INSURANCE OneCare Protection for life

Transcription

1 INSURANCE OneCare Protection for life Understanding Total and Permanent Disability (TPD) Cover

2 Total and Permanent Disability (TPD) Cover With a flexible, innovative and customer focused range of benefits, features and additional options, OnePath Life s OneCare is a leading protection solution. This simple summary can help you understand the value of OneCare. Certain limitations and exclusions apply. For full terms and conditions, please refer to the OneCare product disclosure statement (PDS). Why TPD Cover? Total and Permanent Disability (TPD) Cover recognises how valuable you are it helps protect your lifestyle if something happens to you. The benefits can be used to help eliminate your debts, pay any ongoing medical expenses, replace lost income and make any necessary modifications to your home. How does TPD Cover work? TPD provides a one-off payment, or regular monthly benefit, if you are totally and permanently disabled as a result of sickness or injury. TPD Cover can be taken as a stand alone policy, or as an optional extra on Life or Trauma Cover. Benefits of this cover will be paid to the policy owner. Fast facts Minimum entry age 15 Maximum entry age 60 (75 for a stepped premium, Non-working definition or 74 if held inside superannuation.) Minimum amount insured $50,000 Maximum amount insured (Any Occupation, Own Occupation or Any Occupation and Own $5 million Occupation combined) Maximum amount insured (SuperLink TPD) $5 million Maximum amount insured (Business TPD) $10 million^ Maximum amount insured (Home-maker) $2 million Maximum amount insured (Home-maker and Non-working combined) $3 million Overall maximum amount insured for TPD definition (Any Occupation, Own Occupation and $5 million Non-working) ^ Business TPD when applied for in additional to another TPD Cover, the combined amount cannot exceed $10 million OnePath Life Limited (OnePath Life) ABN AFSL

3 OneCare s TPD Cover options Choice of six definitions Booster payment Instalment Benefit Partial payment for specific loss? OnePath Life offers six definitions of total and permanent disablement; Own Occupation, Any Occupation, Business, SuperLink, Home-maker and Non-working. As a summary they are: Own Occupation Under this definition, OnePath Life will pay you if you suffer an illness or injury that means you won t be able to work in your occupation again. Any Occupation Under this definition, OnePath Life will pay you if you suffer an illness or injury that prevents you from ever working in any occupation that you are reasonably suited to perform, based on your education, training and experience. Business TPD Under this definition, OnePath Life will pay up to $10 million, if you suffer an illness or injury that means you won t be able to work in your occupation again. (This definition is for business purposes only.) SuperLink TPD A SuperLink arrangement refers to an arrangement under which a life insured has TPD Own Occupation and TPD Any Occupation provided in two linked policies with or without Life Cover. SuperLink allows access to the more generous Own Occupation TPD definition outside Super (where there are no access issues), while taking an Any Occupation TPD policy inside super (to make the TPD Cover more affordable). This provides access to the advantages of holding cover within Super however allowing greater ability to claim in the event of an illness or injury in which the life insured is totally and permanently disabled. Home-maker Under this definition, OnePath Life will pay you if you are unable to ever perform normal domestic duties. OnePath Life will also pay you a benefit under any of the above definitions if you qualify under the Non working definition below. Non-working Under this definition, OnePath Life will pay your benefit if you satisfy one of the General TPD definitions elements which are; suffer the loss of two limbs, the sight in both eyes or the loss of one limb and the sight in one eye are unable to perform two of the activities of daily living suffer a total and permanent loss of your intellectual capacity, requiring continuous care and supervision. This provides an extra payment if your cover is Own Occupation, Any Occupation or SuperLink Any Occupation and you satisfy one of the General TPD definition, we will increase the TPD amount payable by the following amounts 5% after the 2nd policy anniversary 7.5% after the 3rd policy anniversary 10% after the 5th policy anniversary. OnePath Life is the only company who is flexible enough to allow you to receive all or some of your TPD benefits as instalments (monthly payments) instead of as a lump sum (one-off payment). When you select this benefit the standard premium is reduced. The partial payment for specific loss will pay 25% of the TPD Cover amount insured at the time the specific loss (being the total and permanent loss of the use of one limb or one eye) occurs subject to a minimum of $10,000 and a maximum of $500,000. OneCare s built in benefits Limited Death Benefit Accommodation Benefit Financial Advice Benefit Spouse Retraining benefit If you die, OnePath Life will pay $10,000 to ensure expenses such as funeral costs can be taken care of. Applies only to stand alone TPD Cover and TPD Cover selected as an option to Trauma Cover. If a medical practitioner certifies that you must remain confined to bed due to disability and: you are more than 100 kilometres from your home and an immediate family member is required to travel from their home to be with you or an immediate family member is required to travel more than 100 kilometres from their home to be with you OnePath Life will reimburse the accommodation costs for an immediate family member of up to $500 per day for a maximum of 30 days. If OnePath Life pays a TPD claim, you will be reimbursed up to $2,000 for the preparation of a financial plan. A financial plan can help you maximise the value of your TPD benefit. If you become Total and Permanently Disabled, we will reimburse up to $10,000 towards the actual costs incurred for the training or retraining of your Spouse for the purpose of obtaining or improving their employment prospects. 3

4 OneCare s built-in features Future Insurability Life is full of exciting changes, and your needs and priorities will probably change in the years to come. So that your insurance can keep up with you, OnePath Life will allow you to increase your level of cover within specified limits without having to supply medical evidence when significant events occur. You can increase your cover when you: get married have a child (biological or adopted) take out a mortgage or an increase to a mortgage have a salary increase of 15% or more have a dependant child starting secondary school complete an undergraduate university degree become a carer get divorced have a spouse who dies change in tax dependency status as a result of ceasing to have any tax dependents. If your policy is for business purposes, you can increase the sum insured when you: are a key person in a business and your value to the business increases are a partner or shareholder in a business and the policy supports a buy and/or sell, share purchase or business succession agreement and the value of the business increases. There is alternatively the opportunity to increase your cover every third policy anniversary if you haven t increased your cover due to one of the above events in the three years prior. Life Cover Buy Back* If a TPD claim is paid, your Life Cover benefit will be reduced by the same amount. Life Cover Buy Back allows you to reinstate your Life Cover to its original level 12 months^ after a claim, without having to provide medical evidence. ^ For certain trauma conditions this may be reduced to 6 months. Refer to policy terms. * Applies to TPD Cover taken with Life Cover only. Auto Conversion At age 65, OnePath Life will automatically convert your TPD definition to a Non-working definition. TPD Cover with a Non-working definition provides basic coverage at an affordable price subject to maximum of $3 million. You can apply to defer this conversion of cover to age 70 if you are in a white collar occupation at the time (subject to a maximum of $1 million remaining as Any/Own Occupation definition until age 70). Indexation To ensure your insurance levels keep up with the cost of living, OnePath Life will increase your cover amount every year by 5% or the Indexation Factor; whichever is greater. Premium Freeze TPD Cover premiums generally increase each year in line with your age and indexation. If you would prefer your premium to stay the same you can choose to use Premium Freeze, which will retain the current annual premium (excluding policy fee and stamp duty) and will gradually reduce your amount insured. Indexation and Future Insurability increases are not available while Premium Freeze is activated. Premium Freeze is not available under SuperLink TPD. The table below provides an example of this benefit. Year Age Annual premium* Cover level Year 1 40 $ $500,000 Year 2 41 $ $408,269 Year 3 42 $ $371,153 Note: The above is based on a quote for a a male accountant, non smoker, living in NSW. * This annual premium is excluding policy fee. The above example is for illustrative purposes only. 4

5 OneCare s additional options Premium Waiver Disability Option If you are disabled, you may find it hard to keep paying TPD Cover premiums. With the Premium Waiver Disability Option, if you have a claim under Income Secure Cover, Business Expense Cover or Living Expense Cover, or if you are disabled for a period of six consecutive months (and continue to be disabled), OnePath Life will waive your premiums until you are no longer disabled or at policy anniversary when the life insured turns 65. Indexation increase will still apply to covers for which the premiums are being waived. Business Guarantee Option As your business grows, it s important your insurance cover grows with it. By including the Business Guarantee Option, you can increase the amount insured within specified limits, without having to supply further medical evidence if there has been an increase in the value of your business. Life Cover Purchase Option* If a TPD benefit is paid, this gives you the option to purchase Life Cover up to the amount of the TPD benefit paid. This option must be taken up within 30 days of our letter of offer, 12 months^ after the claim. ^ For certain trauma conditions this may be reduced to 6 months. Refer to policy terms. * Applies to TPD Cover taken with Life Cover only. Double TPD Option* If a TPD benefit is paid, your Life Cover benefit will be reduced by the same amount. The inclusion of the Double TPD Option ensures that immediately following a full TPD claim, your Life Cover is reinstated to its original level. And you will never have to pay any premiums for the reinstated Life Cover. This benefit is similar to the inbuilt Life Cover buy back however the advantage is the reinstatement is immediate and you will never have to pay premiums for the life of the cover. * Applies to TPD Cover taken with Life Cover only. 5

6 Additional protection: Extra Care Cover options You can increase your protection by topping up your cover with Extra Care Terminal Illness, Extended Needle Stick, or Accidental Death Benefits. Terminal Illness Benefit The Extra Care Terminal Illness Benefit recognises the importance of financial freedom in the face of a terminal illness diagnosis. This benefit could be used to share some time away with loved ones, help eliminate the mortgage on the family home, and pay for medical and palliative care. The Terminal Illness Benefit provides a one-off payment, or regular monthly benefit (if an instalment arrangement is taken), if you are diagnosed with a terminal illness. Extended Needle Stick Benefit The Extra Care Extended Needle Stick Benefit recognises the unique risk of needle stick injury for medical professions. This benefit can be used to pay for medication, cover day-to-day living expenses, or offset any lost earnings or profit from your practice. The Extended Needle Stick Benefit can be purchased with any other cover type, and provides a one-off payment, or regular monthly benefit (if an instalment arrangement is taken), if you contract HIV or Hepatitis B or C while performing your occupation. Accidental Death Benefit The Extra Care Accidental Death Benefit recognises how important you are to the people around you. This benefit could be used to pay funeral costs, help eliminate debt, and create an ongoing income for your dependants. The Accidental Death Benefit provides a one-off payment, or regular monthly benefit (if an instalment arrangement is taken), in the event of your accidental death. How do you get the insurance you need? A financial adviser can show you what types of insurance are available, work out how much you need, and help ensure your cover is structured cost-effectively. 6

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8 Choose the award-winning protection your clients deserve, with OnePath Life s OneCare. In 2008, 2009, 2010 and 2011 OnePath has been named AFR Smart Investor s Life Company of the Year. In 2008, 2010 and 2011 OnePath has been named Risk Company of the Year at the Money Management/DEXX&R Adviser Choice Risk Awards. In 2008, 2009, 2010 and 2011 OnePath s OneCare product won the prominent five-star CANSTAR CANNEX Outstanding Value for Life Insurance award. Customer Services Phone enquiries am to 6.00pm (AEST) customer.risk@onepath.com.au Postal address OnePath Life GPO Box 4148 Sydney NSW 2001 OnePath Life Limited (OnePath Life) ABN AFSL This information is current at May 2012 but is subject to change. The information provided is of a general nature and does not take into account your personal needs and financial circumstances. You should consider the appropriateness of the information, having regard to your objectives, financial situation and needs. OneCare is issued by OnePath Life Limited (OnePath Life) (ABN , AFSL ). Refer to the Product Disclosure Statement (PDS) for full terms and conditions. You should read the PDS available at onepath.com.au and consider whether the product is right for you. Our employees and directors receive a salary from us. They do not receive commissions; however, they may be eligible for performance related bonuses and other staff related benefits. L2461/0412 onepath.com.au