Asgard Employee Super Account - Ernst & Young

Transcription

1 Asgard Employee Super Account - Ernst & Young Part 3 Insurance Additional Information Booklet Part 3 Insurance Issued: 30 September 2017 Trustee: BT Funds Management Limited ABN AFSL Custodian and Administrator: Asgard Capital Management Ltd ABN AFSL Mail: PO Box 7490 Cloisters Square WA 6850 Customer Relations: About this Additional Information Booklet This document is Part 3 of the Additional Information Booklet for Asgard Employee Super Account - Ernst & Young (Asgard Employee Super). The information in this document is incorporated by reference into, and taken to be included in the Product Disclosure Statement (PDS) for Asgard Employee Super dated 1 July The Additional Information Booklet is in three parts: Part 1 General (Issued 1 July 2017) Part 2 - Investment (Issued 1 July 2017) Part 3 - Insurance (Issued 30 September 2017) These documents are available free of charge at asgardcorporatesuper.com.au/ey/forms.asp, or by calling us on You should read the PDS and the Additional Information Booklet (Parts 1 to 3) before making a decision about Asgard Employee Super. The offer or invitation to which the PDS and the Additional Information Booklet relates is only available to persons receiving the PDS and the Additional Information Booklet in Australia. The Trustee may at its discretion refuse to accept applications from any person. Updating the information in the PDS and the Additional Information Booklet The PDS and the Additional Information Booklet are up to date at the time of preparation. From time to time we may change or update information in the PDS or Additional Information Booklet that is not materially adverse to your interests (or is otherwise permitted under superannuation law), provided we give you a means of finding out about these changes. You can find the latest versions of all documents on our website at asgardcorporatesuper.com.au/ey/forms.asp, or by calling us on

2 Contents 1. Insurance with Asgard 2. Terms & conditions 3. Glossary 4. Insurance premium rates

3 Important Information About the Trustee Asgard Employee Super, the PDS and the Additional Information Booklet are issued by BT Funds Management Limited ABN , AFSL , RSE Licence L ( BTFM, we, us, our, or the Trustee ), the trustee of, and the issuer of interests in the superannuation fund known as the Asgard Independence Plan Division Two, ABN (the Fund) which Asgard Employee Super is a part of. The Unique Superannuation Identifier (USI) for Asgard Employee Super is ASG0007AU. BTFM is also the trustee of, and the issuer of interests in the BT Institutional Conservative Growth Pooled Superannuation Trust ABN (the Asgard MySuper PST). About the Administrator Asgard Capital Management Ltd ABN , AFSL ( Asgard or the Administrator ) is the custodian and administrator of Asgard Employee Super. Advance Asset Management Limited ABN , AFSL (Advance) is the responsible entity of some of the managed investments available through Asgard Employee Super. Your rights The PDS and the Additional Information Booklet have been prepared in accordance with our obligations under superannuation law and the general law. The statements in the PDS and/or the Additional Information Booklet do not form the basis of contractual relations between you and us, except where this is specifically intended to be the case (for example, in the Acknowledgements, confirmations and agreements section of the Additional Information Booklet Part 1 General, and in relation to any other acknowledgements and representations you make to us in the forms). Other than as specified by legislation, including superannuation law, the PDS and/or the Additional Information Booklet do not confer any additional rights on you. We reserve the right to change the features and provisions relating to Asgard Employee Super as contained in the PDS and Additional Information Booklet, but will provide you with notice of any such change or the ability to access such information as required by superannuation law and the general law (please see the Keeping you informed section of the Additional Information Booklet Part 1 General for information about how we will keep you informed). Your rights in relation to Asgard Employee Super are governed by the Asgard Independence Plan Superannuation Trust Deed dated 12 May 1988, as amended from time to time (Trust Deed) (which overrides any provisions in the PDS and the Additional Information Booklet), superannuation law and the general law. General advice warning The information in the PDS and Additional Information Booklet is general information only and does not take into account your objectives, financial situation or needs. Before acting on the information in the PDS and the Additional Information Booklet, you should consider the appropriateness of this information having regard to your objectives, financial situation and needs. You should consult a financial adviser to obtain financial advice tailored to suit your personal circumstances. In deciding whether to open, or continue to hold an Asgard Employee Super account, you should consider the PDS and the Additional Information Booklet. Insurance Asgard Employee Super Ernst & Young provides insurance through group policies (Master Policies) which are issued by OnePath Life Limited ABN , AFSL ( OnePath or the Insurer ) and administered by us. Insurance offered through Asgard Employee Super Account Personal membership category and Asgard Personal Protection Package (APPP) is issued: for the period up to and including 31 December 2017, by AIA Australia Limited ABN , AFSL (AIA); and for the period on and from 1 January 2018, by Westpac Life Insurance Services Limited ABN , AFSL (WLISL). The insurance benefits provided by the relevant master policies and described in the PDS and Additional Information Booklet are liabilities of OnePath, AIA (for cover up to and including 31 December 2017) and WLISL (for cover on and from 1 January 2018). They are not deposits in, or liabilities of, and are not guaranteed by any other bank or company whether related or not related to OnePath, AIA and WLISL. We are the policyholder under the relevant master policies with OnePath, AIA and WLISL. Consent to be named Each of Asgard, Advance, AIA, WLISL and OnePath has consented to being named in the PDS and the Additional Information Booklet and for the inclusion of information attributed to it, in the form and context in which it appears, and has not withdrawn its consent before the date the PDS and the Additional Information Booklet was prepared. Investment in Asgard Employee Super BTFM, Asgard and Advance are subsidiaries of Westpac Banking Corporation ABN , AFSL (Westpac). Your Asgard Employee Super account and the underlying investments (other than deposit products provided by Westpac) do not represent deposits or liabilities of Westpac or any other company in the Westpac Group and are subject to investment risk, including possible delays in repayment and the loss of income or capital invested. Except as expressly disclosed in the PDS, or the Additional Information Booklet, neither Westpac, nor any other company in the Westpac Group in any way stands behind or guarantees the capital value and/or the performance of any of the underlying investments or Asgard Employee Super generally. Related party remuneration The Trustee, Asgard, Advance, Westpac and other companies in the Westpac Group receive fees in connection with operating the Asgard Employee Super or the underlying investments (as applicable). For more information, see the 'Fees and other costs' section in the PDS and the Additional Information Booklet Part 1 General. You can also find information on executive remuneration at btfg.com.au > BT Financial Group > Additional disclosure > BT Funds Management Limited. 3

4 1. Insurance with Asgard Insurance for Ernst & Young (EY) employees Through the Asgard Employee Super Account, EY has arranged insurance for you at group rates. When you become a Member of EY, you ll receive a Welcome Pack which will set out the full details of any insurance that will apply to you. For Permanent Employees only, EY pays for your default insurance cover (if any) by making additional contributions into your super account to cover the cost of the Insurance fees of your default level of insurance cover under the default benefit design. These additional contributions can be identified as Employer Preserved contributions in your periodic Investor Report. If you choose to increase your level of cover above the level prescribed by the default benefit design, the additional premiums will be at your own cost. You cannot apply for a higher amount of TPD cover than Life cover. Please note: Casual Employees are required to pay for their insurance cover and the Insurance fees for this will be deducted by Asgard monthly in advance from the cash account. Insurance for spouse and family of EY employees Spouse and family of EY Members of Asgard Employee Super may also apply for insurance cover. Spouse and family Members can apply for insurance cover through Asgard Personal Protection Package (APPP), which is issued by us. You should consider the APPP product disclosure statement before making a decision about APPP. To obtain a copy of the APPP product disclosure statement, please speak to your financial adviser (if applicable), or call us on All cover is subject to the assessment of medical evidence and acceptance of the cover by AIA for applications up to and including 31 December 2017, and on and from 1 January 2018, WLISL will be the insurer of APPP and will assess all applications for cover. All insurance benefits are subject to the terms and conditions contained in the relevant master policies. Default insurance cover and automatic acceptance of cover are not available for spouse or family Members. AIA or WLISL are the issuers of the insurance under the relevant master policies with us. About OnePath (the Insurer) OnePath is one of Australia s leading providers of wealth, insurance and advice solutions. They ve been helping Australians grow and protect their wealth for over 130 years, previously as Mercantile Mutual and more recently as ING Australia. Now as a wholly owned subsidiary of Australia and New Zealand Banking Group Limited (ANZ), OnePath operates as part of ANZ s specialist wealth business. The insurance cover for EY employees, provided as a benefit through your account, is governed by a Master Policy (Policy) which the Trustee holds with OnePath. The Policy governs the terms and conditions of the insurance offered through Asgard Employee Super. A copy of the Policy is available from us on request. The Insurer may, with our agreement, vary the terms and conditions of the Policy. If there is any inconsistency between the information in the Product Disclosure Statement, this Booklet, any Supplementary Product Disclosure Statement and the Policy, the terms and conditions of the Policy will prevail. You don t have any interest in the Policy. Any payment of insurance benefits by Asgard is limited to payments received by OnePath. All insurance benefits are provided by OnePath and not the Trustee. We can provide you with a copy of the Policy upon request. The Insurer may vary the terms and conditions of the Policy provided we agree. Types of insurance cover The following types of insurance cover are available: Life Protection, Life Protection and Total and Permanent Disablement (TPD) Protection. 4

5 2. Terms & conditions Becoming an insured member If you are eligible for cover in Asgard Employee Super, you can become an Insured Member in one of the following ways: by automatic acceptance, by application for Voluntary Cover. Cover is subject to the Trustee providing the Insurer with the premiums for the cover and all relevant member information by the following times: where automatic acceptance applies within 30 days after the policy start date or 1 December following the day the person first satisfies the eligibility criteria, whichever applies, where transfer terms apply within 90 days after the policy start date, where an application for cover is required, within 30 days after the date the eligible person was first eligible to apply to become an Insured Member, or as otherwise agreed in writing by the Insurer. Life Protection What is Life Protection? Life Protection pays a lump sum if you die or are diagnosed with a Terminal Illness. There is no maximum benefit limit for Life Protection (subject to financial justification). To understand the circumstances in which a Terminal Illness Benefit will be paid, please see the definition of Terminal Illness set out in the Glossary section in this Booklet. Eligibility criteria You are eligible for Life Protection insurance if you meet the following criteria: you are an Australian resident or holder of a Visa, you reside in Australia (unless you are overseas as set out in the Cover during paid and unpaid leave and Cover during overseas employment sections), you are working in an occupation that the Insurer has not classed as an occupation for which cover is not available under the Policy, you are aged less than the maximum benefit entry age (65 years) on the day you are first eligible for cover, or if an application for cover is required, on the date that you apply for cover, you are working at least 15 hours per week on a regular basis, and you are a Partner, a Permanent Employee or a Casual Employee of Ernst & Young Services Pty Ltd or an associated company. Benefits Death Benefit If you die, your sum insured (at the date of death) will be paid. Your Death Benefit is reduced by any Terminal Illness Benefit (please see the Terminal Illness Benefit section below) paid by the Insurer. Reduced premiums in line with the reduced level of cover will apply. If you are paid a TPD Benefit (please see the TPD Protection section below), your cover will cease. Terminal Illness Benefit A Terminal Illness Benefit is payable when you are diagnosed as having a Terminal Illness. Terminally Ill or Terminal Illness means an illness or injury where all of the following (a), (b), (c) and (d) are satisfied: a. two Medical Practitioners certify in writing (Written Certification) that you suffer from an illness or have incurred an injury that is likely to result in your death within 12 months from the date of Written Certification (Certification Period), b. at least one of the Medical Practitioners is a Specialist Medical Practitioner, and one which may be appointed by the Insurer, c. for each Written Certification, the Certification Period has not ended, and d. the Written Certification by both Medical Practitioners must be dated during the period you are insured for Life Protection under the Policy. Please see the Insurance benefits table on page 10 of this Booklet. Please note: The certification period for the Terminal Medical Condition definition under superannuation law is 24 months (which is different from the 12 month certification period for the purpose of a Terminal Illness insured benefit). This means you may not be eligible for a Terminal Illness insured benefit even if you can access your superannuation on grounds of suffering a Terminal Medical Condition. For more information about the conditions of release, please see the Additional Information Booklet Part 1 - General. TPD protection This insurance is only available as an additional benefit to Life Protection. For Insured Members other than Casual Employees, an Insured Member s default TPD Protection may be higher than their default Life Protection in accordance with the default insurance benefit design under the Policy, but any TPD cover held under Voluntary Cover cannot exceed the amount of Death cover. To avoid doubt, an Insured Member with automatic acceptance cover may have a total amount of TPD cover which is higher than their Death cover, provided the Voluntary Cover portion of their TPD cover is not higher than the Voluntary Cover portion of the Death cover. Eligibility criteria You are eligible for TPD Protection insurance if you meet the following criteria: you are an Australian resident or holder of a Visa, you reside in Australia (unless you are overseas as set out in the Cover during paid and unpaid leave and Cover during overseas employment sections), you are working in an occupation that the Insurer has not classed as an occupation for which cover is not available under the Policy, you are less than the maximum benefit entry age (65 years) on the day you are first eligible for cover, or if an application for cover is required, on the date that you apply for cover, you are working at least 15 hours per week on a regular basis, and you are a Partner, a Permanent Employee or a Casual Employee of Ernst & Young Services Pty Ltd or an associated company. 5

6 What is TPD Protection? The maximum cover limit (or maximum benefit limit) for TPD Protection is $5,000,000. TPD Protection pays a lump sum if, or when, you become totally and permanently disabled. The TPD Benefit is payable once only. You must be medically certified to have first ceased work as a result of the injury or illness giving rise to Total and Permanent Disablement while the Policy is in force and before the first to occur of: your cover ending, if the Policy ends, you return to work, whether on a full-time or part-time basis, or you attain the benefit expiry age for the TPD Benefit. Benefits TPD Benefit You will be assessed for a TPD Benefit in accordance with the TPD definition in the Glossary section of this Booklet. Please see the 15 hour rule below to determine which parts of the TPD Benefit you will be eligible to be assessed under. 15 hour rule This rule is applied when you are first eligible to join the Fund and is applied again as at the date of the event giving rise to Total and Permanent Disablement. It is calculated by determining whether you are Gainfully Employed for an average of at least 15 hours per week on a permanent basis (including an eligible Contractor) and have either: worked for at least six consecutive months immediately prior to the Event Date, or worked for less than six consecutive months immediately prior to the Event Date but have in fact worked for an average of 15 hours or more per week since commencing cover under the Policy. Upon satisfying the 15 hour rule, you will be eligible to be assessed under all parts of the TPD definition (please see the TPD definition in the Glossary section of this Booklet). If you do not satisfy the 15 hour rule then TPD will be assessed under Parts 2, 3, 4 or 5 of the TPD definition. Automatic acceptance cover Automatic acceptance and eligible persons not at work If you are accepted under automatic acceptance, cover commences on the later of the date you first meet the eligibility criteria and the policy start date. You will not be eligible for automatic acceptance cover if: you are entitled to payment of an insurance benefit for TPD, or Terminal Illness, or in a waiting period for such a benefit, or you have previously been accepted for automatic acceptance cover. You must also satisfy any other terms applied by the Insurer to be eligible for automatic acceptance cover. An Eligible Person who is not At Work as a result of an illness or injury on the policy start date or on the day the eligibility criteria was first met, shall be eligible for New Events Cover only. When you return to the pre-disability duties (working the same hours and in the same capacity without limitation) you performed when you were last At Work, your New Events Cover will cease and you will be covered on the same basis as an Insured Member who was At Work on the relevant day. New Events Cover means you will not be covered for any Pre-existing Condition. You will only be covered for an illness which became apparent to you, or any injury which occurred to you, on or after the date that cover commenced, recommenced or increased (as applicable) under the Policy. Automatic Acceptance Level Under the terms of the Policy, eligible Permanent Employees are not required to provide medical or other underwriting evidence to be covered for default benefits up to the Automatic Acceptance Level (AAL) of $1,000,000. If the application of EY s nominated benefit design would cause your sum insured to exceed the AAL, your cover will be capped to $1,000,000 unless you are Underwritten and approved for higher cover. The AAL applicable to eligible Casual Employees is one unit of cover. Please see The default insurance cover in the Asgard Employee Super Account Ernst & Young section of the PDS for the amounts of default cover provided to eligible members. If an insufficient number of eligible members in Asgard Employee Super are covered under the Policy, the relevant AAL may be removed by the Insurer after consultation with the Trustee. If this occurs, the cover provided for existing Insured Members as at the date the AAL is removed will not be impacted. If an AAL applies to an Insured Member and the AAL increases, the higher AAL may apply to all existing Insured Members irrespective of whether they have been declined, excluded or loaded for cover above the previous lower AAL. Any loading, limitation or exclusion that previously applied to the Insured Member s cover will only apply above the new higher AAL. What is automatic acceptance? Automatic acceptance provides you with cover without the need for you to provide a personal statement or any underwriting evidence, which is normally required by the Insurer to assess the risk of insuring individuals. Because EY has nominated a benefit design for you and by meeting certain criteria, you can be automatically covered. Your Asgard Employee Super account has an Automatic Acceptance Level for Life and TPD Protection of $1,000,000 for Permanent Employees, and one unit of cover for Casual Employees, without the need for medical or other underwriting evidence as described above under the heading Automatic Acceptance Level. You may apply for additional cover in excess of the Automatic Acceptance Level. If you apply for additional cover, additional cover commences from the date the Insurer accepts your application. If you would like a higher level of cover than that allowed under automatic acceptance, you need to be personally Underwritten for the amount. You will need to complete an Insurance Application and Personal statement form, available from the EY internet site at asgardcorporatesuper.com.au/ey/. Should you wish to reinstate your insurance after it has been cancelled, automatic acceptance will not apply and you will be required to be Underwritten and accepted for cover. Automatic acceptance does not apply to Partners Automatic acceptance is not available to Partners. To avoid doubt, to be eligible to obtain Life Protection or Life and TPD Protection cover under the Policy, an Eligible Person who is a Partner must be Underwritten and accepted as an Insured Member in writing by the Insurer. The cost of cover will be determined by reference to the premium rates set out in the Voluntary Cover Premium Rates table on pages 21 to 22 of this Booklet. 6

7 If an Insured Member who is a Permanent Employee or Casual Employee of Ernst & Young Services Pty Ltd (the Company) is appointed as a Partner: any automatic acceptance cover they have will cease from the date the Member is appointed as a Partner and transferred to the Ernst & Young Partners Asgard Superannuation Plan, any Voluntary Cover which has been approved by the Insurer will continue under the Policy, and he or she will only be eligible for Voluntary Cover whilst engaged as a Partner. Automatic increases in the insured benefit If you have been automatically accepted for cover under the Policy, provided you are At Work, your insured benefit may increase automatically on 1 December each year (or another date during a 12 month period agreed between the Trustee and the Insurer). You will not need to apply to the Insurer in writing if the increase in your insured benefit is up to the lesser of the Automatic Acceptance Level and 25% of your insured benefit (as determined immediately before the increase). Where you seek to have your insured benefit increase by more than 25% (e.g. if your Salary has increased by more than 25%), the Insurer may agree to waive the requirement that you apply to the Insurer in writing. Unless the Insurer does so, the increase in your insured benefit will be restricted to the stated limits and the Insurer will require you to be underwritten for that part of the insured benefit that is in excess of either of those limits. In all other circumstances, an application for additional cover is required. If you have been forward underwritten to a Forward Underwriting Limit (FUL), the Insurer may agree to accept increases in your insured benefit up to the FUL, without requiring you to provide further medical evidence, so long as the increase is as a result of the application of the formula by which insured benefits are calculated. The Insurer will only agree to an FUL when the Insurer has underwritten and approved your application for cover or increased cover. The Insurer may impose lower FULs at its discretion. If you have been forward underwritten to an FUL equal to the maximum benefit level, and the maximum benefit level increases, the FUL that applies to you will increase to the higher maximum benefit level. Interim Accidental Death & TPD Benefit (Limited Cover) Interim accidental cover (Limited Cover) is provided for all, or that part of, the cover for which an application is required. In the event that an Insured Member or Eligible Person dies or suffers TPD as the result of an Accident during the period in which Limited Cover applies, the Insurer will pay a Limited Cover benefit. Please see the Accident definition in the Glossary section of this Booklet. The Limited Cover benefit is the lesser of: cover otherwise ceasing in accordance with the Policy (please see the When cover ends section below), and the date the application is cancelled or withdrawn. For more information, please see the Insurance benefits table on page 10 of this Booklet. To whom are benefits payable? Any benefit payable under the insurance through Asgard Employee Super is paid to the Trustee and held on your behalf until a condition of release is met under superannuation law (please see Access to your super in the Additional Information Booklet Part 1 General) and the terms of the Trust Deed for Asgard Employee Super are met. The payment of benefits is subject to you satisfying the Insurer s claim procedures (please see the Claims section below for further information). Life & TPD Protection Before a TPD or Terminal Illness Benefit can be paid to you, you must meet the permanent incapacity or the Terminal Medical Condition definitions respectively, as defined by superannuation law, or satisfy another condition of release. Future Insurability Future Insurability allows you to apply for additional Life Protection Cover only or Life Protection and TPD Protection Cover once in any 12 month period without supplying medical evidence if a specific life event occurs after your insurance cover commences, on up to three separate occasions. A specific life event is marriage (or upon the subsistence of an interdependent relationship for two years or more), birth or adoption of a child by you or your spouse, the date on which a dependent child of yours starts secondary school, taking out a new mortgage on, or increasing an existing mortgage on, your principal place of residence with an accredited mortgage provider by at least $100,000 (excludes re-draw and refinancing). For the purpose of a Future Insurability increase, an interdependent relationship is a close personal relationship between two people who live together, where one or both provides for the financial and domestic support and care of the other. To apply for increases under Future Insurability, you will need to complete the Future Insurability Increase Application Form and return it to the Insurer with any other information the Insurer requires (which is documentary proof that the specific life event occurred and when). The application needs to be made within 90 days of the specific life event occurring. The form is available at asgardcorporatesuper.com.au/ey/. the benefit amount applied for in the application for cover, the difference between the level of increased cover applied for and the current level of cover, and the maximum benefit level. Limited Cover starts from the date an application for cover is received by the Insurer and ends upon the earlier of: the date the Insurer notifies the Trustee or the Insured Member in writing that the Insurer accepts or rejects the application for cover or increase in the sum insured, 90 days after the date Limited Cover starts, 7

8 The proof required to accompany the Future Insurability Increase Application Form for each specific life event is set out in the table below. Specific life event (occurring after your insurance commences) Your marriage (or upon the subsistence of an interdependent relationship for two years or more). Your dependent child starts secondary school. You or your spouse gives birth to or adopts a child. You take out or increase a mortgage on your principal place of residence with an accredited mortgage provider* (excludes re-draw and refinancing). Evidence you need to provide A completed Future Insurability Increase Application Form and: for marriage a copy of your marriage certificate in respect of a marriage recognised under the Marriage Act 1961 (Cth), or for an interdependent relationship documentary evidence establishing the subsistence of that relationship for at least two years. A completed Future Insurability Increase Application Form and a copy of a letter of admission from your child s secondary school. A completed Future Insurability Increase Application Form and a copy of the birth certificate or adoption papers. A completed Future Insurability Increase Application Form and written confirmation from your accredited mortgage provider(s) of: the amount and effective date of the mortgage, where you take out a new mortgage, or the amount of the mortgage immediately preceding the increase, the effective date of the increase and the current level of the increased mortgage, where you increase your mortgage, whether with an existing or different mortgage provider. * Accredited mortgage provider means an Authorised Deposit-taking Institution (as defined in the Banking Act 1959 (Cth)) or other reputable financial services business, program or trustee which provides mortgage loans as part of its ordinary business activities and is accredited with the Mortgage Industry Association of Australasia. Within the first six months of an increase to an insured benefit, the increased amount is only payable if your death or Total and Permanent Disablement is caused by an Accident (please see the Glossary section of this Booklet). Future Insurability increases are not available: if you have made a claim, or are entitled to make a claim, in relation to your cover through Asgard Employee Super or any life insurance policy whether it is issued by the Insurer or any other insurer, if you are aged over 55 years at the date of the specified life event, if the Insurer has declined any previous application for additional cover, or in the event of marriage, if you have previously applied for an increase under Future Insurability because of marriage. Increase to Insured Benefits If you apply for Future Insurability and your application is approved, your insured benefit will increase by one unit of cover if your cover is unit based cover. If you hold fixed cover or cover based on an employer nominated benefit design, your cover will increase by 25% of the amount it was when you applied for the Future Insurability increase, subject to a maximum limit of $250,000 and the maximum benefit level. Any Future Insurability increase will commence on the date your application is accepted by the Insurer. If the Insurer accepts a Future Insurability application, the increase in cover will be on the same terms and conditions as the acceptance terms that apply to your cover under the Policy. The increase in cover shall include any loadings or exclusions applicable to your cover. You will be required to pay any additional premiums for the higher insured benefits which will apply when you increase your cover as a result of a specific life event. The premium will be deducted from your cash account on a monthly basis. If your cover has increased due to a Future Insurability increase, for the first six months following the increase, the Insurer will only pay the increased portion of your cover if your death or TPD results from an Accident. Voluntary Cover You will need to apply to the Insurer in writing for all or part of cover in each of the following circumstances: if automatic acceptance does not apply or you were not automatically accepted, you require cover in excess of the AAL, in respect of an increase in your insured benefit, if an increase is not automatically provided, if your cover stops under the Policy for any reason, if you require cover that is not New Events Cover. An application can only be made for cover up to the maximum benefit level. When considering an application, the Insurer may request medical and other information from you. Until the Insurer accepts or rejects the application, Limited Cover will apply as set out in the Interim Accidental Death & TPD Benefit (Limited Cover) section of this Booklet. Premiums will be charged from the effective date of any cover approved by the Insurer. If an Eligible Person who has previously opted out of Asgard Employee Super by exercising choice of fund wishes to rejoin Asgard Employee Super, he or she must be Underwritten to obtain cover under the Policy unless applying for up to $500,000 of Life Protection or Life and TPD Protection cover, in which case the Eligible Person will need to satisfy the following requirements as at the date he or she re-joins Asgard Employee Super: the member must be an Eligible Person, the member must be At Work, and the member must not have taken more than 5 consecutive days off work due to sickness or injury during the previous 12 months. Benefit limitations Exclusions In the event of war involving Australia, New Zealand or your country of residence, the Insurer may: offer increased premium rates (including during the rate guarantee period), exclude cover for any event caused directly or indirectly, wholly or partially, by war, exclude cover if you die on war service. War or war service includes but is not limited to: declared war, and armed aggression by one or more countries resisted by any country, combination of countries or international organisations, 8

9 participation in an action to defend a country or region from civil disturbance or insurrection, or in an effort to maintain peace in a country or region. Pre-existing conditions If your TPD cover was accepted under automatic acceptance or transfer terms, you will not be covered for Total and Permanent Disability that is caused directly or indirectly, wholly or partially, by a Pre-existing Condition if a similar benefit can be claimed by you under another insurance policy. If you are not eligible for Automatic Acceptance, you must disclose Pre-existing Conditions with your application for group life insurance and any subsequent increases or alterations to the Life Protection insurance. When the insured benefit payable is reduced If your cover ends as a result of you ceasing to satisfy the eligibility criteria after a maximum period of 60 days (referred to as extended cover ), and during the period of extended cover, you become covered under a policy from another insurer providing similar benefits (the subsequent policy), the Insurer may reduce or refuse to pay any benefit which may become payable under the Policy, by the amount of any similar benefit paid, or payable, in respect of you under the subsequent policy if the death, Terminal Illness or Total and Permanent Disability arose or occurred during the period of extended cover. If the Insurer issues the Policy or cover under the Policy on the condition that it replaces insurance issued by another insurer and the insurance being replaced is not cancelled, the amount of any benefits paid under the Policy will be reduced by any benefits payable under the insurance that was replaced. Repayment of benefits Any benefit paid to you by the Insurer must be repaid to the extent that the benefit, or part of the benefit, was not payable under the terms of the Policy. TPD tapering* TPD tapering is applied to TPD Benefits that do not reduce gradually to be nil with age. The TPD Benefit will automatically reduce by 20% per year from your age next birthday 62 and occurs at each annual review date (i.e. 1 December), up to the benefit expiry age, according to the table below. Age Next Birthday TPD cover is reduced by 20% 40% 60% 80% TPD cover ceases * TPD tapering will apply unless the Insurer agrees otherwise in writing. 9

10 Insurance benefits Policy Feature Death Benefit Terminal Illness Benefit Interim Accidental Death & TPD Benefit (Limited cover) Total and Permanent Disability Benefit Benefits The Insurer will pay your death benefit when you die. The Insurer will pay you the Terminal Illness Benefit when you are diagnosed as having a Terminal Illness. Terminal Illness means an illness or injury where all of the following (a), (b), (c) and (d) are satisfied: a. two Medical Practitioners certify in writing (Written Certification) that you suffer from an illness or have incurred an injury that is likely to result in your death within 12 months from the date of Written Certification (Certification Period), b. at least one of the Medical Practitioners is a Specialist Medical Practitioner and one which may be appointed by the Insurer, c. for each Written Certification, the Certification Period has not ended, and d. the Written Certification by both Medical Practitioners must be dated during the period you are insured for Death cover under the Policy. Your Terminal Illness Benefit is the lesser of: your Death Benefit, as at the date of the latest Written Certification, and $2.5 million. Your Death Benefit will be reduced by the amount of the Terminal Illness Benefit paid. Reduced premiums in line with the reduced level of cover will apply. If you have applied for cover and are being Underwritten, you are provided with Limited Cover whilst the Insurer is assessing your application for cover. Limited Cover is provided for all, or that part, of the cover for which an application is required. Limited Cover starts from the date an application for cover is received by the Insurer at their principal office in Sydney. Limited Cover will end upon the earlier of: the date the Insurer notifies you in writing that they accept or reject the application for cover or increase in the insured benefit, 90 days after the date Limited Cover starts, cover otherwise ceasing in accordance with section 2.15 of the Master Policy, the date the application is cancelled or withdrawn. In the event that you die or suffer Total and Permanent Disablement as the result of an Accident during the period in which Limited Cover applies, the Insurer will pay you the Limited Cover Benefit. The Limited Cover Benefit is the lesser of: the benefit amount applied for in the application for cover, the difference between the level of increased cover applied for and the current level of cover, the maximum benefit level. Subject to the terms of the Policy, where you are Gainfully Employed for an average of at least 15 hours per week on a permanent basis (including an eligible Contractor) and have either: worked for at least six consecutive months or more immediately prior to the Event Date, worked for less than six consecutive months immediately prior to the Event Date but have in fact worked for an average of 15 hours or more per week since commencing cover under the Policy, the Insurer will pay the TPD Benefit (if it applies) if the Insured Member satisfies either Part 1, 2, 3, 4 or 5 of the TPD definition. If you have not worked at least 15 hours per week on a permanent basis immediately prior to the Event Date, as set out above, you will only be entitled to a TPD Benefit (if it applies), if you satisfy either Part 2, 3, 4 or 5 of the TPD definition. To determine if an Insured Member meets the conditions of the relevant part of the TPD definition, the Insurer will assess an Insured Member who claims under Part 1 of the TPD definition after the Insured Member ceases work for six consecutive months. The date of disablement for all other parts of the TPD definition is the date that all of the elements of the definition of TPD are satisfied. In addition, the Insurer will determine if an Insured Member is TPD on the date of disablement upon receipt of: all evidence the Insurer requests in order to determine if, in the Insurer s opinion, the Insured Member is TPD, and confirmation that the Insured Member was Gainfully Employed (if required) to enable the Insurer to determine which part of the TPD definition applies. 10

11 Automatic transfer of cover If you cease to be employed by EY, you will become a Personal member of the Asgard Employee Super Account and your Life Protection or Life and TPD Protection insurance cover may be transferred automatically from the OnePath policy to insurance cover provided under either: with respect to the period up to and including 31 December 2017, policies issued by AIA Australia Limited (AIA) ABN AFSL ; and with respect to the period on and from 1 January 2018, policies issued by Westpac Life Insurance Services Limited (WLISL) ABN , AFSL AIA or WLISL are the insurers for the Personal membership category within the Asgard Employee Super Account, and you will be subject to the terms and conditions of the relevant policy 1 issued by AIA or WLISL. The terms and conditions of the automatic transfer of cover from the OnePath policy to the relevant policy 1 for former EY employees are as follows: You have not exercised the OnePath continuation option for Life Protection only (please see the Continuation option section on page 12 for further information). You are aged less than 65 on the date you transfer to the Personal membership category. You have not joined the armed forces on the date you transfer to the Personal membership category. On the date you transfer to the Personal membership category, you are not receiving or eligible to receive a Terminal Illness or TPD insurance benefit, or in the process of lodging a Terminal Illness or TPD Protection claim, under the OnePath policy. You will not need to provide additional medical or other underwriting information to be eligible for the automatic transfer of cover; however, you must meet the eligibility conditions set out in the relevant policy 1 on the date you transfer to the Personal membership category (please see the Asgard Employee Super Account Additional Information Booklet Part 3 Insurance for details of the applicable eligibility conditions). Any underwriting terms (including restrictions and loadings) applicable to your insurance cover under the OnePath policy will continue to apply to your Life Protection only or Life and TPD Protection cover in the Personal membership category of the Asgard Employee Super Account. If your cover under the OnePath policy is New Events Cover, new events cover (as defined under the relevant policy 1 please see the Asgard Employee Super Account Additional Information Booklet Part 3 Insurance for the applicable definition) will be provided until you are at work (as defined under the relevant policy 1 ) for 30 consecutive days, from which time the new events cover restriction under the relevant policy 1 will no longer apply. Any employer related discounts or loadings applicable to your insurance cover under the OnePath policy will cease to apply to your cover in the Personal membership category and, as a result, your insurance fees may change. The insurance fees applicable to your cover as a Personal member are as set out in the Asgard Employee Super Account Additional Information Booklet Part 3 Insurance (including any premium loadings applicable under the relevant policy 1 on any TPD Protection cover in excess of Life Protection cover please see the Excess TPD Loading for Personal members only section on page 23). The occupation recorded for you in Asgard Employer Super will continue to apply. However, at the time of a TPD Protection claim, you will be assessed against the occupation you are working immediately prior to the date of disability. If you change your occupation, you must notify us of this change. Any AALs or FULs (as applicable) will cease to apply to your cover in the Personal membership category. From the date of the transfer of your cover to the Personal membership category, your cover will automatically be fixed at the amount of cover you held under the OnePath policy immediately prior to your cessation of employment with EY. No benefit will be payable where you have made a claim, or are eligible to make a claim, in relation to any insurance cover held by you in Asgard Employee Super prior to any transfer of such cover to the Personal membership category. Any transferred cover will commence from the date you become a Personal member of the Asgard Employee Super Account. You will be transferred to the Personal membership category on the date we are first notified that you have ceased employment with EY. Cover within the Personal membership category will continue subject to the continued payment of insurance premiums. Please note: if your cover under the OnePath policy ceases prior to the date your transferred cover in the Personal membership category commences, you will not hold any cover for the period between when your cover under the OnePath policy ceases and when your cover commences in the Personal membership category. As such, if you cease employment with EY, you should notify us of this as soon as practicable to ensure your cover is transferred to the Personal membership (if eligible) before it ceases under the OnePath policy. The total amount of cover you hold as a Personal member of the Asgard Employee Super Account must not exceed the maximums for the relevant type of cover set out in the Asgard Employee Super Account Additional Information Booklet Part 3 - Insurance. You can request to increase your existing amount of cover as a Personal member, subject to providing the required medical evidence and the relevant insurer of the Personal membership category accepting the cover. OnePath will remain responsible for any claims arising in relation to your cover in Asgard Employee Super Account - Ernst and Young. When you become a Personal member of Asgard Employee Super Account, details of your membership and insurance cover (if any) will be sent to you. Your insurance cover as a Personal member of Asgard Employee Super Account is subject to the conditions of transfer set out in the relevant policy 1, as outlined above. You should read the product disclosure statement and Additional Information Booklet Part 3 Insurance for Asgard Employee Super Account for details of the terms and conditions of the insurance cover applicable under the relevant policy 1. Copies of the documents are available on our website at asgard.com.au > Products & Services > Business Super > Brochures & forms > For you or by calling us on Any spouse and family Members who are linked to a former EY employee will become Personal members. If these spouse and family Members hold insurance through the Asgard Personal Protection Package, they will continue to hold this cover when they become Personal members. 1 The 'relevant policy' of the Personal membership category within Asgard Employee Super Account, refers to AIA master policies for cover up to and including 31 December 2017, and WLISL master policies for cover on and from 1 January

12 Extended cover Subject to the terms of the Policy, the Insurer will provide Life Protection and TPD Protection (if applicable) to you for a maximum of 60 days after the date you cease to meet the eligibility criteria subject to the following conditions: as at the date you ceased to meet the eligibility criteria, you had not received, nor were entitled to receive, a benefit under the Policy, nor were you in a waiting period for such a benefit, and the extended cover will cease on the earlier of: the date you reach the relevant benefit expiry age, 60 days after the date you cease to meet the eligibility criteria, the date your cover commences under a retail policy of insurance issued by the Insurer under the continuation option offered under the Policy, the date you commence employment with a new employer or commence working as a Contractor. Continuation option If your cover ends because you no longer satisfy the eligibility criteria due to you leaving EY, you may be able to apply for a continuation option to continue your Life Protection cover under an individual policy issued to you by OnePath. This option applies to Life Protection cover and does not include TPD Protection. The Insurer will not require you to provide medical evidence; however, to exercise the continuation option, you must: be 60 years of age or less, apply in writing by completing an application for the individual policy within 60 days of the date you cease to be an eligible person as a result of leaving EY, be an Australian resident or holder of a Visa and not residing outside Australia, provide any information the Insurer considers relevant that does not relate to medical information, acknowledge that any restrictions, limitations or loadings under the existing policy will apply to the new individual policy, and must not be eligible to receive, or have received, benefits under the Policy or any other policy issued by an insurer providing any similar benefits. If the Policy terminates or is transferred, a continuation option will not be available. This includes the circumstance where the Policy is terminated and replaced as a result of a successor fund transfer. Any insurance effected under the continuation option would be held by you on a standalone basis outside Asgard Employee Super. The premium rate under the individual policy may be more than under the cover in Asgard Employee Super and any restrictions, limitations and premium loadings that applied under the Policy will apply under the individual policy. For more information on this option, please call us on Worldwide, 24 hour cover The cover provided by the Policy provides worldwide insurance cover 24 hours a day. There are however, some restrictions on you working overseas and taking leave, as set out in the following sections. Cover during paid and unpaid leave Provided the premiums continue to be paid, your cover automatically continues for up to 24 months whilst you are on paid or unpaid leave including parental leave 2, subject to the following conditions: EY must approve the period of leave, prior to the date your leave commences, the identity and number of Insured Members on unpaid or paid leave must be provided to the Insurer when requested and at least annually, and EY must hold appropriate leave records (which must be provided to the Insurer upon request), which include: the date the paid or unpaid leave is to commence, and the date you are expected to return to work. Any change in employment status during periods of leave in accordance with this section will not affect any entitlements to cover. If cover for an Insured Member on paid or unpaid leave is required beyond 24 months, an application in writing is required prior to the expiration of the 24 months. Otherwise, prior notification to the Insurer of the unpaid or paid leave is not required. Cover during overseas employment Provided the premiums continue to be paid and you are an Australian resident, your cover continues automatically while you are working overseas for up to five years. If cover is required beyond five years, you must seek approval from the Insurer prior to the expiration of the five year period. Otherwise, the Insurer s prior consent to your travel is not required. The Insurer reserves the right to impose conditions on the cover, and review cover, at the end of the premium rate guarantee period (please see the policy document for the premium rate guarantee period). Any details regarding the location of Insured Members residing overseas must be provided to the Insurer upon request and at least annually. The Insurer may also request records of the duration of time, the number and location of Insured Members working overseas. Cover for non-australian residents Non-Australian residents are eligible for cover whilst they reside in Australia if they are eligible to work in Australia and hold a Visa. All cover will cease upon the non-australian resident s departure from Australia unless the overseas trip is for three months or less or you are temporarily employed overseas for a period of up to three years. Visa means a current and valid visa issued in accordance with the Migration Act 1958 (Cth) or any amending or replacing Act which enables an Eligible Person or Insured Member to work in Australia. When cover ends Your cover will end and the Insurer s liability to pay insured benefits under the Policy will cease automatically, on the earlier of: the date the Policy ends, the date the Insurer receives written notification from you to cancel the cover, if you are a non-australian resident the date you no longer permanently reside in Australia, or are not eligible to work in Australia (whether that is because you no longer hold a Visa or for any other reason), 2 Parental leave includes maternity leave, paternity leave and/or adoption leave. 12