Zurich Life Insurance. Remuneration schedule for life insurance and superannuation products

Transcription

1 Zurich Life Insurance Remuneration schedule for life insurance and superannuation products

2 Life Insurance Schedule structures discount Zurich Protection Plus Zurich Business Expenses Zurich Income Protection Zurich Income Protector/Plus Zurich Active Cover Zurich Superannuation Term Life Plus Zurich Child Cover Zurich Life Insurance Zurich Superannuation Income Protector/Plus - Upfront options (Y): 105% 92.5% 10.5% 8% 0% 5% 75% 5.5% 10% - Level option (M): 25% 25% 0% 20% 20% 5% 15% 15% 10% 10% 10% 15% 5% 5% 20% 0% 0% 25% - Hybrid option (J): 80% 18% 0% 70% 14% 5% 60% 10% 10% 50% 40% 6% 2% 15% 20% Refer to page 6 for commission discounts flexible dial down structures for Wealth Protection written before 21/12/2015, (available for additions where the policy already has the same commission structure) Upfront Option (V): 110% 10.5% 0% Upfront Option (U): 103.5% 12.5% 0% Level option (L) 30% 30% 0% 25% 25% 7% 20% 20% 13% 15% 15% 18% 10% 10% 22% 5% 5% 26% 0% 0% 30% Hybrid option (H) 55% 25% 0% 50% 20% 6% 45% 15% 12% 40% 10% 17% 35% 5% 21% 30% 0% 25% 2

3 Life Insurance Schedule discount Ezicover (nil advice products) Ezicover Life Insurance Ezicover MyLife Ezicover Accidental Death Ezicover Income Protection Ezicover Funeral Advantage - Level Brokerage option - 20% - Upfront Brokerage option 70% 10% Group Life 0% to 25% 0% to 25% Zurich will pay an additional 10% for GST where applicable on all amounts shown above (which are payments for the supply of services by the Distributor to Zurich), except those marked ** where the 10% is included. As stated in the Distribution Agreement, Zurich will issue recipient created tax invoices for all supplies by the Distributor to Zurich. 3

4 Life Insurance Schedule Ex Macquarie Life Discount discount FutureWise Upfront option 90.91% 16.36% Hybrid option 63.64% 22.73% Level option 38.18% 29.09% Active and Sumo Series 1 (additions to business written prior to 15 May 2017) Upfront option 90.91% 16.36% Hybrid option 63.64% 22.73% Level option - Active 38.18% 29.09% Level option - Sumo 29.09% 29.09% THE FOLLOWING PRODUCTS ARE CLOSED TO NEW BUSINESS Super Protector (upgraded to FutureWise) Upfront option 90.91% 16.36% Hybrid option 63.64% 22.73% Level option 38.18% 29.09% Super Protector (pre upgrade to FutureWise) ING PortfolioOne Superannuation Service Insurance Cover OnePath PortfolioOne Superannuation Service Insurance Upfront option 65% Level option 29% 25% 29% Term Life 20% 20% Essential Cover 72.73% 0% MortgageGuard 60% 0% Insurance Cover Superannuation Superannuation Insurance SuperOptions Insurance Lump Sum 45% Disability Income 15% 22.5% 15% Zurich will pay an additional 10% for GST where applicable on all amounts shown above (which are payments for the supply of services by the Distributor to Zurich), except those marked ** where the 10% is included. As stated in the Distribution Agreement, Zurich will issue recipient created tax invoices for all supplies by the Distributor to Zurich. Note: for the above products will continue to be paid by Macquarie Life on behalf of Zurich. 4

5 Life Insurance Schedule Closed products Discount discount THE FOLLOWING PRODUCTS ARE CLOSED TO NEW BUSINESS Wealth Protection Income Replacement As per Wealth protection products on page 1 Superannuation Income Replacement As per Wealth protection products on page 1 Select s Select Term Plus As per Wealth protection products on page 1 Superannuation Select Term Plus As per Wealth protection products on page 1 Ezicover (nil advice products) Ezicover Needlestick Plus Ezicover Income Replacement Insurance Ezicover Funeral Plan Ezicover Accident Income - Level Brokerage option - 20% - Upfront Brokerage option 70% 10% Quality Life Does not accept additions 7.5% Term Insurance 5 Yearly Renewable Term and attaching benefits 93.5% 2.5% Yearly Renewable Term and attaching benefits 93.5% 12.5% Trauma Insurance 93.5% 12.5% Old Disability Insurance Range 14 day wait 85% 7.5% 30+ day wait 85% 15% Zurich will pay an additional 10% for GST where applicable on all amounts shown above (which are payments for the supply of services by the Distributor to Zurich), except those marked ** where the 10% is included. As stated in the Distribution Agreement, Zurich will issue recipient created tax invoices for all supplies by the Distributor to Zurich. 5

6 Investment Schedule relates to products written prior to 1/7/2013 and is only payable under a Distribution Agreement entered into prior to 1/7/2013, or an arrangement that is otherwise grandfathered under the FOFA legislation discount Zurich Superannuation Plan Entry fee option 5% % p.a.## Account-Based Pensions (previously Allocated Pension)** Entry fee option 4% % p.a.## ** will cease for clients who have investments in Zurich Superannuation Plan prior to 1/7/2013 and who then move to Account-Based Pension after 1/7/2013 THE FOLLOWING PRODUCTS ARE CLOSED TO NEW BUSINESS BUT WILL ACCEPT ADDITIONS UNLESS OTHERWISE STATED Zurich Superannuation Plan Nil entry fee option 1%, 2%, or 3% % p.a.## Account-Based Pensions (previously Allocated Pension) Nil entry fee option 1%, 2% or 3% % p.a.## Term Allocated Pension (closed to new business 30/6/2007) Does not accept additions Entry fee option 4% % p.a.## Nil entry fee option (with initial commission) 1%, 2% or 3% % p.a.## Nil entry fee option ( without initial commission) 0% % p.a.## ## not payable on policies where Member Advice Fee has been selected or applies Zurich Retirement Policy (ZRP) (excluding Upgraded Superannuation Bond) ZRP regular contribution 5% 4% 0.3% p.a* Lump Sum Deposit 4%# - 0.3% p.a* # not payable on Capital Guaranteed Lump Sum Deposits *Asset commission is not paid on any upgraded portion of the policy Upgraded Superannuation Bond Regular Contribution 5% 4% 0.3% pa (ex-zenith Bond) Nil (all other Bonds) Lump Sum Nil (Ex-NZI Nestegg & 0.3% pa (ex-zenith Bond) - Ex-Guarantee Performance Bond) Nil (all other Bonds) 4% (all other bonds) Growth & Capital Guaranteed Bonds Bonds and Deferred Annuities 4% - - Guaranteed Performance Bonds 3% - - Zurich Superannuation & Investment Bonds & Deferred Annuity Nil entry fee option 3% - 0.3% p.a. Entry fee and Deferred entry fee options Cash Fund 0% - 0.3% p.a. All other Funds 4% - 0.3% p.a. Term Certain and Assets Test Exempt Annuities Does not accept additions - 0.5% p.a. Split Dollar Ordinary 4.5% x Term - max 45% 2.5% - Capital Accumulation 45% 2.5% - Guardian Plans New Generation Upfront 0% to 45% 2.5% - Level (paid as renewal for term 0% to Up to 15% of Plan) 15% - Saveguard Up to 30% 2.5% up to year 10 - NZI Life Plans Invest-a-surance - Full 3.3% x Plan term max 46.2% 2.5%* - Invest-a-surance - Half 1.65% x Plan term max 46.2% 2.5%* - *(renewal is payable only on Plans issued after 30/6/85) Investment Linked - Ordlink Series % 2% - Investment Linked - Ordlink Series % 2% - Investment Linked - Ordlink Series 3 60% 2% - Bonds and Lump Sum Deposits (to regular premium paying 2.5% - Plans) Zurich will pay an additional 10% for GST where applicable on all amounts shown above (which are payments for the supply of services by the Distributor to Zurich), except those marked ** where the 10% is included. As stated in the Distribution Agreement, Zurich will issue recipient created tax invoices for all supplies by the Distributor to Zurich. 6

7 Explanation of terms and commercial conditions This is the relevant percentage of the first year s premium excluding stamp duty and management fee. For Wealth Protection, Active and Sumo business written from 15 May 2017 initial commission is not payable on any stamp duty explicitly charged to customers. Note: for Ex-Macquarie Life products, including FutureWise. is not paid on stamp duty explicitly charged to customers, policy fee or frequency loadings. is only payable (where applicable) for products under the Investment Schedule, written prior to 1 July From 1 July 2013, ceases to be payable for Investment Schedule products. discounts flexible dial down Wealth Protection, Active and Sumo products only (applicable to business written from 15/5/2017 only) Any premium discount percentage can be selected between the highest and lowest premium discount for that particular commission structure only there is a direct relationship between the premium discount percentage selected and the commission percentage in year one and at renewal. The corresponding commission discount is a reflection of the premium discount and is applied in the same year in which the commission is reduced. Therefore premium discounts available are: for the Upfront commission option any amount between 0% and 10% can be selected for the Hybrid commission option any amount between 0% and 20% can be selected for the Level commission option any amount between 0% and 25% can be selected restrictions Restrictions When the annual premium value (excluding stamp duty and management fee) per life exceeds certain thresholds, the default commission structure changes, as explained below: Upfront Hybrid Level < = $30,000 Yes Yes Yes > $30,000 but < $50,000 No Yes Yes >= $50,000 No No Yes Entry Age Restrictions The commission structures available will be restricted for policies that commence within 5 years of the maximum entry age for any benefit type. The maximum entry age is the stepped premium entry age. The maxiumum entry age will be based on age at submission. Where multiple benefits apply, the restriction will be based on the benefit with the lowest entry age. Death TPD, Income, Business Expenses Modified TPD, Active cover (Health events) Trauma Structure available Upfront, Hybrid, Level Hybrid and Level Hybrid and Level Level only Level only Level only 7

8 Explanation of terms and commercial conditions Rebating of Account-Based Pension (entry fee option only), Zurich Superannuation Plan (entry fee option only) and Term Allocated Pension (entry fee option only) Rebate of anywhere between 0% and 100% by 1% increments. Zurich Retirement Policy Lump Sums over $500, Zenith Bonds and Deferred Annuities. 25%, 33%, 50%, 66%, 75% or 100% of the may be rebated and applied to reduce any entry fee payable by the customer. Where no entry fee is payable for Zenith Bonds or Deferred Annuities rebating does not apply. Wealth Protection, Yearly Renewable Term and Trauma. (applicable to business written prior to 1/4/2007 and additions to policies that were written prior to 1/4/2007 only) 10%, *25% or *50% of the may be rebated and applied to reduce the premium as follows: 1st Year 2nd Year 3rd Year 10% rebate = Discount 8% Nil Nil *25% rebate = Discount 12% 8% Nil *50% rebate = Discount 21% 16% Nil * not available for Income Replacement Insurance Plus, Special Risk Income Replacement Insurance Plus and Business Expenses Insurance Plus. FutureWise, Active (Series 1) and Sumo (Series 1) products. can be rebated in year one and ongoing in the following ways: Structure Year one rebate rebate Upfront 18% 100% Hybrid 25% 100% Level 100% 100% This means that under the upfront structure, the maximum you can rebate in year one is the renewal commission rate, ie you must receive a minimum of 82% commission in year one. For renewal commission you can rebate the full amount. Under the level structure you can rebate up to the full amount of year one and renewal commission. The corresponding premium discount is a direct reflection of the commission rebate (excluding GST) and is applied in the same year in which the commission is reduced. CPI Increases Term Insurance including additional benefits, Disability Insurance, Trauma Insurance Payable on the increase in the premium at the appropriate rate for. Wealth Protection, Active, Sumo, Quality Life and Ex-Macquarie Life products There is no payable on CPI increases. Note: Only upgraded Zurich coverages will continue to be paid on CPI increases (at the rate applicable to previous product). 8

9 Explanation of terms and commercial conditions a. The appropriate percentage rate of the premiums paid in the second and subsequent years. b. Payable on CPI increases as follows: i. Term Insurance including additional benefits, Disability Insurance, Trauma Insurance - The appropriate rate after 12 months premiums have been paid. ii. Wealth Protection, Active, Sumo, Quality Life and Ex-Macquarie Life s The appropriate rate when premiums paid. Note: For upgraded Zurich policies, renewal commission remains payable as per (i) above, but only for original coverages and not for any additions after upgrade. c. is not payable on: i. Plans updating from the investment account, with the exception of Zurich Superannuation Plan ii. Plans under non-forfeiture iii. Paid up plans. iv. Plans in salary groups charging 5% or more collecting. v. Explicitly charged Stamp duty or the management fee. vi. Any products under the Investment Schedule, written on or after 1 July 2013, or written under a Distribution Agreement entered into after 1 July 2013, or in respect of which the grandfathering rules under the FOFA legislation do not apply. FOFA legislation FOFA legislation means the Corporations Amendments (Future of Financial Advice) Act 2012 and the Corporations Amendment (Further Future of Financial Advice Measures) Act 2012, and any Regulations made thereunder. Asset Payable monthly in arrears at the end of the month. Zenith Bonds, Deferred Annuities, Account-Based Pensions, Term Allocated Pension, Zurich Retirement Policies and Zurich Superannuation Plan. Calculated at the appropriate rate as a percentage of the surrender value. Term Certain Annuities and Assets Test Exempt Annuities. Calculated at the appropriate rate as a percentage of the remaining capital invested. The remaining capital invested is calculated as: r where RCV is the residual capital value (if any) RCV + [ ( Capital less RCV) * ] r is the number of full months remaining to the end of the payment period m m is the total number of months of the payment period The remaining capital invested is recalculated at the time of each asset commission payment. Rebating of Asset Account-Based Pension, Zurich Superannuation Plan, Term Allocated Pension, Term Certain Annuities and Assets Test Exempt Annuities Option to dial down to 0.00% p.a. by 0.01% increments. Writeback An writeback will occur if: a. Within the responsibility period: ii. The customer cancels from inception or terminates the Plan or any increase. iii. The plan lapses. iv. The customer reduces the premium or converts all or part of the Plan to paid-up. The writeback will be calculated on the amount of reduction in premium. The responsibility period is ascertained by reference to the legend on the following page. b. Zurich Australia, for any reason, cancels any Plan and refunds all or part of premiums paid. 9

10 Explanation of terms and commercial conditions Adjustment The payable on the new Plan issued on a life previously insured will be reduced if, within one year prior to or following the date of the new application, the existing Plan lapses, surrenders or is converted into a paid-up Plan. The reductions are: a. Within one year prior to the date of the new application an amount equal to the total paid for the previous Plan will be deducted from the otherwise payable on the new Plan. b. Within one year following the date of the new application an amount equal to the total paid for the previous Plan will be deducted from the paid on the new Plan. c. No deduction or repayment will exceed the amount of payable on the new Plan. Vesting Advance Payment of Percentage of retained based on the number of months of premiums paid. LEGEND Rate Responsibility Period (s Paid) A Up to 51% 12 months B 51% to 93.5% 15 months C 94% and over ##Wealth Protection Certain cases for large sum insured 24 months D Wealth Protection, Active (Series 2), Sumo (Series 2) and Ezicover Upfront commission option 12 months E ## Wealth Protection - Certain cases for large sum insured 18 months F ## Wealth Protection - Certain cases for large sum insured 36 months G ## Wealth Protection - Certain cases for large sum insured 60 months M1 Ex-Macquarie Life product range including Active & Sumo Series 1 12 months M2 Ex-Macquarie Life product range where a 3 year responsibility period applies 36 months ## These are for certain large sums insured cases. Where special terms apply these will be notified at quote stage. 10

11 Explanation of terms and commercial conditions Vesting (cont.) Monthy Rate s Paid A & D B C E F G M1 M2 1 0% 0% 0% 0% 0% 0% 0% 0% 2 0% 0% 0% 0% 0% 0% 0% 0% 3 10% 7.7% 4.5% 6.3% 2.9% 1.7% 0% 0% 4 20% 15.4% 9.1% 12.5% 5.9% 3.4% 0% 0% 5 30% 23.1% 13.6% 18.5% 8.8% 5.2% 0% 0% 6 40% 30.8% 18.2% 25% 11.8% 6.9% 50% 0% 7 50% 38.5% 22.7% 31.3% 14.7% 8.6% 50% 0% 8 60% 46.2% 27.3% 37.5% 17.6% 10.3% 50% 0% 9 70% 53.8% 31.% 43.8% 20.6% 12.1% 75% 0% 10 80% 61.5% 36.4% 50% 23.5% 13.8% 75% 0% 11 90% 69.2% 40.9% 56.3% 26.5% 15.5% 75% 0% % 76.9% 45.5% 62.5% 29.4% 17.2% 100% 0% % 50% 68.8% 32.4% 19% 4% % 54.5% 75% 35.3% 20.7% 8% % 59.1% 81.3% 38.2% 22.4% 12% % 87.5% 41.2% 24.1% 16% % 93.8% 44.1% 25.9% 20% % 100% 47.1% 27.6% 24% % 50% 29.3% 28% % 52.9% 31% 32% % 55.9% 32.8% 36% % 58.8% 34.5% 40% % 61.8% 36.2% 44% % 64.7% 37.9% 48% % 39.7% 52% % 41.4% 56% % 43.1% 60% % 44.8% 64% % 46.6% 68% % 48.3% 72% % 50% 76% % 51.7% 80% % 53.4% 84% % 55.2% 88% % 56.9% 92% % 58.6% 96% % 100% % % % % 42 69% % % % % % % 49 81% % % % % % % % % % % % 11

12 Zurich Australia Limited ABN , AFSLN Head Office: 5 Blue Street North Sydney NSW ZU23256 V1 (08/16) LSHD Effective 15 May 2017 unless Zurich notifies otherwise.