guide to optional income protection insurance Guide to Optional Income Protection Insurance DuluxGroup Employees Superannuation Fund The DuluxGroup Employees Superannuation Fund (DuluxGroup Super) is managed by the Trustee, Towers Watson Superannuation Pty Ltd, for employees of DuluxGroup and associated companies. DuluxGroup Super has two main sections the Accumulation section, and the Defined Benefit section for members who joined DuluxGroup Super s predecessor superannuation fund, The Flexible Benefits Super Fund, prior to 1 October 1999. The information provided in this brochure is general information only and does not take into account your particular objectives, financial circumstances or needs. It is not personal or tax advice. Information on tax and superannuation legislation is current as at the date of this document and may change. Any examples included are for illustration only and are not intended to be recommendations or preferred courses of action. You should consider obtaining professional advice from a licensed financial adviser about your particular circumstances before making any financial or investment decisions based on the information contained in this document. Information contained in this brochure that is not materially adverse may be updated if it changes. Updated information can be found on, and/or downloaded from www.duluxgroupsuper.com.au. A hard copy will also be provided free of charge on request by contacting the DuluxGroup Super helpline on 1800 802 800. december 2015 DuluxGroup Employees Superannuation Fund
What is income protection insurance? Income protection insurance provides you with a regular monthly income of up to 75% of your super salary* if you are unable to work for more than 90 days due to illness or injury, and you satisfy the insurer s definition of disabled **. Provided your claim is accepted by the insurer, payments generally commence effective 90 days after your last day at work and, provided that you continue to meet the Fund s insurer's definition of disabled **, are payable for up to two years (or to age 65, whichever is earlier). If you are receiving other sickness or accident benefits while you are off work, such as workers compensation or transport accident benefits, or other income protection benefits, or you receive income from working for your employer, your monthly income payments will be reduced by these amounts. Further, the regular income benefit will not be paid if your temporary disablement is due to war outside Australia (including invasion or civil unrest and whether declared or not), intentional self- inflicted injury, or any attempt to commit suicide, or normal and uncomplicated pregnancy. * Subject to a maximum benefit of $30,000 per month. ** Under the Fund s insurance policy, disabled refers to circumstances where, due to sickness or injury that occurred while you were an insured member, you are not working and are unable to perform at least one income-producing duty of your occupation. You must also be under the regular care of, and following the advice of, a medical practitioner. 2 Guide to Optional Income Protection Insurance Am I eligible for cover? Income protection insurance is only available to members of the Accumulation section of DuluxGroup Super who are current employees of DuluxGroup. To be eligible for income protection insurance, you must be employed by DuluxGroup on a permanent basis and be working at least 15 hours per week. How can I obtain income protection insurance? DuluxGroup Super gives you the option of purchasing income protection insurance through the Fund. You can apply for income protection insurance at any time. Simply fill out an Application for Income Protection Insurance Form available from www. duluxgroupsuper.com.au and return it to: The Fund Administrator DuluxGroup Super PO Box 1442 Parramatta NSW 2124 You should also complete a Personal Statement, which is available on DuluxGroup Super s website. You should read the duty of disclosure section of the Statement carefully. Cover is subject to approval by the Fund's insurer and you may be required to provide financial or health evidence, and/or undergo medical tests or examinations, as requested by the insurer. The insurer will assess the information and may apply a loading to your insurance fee, or impose restrictions or exclusions on the cover granted. It may even refuse your application for cover. Your cover will commence only if your application is approved by the insurer and will be effective from the date advised by the insurer. The benefit payable will be met from an insurance policy taken out by the Trustee of the Fund and is subject to the terms and conditions of that policy How much does it cost? The annual fee you will pay for DuluxGroup Super income protection insurance depends on your age and gender. You will pay your fee in monthly instalments, which will be deducted from your super account. To calculate your annual fee, follow these simple steps: 1 Calculate the level of annual income payable under the policy. This is worked out as: 75% x your annual super salary* 2 Find the fee in the table on page 3 that applies to you based on your age at next birthday and your gender. 3 Calculate the annual fee that will be deducted from your DuluxGroup Super account: Fee x the amount of annual benefit $1,000 Divide your annual fee 4 by 12 to calculate the monthly fee that will be deducted from your DuluxGroup Super account. Example Laura, who will turn 31 on her next birthday, has a super salary of $50,000 per year. She wishes to take out income protection insurance through the Fund. The annual fee that will be deducted from Laura s DuluxGroup Super account is calculated as follows: 1 2 3 Annual benefit = 75% x $50,000 = $37,500 As shown in the fee table, the rate for a female with an age at next birthday of 31 is $2.45 Annual fee = $2.45 x $37,500 $1,000 = $91.88 per annum ($7.66 per month)
Income protection insurance fees Annual fees per $1,000 of annual benefit # Age next birthday Male Female 16 $1.66 $1.58 17 $1.68 $1.61 18 $1.69 $1.64 19 $1.71 $1.68 20 $1.73 $1.73 21 $1.74 $1.79 22 $1.74 $1.88 23 $1.74 $2.00 24 $1.74 $2.15 25 $1.73 $2.28 26 $1.64 $2.35 27 $1.58 $2.38 28 $1.51 $2.40 29 $1.48 $2.42 30 $1.46 $2.43 31 $1.48 $2.45 32 $1.49 $2.48 33 $1.53 $2.53 34 $1.59 $2.63 35 $1.66 $2.75 36 $1.74 $2.90 37 $1.86 $3.10 38 $2.00 $3.33 39 $2.17 $3.58 40 $2.37 $3.89 Age next birthday Male Female 41 $2.57 $4.26 42 $2.80 $4.67 43 $3.07 $5.15 44 $3.39 $5.65 45 $3.78 $6.19 46 $4.21 $6.79 47 $4.72 $7.43 48 $5.28 $8.18 49 $5.91 $8.98 50 $6.61 $9.82 51 $7.38 $10.73 52 $8.28 $11.69 53 $9.28 $12.70 54 $10.40 $13.76 55 $11.68 $14.87 56 $13.08 $16.04 57 $14.64 $17.30 58 $16.41 $18.63 59 $18.40 $20.00 60 $20.58 $21.43 61 $23.02 $22.90 62 $25.62 $24.44 63 $21.18 $20.28 64 $15.96 $15.28 65 $6.46 $6.16 # The fees shown in the table above are the standard rates. Insurance cover is subject to the provision of satisfactory health evidence and the Fund s insurer retains the right to restrict or decline your cover or increase the fees shown above in individual cases. You will be notified if this affects you. Continuing your income protection cover when you leave DuluxGroup When you leave your employer, your income protection cover generally ceases 60 days after you terminate employment (or earlier if you take up the option described below). This is called extended cover and is provided free of charge. You may have the opportunity of continuing the income protection cover you had as an employed member of DuluxGroup Super by purchasing a separate insurance policy through the Fund s insurer at your own expense without the need to provide evidence of good health. The cost of this separate policy will be based on the insurer s current retail fee rates, which will be different to the fees you paid while you were a member of DuluxGroup Super. under your policy with DuluxGroup Super; Must not have an insurance benefit payable to you as a member of DuluxGroup Super and there must not be any circumstances which, if the subject of a claim, would result in an insured benefit being paid to you as a member of DuluxGroup Super; Must not join the armed forces other than the Australian Armed Forces Reserve and must not be on active duty outside Australia; Prior to leaving your employer, must have been a permanent employee working at least 15 hours per week; Must have met all of the insurer s underwriting requirements for occupations and pastimes; and Must be leaving employment with your employer. If you take out a separate policy with the Fund s insurer, no evidence of good health will normally be required. However, any restrictions, loadings or other special terms that applied to your cover while you were a member of DuluxGroup Super will continue to apply to your separate policy. For more information on continuing your income protection cover when you leave the Company, contact the DuluxGroup Super helpline on 1800 802 800. To be eligible to take advantage of this option to continue your income protection cover, you: Must apply and pay your insurance fees within 60 days of leaving the Company; Must be less than 60 years of age at the time your cover ends Issued by Towers Watson Superannuation Pty Ltd (ABN 56 098 527 256, AFSL 236049), as Trustee of the DuluxGroup Employees Superanuation Fund (ABN 91 132 102 426). ISSUED DECEMBER 2015 Guide to Optional Income Protection Insurance 3
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Application for Income Protection Insurance Complete this form if you wish to apply for Income Protection Insurance. Part A: Personal details (please print) Title (please tick): Dr Mr Ms Mrs Miss Membership no.: Given name: Surname: Home address: City: State: Postcode: Telephone:( ) Date of birth: / / (Business hours) Part B: Your insurance choice If you would like to purchase income protection insurance, please tick the box below. Yes, I wish to apply for income protection insurance through DuluxGroup Super. Part C: Declaration I acknowledge that: I have read and understood DuluxGroup Super s Product Disclosure Statement. I understand that my application for income protection insurance cover is dependent upon me completing a Personal Statement and that cover will only commence if it is accepted by the Fund s insurer, and will be subject to any terms and conditions imposed by the Fund s insurer. I understand that I will be required to provide any medical or other evidence as requested by the Fund s insurer to support my application. I understand that insurance fees will be deducted from my DuluxGroup Super account on a monthly basis. I have received, read and understood the Privacy Policy for the Fund. I agree to the use and disclosure of my personal information as disclosed therein. Signature: Date: / / You should also complete a Personal Statement. Return all completed forms to: DuluxGroup Super PO Box 1442 Parramatta NSW 2124 Issued by Towers Watson Superannuation Pty Ltd (ABN 56 098 527 256, AFSL 236049), as Trustee of the DuluxGroup Employees Superannuation Fund (ABN 91 132 102 426). MySuper Authorisation number 91132102426461. ISSUED DECEMBER 2015 Application for Income Protection Insurance 1 of 1