TelstraSuper Corporate Plus Insurance Guide. 1 July 2018

Transcription

1 TelstraSuper Corporate Plus Insurance Guide 1 July 2018

2 Telephone Facsimile: 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 Corporate 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. 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). This Guide provides a summary of the main features of the Death, Total and 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 Corporate 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 your employer Need more information about insurance cover? Definitions of medical conditions Glossary 21 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 21 to

4 01 TelstraSuper Corporate Plus insurance cover TelstraSuper recognises the importance of adequate levels of insurance. We re 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. The options around these levels of cover are explained in this Guide. Death & Total and 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 16. Income Protection cover (permanent full-time and part-time employees) 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 salary excluding super, with an additional 10% of your salary excluding super to be paid to your super account. You can receive payments for either two years (default benefit period) or five years, after your chosen waiting period, provided you continue to meet the definition of total disablement or partial disablement in the Policy. Default base Death & TPD cover permanent full-time, part-time employees and eligible contractors* Members aged 60 and under If you are aged 60 or under, your default^ base level of Death & TPD insurance is calculated as: multiple of salary x your salary for insurance purposes = Base level of Death & TPD cover Use Table 1 on page 5 to determine the applicable multiple of salary to calculate your base cover. Default^ base cover is capped at $2 million for Death & TPD. Any members eligible for and seeking base cover above this amount will need to be assessed by our insurer, TAL. Annual premiums are calculated per $1,000 sum insured using the rates in Table 1. To estimate the cost of base cover, visit our Insurance calculator available at telstrasuper.com.au/calculators Refer to the Insurance premiums section on page 15 for further information. * Not applicable to former Defined Benefit members. See page 6 for further information. Age next birthday as at last 1 July. ^ New employees are required to join TelstraSuper within 120 days of commencing their employment to be automatically eligible for default cover, otherwise all cover is subject to application and acceptance. Cover commencing outside usual conditions is subject to 'At Work' requirements and other eligibility criteria, conditions and exclusions contained in the Policy. Occupational loadings for class Occupation Death only Death & TPD White collar Light blue Medium blue Heavy blue

5 Table 1: Death and TPD rates annual cost per $1,000 sum insured Age next birthday* Base Death & TPD cover (permanent full-time and part-time employees) Multiple of salary Unisex Unisex former Defined Benefit members Base Death cover only Top-up Death cover Top-up Death & TPD cover Unisex Males Females Males Females n/a n/a 67 Refer to Table 2 on page n/a n/a 68 to determine the base level Death & TPD n/a n/a 69 cover you will receive n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a * As at last 1 July. 05

6 Members aged 61 65* If your age next birthday is between 61 and 65 years, you will automatically receive age-based base Death & TPD cover for $2.35 per week. Use Table 2 on page 7 to determine the amount of base level Death & TPD cover applicable for your age. Default base Death cover - members aged 66-75* Existing default Death cover will automatically continue at $1.23 per week from the age of 66 to 75. Premiums For many permanent full-time and part-time TelstraSuper Corporate Plus members, your base level of Death & TPD cover is currently paid for by your employer, as an employee benefit^. Insurance premiums paid directly by your employer count towards your pre-tax (concessional) contributions cap. For more information on contribution caps, see the TelstraSuper Corporate Plus Product Disclosure Statement or visit our website. Default base Death & TPD cover casual employees Members aged 65 and under* As a casual employee you automatically receive an age-based level of Death and Total & Permanent Disablement (TPD) cover for $2.36 per week. Default cover means you don t need to complete any forms or undergo any health checks to receive this cover. Your base level of cover is determined by your age next birthday*. Table 2 on page 7 shows the amount of age-based Death & TPD cover you automatically receive. Premiums are deducted from your account quarterly in arrears or when you leave TelstraSuper Corporate Plus. Members aged 66-75* Existing default Death cover will automatically continue at $1.23 per week from the age of 66 to 75. Default base Death & TPD cover former Defined Benefit members Former Defined Benefit members employed on a full-time or part-time basis, receive their previous level of Death & TPD or Death only cover in TelstraSuper Corporate Plus split between base cover and top-up cover, to the same total value, without the need for assessment by TAL. For members aged 60* or under and employed on a permanent full-time or part-time basis, premiums are paid for by your employer, please refer to column 4 in Table 1 on page 5. Members aged 61 to 65* will automatically receive age-based default base Death & TPD cover for $2.78 per week and existing default base Death cover will continue at a cost of $1.45 per week from age 66 to 75. Premiums are paid by your employer. Former Defined Benefit members employed by Telstra or Sensis who transfer into casual employment receive agebased default base Death & TPD cover for $2.79 per week with premiums deducted from their account at the end of each quarter. Top-up cover premiums do not incur a loading and will be deducted from your account at the end of each quarter. Example How premiums are calculated permanent full-time and part-time employees Adam is a permanent full-time white collar employee of Telstra and will be aged 43 next birthday. He has a salary for insurance purposes of $50,000 and currently has base level Death & TPD insurance, which totals $140,000, paid for by his employer. Adam would like to increase his total Death & TPD cover to $500,000, meaning he will need to apply for an additional $360,000 of cover ($500,000 $140,000 base level Death & TPD cover). To calculate the annual premiums for the additional $360,000 of Death & TPD top-up cover, Adam uses the premium rates in Table 1 on page 5 and the calculation below. Age next birthday 43 Age based multiple to calculate base cover 2.8 Sum insured for base Death & TPD cover 2.8 x $50,000 = $140,000 Elected top-up cover $360,000 Top-up premium per $1,000 insured $1.76 Top-up premium = $360,000 1,000 x $1.76 = $ pa * Age next birthday as at last 1 July. New employees are required to join TelstraSuper within 120 days of commencing their employment to be automatically eligible for default cover, otherwise all cover is subject to application and acceptance. Cover commencing outside usual conditions is subject to 'At Work' requirements and other eligibility criteria, conditions and exclusions contained in the Policy. Not applicable to former Defined Benefit members or Telstra 2014 Super Offer members. ^ Except for employees of Sensis (new employees from 1 July 2014), 1300 Australia, Multi Channel Networks, DCA Direct Health and Chief Entertainment where premiums will be deducted from your account quarterly in arrears or when you leave TelstraSuper Corporate Plus. It also excludes members who don t have their Superannuation Guarantee (SG) contributions paid to TelstraSuper. Not applicable to former Defined Benefit members employed by Telstra or Sensis who transfer into casual employment. 06

7 Table 2: Age-based Death & TPD cover (casual employees and members aged 61 and over) 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 Example How premiums are calculated casual employees Naomi is a casual Telstra employee who will be turning 35 next birthday. When she joined TelstraSuper Corporate 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 1 on page 5 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 $0.57 = $285 per year Total premium payable = Base Death & TPD premium + Top-up Death & TPD premium = $ $285 = $ per year Naomi receives total insurance cover of $634,681 for Death & TPD at a premium of $ per year. * As at last 1 July. Case study TPD cover helps a family recover Less than a year after taking out his additional Death & TPD cover, Adam was injured in an accident that resulted in his total and permanent disablement. Adam s wife, Janet, was working part-time and daughter Emma was about to start school. The TPD cover of $500,000 that Adam had through TelstraSuper Corporate 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 while they helped Adam during his initial recovery and transition period, before Janet returned to full-time work. Handy hints Check your current level of insurance cover via your online account or call us. To view, nominate or update your beneficiary details go to your online account and nominate your beneficiaries online 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 and cover calculator available at telstrasuper.com.au/calculators 07

8 Special offer for new members You can apply to increase your Death & TPD cover and Income Protection waiting and/or benefit period without the need for health evidence, provided you make an election within 120 days of commencing with your employer. To take advantage of this special offer, complete the Insurance Special Offer form available in your Welcome Kit or by calling us. Top-up Death & TPD cover Any insurance in addition to your default base level of cover is referred to as top-up cover. You can apply for any amount of top-up Death cover and up to $5 million total TPD cover. Your Death cover must be equal to or higher than your TPD cover. See page 14 Changing your insurance cover. Annual top-up premium rates are based on each $1,000 sum insured and are shown in Table 1 on page 5. The examples on page 6 and 7 show how to calculate annual premiums for top-up cover. Refer to the Insurance premiums section on page 15 for further information. 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 disablement, 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, subject to a two year benefit*) for the period starting from the date we receive your completed application. This will end on the earliest of the following dates: 1. your application is withdrawn, accepted or rejected 2. the Policy is terminated Income Protection cover permanent full-time and part-time employees Income Protection insurance covers you in the event that 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 salary excluding super, with an additional 10% of your salary excluding super to be paid to your super account. Payments are made for the duration of the applicable benefit period, distributed monthly in arrears after your chosen waiting period, provided you continue to meet the definition of total disablement or partial disablement as contained 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. TelstraSuper Corporate Plus members who are employed full-time, part-time or on a fixed contract basis, aged 64 years or under and working 15 hours or more per week automatically* receive Income Protection cover upon joining without the need to provide evidence of occupation, health and lifestyle. Default* cover is capped at $20,000 per month ($240,000 total annual Income Protection cover). Any benefits above this amount will need to be assessed by TAL. Transferring TelstraSuper Division 5 and Sensis Super Plus Defined Benefit members with existing Income Protection cover will have that cover automatically transferred to TelstraSuper Corporate Plus. Please note, income protection benefit calculations differ in TelstraSuper Corporate Plus as outlined above. Income protection premiums are payable by you and will be deducted from your account at the end of each quarter. * New employees are required to join TelstraSuper within 120 days of commencing their employment to be automatically eligible for default cover, otherwise all cover is subject to application and acceptance. Cover commencing outside usual conditions is subject to 'At Work' requirements and other eligibility criteria, conditions and exclusions contained in the Policy. Not available to Telstra 2014 Super Offer members or members transferring from TelstraSuper Division 2. Income Protection cover is 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. 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. 08

9 Default Income Protection cover is not available to Telstra 2014 Super Offer members or members transferring from TelstraSuper Division 2, however members can apply for cover and be assessed by TAL. Please call us for details on how you can apply for additional Income Protection. 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 15. The default benefit period for Income Protection cover is two years with a 90 day waiting period. To tailor your Income Protection cover to suit your needs, you can apply to increase the benefit period to five years and/or change the waiting period to 30, 60 or 120 days. Refer to Table 3 on page 10 for annual premium rates applicable to the various benefit and waiting periods^. If you hold Income Protection cover with other insurance providers you have the option to postpone the TelstraSuper waiting period when claiming an income protection benefit. This allows you to receive an income protection benefit from another insurance provider first, and defer TelstraSuper benefits until these payments are complete. To apply to change your waiting period and/or benefit period, please see page 14 Changing your insurance cover. If you were not automatically granted Income Protection cover because you did not join within the required period, or were previously declined cover, you can still apply for Income Protection. See page 14 Changing your insurance cover. Members employed in a heavy blue occupation are unable to increase their benefit period to five years. ^ For employees of Foxtel, your employer pays your income protection premiums for the default level of cover. 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 us on Alternatively, visit your online account to access a form pre-populated with your personal details. Case study How Income Protection helped Jack get back on his feet Jack is a TelstraSuper Corporate Plus member. He is 26 years old, a permanent full-time white collar employee and has a salary excluding super of $42,000. As part of his TelstraSuper membership, Jack has default Income Protection cover. 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. His benefit is calculated as follows*: Annual income protection benefit = Salary excluding super x 75% = $42,000 x 75% = $31,500 Monthly income protection benefit = $31, = $2,625 per month Annual super contribution = Salary excluding super x 10% = $42,000 x 10% = $4,200 Monthly super contribution = $4, = $350 per month Jack is advised that his claim has been accepted and monthly payments will commence after the 90 day waiting period, when he will receive $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. 09

10 Table 3: Income Premium rates annual cost per $1,000 sum insured* Benefit period 2 Years 5 Years Waiting period 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 * Stamp duty is payable in addition to the income protection premiums above and varies depending on your state of residence. As at last 1 July. White collar years benefit period and 90 days waiting period cover is the default cover. Light blue 1.40 Medium blue 2.50 Heavy blue

11 02 Flexible insurance options with TelstraSuper Life Events cover keeping pace with life s significant changes When significant events occur in your life such as getting married, buying a home or welcoming a new child to the family, it s an opportune time to consider if your insurance cover still meets 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 Marriage Divorce Adoption of a child/ren Commencement of a recognised relationship ^ 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. Insurance cover provided through Life Events will be subject to the top-up premium rates set out in Table 1 on page 5. 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 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 is able to provide satisfactory documentation supporting the occurrence of the Life Event. 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. * 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. 11

12 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 that 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 on Case study Extra security for an expanding family David is a TelstraSuper Corporate Plus member. He is 30 years old with a salary for insurance purposes of $120,000. As part of his TelstraSuper membership he currently has $456,000 of Death & TPD 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 successful Life Events application for $150,000 giving the family total cover of $606,000. 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 competitive bulk insurance rates, potentially saving on premiums, while simplifying your insurance arrangements. To take advantage of this feature, simply complete the Transfer External Insurance Application form available at telstrasuper.com.au/forms or by calling us. Case study Saving on insurance with TelstraSuper Sarah is a current TelstraSuper Corporate Plus member. She is 39 years old, a permanent full-time employee and earns $90,000 per year. As part of her TelstraSuper membership, Sarah has $306,000 of default base level Death & TPD cover for which her employer, Telstra, pays the premiums. Sarah also has $250,000 Death cover 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 1 on page 5 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 = $0.51 Top-up death premium payable = $250,000/1000 x $0.51 = $ per year or $10.63 per month. Sarah applies to transfer her Death cover to TelstraSuper and her application is accepted. By transferring her insurance to TelstraSuper, Sarah saves $9.37 per month or $ per year. In addition, Sarah enjoys simplified financial arrangements with her insurance premiums conveniently deducted from her TelstraSuper account at the end of each quarter. It s important that you do not cancel your existing cover with your current super fund or insurer until you have received written confirmation from us that your insurance application has been accepted. If your application is successful, you ll 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 1 on page 5 apply). Any transferred Death only 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.* * Certain occupations are not eligible for insurance transfers. 12

13 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. The lump sum amount would then need to be invested to provide the required cashflow to maintain your and/or your family s standard of living or to ensure your estate is not left in debt. The table below, 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 via your online account or by calling us. Step 2: To help determine the level of insurance cover you may require, refer to the table below and factor in the following 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. 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. Current annual income Current age $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%. 1 Lifewise/NATSEM Underinsurance Report

14 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: 14 apply for base Death only or Death & TPD cover 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. 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 will be advised when any medical tests or examinations are required. Once all the information is supplied to TAL and they have assessed your application, we will advise you of the outcome. Handy hints It is important to note that if you cancel or reduce any insurance, including any default cover, and wish to re-apply 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. 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 TelstraSuper in writing that you wish to cancel the cover, any premiums deducted will be refunded to your account. 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 Corporate Plus will not incur premiums. Table 4: Initial requirements Death & TPD cover applications Under age 55 Age 55 and over Member s total sum Initial requirements 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 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 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 Personal statement 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

15 Table 5: Initial requirements for Income Protection cover applications (permanent full-time and part-time employees) 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 by 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 with a specialist, PMAR, financial questionnaire and tax returns and assessment notices for the last 2 years 05 Insurance premiums As outlined in the TelstraSuper Corporate Plus PDS, insurance premiums, where applicable, will be deducted from your TelstraSuper Corporate Plus account at the end of each quarter 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. Table 1 on page 5 outlines the annual top-up premium rates per $1,000 sum insured, applicable to your level of cover. These top-up 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. 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

16 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 an illness, 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 the insurer is satisfied, on medical or other evidence, will lead to your death within 12 months of the date of the certification, 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 relevant 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 19 and 20) in which case there is no waiting period to receive your benefit (referred to as the Day 1 TPD definition); 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 your working hours. 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). Activities of Daily Working TPD definition applies if you were working 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 permanent full-time and part-time employees 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 disablement for that month. * The three months may be waived in some circumstances. 16

17 You may be eligible to receive partial disablement benefits 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 are earning less than 80% of the income you earned prior to becoming disabled; 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 benefits 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 disablement or partial disablement. 07 On leave or overseas? On leave Subject to satisfying the relevant Policy conditions, cover is provided 24 hours a day, seven days a week for insured members while on paid or unpaid leave. Income Protection cover (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 is provided 24 hours a day, seven days a week for insured members 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. Up to 75% of your salary (excluding super) is paid directly to you, and 10% is paid to your TelstraSuper Corporate Plus account. Income protection benefits will be reduced by the amount of any other payments you receive or are entitled to 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 by the CPI increase (for the 12 months ending 30 September in each year). Under current legislation your income protection benefits are treated as income and will be taxable. Premiums are waived by TAL while you are receiving income protection benefits. When do benefits stop? Your income protection benefits cease upon occurrence of one of the following conditions (whichever occurs first): you have received payments for the total benefit period you cease to satisfy the definition of total disablement or partial disablement (as applicable) you reach age 65, or you die. 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. 17