BT Protection Plans. Enhancements Guide 20 May For Adviser use only

Transcription

1 BT Protection Plans Enhancements Guide 20 May 2013 For Adviser use only

2 We ve listened and enhanced our offering Since our launch in 2011, BT Protection Plans have provided you and your clients with the flexibility to adapt to challenging times. As your clients needs change, you need to find the right solutions to ensure the best possible outcome for them. Likewise, as the regulatory framework that you work within evolves, you need to adapt to protect your financial planning practice for sustainable growth. We understand this, which is why we are enhancing BT Protection Plans to provide new funding structures for your clients insurance needs, a more efficient application process as well as increased flexibility and transparency to ensure you are prepared for regulatory reform. Contents Table Greater Flexibility Superannuation Rollovers Page 3 Introducing Income Protection as Superannuation Page 4 Supporting Regulatory Reform New Remuneration Options Page 5 Improved Fee Disclosure Page 6 Improved Efficiency LifeCENTRAL+ Updates Page

3 Superannuation Rollovers We re introducing a new funding option for your clients insurance. For Term Life as Superannuation and Income Protection as Superannuation policies, you can now fund your clients premiums via partial rollovers from eligible superannuation funds. We have listened to your feedback that flexibility of payment options is important for you and your clients. BT Protection Plans now allows you to fund premiums via partial rollovers from eligible superannuation funds for Term Life as Superannuation and Income Protection as Superannuation policies (see page 4 for more information on Income Protection as Superannuation). This increased flexibility allows your clients to utilise the tax benefits that can be gained by structuring insurance through superannuation, whilst enjoying the benefits of BT Protection Plans. This feature will also allow clients who have limited cash flow or those who are close to breaching their concessional contribution cap, the ability to structure their insurance efficiently within superannuation. Rollover Process Once a policy has been accepted, we will send you a Rollover Authority Form, pre-filled with the rollover amount required, for your client to sign and return. From 1st July 2013, the Rollover Authority Form can be submitted to us by , fax or post. Before the 1st July, the Rollover Authority must be posted to us. Full cover for up to 90 days Cover starts from the day we accept the application and have received the signed Rollover Authority Form for the correct premium. If we have not received the rollover within 90 days of our accepting cover, the policy will be cancelled. 15% upfront tax benefit To ensure the tax effectiveness of the rollover process for your clients, a 15% Tax Rebate Benefit will be applied to premiums funded this way. For example, if the annual premium was 1,000, we would require a rollover amount of 850. Rollover Process - New Business Complete Application Form Select cheque payment option Submit application to BT Risk Approved Rollover Authority Form issued by BT with rollover amount pre-filled Rollover request Complete remaining fields of Rollover Authority Form Submit signed form to BT Comfort letter issued detailing terms of cover Rollover funds received Policy placed in force Policy Schedule issued bt.com.au 3

4 Introducing Income Protection as Superannuation From May 2013, BT Protection Plans is becoming more accessible, providing you more choice when structuring your clients insurance. BT understands that the continual improvement and increased flexibility of insurance offerings within superannuation is of growing importance to you and your clients. By expanding our current product offering with Income Protection as Superannuation, we are providing greater accessibility to BT Protection Plans Income Protection, for clients who wish to fund their premiums via an insurance specific superannuation fund. With the introduction of Income Protection as Superannuation, your clients can now hold their income protection cover as a separate superannuation policy. Premiums can be paid either from contributions via direct debit, credit card and cheque, or from another superannuation fund (see Superannuation Rollovers on page 3). In order to ensure your clients are getting the best possible cover, Income Linking Plus can also be used with Income Protection as Superannuation. This allows you to recommend our most comprehensive income policy Income Protection Plus, and have the core benefits of the Income Protection paid for via superannuation, with the ancillary benefits paid for outside superannuation. Policy Income Protection Plus Policy Policy Owner Trustee of your superannuation fund 1 Non-superannuation ownership Policy Benefits Total Disability Benefit Partial Disability Benefit Benefits meeting a condition of release Super Plus IP Benefit which includes all other benefits not meeting a condition of release 1_For Income Protection as Superannuation, the Trustee is Westpac Securities Administration Limited

5 New Remuneration Options To ensure that you can adapt your business model to the evolving regulatory environment, we are providing more flexibility in how you charge for your advice and greater transparency around remuneration. Opt in/out functionality To provide you with more flexibility in how you structure your fees, we are introducing the ability to opt out of receiving ongoing commissions for your clients. You will also have the option to reduce your clients premiums by the amount of commission you were due to receive in that year (excluding GST). For example, if you have chosen an upfront commission structure and opt-out of ongoing commissions, your clients premium may be rebated by up to 10%. You will also be able to opt your client back in after passing on a rebate and provide you with ongoing commissions for your advice. This will increase your client s premiums and therefore requires your clients consent. You, or your client may contact us to request an optout of their advice arrangement on their insurance policy altogether. This would mean commissions would cease to be payable in respect of that client, and you would be unable to access information related to their policy. If your client has initiated the request to opt-out of advice, we will contact you immediately to inform you of your client s intentions. We will also notify you via once their request has been processed. Initial only commission structure A new commission structure now allows you to be reimbursed in the form of initial commission only with no ongoing commission paid. You can also use LifeCENTRAL+ to set this commission structure as your default to align with your advice model. Your client s premium will be reduced from the first year by the renewal commission percentage applicable to your chosen commission structure (excluding GST). For example, on a 1,000 premium: Commission Structure Upfront Hybrid 1 Hybrid 2 Rebate percent 10% 21% 17% Rebate amount Actual premium Please note, the Initial Only commission structure is not available with Level commission. Commission is payable on the annualised premium before the rebate amount is applied. bt.com.au 5

6 Improved Fee Disclosure We have improved remuneration disclosure on LifeCENTRAL and LifeCENTRAL+ to provide you with greater transparency around the payments you receive. Remuneration Summary Reports LifeCENTRAL now provides you with remuneration reports at a policy, client and an adviser level. These reports allow you to select the period over which to run the report and will show all remuneration paid for that period, split between upfront and ongoing commission payments. The reports can also be downloaded to allow you to integrate the data into your existing back office processes. This increased functionality provides you with the ability to provide a Fee Disclosure Statement to your clients, as well as allowing you to track ongoing commission payments. LifeCENTRAL+ has also been enhanced, enabling you to show the remuneration for policies held inside and outside superannuation on the Product Illustration. This increased transparency ensures that you can reconcile payments received at a policy level regardless of how each policy is funded. Remuneration Summary Policy Group Year 1 Year 2 Year 3 Year 4 Year 5 1 (Non Super) 2, (Super) 14,333 1,608 1,829 2,089 2,408 Total Remuneration 16,603 1,878 2,153 2,482 2,

7 LifeCENTRAL+ Updates We believe it is the little things that can make the difference, so we are always looking to find new ways to make your life easier. Streamlined Application process We know that time is precious for you and your clients, so we have re-aligned the medical questions in the electronic application process via LifeCENTRAL+, enabling you to submit applications more efficiently. Professionals Package LifeCENTRAL+ has been updated to allow you to quote for cover offered under this package. With Income Protection quotes, you are now able to apply for both the Agreed Value and Indemnity portions of the professionals offer in the one illustration. Professional Package Quote Example: Updated Maximum Benefits The Professionals Package has also been updated as per the below table: Profession Maximum Monthly Income Protection Benefit Agreed Value Indemnity Maximum Death Benefit Maximum TPD Benefit Maximum Living Benefit Medical Intern 10,000 2,500 3,000,000 2,000,000 1,000,000 Doctor (GP) 10,000 5,000 4,000,000 2,500,000 1,500,000 Specialist Doctor 15,000 5,000 5,000,000 3,000,000 2,000,000 Dentist 10,000 5,000 4,000,000 2,500,000 1,500,000 Dental Specialist 15,000 5,000 5,000,000 3,000,000 2,000,000 Pharmacist 6,000 4,000 3,000,000 2,000,000 1,000,000 Chiropractor 6,000 4,000 3,000,000 2,000,000 1,000,000 Optometrist 6,000 4,000 3,000,000 2,000,000 1,000,000 Veterinarian 6,000 4,000 3,000,000 2,000,000 1,000,000 Physiotherapist 4,000 4,000 3,000,000 2,000,000 1,000,000 Accounting Graduate 4,000 4,000 4,000,000 2,000,000 1,000,000 Accountant CPA/CA 6,000 6,000 5,000,000 2,500,000 1,500,000 Actuarial Graduate 5,000 5,000 3,000,000 2,000,000 1,000,000 Actuarial Fellow 8,000 6,000 4,000,000 3,000,000 2,000,000 Solicitor 5,000 5,000 3,000,000 2,000,000 1,000,000 Barrister 5,000 5,000 4,000,000 3,000,000 2,000,000 Engineer 5,000 5,000 3,000,000 2,000,000 1,000,000 Architect 5,000 5,000 3,000,000 2,000,000 1,000,000 Quantity Surveyor 5,000 5,000 3,000,000 2,000,000 1,000,000 bt.com.au 7

8 For more information to your Business Development Manager , Monday to Friday 8.00am 6.30pm (Sydney time) lifecentral.com.au This information is current at 20 May 2013 but is subject to change. The Insurer of BT Protection Plans is Westpac Life Insurance Services Limited ABN , AFSL Number ( the Insurer ). BT Protection Plans is issued by the Insurer except for Term Life as Superannuation and Income Protection as Superannuation which are issued by Westpac Securities Administration Limited ABN , AFSL Number ( WSAL ) as trustee of the Westpac MasterTrust ABN The Insurer and WSAL are wholly owned subsidiaries of Westpac Banking Corporation ABN AFSL , ( the Bank ). Neither the Bank nor any member of the Westpac Group (other than the Insurer) guarantees the benefits payable in relation to BT Protection Plans. This information has been prepared by the Insurer and is for use by advisers only. It is not to be copied, used, reproduced or otherwise distributed, circulated or communicated to any retail client or any other party, or attributed to any member of the Westpac Group. The information provided is a brief overview only, is general in nature and does not take into account any personal circumstances. Neither the Insurer nor WSAL intend that this publication be used as the primary source of the readers information but as an adjunct to their own resources and training. For terms and conditions relating to BT Protection Plans, including limits and exclusions, please refer to the appropriate Product Disclosure Statement, available at our website, bt.com.au. BT cl