5. INSURANCE. 1 July 2017 SECTION CONTENTS

Transcription

1 5. INSURANCE 1 July 2017 The information in this document forms part of the Kinetic Super Product Disclosure Statement dated 1 July SECTION CONTENTS 1. Your insurance options Automatic Insurance Cover Personalised Cover Extra insurance cover Additional Cover Life Events cover Maintain Existing Cover General Death and TPD insurance information Income Protection insurance Other important information and conditions 38 Please note that under the Trust Deed, the Trustee may require information, evidence or proof in order to administer benefits in accordance with the Trust Deed and superannuation law. If any requested information, evidence or proofs is not provided or is later found to be inaccurate or incomplete, we may reject an application for membership, reject a benefit claim, refuse to accept contributions or impose conditions on or adjust benefits (such as insurance benefits for example) as we consider necessary or appropriate. 27

2 1. YOUR INSURANCE OPTIONS You have a number of insurance options to protect you and your family should the unexpected occur, for example, if illness or injury prevents you from working or if you die. This document provides more information about the types of insurance cover available and the terms and conditions applicable. Please note this document is no more than a summary of the actual insurance policy. The policy sets out the full terms and conditions and will govern your insurance cover. Your insurance options include: Automatic Death and Total & Permanent Disablement (TPD) Cover which is provided automatically to eligible members. It also provides cover for a terminal illness. Automatic Cover for Death and TPD includes Starter Pack Cover (the level of cover applicable on joining the Fund) and Booster Pack Cover (the upgraded level of cover applicable once your account balance reaches a certain size) provided to eligible members. Voluntary or Additional Death and TPD Cover which is provided if you apply for it (and your application is accepted by the Insurer) and allows you to purchase additional Death & TPD Cover to meet your needs. Voluntary Death & TPD Cover is referred to as Personalised Cover in this document and is also available to members without any insurance cover because they re ineligible for Automatic Cover (for example, individuals who aren t employed by a participating employer or who are self-employed). Income Protection Cover which is provided if you apply for it (and your application is accepted by the Insurer) and which pays you a regular income if you become ill or injured and temporarily cannot work. 2. AUTOMATIC INSURANCE COVER Commencement Assuming you re eligible (see further below), Automatic Cover generally commences when you start employment with your employer but may commence from the beginning of the period to which your employer s first contribution for you relates (if this is later). However, if we do not receive a contribution from your employer within 180 days after you ve started employment, your Automatic Cover may be deemed not to have commenced at all. If you satisfy the eligibility criteria (below), Automatic Cover will be provided without the need for you to provide health evidence. Occupational categories For cost purposes, Kinetic Super has two occupational categories: White Collar where the duties of your occupation are limited to professional, managerial, administrative, clerical, secretarial or similar white collar natured tasks that does not involve manual work and is undertaken entirely within an office environment (excluding reasonable travel time from one office environment to another). Standard members who do not meet the criteria of what is considered White Collar or do not nominate an occupation at the time they receive cover. All new members are classed as Standard and will remain so until we receive from you a completed Update your Personal Details form (in which you confirm your occupation enables you to receive White Collar rates) and the Insurer accepts your status. You can also request a change to your occupational category over the phone. Amount of Automatic Cover Starter Pack On joining the Fund, eligible members will automatically receive a minimum level of Death and one unit of Total & Permanent Disablement (TPD) insurance cover. We call this our Starter Pack cover. The amount of Starter Pack cover depends on your age next birthday. The dollar amount this translates to is set out in the Amount and cost of Starter Pack Cover table on the following page. The amount of your cover may change as you get older. Booster Pack On the last Friday of the month following your balance reaching $3,000 we will automatically increase your Starter Pack cover to 6 units each of Death and TPD cover except if you have cancelled or reduced your cover. If your balance reaches $3,000 after the last Friday of a month, the increase will not be effective until the last Friday of the next month. We call this increased amount of cover Booster Pack cover. Additional costs apply. The amount this translates to is set out in the Amount and cost of Booster Pack Cover table on the following page. Special arrangements for new members Eligible new members (joining the Fund under this PDS) with Starter Pack cover may apply within 120 days of the date of their Welcome mail from the Fund to increase their cover. Additional costs apply. You can do this online or by completing the New Member Insurance Offer form available on our website. Option 1 Increase from Starter Pack cover to Booster Pack cover (ie: to obtain a total of 6 units of Death and TPD cover) before your balance reaches $3,000 you can do this without having to provide health evidence. Conditions apply. If you apply for an increase in cover under Option 1, the increased cover commences from the date we receive your satisfactorily completed application. Option 2 Up to 12 units of Death and TPD cover you can do this by satisfactorily completing a Quick Questionnaire within your application. You may be asked to provide further health evidence depending on your circumstances. Provided further health evidence is not required, additional cover under Option 2 will be provided as long as: there s been no claim admitted, and you have not received or are eligible to receive a benefit for terminal illness or TPD from any source at the time of application there s been no previous application to obtain cover up to 12 units under this Option 2; and the additional cover plus the Starter Pack cover cannot exceed 12 units of cover. Increased cover commences from the date the Insurer approves the extra cover, as notified in writing. Any request to increase cover after 120 days of the date of your Welcome mail or a request to increase above 12 units will require a new application and full health evidence. 28

3 Amount and cost per unit of cover Age next birthday One Unit of Death Cover Standard White Collar One Unit of TPD Cover Standard White Collar $8,500 $0.06 $0.03 $29,600 $0.05 $ $10,600 $0.08 $0.05 $39,800 $0.09 $ $20,000 $0.19 $0.13 $55,500 $0.24 $ $27,900 $0.33 $0.21 $60,300 $0.47 $ $30,400 $0.52 $0.32 $54,900 $0.82 $ $29,500 $0.84 $0.49 $46,600 $1.30 $ $27,000 $1.01 $0.58 $37,300 $1.34 $ $22,500 $1.14 $0.66 $24,400 $1.15 $ $15,500 $1.11 $0.65 $14,600 $0.95 $ $6,300 $0.65 $0.38 $4,200 $0.41 $ * $1,600 $0.22 $0.13 $1,000 $0.02 $0.02 Amount and cost of Starter Pack cover Age next birthday Automatic level of Death Cover Standard Weekly Cost White Collar Automatic level of TPD Cover Standard Weekly Cost White Collar $8,500 (1 unit) $0.06 $0.03 $29,600 (1 unit) $0.05 $ $53,000 (5 units) $0.40 $0.25 $39,800 (1 unit) $0.09 $ $60,000 (3 units) $0.57 $0.39 $55,500 (1 unit) $0.24 $ $55,800 (2 units) $0.66 $0.42 $60,300 (1 unit) $0.47 $ $60,800 (2 units) $1.04 $0.64 $54,900 (1 unit) $0.82 $ $29,500 (1 unit) $0.84 $0.49 $46,600 (1 unit) $1.30 $ $27,000 (1 unit) $1.01 $0.58 $37,300 (1 unit) $1.34 $ $22,500 (1 unit) $1.14 $0.66 $24,400 (1 unit) $1.15 $ $15,500 (1 unit) $1.11 $0.65 $14,600 (1 unit) $0.95 $ $6,300 (1 unit) $0.65 $0.38 $4,200 (1 unit) $0.41 $ * $1,600 (1 unit) $0.22 $0.13 $1,000 (1 unit) $0.02 $0.02 Amount and cost of Booster Pack cover Age next birthday 6 Units of Death Cover Standard White Collar 6 Units of TPD Cover Standard White Collar $51,000 $0.36 $0.18 $177,600 $0.30 $ $63,600 $0.48 $0.30 $238,800 $0.54 $ $120,000 $1.14 $0.78 $333,000 $1.44 $ $167,400 $1.98 $1.26 $361,800 $2.82 $ $182,400 $3.12 $1.92 $329,400 $4.92 $ $177,000 $5.04 $2.94 $279,600 $7.80 $ $162,000 $6.06 $3.48 $223,800 $8.04 $ $135,000 $6.84 $3.96 $146,400 $6.90 $ $93,000 $6.66 $3.90 $87,600 $5.70 $ $37,800 $3.90 $2.28 $25,200 $2.46 $ * $9,600 $1.32 $0.78 $6,000 $0.12 $0.12 *The definitions of Total & Permanent Disablement that apply to this age group are different. For the applicable definitions, refer to When is a TPD benefit payable? 29

4 30 In certain circumstances, for example, if you aren t actively performing your full and normal weekly hours and duties on the date Starter Pack cover commenced or the date Starter Pack cover is upgraded to Booster Pack cover, the amount of cover will be on a limited basis (see Limited Cover below). Cost The cost of Automatic Cover (Starter Pack and Booster Pack) is set out in the table above in weekly amounts (multiply this by 52 to produce an annual amount). As is evident, the cost depends on your occupational classification (i.e. White Collar or Standard ) and your age. The cost (called the premium ) will be automatically deducted from your account monthly in arrears and may be adjusted for any changes to your cover during a financial year. We generally pay premiums to the insurer monthly. Eligibility for Automatic Cover You will be eligible for Automatic Cover if you are a member of the Fund and: you are an employee of a participating employer (that is, we regard you as an employer sponsored member) your employer contributes to Kinetic Super on your behalf within 180 days of the date you commenced employment with them (if the date is known by the Fund) or the beginning of the period to which the first contribution from your employer relates (whichever is later) you ve not previously opted out of, or ceased, insurance cover with Kinetic Super you re under 70 years of age. If you have received, had a claim admitted or are eligible to receive a TPD benefit from Kinetic Super or from any other fund or life insurance policy at the time cover commences, your Automatic Cover under Kinetic Super will be for death only. If you re not eligible for Automatic Cover at all (e.g. you have previously opted out of cover with Kinetic Super or you have personally applied to join Kinetic Super because you are not an employee of a participating employer, or are a selfemployed member), you ll need to provide evidence of good health acceptable to the insurer before insurance cover commences. You can call us on for more information. If we don t receive a contribution or payment for you, we may treat it as if your account was never opened and insurance cover as never commencing. Limited Cover Limited Automatic Cover applies if you aren t in active employment on the day your Starter Pack cover commences or is upgraded to Booster Pack cover (in relation to the increased amount of cover only). However, it becomes full Automatic Cover when you ve completed two consecutive months of active employment after the date cover commences or is upgraded. ( Active employment is defined in detail in the insurance policy but, in summary, means performing or being able to perform your work duties for at least 35 hours per week without restriction due to illness or injury, whether or not you actually work those hours.) Limited cover also applies if we do not receive a contribution from your employer within 180 days of commencing work with that employer, if your Automatic Cover commences from the beginning of the period to which a contribution from your employer relates. Limited Cover is cover for death, TPD or terminal illness arising only from an illness that first becomes apparent or an injury that first occurs after your cover commences, restarts or increases (commonly called new events cover). No Limited Cover benefit will be payable if your death or injury is due to suicide (within 13 months of cover commencing), attempted suicide or self-inflicted injury or infection. Cancelling or Reducing Automatic Cover Automatic Cover ceases in certain circumstances (see 6. General Death and TPD insurance information ) for more information. You can cancel all of your Automatic Cover (or cancel your Automatic Cover for TPD but retain Automatic Cover for death) or reduce the amount of your Automatic Cover at any time. However, you should be aware that by doing this you won t be able to reinstate your insurance cover without providing health evidence. If you want to cancel Automatic Cover, please complete the Insurance Cancellation form, available at kineticsuper.com.au or by calling Any cancellation is effective from the date we receive the duly completed form. If you want to reduce your Automatic Cover, you can do so online or you ll need to download, complete and submit a copy of the Insurance application and personal statement form from kineticsuper.com.au or contact to request a copy. The reduction of cover is effective from the date we receive the duly completed form or when we receive your online request. 3. PERSONALISED COVER EXTRA INSURANCE COVER Personalised Cover lets you purchase death and TPD insurance cover to suit your needs and is additional to any Automatic Cover you may hold. Personalised Cover is available in units. The amount and cost of Personalised Cover received for each unit depends on your age next birthday and your occupational classification and is calculated in accordance with the Amount and cost per unit of cover table shown on the previous page. You can apply for the level of Personalised Cover that best suits your needs. (Bear in mind your level of cover may change each year depending on your age.) Please refer to the Amount and cost per unit of cover table for more information. Personalised Cover is available to members ineligible for Automatic Cover. Please note, there are limitations on the amount of cover you can take out. For death, a maximum of $5 million applies and for TPD, a maximum of $3 million applies. The insurer may apply exclusions, loadings or other special conditions on Personalised Cover. Commencement If you want to apply for Personalised Cover, you can apply online or you ll need to download a copy of the Insurance application and personal statement form from the Kinetic Super website or contact to request a copy. Depending on the details you provide, the Insurer may request more information about your health. Personalised Cover won t commence until the Insurer approves your application. You ll be advised of the outcome in writing. There must be sufficient money in your account to pay for the Personalised Cover premiums on the next premium due date after the Personalised Cover is due to start, otherwise cover won t commence until another application is made to, and accepted by, the Insurer. Personalised Cover ceases in certain circumstances (see 6. General Death

5 and TPD insurance information ). You can cancel or reduce your Personalised Cover at any time by completing the Insurance cancellation form, available from the Kinetic Super website or by calling Any cancellation or reduction is effective from the date we receive the form. Interim accident cover If you apply for Personalised Cover, interim accident cover may apply from the date your fully completed application is received until the date your application is withdrawn, accepted or declined, or the Insurer cancels the interim accident cover. Interim accident cover applies for a maximum period of 120 days. Interim accident cover provides a benefit if you die during the interim accident cover period or you become totally and permanently disabled within 120 days of an accident that occurs during that period. In either case, the death or disability must arise from a bodily injury caused solely and directly by accidental, external and visible means. The amount of the interim accident benefit is the lesser of the amount applied for and $2 million. If an interim accident benefit is payable to you or you make a claim, your application for cover will automatically be cancelled. 4. ADDITIONAL COVER LIFE EVENTS COVER If you have a major life event and satisfy the eligibility criteria (both described below), you may apply to increase your existing death and/or TPD cover by completing a Life events cover form without having to provide evidence of good health. The relevant major events are: a. marriage b. divorce c. the birth of a child d. the adoption of a child e. your child commencing their first day at primary or secondary school f. death of a spouse, or g. effecting a mortgage on the initial purchase of a primary residence (which excludes refinancing or effecting a mortgage on an investment property). Eligibility to receive increased cover on a life event To be eligible to obtain additional death and/or TPD cover without evidence of good health should a life event occur, the following must be satisfied: a. at the date of the application you must not have received an increase in cover for any life event within the previous 12-month period b. if you ve previously exercised the option, you must not have exercised the option four times or more since joining Kinetic Super c. you make the application to increase your cover as a result of a life event within 120 days of the date upon which a life event occurred d. we receive proof, satisfactory to the Insurer, that the life event has taken place and the date it took place e. you haven t previously had an application for cover, or an increase in cover, declined by the Insurer f. the application must relate to a type of cover you have in force. If you ve previously cancelled a type of cover you cannot reinstate that cover under this condition. When cover commences for a successful life event application If an application for additional cover on a life event is accepted by the Insurer, then the additional cover will commence from the date the insurer receives the duly completed application for additional cover. This additional cover ceases in certain circumstances (see 6. General Death and TPD insurance information ). Limits on increased cover a. Any additional cover which comes into force as a result of a life event will be subject to the same individual conditions, restrictions, exclusions and premiums loadings as apply to your existing cover, if any. b. If, when additional cover comes into force as a result of a life event, you aren t in active employment, the additional cover will be Limited Cover. This means the increased amount of cover will apply only in respect of an illness that first becomes apparent or an injury that first occurs after the cover last started, restarted or increased under the policy and any additional exclusions applicable to Limited Cover (mentioned earlier in this document) will apply. As previously mentioned, active employment means, in summary, performing or being able to perform your work duties for at least 35 hours per week without restriction due to illness or injury, whether or not you actually work those hours. c. The additional cover provided as a result of a life event cannot exceed the lesser of: d. $150,000, or e. 100% of your existing level of cover, f. subject to the total amount of cover that applies to you not exceeding the applicable maximum cover limits (see 3. Personalised cover extra insurance cover ). Premium payable as a result of increased cover Upon the acceptance of your cover under this condition, the amount of the premium payable in respect of you will be recalculated to reflect the increase in cover according to the premium rates current at the time. 5. MAINTAIN EXISTING COVER If you ve previously been fully underwritten for additional cover in this Fund or have transferred cover from another Fund (see overpage) and your Death & TPD cover reduces because of your age, you may apply to increase the number of units to maintain an equivalent level of cover (without further underwriting) until cover ceases (see 6. General Death and TPD insurance information ). You have the choice to either increase the number of units for both Death & TPD or just one type of cover. Eligibility You must apply before your next birthday, and you must have been previously fully underwritten in this Fund or have transferred cover from another Fund, and You must have successfully applied to maintain your cover on the first occasion you became eligible to do so (and each subsequent occasion you are eligible). This means that if your amount of cover has reduced because 31

6 of your age in the past but you did not apply to maintain cover you cannot subsequently use this option. Commencement of cover Your application to maintain cover is subject to the Insurer s acceptance. Once the Insurer receives and accepts your application, you ll be notified by the Fund in writing. The increase in units (and associated premiums) will commence immediately following your next birthday. Calculating cover and cost As a result of maintaining existing insurance cover, your premiums will increase. To calculate the amount of units you need to maintain for Death and/or TPD cover and the weekly cost of this cover depending on your age next birthday and your Occupational Category, please refer to the Amount and cost of cover per unit table on page 29. Apply now To increase your number of Death and/or TPD Cover to maintain an equivalent level of cover, complete the Maintain existing cover form available on the website or on request. 6. GENERAL DEATH AND TPD INSURANCE INFORMATION When cover stops Any Death and TPD insurance cover you have will end when the first of any of the following events occurs: a death or disablement benefit becomes payable on your behalf you reach age 70 you leave Kinetic Super you tell us in writing you want to cancel cover you join the armed forces other than the Australian Armed Forces Reserve as soon as your account balance has insufficient funds to meet the premium required when the insurance policy is terminated if you are an employer-sponsored member and your balance is below $6,000 and we haven t received a contribution via an employer for 10 months or more, unless you provide suitable documentation from your employer confirming you are on approved extended leave of up to 24 months. We will send you a notification advising you that your insurance cover will cease and when it will cease (unless you take certain steps). For further information about the steps you can take (including the documentation required from an employer to confirm you are on approved extended leave) contact us on Transferring other insurance If you have other death, TPD or terminal illness insurance cover (e.g. through another super fund) which is acceptable to the insurer and you re under the age of 60 at the date of transfer, you can request a transfer of this cover into Kinetic Super. An application to transfer cover is subject to the Insurer s acceptance and the cessation of cover circumstances applicable to Kinetic Super s insurance cover. Any cover transferred will be converted to equivalent units (the next highest whole number) of additional cover and will be added to any existing insurance cover in Kinetic Super. Additional premiums will apply. These will be deducted from your account monthly. Some conditions apply to this option. For example, you can only transfer the same type of cover as available in Kinetic Super (Death & TPD Cover of equal amounts). Any exclusions or limitations that applied to your transferred cover will continue to apply. Transferred cover together with other cover you have cannot exceed $2,000,000 without underwriting. Your total insurance cover cannot exceed the maximum for death of $5 million or TPD which is $3 million. You must also transfer your account balance in your previous fund to Kinetic Super and have sufficient money in your account to pay applicable premiums. For full details of the conditions, please ask us for a copy of the insurance policy. If your application is accepted, any premium loadings that applied to your transferred cover will continue to be charged by the Insurer. The commencement of your transferred cover is subject to you cancelling your previous insurance cover and having sufficient money in your account to pay applicable premiums. Once your request to transfer cover is accepted, you should cancel your previous insurance cover and have sufficient money in your account to pay applicable premiums. If you don t cancel your previous cover, you may not be entitled to any insured benefit (based on the transferred cover) from Kinetic Super. To make a request to transfer cover, call us on to obtain the Insurance transfer form. Continuation of cover under a personal insurance policy If eligible (see below), when your insurance cover ceases in circumstances where no death, terminal illness or TPD benefit is or may become payable to you (and no circumstances exist which, if the subject of a claim, would ve resulted in a benefit being payable to you), you may apply to the insurer for a personal life insurance policy covering death only. This policy is at your own expense and can be obtained without providing any further evidence of good health. To be eligible you must, in summary: have ceased to be a member of Kinetic Super be less than age 60 at the time of cover ceasing have been, at the time cover ceased, employed on a permanent basis (as defined in the policy) and working at least 15 hours per week have been continuously insured for at least two years (if you had Limited Cover) meet the Insurer s requirements regarding minimum premiums and your occupation, residency and pastimes not have premiums overdue not have joined any armed forces (other than the Australian Armed Forces Reserve) before the date the personal policy is issued apply for and pay the premium for the personal cover within 60 days of cover ceasing in Kinetic Super, and meet any other conditions stipulated in the insurance policy for obtaining a personal insurance policy. The level of death cover will be the same as your death cover under Automatic Cover and any other cover at the time your cover ceased. 32

7 The premiums will be based on the Insurer s current retail premium rates and terms for an individual insurance policy and will be different to those applicable to you while a member of Kinetic Super. Any loadings, restrictions or other conditions that applied to your Kinetic Super cover continue under the personal policy. Other conditions also apply. Please contact us if you d like more information. If you receive death cover under this continuation option, you cannot receive future cover under the Fund s policy without underwriting. Worldwide cover Your cover will provide you with insurance cover if you travel outside Australia. However, you should note if you make a claim for terminal illness or TPD, the Insurer may require you to return to Australia at your own expense to enable your claim to be assessed and to secure the payment of any terminal illness or TPD benefit. When a death benefit is payable If you die while you re an insured member under age 70, a death benefit will become payable to one or more of your beneficiaries. For more information about the distribution of death benefits, refer to the Kinetic Super Incorporated Contributions, Benefits and Features Information. When a TPD benefit is payable A TPD benefit is only payable if you re an insured member and satisfy a definition of total and permanent disablement in the insurance policy while covered by the insurance policy. There are a number of definitions of total and permanent disablement that are summarised here in simpler language, but ultimately your ability to claim a TPD benefit depends on you meeting the exact terms of the policy as applicable to your claim. Call us on for more information. 1. If you re under 65 on the date of disablement and you were employed at any time in the 12 months prior to your date of disablement, you ll be considered to be TPD if you re absent from all work for three consecutive months from the date of disablement as a result of illness or injury and the Insurer considers, on the basis of medical or other evidence satisfactory to it, that you are unlikely ever to be able to engage in any occupation, whether or not for reward. The three-month waiting period does not apply if you re absent from all work as a result of suffering one of a number of serious illnesses including (amongst others) cardiomyopathy, motor neurone disease, multiple sclerosis, chronic lung disease, Alzheimer s disease, Parkinson s disease and major head trauma and, in the Insurer s opinion, it is likely you ll be disabled for life. 2. You may also be considered to be TPD if you are permanently incapacitated and, as a result of illness or injury, you are blind in both eyes, or have experienced the total and permanent loss of the use of two limbs or blindness in one eye and the total and permanent loss of the use of one limb. A limb in this context means the whole hand below the wrist or a foot below the ankle. Blindness in this context means permanent loss of sight such that visual acuity is 6/60 or less or the visual field is reduced to 20 degrees or less in diameter. 3. You may also be considered to be TPD if you are permanently incapacitated and, as a result of illness or injury, you re totally unable to perform any two of the following activities of daily living without the assistance of another person (and you re permanently and irreversibly unable to do so for life): putting on and taking off clothing using the toilet, including getting on and off getting in and out of bed and a chair getting food from a plate to your mouth, or the ability to wash or shower. 4. You may also be considered TPD if you are permanently incapacitated and the Insurer is satisfied you ve become so disabled by injury or illness for a continuous period of at least six months that you ll never be able to perform (without aids) at least four of the following activities of daily work : bending communicating vision (reading) walking lifting manual dexterity. You will be considered permanently incapacitated if you satisfy the Insurer that your ill-health makes it unlikely that you will engage in gainful employment for which you are reasonably qualified by education, training or experience. These terms are defined in further detail in the insurance policy and may have different meanings to their commonly held definitions. Contact us if you need more information. To be able to claim you ll never be able to perform four of these activities of daily work, it must be supported by evidence that you ve been prescribed and are undergoing appropriate treatment. In most cases, the date of disablement will be deemed to be the later of the date on which a medical practitioner certifies you suffered the illness/injury (which is the principal cause of your total and permanent disablement) and the date you ceased all employment. The date of disablement must occur while you re insured for TPD under the insurance policy. When a terminal illness benefit is payable If you re an insured member, you ll be considered to have a terminal illness if: two registered medical practitioners have certified in writing that, despite reasonable medical treatment, your illness will lead to death within 24 months of the date of the certification, and at least one of the registered medical practitioners is a specialist practicing in your illness. The Insurer must also be satisfied you re terminally ill. The illness and date of certification must take place while you re insured under the insurance policy. If there are two different dates of certification, the later of the dates is considered the date of certification. Before a terminal illness insured benefit can be paid to you, the Trustee must also be satisfied that it is payable under superannuation legislation. The benefit may be free from tax if it meets the definition of a Terminal Medical Condition under taxation legislation. The maximum amount that will be paid by the Insurer on terminal illness will be the 33

8 lesser of your amount of death insurance cover at the date of certification and $1 million. Any insurance amount over the $1 million maximum will be paid on the event of death, if you remain an insured member of the Fund at the date of death. If you have TPD cover, the amount of that cover will be reduced by the amount of the terminal illness benefit. Your premiums will be adjusted to allow for the reduction in the amount of any continuing cover. 7. INCOME PROTECTION INSURANCE Income Protection (IP) Cover provides you with income if you suffer a sickness or injury which prevents you from engaging in your normal occupation or work (while insured for IP Cover). The insurance policy contains important provisions defining an insured member s ability to claim IP benefits and restrictions or exclusions that apply. These are summarised below. Eligibility If you re aged under 65 and employed by a participating and contributing employer, you may apply for optional IP Cover and may do so without the need to provide health evidence subject to the limits shown below. Other persons (e.g. self-employed persons) may also apply for IP Cover, but must provide health and/or other evidence satisfactory to the Insurer. Special arrangements for new members As mentioned, eligible persons joining the Fund under this PDS can apply for IP Cover (you can do this online or by completing the New Member Insurance Offer form available on our website) without needing to provide health evidence but only: if the application is made within 120 days of the date of the Welcome Mail from Kinetic Super up to $60,000 p.a. cover for White Collar persons and $36,000 p.a. cover for persons working in a Standard occupation if the IP Cover sought comes with a two-year benefit payment period and a 90-day waiting period. The IP cover will commence from the date we receive your satisfactorily completed application. If you re not in active employment at the time cover commences, the cover will be limited cover only (i.e. cover for an illness that first becomes apparent or an injury that first occurs after cover last started, restarted or increased under the policy). Full cover will commence only after you ve been in active employment for two consecutive months. ( Active employment means, in summary, performing or being able to Cost of cover per annum per $1,000 of cover Waiting period (days): Benefit period (years): Age next birthday 15 $4.54 $2.73 $1.07 $6.24 $3.75 $1.48 $12.34 $7.40 $ $4.54 $2.73 $1.07 $6.24 $3.75 $1.48 $12.34 $7.40 $ $4.53 $2.71 $1.07 $6.22 $3.73 $1.48 $12.57 $7.54 $ $4.51 $2.70 $1.08 $6.19 $3.72 $1.48 $12.79 $7.67 $ $4.50 $2.70 $1.07 $6.18 $3.71 $1.47 $13.00 $7.80 $ $4.48 $2.69 $1.07 $6.15 $3.69 $1.47 $13.23 $7.94 $ $4.46 $2.68 $1.07 $6.34 $3.80 $1.52 $13.46 $8.08 $ $4.45 $2.67 $1.07 $6.32 $3.78 $1.53 $13.68 $8.21 $ $4.43 $2.66 $1.07 $6.30 $3.78 $1.53 $13.90 $8.34 $ $4.45 $2.66 $1.08 $6.30 $3.78 $1.54 $14.21 $8.53 $ $4.45 $2.66 $1.10 $6.32 $3.78 $1.54 $14.51 $8.71 $ $4.46 $2.67 $1.10 $6.54 $3.93 $1.62 $14.83 $8.90 $ $4.46 $2.68 $1.11 $6.55 $3.94 $1.63 $15.14 $9.08 $ $4.47 $2.68 $1.12 $6.57 $3.94 $1.65 $15.45 $9.26 $ $4.50 $2.70 $1.12 $6.62 $3.97 $1.66 $15.79 $9.47 $ $4.54 $2.72 $1.13 $6.66 $4.00 $1.66 $16.13 $9.68 $ $4.57 $2.74 $1.13 $6.93 $4.15 $1.71 $16.47 $9.88 $ $4.61 $2.77 $1.13 $6.98 $4.18 $1.71 $16.81 $10.09 $ $4.65 $2.78 $1.14 $7.03 $4.22 $1.72 $17.15 $10.30 $ $4.85 $2.90 $1.18 $7.34 $4.41 $1.79 $18.06 $10.83 $ $5.05 $3.03 $1.24 $7.64 $4.58 $1.87 $18.95 $11.37 $ $5.25 $3.14 $1.28 $8.17 $4.90 $1.99 $19.86 $11.92 $ $5.46 $3.27 $1.33 $8.49 $5.10 $2.07 $20.76 $12.46 $ $5.66 $3.39 $1.38 $8.80 $5.28 $2.14 $21.66 $13.00 $ $6.02 $3.62 $1.50 $9.37 $5.62 $2.34 $23.11 $13.86 $ $6.39 $3.84 $1.62 $9.94 $5.96 $2.52 $24.56 $14.74 $ $6.75 $4.06 $1.74 $10.78 $6.47 $2.77 $26.00 $15.60 $

9 perform your work duties for at least 35 hours per week without restriction due to illness or injury, whether or not you actually work those hours.) Applying for cover if you are not a new member If you want to apply for IP Cover, you can apply online or you ll need to download, complete and submit a copy of the Insurance application and personal statement form from kineticsuper.com.au or contact to request a copy. Depending on the details you provide, the Insurer may request more information about your health. Commencement IP Cover sought by eligible persons pursuant to an application within the Special arrangements for new members will commence on the date the duly completed application form is received by the Insurer. Any other IP cover will Cost of cover per annum per $1,000 of cover commence only when the insurer notifies you it has been approved. You ll be advised of the outcome in writing. The Insurer may apply exclusions, loadings or special conditions to cover sought by non-eligible persons or outside the Special arrangements for new members Interim accident cover If you apply for IP Cover or to increase IP cover, interim accident cover may apply from the date your fully completed application is received until the date your application is withdrawn, accepted or declined, or the Insurer cancels the interim accident cover. Interim accident cover applies for a maximum period of 120 days. Interim accident cover provides a benefit if you become totally disabled within 120 days of an accident that occurs during the interim accident cover period. Your total disability must arise from a bodily injury caused solely and directly by accidental, external and visible means. The amount of the interim accident benefit is the lesser of the amount (or additional amount) of monthly cover applied for and $15,000 per month and is limited to a two-year benefit payment period. A 90-day waiting period applies (unless you have an existing waiting period). If an interim accident benefit is payable to you or you make a claim, your application for cover will automatically be cancelled. Cost The cost of IP Cover depends on the amount of cover (or units, based on $1,000 per unit), the type of cover you request (including the waiting period and payment period), age next birthday and occupational rating. The annual cost of cover per $1,000 of cover (including stamp duty) is shown in the tables on pages 34 & 35 for persons within the White Collar occupational classification. See the occupational classification factors at the end of the tables for the loading applicable to Standard occupations. Waiting period (days): Benefit period (years): Age next birthday 42 $7.13 $4.28 $1.86 $11.37 $6.82 $2.96 $27.44 $16.46 $ $7.50 $4.50 $1.98 $11.96 $7.17 $3.15 $28.88 $17.33 $ $8.07 $4.84 $2.21 $12.89 $7.74 $3.53 $30.88 $18.53 $ $8.66 $5.19 $2.45 $13.82 $8.30 $3.90 $32.88 $19.73 $ $9.26 $5.54 $2.67 $15.11 $9.07 $4.38 $34.87 $20.92 $ $9.83 $5.90 $2.90 $16.07 $9.65 $4.76 $36.86 $22.12 $ $10.42 $6.25 $3.14 $17.03 $10.22 $5.14 $38.86 $23.31 $ $11.31 $6.79 $3.54 $18.50 $11.10 $5.78 $41.14 $24.69 $ $12.20 $7.32 $3.91 $19.96 $11.98 $6.41 $43.42 $26.06 $ $13.10 $7.86 $4.30 $21.90 $13.14 $7.20 $45.70 $27.41 $ $13.99 $8.40 $4.69 $23.39 $14.03 $7.84 $47.97 $28.78 $ $14.89 $8.93 $5.08 $24.88 $14.94 $8.49 $50.25 $30.15 $ $16.94 $10.18 $5.90 $28.33 $17.00 $9.86 $53.50 $32.10 $ $19.02 $11.41 $6.72 $31.78 $19.06 $11.24 $56.74 $34.05 $ $21.08 $12.65 $7.54 $35.90 $21.54 $12.86 $59.99 $36.00 $ $23.14 $13.89 $8.37 $39.40 $23.65 $14.24 $63.23 $37.94 $ $25.21 $15.12 $9.19 $42.92 $25.75 $15.65 $66.49 $39.90 $ $26.54 $15.92 $9.47 $45.20 $27.12 $16.14 $61.86 $37.11 $ $27.88 $16.73 $9.76 $47.47 $28.49 $16.62 $57.23 $34.34 $ $29.21 $17.54 $10.05 $52.61 $31.57 $18.81 $52.61 $31.57 $ $30.55 $18.34 $10.33 $47.97 $28.78 $16.62 $47.97 $28.78 $ $31.88 $19.14 $10.62 $43.34 $26.01 $14.43 $43.34 $26.01 $ $28.48 $17.09 $9.02 $28.48 $17.09 $9.02 $28.48 $17.09 $ $12.54 $7.53 $3.70 $12.54 $7.53 $3.70 $12.54 $7.53 $3.70 Occupational classification factors* White Collar 1.0 Standard 2.20 * Multiply the age-based rates above by the appropriate factor. 35

10 You can choose either a 30, 60 or 90-day waiting period, and a payment period of two years, five years or to age 65. The minimum level of cover is a benefit of $1,000 per annum. Insured amounts in excess of $1,000 per annum must be purchased in units of $1,000 per annum. The maximum level of cover is $25,000 per month, equal to $300,000 per annum. Premiums are deducted from your account monthly in arrears and may be adjusted for any changes to your cover during a financial year. We generally pay premiums to the insurer monthly. Premiums are waived for an insured member while in receipt of an IP benefit. Disability criteria (total and partial disability) If you re an insured member, an IP benefit will be paid if you re unable to work due to total disability or partial disability, after the waiting period has ended. IP benefits are only payable for one disability at a time. You ll be considered totally disabled if, in the opinion of the insurer, because of illness or injury, you have ceased to be gainfully employed and are unable to perform at least one income-producing duty of your own occupation (which produces at least 20% of your income) and, are under the regular care of and following the advice of a medical practitioner and not working in any occupation (paid or unpaid). You ll be considered partially disabled if, in the opinion of the insurer, you ve been totally disabled for at least 14 days, are unable to work in your own occupation at full capacity immediately after becoming totally disabled because of the illness or injury that caused your total disability, are working in your own occupation in a reduced capacity or working in another occupation and earn a monthly income that is less than your pre-disability income. In both cases, you must be under the regular care of and following the advice of a medical practitioner. The relevant definitions in the policy are summarised here in simpler language, but ultimately your ability to claim a total or partial disability benefit depends on you meeting the exact terms of the policy. Call us on for more information. Benefits and payments Subject to the insurer s assessment of your claim, the benefit starts the day after the applicable waiting period ends (see Waiting periods below for more information about waiting periods). Benefits are paid monthly in arrears with adjustments made for partial months. IP gives you a monthly benefit up to a maximum amount of $25,000 per month and will cease on the expiry of your chosen benefit payment period. Your IP benefit will be paid to you and will be: the lesser of one-twelfth of the amount of cover your elected (as accepted by the insurer), and 75% of your pre-disability income. If you ve been unemployed for more than two months before the date of disability, this percentage reduces to 50%. You ll also receive an additional super monthly benefit (which is the lesser of 10% of your pre-disability income or the monthly compulsory super contribution from your employer averaged over the last 12 months). The super monthly benefit will be paid to your Kinetic Super account. You should ensure you have sufficient cover in place on an ongoing basis (e.g. if you have a salary increase) as you ll only be paid benefits based on the cover you have applied (and been accepted) for and have maintained. The measure of income used for benefit purposes If you re employed on a permanent basis, your income is your annual salary from working for your employer on the last working day prior to the date of disability (as specified in your employment contract). Special rules apply to the calculation of income if you are employed on a permanent basis but are on leave without pay. If you re not employed on a permanent basis, your income is the average remuneration you have received over the most recent 12 months from all regular occupations. The following things are included in income : cash salary, bonuses, over time and shift allowances (the last three being averaged over the last three years), and any packaged elements not received directly as taxable earnings. For self-employed members, income is defined as the annual income generated by the member s business or practice directly due to the member s own personal exertion or his or her usual-occupation activities less the member s annual share of business expenses (but before the deduction of income tax). Partial disability benefit The amount of the monthly benefit will be reduced in the event of partial disability. In particular, the benefit will be a proportion of the monthly benefit which, in brief, depends on the income you re receiving during your partial disability. (The full formula is specified in the insurance policy.) Reduction of your benefit for disability income Your benefit will be reduced by any income or commutation of income paid or payable in respect of your illness or injury. Such income includes sick leave payments, any amounts payable under workers compensation or motor accident compensation, any benefits payable under other Income Protection insurance policies (including to replace compulsory superannuation entitlements), and any income which, in the Insurer s opinion, you could reasonably be expected to earn in your occupation while disabled. Income received in a lump sum form will be treated as the monthly equivalent of 1/60th of the lump sum over a period of 60 months. The part of your benefit that is payable as a superannuation contribution to your Kinetic Super account will also be reduced by payments under other income protection policies that replace compulsory employer super contributions. For more information about the reductions or offsets that may apply, contact Recurrent disability If you suffer a recurrence of total disability or partial disability within six months of last receiving a benefit payment, the subsequent period of disablement will be treated as a continuation of the prior period. This means the waiting period will be waived but also the benefit payment periods will be added together to determine when the benefit payment period ends. 36

11 Benefit indexation Benefit payment amounts will be indexed, where your chosen benefit payment exceeds two years, in accordance with the percentage increase in the Consumer Price Index at the end of each consecutive 12-month period for which benefits are payable, up to a maximum of 5% per annum. Reducing Income Protection cover You can choose to reduce the amount of IP cover at any time. If you want to reduce your IP Cover, you can do so online or you ll need to download, complete and submit a copy of the Insurance application and personal statement form from kineticsuper.com.au or contact to request a copy. The reduction of IP cover is effective from the date we receive the satisfactorily completed form or when we receive your request online. Additional benefit on death If you die while you re entitled to receive a disability benefit, you ll be paid a one-off amount equal to two times your monthly benefit amount. Period of benefit payments The payment period is the maximum length of time you ll receive payments in the event you re disabled, from the time you re first entitled to benefits (i.e. at the end of the waiting period). You can choose a payment period of two years, five years or to age 65. The longer the payment period, the higher your insurance premium. The shorter the payment period, the lower the insurance premium. When Income Protection cover stops You can choose to cancel your IP cover at any time, at which point IP cover and benefits will cease. If you want to cancel IP cover, please complete the Insurance cancellation form, available from kineticsuper.com.au or by calling The cancellation of IP cover is effective from the date we receive the completed Insurance cancellation form. In addition, all your IP cover will end on the earliest of the following events: you re no longer totally disabled (or partially disabled, as applicable). you die you reach age 65 you cease to be a member of Kinetic Super you join any armed forces (other than the Australian Armed Forces Reserve) as soon as your account balance has insufficient funds to meet the premium required the date the insurance policy terminates if you are an employer-sponsored member and your balance is below $6,000 and we haven t received a contribution via an employer for 10 months or more, unless you provide suitable documentation from your employer confirming you are on approved extended leave of up to 24 months. We will send you a notification advising you that your insurance cover will cease and when it will cease (unless you take certain steps). For further information about the steps you can take (including the documentation required from an employer to confirm you are on approved extended leave) contact us on Waiting periods IP cover has a waiting period that determines how long you need to wait from when you stop working before a benefit will be payable to you. There are three waiting periods from which you can choose: 30, 60 or 90 days. The longer the waiting period before you commence receiving benefits, the lower your insurance premium. The shorter the waiting period, the higher the insurance premium. The waiting period starts on the date a medical practitioner examines you and certifies you re totally or partially disabled. You must be totally disabled for at least 14 out of the first 19 consecutive days of the waiting period to qualify. If you return to work at full capacity during the waiting period, the waiting period starts again unless the return to work happens once and is for no longer than five consecutive days. If this happens, the waiting period will be extended by the additional number of days of work. A benefit may not start immediately after the end of the waiting period if your disability occurs while on employer approved leave without pay. The waiting period doesn t apply if you re disabled again from the same or a related cause within six months of last receiving a disability benefit. However, the Insurer will treat this as a continuation of the original claim for the purpose of determining the maximum benefit payment period. (See Recurrent disability above.) Worldwide cover IP will cover you if you travel outside Australia. However, you should note if you become disabled while overseas and make a claim, the Insurer may require you to return to Australia at your own expense to enable your claim to be assessed and accepted. The payment of IP benefits is conditional on you returning to Australia for an assessment. Note: the maximum time the Insurer will pay benefits while you re overseas is generally six months. Cover while on leave without pay If you re on leave without pay at the date of becoming disabled while insured, benefit payments will not commence until after a specified return date as approved by your employer prior to the commencement of leave. Continuing your Income Protection cover If your IP cover ceases in circumstances where no IP benefit is or may become payable to you, and no circumstances exist which, if the subject of a claim, would ve resulted in a benefit being payable to you, you may apply to the Insurer for a personal IP policy. This policy is at your own expense and can be obtained without providing any further evidence of good health. In summary, to be eligible you must: have ceased to be a member of Kinetic Super be less than age 60 at the time of cover ceasing in Kinetic Super 37