Plum Super South32 Superannuation Plan Insurance Guide Preparation date 1 November 2016 Issued by the Trustee NULIS Nominees (Australia) Limited ABN 80 008 515 633 AFSL 236465 The Insurer Insurance is issued by TAL Life Limited ABN 70 050 109 450 AFSL 237848 The Fund MLC Super Fund ABN 70 732 426 024
This guide gives you information about the insurance available through your super. A financial adviser can help you decide if this insurance is right for you. Or, you can assess if you have adequate insurance using our free advice calculator, available when you log in to plum.com.au
Contents Your insurance in the South32 Superannuation Plan (Plan) 1 Death and TPD cover 2 Keeping your insurance when you leave your employer 7 Cost of insurance 8 The information in this Insurance Guide forms part of the Product Disclosure Statement (PDS) dated 1 July 2016. Together with the Investment Menu and Fee Definitions Flyer, these documents should be considered before making a final decision to invest. They are available when you log in to plum.com.au
Your Insurance in the South32 Superannuation Plan (Plan) We offer flexible insurance in the Plan so you can make sure you have the cover that suits your needs. TAL Life Limited (TAL) is the insurer and we deduct premiums to pay them for your insurance cover. We can change the Insurer at any time if we believe this is in the best interest of members. The insurance premiums for your standard cover are currently paid from Fund assets on your behalf. Types of cover Standard cover You will automatically receive a level of standard death and total and permanent disablement (TPD) cover when you join the Plan, subject to your eligibility. You can then choose to tailor your level of cover to suit your needs. Voluntary death and TPD cover Voluntary death and TPD cover allows you to add extra insurance to your account in addition to your standard death and TPD cover, subject to your eligibility. Automatic Acceptance Limit (AAL) Where you are eligible for standard insurance cover, the Insurer will provide automatic acceptance. This is referred to as the automatic acceptance limit (AAL). The AAL for standard cover is: two units of standard cover, or two units of standard cover plus one additional unit of voluntary cover, where the Trustee receives your written request for the additional unit of voluntary cover within 90 days of becoming an employee of South32 Limited (South32). Overriding insurance policy Payment of an insured benefit is subject to the terms and conditions of the applicable insurance policy. This guide provides a summary of the main features of the insurance policy covering the Plan. Other conditions may apply. This guide should not be relied upon as a full and complete description of the terms and conditions of the insurance cover. Your benefit may be reduced if the Insurer refuses or restricts your cover or does not pay out all or part of the insured benefit when a claim is made. Contact us on 1300 55 7586 for a copy of the Plan s insurance policy. Making sure you re eligible for cover You are eligible for cover if you: are under age 65 are an Australian resident, and in relation to standard cover, become a member of the Plan within 120 days of becoming an employee of South32, If you are not at work on the day you are first eligible for cover, you will receive limited cover until you are at work. At work means that you are actively at work and competently performing all essential duties of your usual occupation without restriction, or if you are on approved leave, the leave is not due to reasons related to injury or illness, and you are not receiving income support benefits from any source including workers compensation benefits, statutory transport accident benefits and disability income benefits. Australian resident means that you: permanently reside in Australia, or are a temporary resident of Australia on an temporary working visa which is acceptable to us and the Insurer. Limited cover means that you will only be eligible for a TPD benefit in respect of an illness that first becomes apparent or an injury which first occurred on or after the date cover commenced. Changing your cover You can change or cancel your insurance cover at any time, simply complete the South32 Superannuation Plan Insurance variation form. Insurance type Death Death and TPD You can apply for up to Unlimited Unlimited, including up to a maximum $3 million of TPD With the exception of the one unit of voluntary cover which can be applied for under automatic acceptance (see Automatic Acceptance Limit (AAL) section), any request for voluntary cover will be subject to health evidence being provided to and accepted by the Insurer. To provide health evidence you will need to complete the personal statement available at plum.com.au or by contacting us on 1300 55 7586. If we need any further information from you we will let you know. If you decrease or cancel your insurance cover and later change your mind, you can reinstate your insurance, but you will need to provide satisfactory health evidence. 1
When will your insurance cover start? Any standard insurance cover you are eligible for will commence from your first day of employment provided you are at work on that day performing the normal duties of your occupation or on the day you are first eligible for cover and may be subject to Limited cover as outlined in Making sure you re eligible for cover. If you apply to change your standard cover or you apply for voluntary cover, your new level of cover will commence from the date the Insurer accepts your application and premiums are payable from that date. The Insurer may decline or place conditions or restrictions on your insurance cover as a result of its assessment of the health evidence you provide. 2
Death and TPD cover Death and TPD cover can help you and your family remain financially secure if the unexpected happens. This cover provides a lump sum benefit to your beneficiaries or your legal personal representative if you die or to you if you are diagnosed with a terminal illness or suffer total and permanent disablement. Standard death and TPD cover Standard death and TPD cover is available to you through the Plan if you are under age 65. Your standard death and TPD cover is calculated according to the below formula: Number of units x insurance cover per unit You will automatically receive two units of standard death and TPD cover when you join the Plan, subject to your eligibility. Increase your standard cover without providing health evidence You can select one unit of voluntary death and TPD cover without providing health evidence if you do so within 90 days of becoming an employee of South32. If you apply to increase your cover outside this period you will need to provide satisfactory evidence of health. Voluntary death and TPD cover You are eligible to apply for units of voluntary death and TPD cover if you are under age 65. There is no maximum number of units you may hold, however the maximum level of your total cover that is, the sum of your standard cover and voluntary cover cannot exceed the Maximum insured benefit limit. If you hold both standard and voluntary cover your total cover would exceed a maximum benefit limit, your voluntary cover will be reduced. There is no maximum insured benefit limit applicable to death cover, but the maximum benefit limited for TPD cover is $3 million. Age next birthday Level of death and TPD cover One unit of cover ($) Age next birthday One unit of cover ($) 16 35 76,000 51 9,500 36 67,600 52 8,200 37 59,200 53 7,200 38 51,700 54 6,100 39 43,000 55 5,300 40 38,800 56 4,600 41 34,900 57 4,000 42 31,100 58 3,500 43 27,400 59 3,100 44 24,300 60 2,700 45 21,300 61 2,500 46 18,700 62 2,300 47 16,400 63 2,100 48 14,400 64 1,900 49 12,500 65 1,600 50 11,000 Example of a death and TPD benefit John is aged 40, (41 age next birthday). His account balance is $60,000. His standard death and TPD cover is 2 units. He has also applied for 1 additional unit of voluntary death and TPD cover, which was accepted by the Insurer. John s standard death and TPD insured component would be: 2 units x $34,900 = $69,800 John s voluntary death and TPD insured component would be: 1 unit x $34,900 = $34,900 His total death and TPD benefit would be: Standard cover $69,800 Voluntary cover $34,900 Account $60,000 Death and TPD benefit $164,700 3
Additional features of death and TPD insurance Terminal illness benefit The Insurer may pay your insured death cover if you are diagnosed with a terminal illness, subject to a maximum of $3 million. Where you have an insured death benefit which is higher than $3 million, the difference between $3 million and your insured amount will become your new death cover. Premiums will be required to be paid on the reduced level of insurance cover. Terminal illness means a condition which is certified in writing by two medical practitioners, one of whom specialises in your illness, as a condition which despite reasonable medical treatment, will lead to your death within 12 months from the date of the certification, and which the Insurer is also satisfied will lead to your death within 12 months of the date of certification. Medical practitioner means a medical practitioner who is legally qualified and registered to practice in Australia, other than you, the Trustee, your relatives, business partners, shareholders or employees. If the Medical Practitioner is outside Australia, they must have qualifications equivalent to Australian standards. Leave of absence Your death and TPD cover will continue if you commence leave (such as maternity or study leave) provided: you are an Australian resident; premiums continue to be paid; prior to your leave, your employer has approved the period of leave of absence in writing; and you remain an employee of your employer and a member of the Fund. In the event of your TPD, the full definition of TPD will apply for the first 12 months of leave and, thereafter, only parts (a) and (b) will apply. During the first 12 months of leave, your occupation and work hours performed immediately before going on leave are the relevant ones for the purposes of the definition of TPD. Cover while overseas Your insurance cover will continue while you are residing outside of Australia and working for South32 as long as your premiums continue to be paid. Your cover continues for up to three years if you are an Australian resident, or three months if you hold a temporary working visa. Longer periods of cover may be agreed with the Insurer before the cover expires. You may be required by the Insurer to return to Australia at your own expense to be assessed for TPD or Terminal Illness. Interim accident insurance If you have an accident (ie, an unforeseen, violent, external and visible event that occurs accidentally) and you die or suffer total and permanent disablement while the Insurer is assessing your application for voluntary cover the Insurer will pay you a lump sum benefit equal to the amount of death and TPD cover you ve applied for, subject to a maximum of $1 million for cover. Cover will commence from the date the Insurer receives a fully completed personal statement and declaration of health from you. Cover will cease on the earliest of; 90 days from the date the Insurer receives your fully completed application, or the day your request for cover is withdrawn, approved or declined by the Insurer, or you turn age 65, or the policy is terminated, or you no longer satisfied the eligibility requirements. Interim accident insurance cover is not provided if a claim arises directly or indirectly as a result of intentional self-inflicted injury or suicide, or due to a pre-existing condition or an illness or injury that the Insurer would have declined cover for or excluded as a condition of otherwise approving the application for insurance. 4
Guaranteed future insurability option Under this option, you are able to apply for additional units of cover without providing health evidence to the Insurer. You can do this when one of the events listed below occurs as long as you: are aged 55 or less at the time of the relevant event; do not already have insurance cover which is subject to a premium loading or exclusion; are not entitled to make a claim for TPD or Terminal Illness benefit; apply for the increased cover within 60 days of the event occurring; and have not already applied for an increase in cover under this option in the past 12 months. Allowable events for this option include: the birth or adoption of a child; marriage or divorce; you take out a mortgage on the purchase of a home (either alone or jointly with another person), or increasing an existing mortgage for the purposes of building or renovation on the home (the mortgage must be on your primary place of residence); or the first occasion any dependent child starts secondary school. You can apply to increase your total sum insured by the lesser of: 25% of the original sum insured; the amount of the new mortgage or the amount of the increase in your existing mortgage; and 25% of your standard insurance cover amount. The total of all of your Guaranteed future insurability increases cannot exceed your original total amount of cover, or $1 million (subject to the maximum cover limits which apply under the policy). Note that any increased cover is not payable in the event of intentional self-inflicted injury or suicide occurring in the first 13 months after the increase. For the first six months, the increased cover is not payable on claims arising from a pre-existing condition, and for the first 13 months the increased cover is not payable where a claim arises from suicide or intentional self-inflicted act or injury. 5
Definition of TPD You are considered to be totally and permanent disabled if the Trustee and Insurer are: reasonably satisfied that your ill-health (whether physical or mental) makes it unlikely that you are ever going to engage in any gainful employment for which you are reasonably qualified by education, training or experience, and satisfied that you meet the definition of one of parts (a), (b) or (c) in the table below. Employment status On any basis Definition of TPD (a) you have suffered an injury or illness and, solely as a result of the injury or illness, you suffer the total and irrecoverable loss of the: OR use of two limbs (where limb is defined as the whole hand below the wrist or whole foot below the ankle); sight in both eyes; or use of one limb and sight in one eye. (b) (i) Solely because of illness or injury you have suffered loss of Cognitive and Intellectual Function. Or (b) (ii) solely because of illness or injury you are unlikely to ever again perform at least two of the following Activities of Daily Living without physical assistance of another adult person: bathing - the ability to wash or shower; or dressing the ability to put on and take off clothing; or mobility - the ability to get in and out of bed and in and out of a chair; or feeding the ability to get food from a plate into the mouth; or toileting the ability to use the toilet, including getting on and off. Cognitive and Intellectual Function means the permanent loss of cognitive and intellectual function that has resulted in you requiring ongoing care and supervision by another adult person. OR (c) (i) you suffer illness or injury and immediately prior to the illness or injury you worked 10 or more hours per week (averaged over the preceding 13-week period or on a pro-rata basis if you had worked for less than 13 weeks) and solely because of that illness or injury: OR you have not worked for six consecutive months; and at the end of the six-month period after consideration of all relevant evidence, you are disabled to such an extent as to render you unlikely to ever again be engaged in any occupation for which you are reasonably suited by education, training or experience. (c) (ii) you suffer illness or injury and immediately prior to the occurrence of the Illness or injury, you were not Gainfully Employed and were at home performing unpaid Domestic Duties, and solely because of that illness or injury you: have been unable to perform those domestic duties for a period of six consecutive months; are under the care of a Medical Practitioner; are unable to leave home without assistance; and at the end of the six-month period you are, after consideration of all relevant evidence, disabled to such an extent as to render you unlikely to ever again perform Domestic Duties, leave home without assistance, or engage in Gainful Employment. Domestic Duties means the tasks performed by a person whose main occupation is to maintain their family home. These tasks include, cooking of meals for their family, cleaning of the home, shopping for their family s food, doing their family s laundry and taking care of dependent children (if applicable). Domestic Duties do not include duties performed for salary, reward or profit. Gainful Employment means the performance of work for reward or in the expectation of economic benefit to you or a person or entity connected with you. 6
When might you need to provide health evidence? You may, in certain circumstances, be required to provide health evidence to the Insurer, including: if you do not meet the eligibility terms or the terms of automatic acceptance; if you elect to apply for voluntary cover; if your standard cover exceeds the Automatic Acceptance Limit (AAL) or any other limits as detailed in the group insurance policy; if an AAL does not apply; if you cease to be a member of the Fund and then subsequently re-join the Fund and apply for cover; or any other circumstances outlined in the policy. We will advise you if health evidence is required. This may be in the form of a personal medical statement and/or various medical examinations as required. The Insurer may decline or place conditions or restrictions on your insurance cover as a result of this medical evidence. Cessation of insurance cover Death and TPD cover ceases immediately under the insurance policy, on the earliest of the following: you reach age 65 the date a terminal illness or TPD benefit is paid which is not less than the amount of the death benefit the date of your death your account balance becomes insufficient to pay a premium instalment for any voluntary insurance cover you are an Australian resident and after working for South32 outside of Australia for more than three years, unless otherwise agreed by the Insurer you hold a temporary working visa and after working for South32 outside of Australia for more than three months, unless otherwise agreed by the Insurer you are on employer approved leave and no longer satisfy the conditions for continuation of cover; you request to cancel your cover, and any other terms under the group insurance policy. Your sum insured could be reduced or a benefit declined by the Insurer if you provide inadequate medical evidence or false or misleading information to the Insurer. Insurance cover exclusions Insurance benefits will not be paid for claims arising directly or indirectly from the following: war or acts of war, whether declared or not while you are outside Australia; or service in the armed forces of any national or international organisation including active service and training exercises within national or international armed reserve units while you are outside Australia; or in respect of voluntary cover (ie, cover to which automatic acceptance does not apply), any intentional self-inflicted act or intentional self-inflicted injury, or, within the first 13 months of commencement or reinstatement of cover, suicide; or other terms as detailed under the policy. 7
Keeping your insurance when you leave your employer When you leave your employer you can keep your insurance cover by choosing one of the following options: 1. Automatic transfer of cover when you join the Plum Personal Plan Once your employer tells us you re no longer their employee, we ll transfer your account to the Plum Personal Plan together with your standard and any voluntary cover. We will transfer the exact amount of cover that you hold at the time you leave your employer and it will remain a fixed dollar amount in the Plum Personal Plan. You can change these amounts at any time. In order to continue your death and TPD in the Plum Personal Plan you must ensure the following are applicable: you are under age 65 you are a permanent resident of Australia you have not ceased employment with your employer for reasons of disablement or ill health, and you have not commenced duty in the armed forces of any country (not including the Australian Army Reserve). Cover will be subject to the terms, conditions and premiums applicable to the Plum Personal Plan and any special terms and conditions applying to your cover will be transferred with your insurance cover. You should read the important information about continuing your cover and insurance premiums in the Insurance Guide for the Plum Personal Plan. Further information about continuing your cover can also be found in materials which will be supplied to you at the time you leave your employer. 8
Cost of insurance Your insurance premiums are paid from Fund assets on your behalf, except for any voluntary cover you have chosen, which is deducted from your accumulation account. Premiums are calculated based on a specified cost per unit of cover, as the following table shows. The premium calculated for you is inclusive of any statutory charges including stamp duty. Any premiums paid from Fund assets may count towards your concessional contributions cap. Type of cover Cost of cover per unit per week ($) Member paid Fund paid Standard cover 0.00 0.69 Voluntary cover 0.69 0.00 Example of premiums Standard cover In our earlier example John, aged 40 had death and TPD cover of 2 units. John s standard insurance premium would be calculated as follows: Paid from Fund assets 2 units x $0.69 x 52 weeks = $71.76 pa. Voluntary cover ($5.98 per month) In our earlier example, John had been approved for 1 unit of voluntary death and TPD cover. John s voluntary insurance premium would be calculated as follows: Paid by John: 1 unit x $0.69 x 52 weeks = $35.88 pa. ($2.99 per month) 9
Contact us For more information visit plum.com.au or call us on 1300 55 7586 between 8am and 7pm AEST (8pm daylight savings times), Monday to Friday. Postal address Plum Super GPO Box 63 Melbourne VIC 3001 Registered office Ground Floor, MLC Building 105-153 Miller Street North Sydney NSW 2060 NULIS Nominees (Australia) Limited ABN 80 008 515 633 AFSL 236465. Part of the National Australia Bank Group of Companies. An investment with NULIS Nominees (Australia) Limited is not a deposit or liability of, and is not guaranteed by National Australia Bank Limited ABN 12 004 044 937 AFSL 230686 (NAB). NAB does not guarantee or otherwise accept any liability in respect of this product. PLRD4380M01116