction in the TPD cover amount after age 60 see further information below) without having to undergo additional underwriting, until a cessation of cover event occurs. You are able to maintain your Death only or Death and TPD cover in the Personal Product for the same or a lesser sum insured amount. You can also terminate your cover if you wish. As such, if you would like to continue your cover for a lesser amount, or cancel it altogether, you must complete and return an Insurance Cover Cancellation or Reduction Form which is available on request from the Fund Administrator (contact details on the back page). If you wish to take out additional voluntary Death only or Death and TPD Cover, above the level of cover that you held when you left your former employer, you can apply for extra cover (subject to maximum limits shown later in this Insurance Guide), if eligible. The full amount of any cover you apply for will be underwritten by the insurer. In order to obtain the insurance cover, evidence of health (such as a health statement and blood test) may need to be assessed by the insurer. Any additional Death or Death and TPD cover is also provided on the basis of the age-based premium scale applicable to your membership as set out in the tables later in this Guide. You will need to ensure that you maintain a sufficient account balance in the Personal Product for the deduction of insurance premiums. Your insurance cover will be cancelled if your member account does not hold sufficient funds to enable the deduction of relevant insurance premiums at the end of each month. Note: If you are re-employed by your former employer, any insurance cover you held upon transfer to the Personal Product may cease under your new membership. If you hold underwritten cover however, this cover would be retained. Income Protection Cover is not available to you in the Personal Product as a former member of ASC Super. Former members of the KPMG Staff Superannuation Plan and KPMG Executive Superannuation Plan and their associated spouses/dependants Any Death and TPD insurance cover held by a former member of KPMG Staff Super and KPMG Executive Super of the Employer Sponsored Product of the Fund, will be automatically continued upon transfer of the member (on cessation of employment or other role with their employer) to the Personal Product subject to the following: any other relevant restrictions, exclusions or premium loadings as applicable to your insurance at the date of cessation of employment and transfer to the Personal Product; a reduction of the TPD cover amount after age 60 (see further information below); cover has not ceased for some other reason (for example, you have reached the cover cessation age or you request that cover cease); and if you are an insurance only member, a contribution equal or greater than the first month s premium to the Fund is received within 60 days of you ceasing The Executive Superannuation Fund Personal Product Insurance Guide 3

4 employment in order to meet the cost of insurance cover and fees etc. Any insurance cover will be provided within the Personal Product as fixed cover and treated as voluntary insurance cover, the cost of which will be deducted from your account balance in accordance with the age-based premium rates applicable to insurance cover provided in the Personal Product. If your former employer previously met the cost of insurance premiums associated with your account in the Employer Sponsored Product, your former employer will no longer meet the cost of any part of your insurance cover. Please refer to the age-based premium rate tables later in this Guide for more information regarding the cost of insurance cover applicable to your membership within the Personal Product. Your insurance cover will be continued at the same level as that which applied as at the date of transfer to the Personal Product (subject to reduction in the TPD cover amount from age 61 see further information below) without having to undergo additional underwriting, until a cessation of cover event occurs. You are able to maintain your Death only or Death and TPD cover in the Personal Product for the same or a lesser sum insured amount. You can also terminate your cover if you wish. As such, if you would like to continue your cover for a lesser amount, or cancel it altogether, you should notify the Fund Administrator in writing by way of a signed letter confirming your instructions (contact details on the back page). If you wish to take out additional voluntary Death only or Death and TPD Cover, above the level of cover that you held when you left your former employer, you can apply for extra cover subject to the following maximum limits: $10 million for Death; $3 million for terminal illness; and $5 million for TPD. The full amount of any cover you apply for will be underwritten by the insurer. In order to obtain the insurance cover, evidence of health (such as a health statement and blood test) may need to be assessed by the insurer. Any additional Death or Death and TPD cover is also provided on the basis of the age-based premium scale applicable to your membership as set out in the tables later in this Guide. You will need to ensure you maintain a sufficient account balance in the Personal Product for the deduction of insurance premiums. Your insurance cover will be cancelled if your member account does not hold sufficient funds to enable the deduction of relevant insurance premiums and ongoing Fund costs at the end of each month. Note: If you are re-employed by your former employer, any insurance cover you held upon transfer to the Personal Product (providing you were not an insurance only member), will be retained under your new membership as Voluntary cover, in addition to being provided with new Standard insurance cover resulting from your re-employment (depending on the nature of your re-employment). Your total cover will be subject to the abovementioned maximum benefit amounts. Income Protection Cover is not available to you in the Personal Product as a former member of KPMG Staff Superannuation Plan and KPMG Executive Superannuation Plan. KPMG Staff Super Plan and KPMG Executive Super Plan Insurance only members If you were previously an insurance only member employed by KPMG, any Death and TPD insurance cover which you held will automatically continue within the Personal Product. However as there is no account balance in the Fund, a contribution equal or greater to the first month s insurance premium is required to be received from you within 60 days in order to meet the cost of insurance cover and ongoing fees associated with being a Personal Product member. Cover will automatically cease 60 days from the date you cease employment with KPMG if there are insufficient funds in your account. Former members of the Employer Sponsored Product that were joined to the Employer Sponsored Product as a result of the 1 April 2016 Successor Fund Transfer AND former members of ACE Australia Super, Meriton Staff Super or Valvoline Australia Super that were joined to these products as a result of the 1 April 2016 Successor Fund Transfer, or after 1 April 2016 Any Death and TPD insurance cover held by a former member (as stated above) will be automatically continued (on cessation of employment with their employer) upon transfer of the member to the Personal Product subject to the following conditions: any other relevant restriction, exclusions or premium loadings as applicable to your insurance at the date of cessation of employment and transfer to the Personal Product; cessation of Death and TPD cover at age 65, or in some cases a higher age up to age 80 (as applicable to your insurance at the date of cessation of employment and transfer to the Personal Product, and previously notified to you in your Welcome Pack on joining the Fund); cessation of cover for some other reason (for example, you request that cover cease). If the Death or Death and TPD cover prior to transfer to the Personal Product was Unit-based cover, then the member will continue to have Unit-based cover in the Personal Product, as described further below, subject to the above conditions. If the Death or Death and TPD cover prior to transfer to the Personal Product was formula based or fixed cover, then the member will have fixed cover in the Personal Product, subject to the above conditions (in the case of formula based cover, the fixed cover will be the amount calculated on the basis of the applicable formula as at the date of transfer to the Personal Product). Any Income Protection ( IP ) cover held by a former member of the Employer Sponsored Product, ACE Australia Super, Meriton Staff Super or Valvoline Australia Super will cease (on cessation of employment) on transfer of the member to the Personal Product, unless the continuation of cover is requested within 30 days of cessation of employment (subject to payment of applicable premiums). Further information regarding IP cover is provided later in this Insurance Guide. The Executive Superannuation Fund Personal Product Insurance Guide 4

5 If your former employer previously met the cost of insurance premiums associated with your account in the Employer Sponsored Product, your former employer will no longer meet the cost of any part of your insurance cover. The cost of cover will be deducted from your account in the Personal Product. Please refer to the age-based premium rate tables later in this Guide for more information regarding the cost of insurance cover applicable to your membership within the Personal Product. Your insurance cover will be continued at the same level (or same number of units) as that which applied as at the date of transfer to the Personal Product (subject to reduction in the TPD cover amount from age 65 see further below) without having to undergo additional underwriting, until a cessation of cover event occurs. Unit-based Death or Death and TPD cover Any insurance cover within the Personal Product that is a continuation of Unit-based Death or Death and TPD cover depends on the number of units of cover held (if applicable to you, refer to your Welcome Pack on joining the Fund or contact the Fund Administrator for information about the number of units held). For each unit, the value of cover provided will depend on the member s age. The amount of cover provided for each unit of insurance cover is set out in the Unit-based cover table below: Age next birthday Cover per unit ($) Age next birthday Cover per unit ($) Age next birthday Cover per unit ($) 15 25, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , You are able to maintain your Death only or Death and TPD cover in the Personal Product for the same or a lesser sum insured amount. You can also terminate your cover if you wish. As such, if you would like to continue your cover for a lesser amount, or cancel it altogether, you should contact the Fund Administrator in writing by way of a signed letter confirming your instructions (contact details on the back page). If you wish to take out additional voluntary Death only or Death and TPD Cover, above the level of cover that you held when you left your former employer, you can apply for extra cover (subject to the applicable maximum limits shown later in this Insurance Guide), if eligible. The full amount of any cover you apply for will be underwritten by the insurer. In order to obtain the insurance cover, evidence of health (such as a health statement and blood test) may need to be assessed by the insurer. Any additional Death or Death and TPD cover is also provided on the basis of the age-based premium scale applicable to your membership as set out in the tables later in this Guide. You will need to ensure that you maintain a sufficient account balance in the Personal Product for the deduction of insurance premiums. Your insurance cover will be cancelled if your member account does not hold sufficient funds to enable the deduction of relevant insurance premiums at the end of each month. Note: If you are re-employed by your former employer, any insurance cover you held upon transfer to the Personal Product may cease under your new membership. If you hold underwritten cover however, this cover would be retained. Income Protection Cover is also available to you, on application to the insurer, in the Personal Product. See the Income Protection Cover section of this Guide for information about available benefits and applicable premium rates. The Executive Superannuation Fund Personal Product Insurance Guide 5

6 Former members of Sparxx Super, Atwood Oceanics Australia Super and FreshFood Super in the Employer Sponsored Product Any Death and TPD insurance cover held by a former member of Sparxx Super, Atwood Oceanics Australia Super and FreshFood Super will not be automatically continued upon transfer of the member (on cessation of employment or role with their employer) to the Personal Product. Should you wish to maintain your Death only or Death and TPD insurance cover after cessation of your employment with your former employer via an insurance policy outside the Fund, you can exercise a continuation option. This is an option to request cover under a separate individual policy issued directly to you by the insurer, provided you meet certain eligibility criteria. Alternatively, you can apply to the Fund s insurer for voluntary Death only, Death and TPD and/or Income Protection cover within the Personal Product through the Fund s insurer and will be subject to meeting the insurer s underwriting requirements. The cost of voluntary cover, as applicable to your membership of the Personal Product, is shown later in this Guide. Former temporary residents who are former members of the Employer Sponsored Product If you were previously working in Australia as a temporary resident (e.g. on an overseas secondment) and have been transferred to the Personal Product (on cessation of employment or other role with your employer), please note that any insurance cover which was previously provided to you ceases effective from the date that you finished working for your former employer in Australia. It is however, important that you confirm your departure from Australia to the Fund Administrator to ensure that your cover is cancelled and that any future insurance premiums are not deducted from your member account. You should also note that superannuation benefits of former temporary residents must be paid to the ATO as unclaimed money in certain circumstances (when requested by the ATO). Please refer to section 1, Part B of the Reference Guide for more details. Former insurance only members in the Employer Sponsored Product (not including former KPMG Staff Super and KPMG Executive Super members) If you were previously an insurance only member in the Employer Sponsored Product in the Fund, any Death and TPD insurance cover which you held as an insurance only member will not continue within the Personal Product upon your termination of employment with your employer. Insurance cover for insurance only members ceases after 30 days from the date of termination of your employment. This is due to the fact that you have no account balance within the Fund from which to deduct insurance premiums, and there is no account automatically established for you in the Personal Product on cessation of employment. If you were an insurance only member in the Employer Sponsored Product and you would like to continue your existing insurance cover after leaving employment (provided it has not ceased for some other reason), you will need to notify the Fund Administrator and make contributions to the Personal Product at the time (and after) you cease employment which will be sufficient to cover the cost of future insurance premiums and ongoing Fund costs etc. The continuation of cover is subject to eligibility criteria and a reduction in the TPD cover amount (as explained later in this Guide). Please contact the Fund Administrator (contact details on the back page) for more information about what is required to participate in the Personal Product. Former insurance only members can also apply for additional insurance cover (including Income Protection cover) subject to satisfying the insurer s underwriting requirements and payment of applicable premiums. Further information regarding IP cover is provided later in this Insurance Guide. Members transferred directly to the Personal Product under the 1 April 2016 Successor Fund Transfer Any Death and TPD insurance cover held by a former member of the EquitySuper Personal Product that was joined to the Fund s Personal Product as a result of the 1 April 2016 Successor Fund Transfer will be automatically continued (as unit-based or fixed cover) upon transfer to the Personal Product subject to the following conditions: any other relevant restrictions, exclusions or premium loadings as applicable to your insurance at the date of the 1 April 2016 Successor Fund Transfer; cessation of Death and TPD cover at age 65, or in some cases a higher age up to age 80 (as applicable to your insurance at the date of the 1 April 2016 Successor Fund Transfer and notified to you in your Welcome Pack on joining the Fund); cessation of cover for some other reason (for example, you request that cover cease). If the Death or Death and TPD cover on transfer to the Personal Product was Unit-based cover, then the member will continue to have Unit-based cover in the Personal Product, as described further below, subject to the above conditions. If the Death or Death and TPD cover on transfer to the Personal Product was fixed cover, then the member will have fixed cover in the Personal Product, subject to the above conditions. Any Income Protection ( IP ) cover held by a former member of the EquitySuper Personal Product that was joined to the Fund s Personal Product as a result of the 1 April 2016 Successor Fund Transfer will be automatically continued in the Personal Product subject to the terms and conditions of the relevant insurance policy (including terms relating to the cessation of cover) and any restrictions, exclusions or premium loadings applicable to the cover on transfer to the Fund. Further information regarding IP cover is provided later in this Insurance Guide. Your insurance cover will be continued at the same level as that provided as at the date of transfer to the Personal Product (subject to reduction in the TPD cover amount from age 65 see further below) without having to undergo additional underwriting, until a cessation of cover event occurs. Unit-based Death or Death and TPD cover Any insurance cover within the Personal Product that is a continuation of Unit-based Death or Death and TPD cover depends on the number of units of cover held (if applicable to you, refer to your Welcome Pack on joining the Fund or contact the Fund Administrator for information about the number of units held). For each unit, the value of cover provided will depend on the member s age. The Executive Superannuation Fund Personal Product Insurance Guide 6

7 The amount of cover provided for each unit of insurance cover is set out in the Unit-based cover table shown previously in this Guide. You are able to maintain your Death only or Death and TPD cover in the Personal Product for the same or a lesser sum insured amount. You can also terminate your cover if you wish. As such, if you would like to continue your cover for a lesser amount, or cancel it altogether, you must complete and return an Insurance Cover Cancellation or Reduction Form which is available on request from the Fund Administrator (contact details on the back page). If you wish to take out additional voluntary Death only or Death and TPD Cover, you can apply for extra cover (subject to the applicable maximum limits shown later in this Insurance Guide), if eligible. The full amount of any cover you apply for will be underwritten by the insurer. In order to obtain the insurance cover, evidence of health (such as a health statement and blood test) may need to be provided to the insurer for underwriting to occur. Pandemic illness (applicable to death / terminal illness only) your death, terminal illness or TPD was caused directly or indirectly by an intentional act done by yourself. This only applies where you have been underwritten, or if limited cover applies. you die or become terminally ill, either directly or indirectly by a pandemic illness, within 30 days of your cover: commencing; or increasing (but only in relation to the increased benefit amount). If this exclusion applies, we will be advised by the insurer to notify you the effective date of the exclusion in writing at least 14 days prior. Any additional Death or Death and TPD cover is also provided on the basis of the age-based premium scale applicable to your membership as set out in the tables later in this Guide. You are also able to make changes to, or cancel, any Income Protection Cover you have in the Personal Product, or apply for Income Protection Cover. Refer to the Income Protection Cover section of this Guide for further information. You will need to ensure that you maintain a sufficient account balance in the Personal Product for the deduction of insurance premiums. Your insurance cover will be cancelled if your member account does not hold sufficient funds to enable the deduction of relevant insurance premiums at the end of each month. Benefits will not be payable in respect of any Death/terminal illness or TPD insurance cover where: War Selfinflicted acts or suicide the condition for which you are claiming is caused by: an act or activity of war which occurs within Australia after your cover started; your participation in an act or activity of war which occurs after your cover started; or your participation in a terrorist act or activity. the exclusions in the first two bullet points: o o apply whether the war, or act of war, is declared or not; and does not apply to death while on war service for Australia. where war service has the same meaning the expression has under the Life Insurance Act 1995 (Cth). within 12 months from the date your cover commenced or was increased: your death, terminal illness or TPD was caused by suicide or attempted suicide, or Other members who have joined the Personal Product after 1 April 2016 as a result of completing the Application for membership Personal Product accompanying the PDS AND any Personal Product member eligible for additional Death, Death and TPD and/or Income Protection on application to the insurer You can apply for Voluntary Death or Death and TPD insurance cover. Generally, you can apply for any amount of Death only cover, subject to a maximum of $5 million or Death and TPD cover, subject to a maximum of $3 million for each. The full amount of any cover you apply for will be underwritten by the insurer. In order to obtain the insurance cover, evidence of health (such as a health statement and blood test) may need to be provided to the insurer for underwriting to occur. You can also apply for Voluntary Income Protection Cover in the Personal Product. For more information on Voluntary Death only, Death and TPD and Income Protection please refer to further information later in this Guide. You will need to ensure that you maintain a sufficient account balance in the Personal Product for the deduction of insurance premiums. Your insurance cover will be cancelled if your member account does not hold sufficient funds to enable the deduction of relevant insurance. Death/Terminal Illness Benefit Eligibility criteria To apply for additional or voluntary death cover in the Personal Product, the following eligibility criteria apply: the member must be an Australian resident; and The Executive Superannuation Fund Personal Product Insurance Guide 7

8 the member must be less than 65 years of age (unless the insurer permits a higher age limit). Further information about applying for additional or voluntary cover is set out below. When does Death/terminal illness insurance cover commence? Death/terminal illness cover in the Personal Product commences from the date an eligible member is accepted for additional or voluntary Death cover by the insurer, or the date that eligible former members (and any existing death cover at the transfer date) are transferred from Fund s Employer Sponsored Product, ACE Australia Super, Meriton Staff Super or Valvoline Australia Super into the Personal Product; or 1 April 2016 in the case of eligible members joined directly to the Personal Product under the 1 April 2016 Successor Fund Transfer. When does Death/terminal illness insurance cover cease? Any death/terminal illness cover ceases when a cessation event, specified in the applicable insurance policy occurs. In summary, death/terminal illness cover ceases on the earliest of: your 65th birthday (or in some cases a higher age up to age 80 as previously notified to you); the date you cease to be a member of the Fund (with a period of 60 days for some members following the date of leaving the Fund); your date of death; the date a terminal Illness or TPD benefit becomes payable (unless the amount of your death cover is higher, in which case a death benefit may still be payable); the date your signed and dated a request to cancel your cover is received by the Fund Administrator; when you are on unpaid leave for a period longer than 24 months without prior approval by the insurer; when you are residing overseas for a period longer than five years without prior approval by the insurer; the date before you commence active service in the armed forces of any country, not including normal activities as a Reservist with the Australian Defence Force, but including operational deployment on active service with the Australian Defence Force; if you join the armed forces (other than the Australian Armed Forces Reserves) (applicable only for former KPMG Staff Super and former KPMG Executive Super members); the date when premiums are unpaid; or the date you no longer hold a valid visa to work in Australia or you cease employment while working on a Temporary Skills Shortage Visa. The benefit payable after any of these cessation of cover events is therefore the same as the withdrawal benefit i.e. the full balance of your account within the Personal Product. Amount of the Death/terminal illness benefit payable with insurance cover For members with insurance cover who are eligible to claim an insured benefit, the amount of the insured benefit (as applicable to your circumstances) is payable in the event of Death or terminal illness, in addition to the full balance of your account in the Personal Product. The amount of cover is calculated as the amount of cover (fixed or unit-based) that you hold plus the amount of any additional voluntary cover requested (and granted by the insurer) after joining the Personal Product. Limitations on your cover may affect the insured amount. If, for whatever reason, the level of any cover provided to a member in the Personal Product by the insurer is reduced or limited, then your benefit may also be affected. You will be advised if this occurs. An example of how the insured amount is determined follows: Example: In the event of a member s death, assuming an account balance in the Personal Product of say $150,000 and an insured benefit of say $700,000, the lump sum benefit payable to the beneficiary would be: Account balance: $150,000 Plus The insured benefit: $700,000 Total death benefit received* $850,000 *Taxation may apply: See the Taxation section of the Reference Guide. Payment of the terminal illness benefit Where you are declared terminally ill by two medical practitioners (one of whom must be a specialist in the area of your illness), you may be eligible to apply for a prepayment of your death benefit. The benefit will be paid to you tax free on provision of the necessary medical evidence, subject to approval by the insurer and Trustee. A terminal medical condition exists if two registered medical practitioners have certified jointly or separately, that you suffer from an illness, or have an injury that is likely to result in your death within 24 months of the date of certification. Please note: The Government has amended the regulations which allow people suffering a terminal condition to access their superannuation account balance early. Before 1 July 2015, people with a terminal medical condition could only access their superannuation account balance early if they could get certification from two registered medical practitioners (with one medical practitioner being a specialist practicing in the area relating to the illness or injury), that they had less than 12 months to live. With effect from 1 July 2015, the Government changed this period to 24 months, meaning more terminally ill people can access their superannuation account balance early. However, your current policy does not reflect the extended certification period. If you wish to claim your superannuation account balance early, it is advisable for you to ensure that you leave a sufficient account balance to cover your insurance premiums to maintain any death cover you have. The Government s changes do not affect the conditions in insurance policies for obtaining an insured terminal illness benefit (for members insured for terminal illness). To qualify for payment of an insured terminal illness benefit you must satisfy the conditions of the insurance policy as described above, while an insured member of the Fund. Payment of the death benefit The death benefit is a cash lump sum payable generally to your dependants or, if there are no dependants, the legal personal representative of your estate. You can make a binding or nonbinding nomination of those persons whom you would prefer to receive your benefit in the event of your death (refer to section 1 of the Reference Guide for more details). The Executive Superannuation Fund Personal Product Insurance Guide 8

9 TPD Benefit Eligibility criteria To apply for additional or voluntary TPD cover in the Personal Product, the following eligibility criteria apply: the member must be an Australian resident; and the member must be less than 65 years of age, unless the insurer permits a higher age limit. You can only apply for TPD cover with, or if you have, death insurance cover. The TPD cover amount cannot be greater than the death cover amount. Further information about applying for additional or voluntary cover is set out below. When does TPD insurance cover commence? TPD cover in the Personal Product commences from the date an eligible member is accepted for additional or voluntary TPD cover by the insurer, or the date that eligible former members of the Fund s Employer Sponsored Product, ACE Australia Super, Meriton Staff Super or Valvoline Australia Super (and any existing TPD cover at the date of transfer) are transferred into the Personal Product; or 1 April 2016 in the case of eligible members joined directly to the Personal Product under the 1 April 2016 Successor Fund Transfer. When does TPD insurance cover cease? TPD cover ceases when a cessation event, specified in the applicable insurance policy occurs. In summary, TDP cover ceases on the earliest of: your 65th birthday (or in some cases a higher age up to age 80 as previously notified to you); the date you cease to be a member of the Fund (with a grace period of 60 days following the date of the member leaving the Fund); your date of death or the date a terminal illness benefit becomes payable, if your TPD benefit is less than your Death/terminal illness benefit; the date a TPD benefit becomes payable; the date your signed and request to cancel your cover is received by the Fund Administrator; when you are on unpaid leave for a period longer than 24 months without prior approval by the insurer; when you are residing overseas for a period longer than five years without prior approval by the insurer; the date before you commence active service in the armed forces of any country, not including normal activities as a Reservist with the Australian Defence Force, but including operational deployment on active service with the Australian Defence Force; the date you join the armed forces (other than the Australian Armed Forces Reserve) (applicable only for former KPMG Staff Super and former KPMG Executive Super members); the date that premiums are unpaid; or the date you no longer hold a valid visa to work in Australia or you cease employment while working on a Temporary Skills Shortage Visa. The benefit payable after any of these cessation of cover events is therefore the same as the withdrawal benefit i.e. the full balance of your account within the Personal Product. Amount of the TPD benefit payable with insurance cover For members with TPD insurance cover who are eligible to claim an insured benefit, the amount of the insured benefit (as applicable to your circumstances) is payable in the event that you are assessed to be totally and permanently disabled (or TPD ), in addition to the full balance of your account in the Personal Product. The amount of the insured TPD benefit is calculated in the same way as the insured death benefit is calculated (refer to the previous page). However, it is important to note that the amount of TPD cover for members of the Personal Product with fixed cover reduces depending on your age. For former members of KPMG Staff Super, KPMG Executive Super and ASC Super, once you are over age 60, the insured benefit payable on TPD reduces by 20% for each year from your 61 st birthday, such that TPD cover reduces to zero upon your 65th birthday for insured members with TPD cover. For members joined directly to the Personal Product under the 1 April 2016 Successor Fund Transfer with fixed cover, your TPD cover will reduce by 20% of the original sum insured for each year from age 65. At age 68, your TPD cover will remain at 20% of the original sum insured until it ceases at age 75. (For members of the Personal Product with unit-based cover, the amount of cover is calculated in accordance with the unit-based cover table earlier in this Guide, which includes a reduction in the value of each unit from age next birthday 60 to 65). Limitations on your cover may affect the insured amount. If, for whatever reason, the level of cover provided by the insurer is reduced or limited, then your benefit may also be affected. You will be advised if this occurs. TPD what does this mean? The definition of TPD in relation to insured benefits within the Personal Product is based on definitions included within the Fund s insurance policy. An insured individual is deemed to be totally and permanently disabled (and will be eligible for an insured TPD benefit under the policy) if all the following conditions are met in accordance with the relevant insurance policy: 1. The insured individual is under the care of and following the advice of a medical practitioner; 2. The insured individual meets the following definition of permanent incapacity contained within the Superannuation Industry (Supervision) Regulations 1994: a member of a superannuation fund or an approved deposit fund is taken to be suffering permanent incapacity if a trustee of the fund is reasonably satisfied that the member s ill-health (whether physical or mental) makes it unlikely that the member will engage in gainful employment for which the member is reasonably qualified by education, training or experience. 3. The insured individual meets any other required definition of TPD applicable to their circumstances, as set out in detail within the relevant insurance policy. 4. The insured individual s date of disablement occurs when they have cover in force under the relevant policy. Please contact the Fund Administrator for further details, including details of the TPD definition relevant to your account. The Executive Superannuation Fund Personal Product Insurance Guide 9

10 Assessment of the TPD benefit You will be eligible for an insured TPD benefit if the insurer considers that you have satisfied the conditions for such a benefit as set out in the insurance policy. The Trustee must also be satisfied that any insured TPD benefit is payable under the Fund s trust deed and superannuation legislation. Where an insured member satisfies the TPD definition, the date of disablement is treated as having occurred on the later of: the date on which a medical practitioner examines and certifies that the insured member suffers from an illness or injury that is the principle cause of the total and permanent disablement; and the date the insured member cases employment. If you would like to make a claim you need to notify us as soon as it is reasonably possible of an event that is likely to give rise to a claim. Please contact the Fund Administrator if you wish to make a claim. Additional / Voluntary Death, TPD and Income Protection Cover Applying for Additional or Voluntary cover As noted above, eligible Personal Product members may apply, after joining the Personal Product, to take out Death cover only, Death and TPD and/or Income Protection cover (if eligible). For eligible members transferred into the Personal Product from the Employer Sponsored Product, ACE Australia Super, Meriton Staff Super or Valvoline Australia Super; or eligible members joined directly to the Personal Product under the 1 April 2016 Successor Fund Transfer, any: Voluntary Death or Death and TPD cover that is applied for is in addition to any transferred cover retained in the Personal Product; and Voluntary Income Protection Cover that is applied for is in addition to any transferred Income Protection cover retained in the Personal Product. TPD cover is not available without Death cover. A member s TPD cover cannot exceed their level of Death cover. Voluntary Income Protection Cover is not available to former members of KPMG Staff Super, KPMG Executive Super and ASC Super. To apply for cover you, or your financial adviser on your behalf (providing that you still read and sign the declaration), must complete the relevant application for insurance, which can be obtained by contacting the Fund Administrator. You have a duty of disclosure to the insurer when you apply for cover (see the end of this Guide for further information about this). Types of cover available on application Eligible members of the Personal Product may apply for additional or voluntary Death only cover or Death and TPD cover. Voluntary Death insurance cover for most Personal Product members is subject to a maximum of $5,000,000. Voluntary Death and TPD insurance cover for most Personal Product members is subject to a maximum of $3,000,000. Former members in ASC Super in the Employer Sponsored Product are able to apply for unlimited Death cover, however, spouses or dependants associated with the former ASC Super members are only able to apply for Death only or Death and TPD cover up to a maximum of $1,000,000. Former KPMG Staff Super and KPMG Executive Super members are eligible for up to $10 million for Death, $3 million for Terminal Illness and $5 million for TPD. Income Protection Cover is available with benefit payment periods of 2 years, 5 years and benefits payable to 65 years of age. Members must also choose a waiting period that applies to when benefit payments commence. If a member has Income Protection Cover on transfer to the Personal Product from another segment of the Fund, the member can apply to vary their benefit and/or waiting period. The available waiting periods are 30, 60 or 90 days. The cost of Income Protection Cover depends on the benefit and waiting period selected. For further information, please refer to the Income Protection Cover section later in this Guide. Evidence of health is required If you want to apply for insurance cover while a member of the Personal Product, you will usually have to provide evidence of health to the insurer. This would initially take the form of a personal statement within which you will need to provide details of your medical history and current state of health. Depending upon the level of cover and the details within your personal statement, the insurer may request further information in order to assess your application. The granting of cover is at the absolute discretion of the insurer.. Any additional or voluntary cover does not commence until your application is approved by the insurer, however, Interim Accident Cover may apply whilst your application is being assessed by the insurer, subject to the conditions of the relevant insurance policy. Please contact the Fund Administrator for further information (contact details on the back page). Additional or voluntary cover may be accepted on a restricted basis. This means: You may not be granted the full amount of cover sought; The cover may have certain restrictions or exclusions (e.g. no coverage in relation to back injuries etc. if you have had a previous back injury); and The rates charged for your insurance may have an additional loading on them. This means that the premium charged will be higher than that shown in the tables further below. The loading is added because the insurer considers you a higher risk in accordance with their underwriting criteria. If, for whatever reason, the level of cover provided by the insurer is reduced or limited, then your benefit may also be affected. You will be advised if this occurs. Note: Additional cover may also be obtained without undergoing the insurer s full underwriting process if a member is eligible for Life Events cover or Transferred Cover (see the information about Life Events cover and Individual Transfer Terms later in this Guide). Terms and conditions apply. How and when to apply Eligible members can apply for insurance cover when they join the Personal Product or at any time after they join the Personal Product. Information about the premium rates applicable to The Executive Superannuation Fund Personal Product Insurance Guide 10

11 additional or voluntary cover is set out below. If you would like to know more (including how much any insurance cover would cost you), please contact the Fund Administrator (contact details on the back page). Interim Accident Cover While your insurance cover is being underwritten (in relation to the type of cover that is being underwritten) you may be provided with Interim Accident Cover ( IAC ) on the following basis: IAC will apply for up to 120 days of the insurer receiving your written request for underwritten cover; the insurer may pay IAC up to a maximum of $1 million for Death and TPD, in the case of underwritten Death only or Death and TPD cover (and $1.5 million for former KPMG Staff Super and KPMG Executive Super members); The insurer may pay IAC, in the case of underwritten Income Protection Cover, up to a maximum of $15,000 per month; and IAC will also cease when your cover is accepted or declined or would otherwise have ceased under the terms of the applicable insurance policy. IAC commences from the date your completed Personal Statement is received by the insurer. Further conditions and limits apply under the insurance policy. For further details, please contact the Fund Administrator. Cost of Death and TPD cover How much does insurance cover cost? Premium rates for Death and TPD insurance cover are shown in the tables over the following pages, depending on the nature of your membership of the Personal Product. These are subject to any premium loadings imposed by the insurer on any cover retained in the Personal Product on transfer from another segment of the Fund; or under the 1 April 2016 Successor Fund Transfer and, in relation to additional or voluntary insurance cover applied for on or after joining the Personal Product, are advised to you during the application process. Premiums will be calculated annually in advance based upon your age next birthday at 1 July each year and the amount of your insurance cover. Premiums for any insurance cover will be deducted from your account in the Personal Product on a monthly basis in arrears, or on a pro-rata basis upon exit from the Fund, and paid to the insurer. Adjustments may be made for changes in the level or type of cover that occur during a year. Any insurance cover in the Personal Product will cease if you do not have a sufficient account balance to meet the cost of monthly insurance premiums. Insurance cover can be cancelled or reduced at any time by providing a signed and dated Insurance Cover Cancellation or Reduction Form to the Fund Administrator confirming your instructions. The Executive Superannuation Fund Personal Product Insurance Guide 11