Protect what s close to home. Home Loan Protection

Transcription

1 Protect what s close to home. Home Loan Protection Product Disclosure Statement including policy terms (PDS) Effective: 20 October 2014 Issued by: St.George Life Limited (St.George Life) ABN AFS Licence No

2 Issuer/Insurer: St.George Life Limited (St.George Life) ABN AFS Licence No Representative: St.George Bank A Division of Westpac Banking Corporation ABN AFS Licence No The insurer is St.George Life, which is a subsidiary of Westpac Banking Corporation ABN AFS Licence No This Product Disclosure Statement including policy terms (PDS) contains information about the Home Loan Protection insurance policy. It will help you to decide whether this policy is right for you. St.George Life contact details: Phone: am to 5pm (Sydney time), Monday to Friday Fax: (02) insurance@stgeorge.com.au Postal address: St.George Life, Locked Bag 1, Kogarah NSW 1485 IMPORTANT INFORMATION Please ensure you carefully read this PDS and understand the extent of cover before signing the application form. Westpac Banking Corporation does not, nor do any of its related bodies corporate (as defined in the Corporations Act 2001 [Cth]) other than the insurer, St.George Life, guarantee payment of any policy benefits. A premium is payable if you decide to take out this insurance. Insurance is optional: This insurance is optional and is not a condition of the Home Loan. Conditions, limits and exclusions on cover apply, and are explained in the Home Loan Protection PDS. Changes to the PDS: The information in this PDS is current at the date of preparation and may change. If the change is considered materially adverse, we will issue a supplementary or replacement PDS. Otherwise, we may provide updates on our website at (search for Home Loan Protection ). On request, we will send you a copy of any updated information free of charge. General Advice: This PDS provides general information about the product and does not take into account your personal objectives, financial situation or needs. You should consider this PDS fully and carefully before making your insurance decision, having regard to your own personal circumstances. Your Duty of Disclosure: In applying for this insurance, it is important that you comply with your Duty of Disclosure. Please refer to page 13 of the PDS and page 2 of the application form at the back of this PDS, to ensure you understand this important duty. Some words have particular meanings: In this PDS, words that have a particular meaning use Capitalised First Letters. When we say you or your in this PDS, we mean each person who is named as an Insured Person in the application for this insurance and who we agree to insure - we, us and our means St.George Life. B

3 Contents Home Loan Protection...2 Table of benefits...3 Life Cover...3 Life Cover benefit... 3 Recovery Cover benefit... 3 Repayment Cover...4 Disability Cover benefit... 4 Involuntary Unemployment Cover benefit... 5 Who can apply?...6 Joint Policy...6 Premiums...7 What happens if your premium is not paid?... 7 How is the premium calculated?... 7 When does the cover begin and end?...7 Making changes to your cover...9 Making a claim...9 Some situations are not covered (exclusions)...10 How will we pay the benefit?...10 Other information...13 Cancelling the policy...13 Duty of Disclosure...13 Privacy...14 Remuneration...15 Tax implications...15 This policy has no cash value...15 Where we put your money...15 Relevant Law...15 Currency...15 No assignment...15 Future improvements...15 Enquiries and complaints...16 Definitions...17 Application for Home Loan Protection 1

4 Home Loan Protection The Home Loan Protection insurance policy is designed to provide: a lump sum benefit: if you die or are diagnosed with a Terminal Illness; or are diagnosed with a Covered Medical Condition; and a monthly benefit if you cannot work due to: Injury or Illness; or Involuntary Unemployment. See over page for the definition of Terminal Illness. This is a summary of the cover only. The cover provided is set out in this PDS, and the Policy Schedule, which you will receive if we accept your application. You can choose between these combinations of cover: + Life Cover and Repayment Cover; Life Cover only; or Repayment Cover only. 2

5 TABLE OF BENEFITS Life Cover You can select Life Cover up to the amount of your approved Home Loan, subject to a minimum of $10,000 and a maximum of $750,000. If you choose Life Cover, we also give you Recovery Cover to the value of 2.5% of your Life Cover or $10,000, whichever is less. The Recovery Cover benefit comes with Life Cover for no extra charge. LIFE COVER BENEFIT If you are first diagnosed with a Terminal Illness or die during the period of insurance, we will pay the Life Cover Sum Insured shown in the Policy Schedule as a lump sum. Example 1: Your policy has a Life Cover Sum Insured of $300,000. If you are diagnosed with a Terminal Illness, we pay $300,000.* Example 2: Your policy has a Life Cover Sum Insured of $400,000. If you die, we pay $400,000. For the purposes of this cover, Terminal Illness means you have been diagnosed as having a life expectancy of less than 12 months, as confirmed by a registered Medical Practitioner approved by us. We will only pay the Life Cover benefit (including Terminal Illness) once for either Insured Person under the policy. RECOVERY COVER BENEFIT (COMES WITH LIFE COVER FOR NO EXTRA CHARGE) If you first suffer or are first diagnosed with a Covered Medical Condition during the period of insurance, we will pay the lesser of 2.5% of your Life Cover Sum Insured or $10,000 as a lump sum. The Covered Medical Conditions (which are defined in the Definitions section on pages 17 18) are: Cancer; Coronary Artery Bypass Surgery; Heart Attack; Open Heart Surgery; and Stroke. Example 1: Your policy has a Life Cover Sum Insured of $300,000. You therefore have Recovery Cover to the value of $7,500 (i.e. 2.5% of $300,000). You suffer a Stroke for the first time. We pay $7,500. Example 2: Your policy has a Life Cover Sum Insured of $500,000. You therefore have Recovery Cover to the value of $10,000 (i.e. the $10,000 limit applies). You suffer a Heart Attack for the first time. We pay $10,000. We will only pay the Recovery Cover benefit once for each Insured Person. Payment of the Recovery Cover benefit will not reduce the Life Cover benefit. *Note: all examples provided in this PDS are illustrative only. 3

6 TABLE OF BENEFITS Repayment Cover You can have Repayment Cover up to the amount of your approved monthly Home Loan repayment, subject to a minimum of $100 per month and a maximum of $7,500 per month. The benefit is paid as a monthly payment. Repayment Cover includes: Disability Cover benefit; and Involuntary Unemployment Cover benefit. We do not pay both the Disability Cover benefit and the Involuntary Unemployment Cover benefit in respect of the same period. In other words, at any one time we pay only one (1) of these benefits. DISABILITY COVER BENEFIT If you become disabled during the period of insurance solely due to Injury or Illness, after a 30-day Waiting Period we will pay a monthly benefit until you cease to be disabled or return to any Gainful Employment (whichever occurs first). In addition, we will only pay up to a maximum of 24 monthly payments for all claims under the Disability Cover benefit. The benefit is the Repayment Cover Sum Insured shown in the Policy Schedule for each full month of disability after the Waiting Period or, for a partial month of disability, one-thirtieth of the Repayment Cover Sum Insured for each day of disability after the Waiting Period. Subject to receipt of satisfactory proof of claim, we make the first payment 30 days after the Waiting Period ends, and then make monthly payments after that. Example: Your policy has a Repayment Cover Sum Insured of $2,000 per month. After the 30-day Waiting Period, you are disabled for a further 20 months. We pay a total of $40,000 ($2,000 x 20 months). We make your first payment of $2,000, 60 days after you become disabled (i.e. 30 days after the Waiting Period ends), and then we make monthly payments of $2,000 after that. For the purposes of this cover: you are disabled if due to Injury or Illness, you are unable to attend or engage in your usual profession, business or occupation and you are under the care of, and following the treatment recommended by, a Medical Practitioner approved by us; Injury means bodily injury caused solely by an accident which happens by chance after the cover starts; and Illness means sickness or disability which first shows Symptoms after the cover starts. If after an initial period of disability you become disabled again from the same or a related cause within six (6) months, the further period of disability will be treated as a continuation of the initial period of disability and the 30-day Waiting Period will not apply. 4

7 TABLE OF BENEFITS INVOLUNTARY UNEMPLOYMENT COVER BENEFIT If you are subject to Involuntary Unemployment during the period of insurance, after a 30-day Waiting Period we will pay a monthly benefit until you recommence Gainful Employment. In addition, we will only pay up to a maximum of three (3) monthly payments, or $7,500, whichever comes first, for all claims under the Involuntary Unemployment Cover benefit. The benefit is the Repayment Cover Sum Insured shown in the Policy Schedule for each full month of Involuntary Unemployment after the Waiting Period or, for a partial month of Involuntary Unemployment, one-thirtieth of the Repayment Cover Sum Insured for each day of Involuntary Unemployment after the Waiting Period. Subject to receipt of satisfactory proof of claim, we normally make the first payment 30 days after the Waiting Period ends, and then make monthly payments after that. Example 1: Your policy has a Repayment Cover Sum Insured of $2,000. After the 30-day Waiting Period, you are Involuntary Unemployed for a further two months. We pay a total of $4,000 ($2,000 x 2 months). We make your first payment of $2,000, 60 days after you become Involuntary Unemployed (i.e. 30 days after the Waiting Period ends), and then we make your second payment of $2,000 one month after that. Example 2: Your policy has a Repayment Cover Sum Insured of $1,500. After the 30-day Waiting Period, you are Involuntary Unemployed for a further four months. We pay a total of $4,500 (i.e. we pay the monthly benefit of $1,500 for the total benefit period of three months for all claims). Example 3: Your policy has a Repayment Cover Sum Insured of $3,000. After the 30-day Waiting Period, you are Involuntary Unemployed for a further three months. We pay a total of $7,500 (i.e. a limit of $7,500 applies for all claims). For the purposes of this cover, you are Involuntary Unemployed if, after the cover starts: you are an employee (i.e. a person working for salary, wages or commission), and the role that you were performing is no longer required by your employer and your employment ends; or you are self-employed or in a partnership and your business stops operating due to actual or imminent insolvency or business factors beyond your reasonable control. 5

8 Who can apply? You can apply if you are: aged from 18 to 59 years; applying for, or have, a Home Loan for a residential or investment property home in Australia; and ordinarily a resident of Australia or New Zealand. Also, to apply for Repayment Cover you must be working at least 20 hours per week in continuous and regular employment (including self-employment or in a partnership). Continuous and regular employment means that for at least six (6) months immediately prior to your policy start date, you have been working consistently for financial gain in a position that is not seasonal, temporary or under a fixed-term nonrenewable contract. A Home Loan means a residential or investment property home loan which you applied for with St.George Bank, BankSA, or Bank of Melbourne. Joint Policy Where there are two (2) borrowers on a Home Loan, you can choose to cover just one (1) borrower or both borrowers. Where there are two (2) borrowers listed as Insured Persons, this is referred to as a Joint Policy. Both borrowers must be listed as mortgagees on the Home Loan. Each Insured Person can choose the same level of cover, however the Sum Insured for the Life Cover benefit must be the lesser of $750,000 or the amount of the approved Home Loan. Example 1: You and your partner apply for a Home Loan for $400,000. You both select a Life Cover benefit of $400,000 and Repayment Cover of $2,500. Alternatively, each Insured Person can select a different Sum Insured amount as in the example below. Example 2: You and your partner apply for a Home Loan for $400,000. You select a Life Cover benefit of $400,000 and Repayment Cover of $2,500 and your partner selects a Life Cover benefit of $200,000 and Repayment Cover of $1,200. Where there are two (2) Insured Persons, one (1) Life Cover benefit is payable under the policy. To read about the way the benefits are paid, see section How will we pay the benefit on pages

9 $ Premiums Premiums are payable once the cover has commenced. Premiums for Home Loan Protection are charged either monthly or annually and payment can be made by bank account or credit card debit acceptable to us. In addition to the premium, we may recover other charges that we incur for direct debit payments that you make. WHAT HAPPENS IF YOUR PREMIUM IS NOT PAID? If you do not pay your premium by the due date, we may cancel your policy by giving you 30 days written notice of cancellation. HOW IS THE PREMIUM CALCULATED? The amount of the premium depends on a number of factors including your age, gender, smoking status, occupation, the type of cover, the Sum Insured, number of applicants, the payment option you select, and other information you provide in your application (such as your state of health). The premium includes stamp duty. Whilst premium rates generally increase with age, any other changes that you make to the policy, such as increasing cover, will also vary the premiums. Your initial premium will be shown on the Policy Schedule. Each year you will receive a policy renewal notice confirming the premiums that apply for the next 12 months. We may increase your premium rates for all Home Loan Protection policies in the same risk category, as determined by us. We will give you 30 days written notice of any premium increase. When does the cover begin and end? Your Home Loan Protection cover will commence from the date when both: your Home Loan has Drawn Down; and we have accepted your application. The commencement date of your policy will be shown in the Policy Schedule. If you apply for Home Loan Protection and your Home Loan does not Draw Down within 90 days from the date we receive your Home Loan Protection application, the policy will not commence. If you still wish to have cover, you will need to re-apply. A Life Cover benefit for an Insured Person ends on the earliest of the following: the date we pay a Life Cover benefit; the date you ask us to cancel a Life Cover benefit. A Recovery Cover benefit for an Insured Person ends on the earliest of the following: the date we pay a Recovery Cover benefit; the date you ask us to cancel a Life Cover benefit. 7

10 When does the cover begin and end? (continued) A Repayment Cover benefit for an Insured Person ends on the earliest of the following: For Disability Cover: the date we pay the maximum total benefit period of 24 months; the date you ask us to cancel a Repayment Cover benefit; the date you cease to be disabled; the date you return to any Gainful Employment. For Involuntary Unemployment Cover: the date we pay the maximum total benefit period of three months; the date we pay the maximum total benefit amount of $7,500; the date you ask us to cancel a Repayment Cover benefit; the date you return to any Gainful Employment. All benefits for an Insured Person end on the earliest of the following: the date we pay a Life Cover benefit in respect of any Insured Person; the first Policy Anniversary after the Insured Person turns 65 years of age; the date you ask us to cancel all benefits for the Insured Person; the date the Home Loan is closed. A Joint Policy - if you ask us to cancel a benefit (or benefits), the benefit (or benefits) end only when both Insured Persons have asked us to cancel the benefit (or benefits). The policy ends on the earliest of the following: the date all benefits end (including because the Home Loan is closed); where there is only one Insured Person the date the Life Cover benefit is paid; where there are two Insured Persons (Joint Policy) the date one Life Cover benefit is paid in respect of one Insured Person or equally split between two Insured Persons; where there is only one Insured Person the first Policy Anniversary after the Insured Person turns 65 years of age; where there are two Insured Persons (Joint Policy) the first Policy Anniversary after the youngest surviving Insured Person turns 65 years of age; where there is only one Insured Person the date you ask us to cancel the policy; where there are two Insured Persons (Joint Policy) the date both Insured Persons ask us to cancel the policy where you do not pay your premiums by the due date - the date we cancel your policy. When the policy ends we will write to you to confirm this. 8

11 Making changes to your cover You can apply to increase or decrease your cover at any time by notifying us in writing. Our address is St.George Life, Locked Bag 1, Kogarah NSW Increasing your cover includes: increasing your Sum Insured on either the Life Cover or Repayment Cover benefit; and adding either the Life Cover or Repayment Cover benefits to your policy. You can increase the Life Cover benefit on your Home Loan Protection policy up to the lesser of $750,000 or the balance of your approved Home Loan at the time of your application to increase. You can also increase the Repayment Cover benefit on your Home Loan Protection policy up to the lesser of $7,500 or the repayments on your approved Home Loan at the time of your application to increase. You may also remove or add an Insured Person to your policy up to a maximum of two (2) Insured Persons per policy provided you are both mortgagees on the Home Loan. For a Joint Policy, both Insured Persons need to request changes to their Home Loan Protection policy in a manner acceptable to us. Once we accept your application to change cover in writing, the change will take effect on the next premium due date for Insured Persons paying monthly. If you are paying annually, the premium will be adjusted for the remaining period until your next Policy Anniversary. Making a claim To make a claim, call us on am to 5pm (Sydney time), Monday to Friday, and ask for a claim form. Then complete the form and return together with, and not limited to, the following documents (at your cost): death claim proof of death, identity and age; Terminal Illness claim a report from a Medical Practitioner acceptable to us confirming that you first suffered, or were first diagnosed with, a Terminal Illness (see page 18 for definition) during the period of insurance; Recovery Cover claim a report from a Medical Practitioner acceptable to us with medical evidence confirming that you first suffered, or were first diagnosed with, a Covered Medical Condition during the period of insurance; Disability Cover claim a report from a Medical Practitioner acceptable to us confirming that you are disabled (see Disability Cover benefit section on page 4); Involuntary Unemployment Cover claim proof that you commenced Involuntary Unemployment; and proof that you are registered with Centrelink (or another organisation approved by us) as looking for work. If you were self-employed or in a partnership, the required proof includes a letter from your accountant giving details of your business ceasing to operate. We may require you to provide further information or documentation about the claim (at your cost). We may require reports from treating doctors and hospitals and we may require you to have a medical examination. We will pay for any additional reports and examinations that we require. To assess a claim we may need to disclose information about your claim to the Medical Practitioner. It s a condition of making a claim that you agree to the necessary collection and disclosure of your personal information, including health and medical information. We aim to assess all claims in a timely manner. However, we rely on you to provide the information required within six (6) months or as soon as possible after the occurrence of the event giving rise to a claim. 9

12 SOME SITUATIONS ARE NOT COVERED (EXCLUSIONS) We will not pay any claim for, or connected with: Life Cover suicide or attempted suicide in the first 13 months after the cover start date, or any increase in the cover but only in respect of the increase; Recovery Cover any condition for which you were treated or diagnosed or showed Symptoms, which would cause a reasonable person to seek medical advice in the first 90 days after the cover starts. However, this does not include any condition which has been disclosed to us in the application for insurance and which we have agreed to cover; Disability Cover the first 30 days of any period of disability (i.e. the Waiting Period); deliberately self-inflicted injury; your taking part in professional motor racing, scuba diving or aviation (other than as a fare-paying passenger); and childbirth, abortion or pregnancy; Involuntary Unemployment Cover the first 30 days of any period of Involuntary Unemployment (i.e. the Waiting Period); unemployment that you were aware of prior to the cover start date, or that occurs in the first 90 days after the cover begins; termination during your probation period; termination due to serious or wilful misconduct or poor performance; the ending of your apprenticeship; the ending or non-renewal of a fixed-term contract; or resignation, voluntary redundancy or retirement. HOW WILL WE PAY THE BENEFIT? We will pay all Life Cover and Repayment Cover benefits directly into your Home Loan account (which reduces the balance of your Home Loan). Example 1: You have a Life Cover benefit of $300,000. At the time of your death the outstanding balance of your Home Loan is $300,000. We pay $300,000 to your Home Loan and the policy ends. Life Cover where the Sum Insured exceeds the Home Loan balance Where you are the only Insured Person, if the Sum Insured exceeds the Home Loan balance, we will pay the remaining Sum Insured: to you in the case of Terminal Illness; or to your estate if you die. Example 2: You have a Life Cover benefit of $500,000. At the time you are diagnosed as being Terminally Ill the outstanding balance of your Home Loan has reduced to $300,000. We pay $300,000 to your Home Loan, the remaining $200,000 to you and the policy ends. 10

13 Life Cover where the Sum Insured exceeds the Home Loan balance (continued) If you have a Joint Policy, and the Sum Insured exceeds the Home Loan balance, we will pay the remaining Sum Insured: to you in the case of Terminal Illness; to the surviving Insured Person if you die. Example 3: You have a Life Cover benefit of $600,000 on a Joint Policy. At the time of your death the outstanding balance of your Home Loan has reduced to $400,000. We pay $400,000 to your Home Loan and the remaining $200,000 to the surviving Insured Person. No further benefits can be claimed by the surviving Insured Person and the policy ends. If you have a Joint Policy and both Insured Persons die as a result of the same accident, and each Insured Person has the same Sum Insured, only one Life Cover benefit is payable. We will pay the Life Cover benefit into the Home Loan account and equal proportions of any remaining Sum Insured into each Insured Person s estate. Example 4: You and your partner have a Home Loan with an outstanding balance of $200,000 and you each have a Life Cover benefit of $400,000. You both die in the same car accident and a total benefit of $400,000 is payable on the policy. We will pay $200,000 to the Home Loan. The remaining $200,000 will be paid in equal proportions into each of you and your partner s individual estates and the policy ends. If you have a Joint Policy and both Insured Persons die as a result of the same accident, and each Insured Person has a different Sum Insured, the higher of the two Life Cover Sum Insured is payable. If the higher Sum Insured exceeds the Home Loan balance, the remaining monies will be paid in equal proportions into each Insured Person s estate. Example 5: You and your partner have a Home Loan with an outstanding balance of $200,000. You have a Life Cover Sum Insured of $400,000. Your partner has a Life Cover Sum Insured of $200,000. You both die in the same car accident. A total benefit of $400,000 is payable on the policy. We will pay $200,000 to the Home Loan. The remaining $200,000 will be paid in equal proportions into each of you and your partner s individual estates and the policy ends. When the Life Cover benefit is paid, all benefits for the Insured Person under the policy cease. Repayment Cover The Repayment Cover benefit is paid into your Home Loan account. When the Home Loan balance is paid out, benefit payments cease. Example 6: You have a Repayment Cover benefit of $2,000 per month. After a 30-day Waiting Period, you are disabled for a further 18 months. However, 10 months after the 30-day Waiting Period ends, your Home Loan is fully paid off. We will make 10 monthly payments of $2,000 to your Home Loan account and then the benefit payments will cease. Repayment Cover ends when your Home Loan is fully repaid. 11

14 HOW WILL WE PAY THE BENEFIT? Policy type (single / joint) Loan & benefit description Event Loan balance How is benefit paid Insurance cover after event Example 1. Single Policy You select a Life Cover benefit = $300k You pass away Loan balance = $300k Pay $300k to loan account Policy ends when the Life Cover benefit is paid Example 2. Single Policy You select a Life Cover benefit = $500k You are diagnosed as Terminally Ill Loan balance = $300k Pay $300k to loan account Pay remaining $200k to you Policy ends when the Life Cover benefit is paid Example 3. Joint Policy You & your partner select a Life Cover benefit = $600k You pass away Loan balance = $400k Pay $400k to loan account Pay remaining $200k to your surviving partner One Life Cover benefit is payable so the policy ends Example 4. Joint Policy You & your partner select a Life Cover benefit = $400k You both die in an accident together Loan balance = $200k Pay $200k to loan account Pay remaining $200k split equally to you & your partner s estates Total of $400k is paid One Life Cover benefit is payable so the policy ends Example 5. Joint Policy You select a Life Cover benefit = $400k Your partner selects a Life Cover benefit = $200k You both die in an accident together Loan balance = $200k Pay $200k to loan account Pay remaining $200k split equally to you & your partner s estates Total of $400k is paid (i.e. higher Sum Insured amount) One Life Cover benefit is payable so the policy ends Example 6. Single Policy You select a Repayment Cover benefit = $2,000 per month After a 30- day Waiting Period you are disabled for a further 18 months Your loan is paid out 10 months after the 30-day Waiting Period Pay 10 monthly payments of $2,000 to loan account, the payments cease Repayment Cover ends when your Home Loan is fully repaid 12

15 Other information CANCELLING THE POLICY During the cooling-off period After we issue your Policy Schedule, you have 30 days from the date cover commences, to check that the policy meets your needs. This is known as the cooling-off period. If you are not satisfied within the cooling-off period, you can cancel the policy by calling us on am to 5pm (Sydney time), Monday to Friday, or by writing to us at St.George Life, Locked Bag 1, Kogarah NSW Any premium paid will be refunded in full, less any stamp duty. However, your cooling-off right does not apply if you have made a claim. After the cooling-off period You may cancel the policy at any time by notifying us in writing. You will not be entitled to a full refund. What happens if my Home Loan doesn t proceed? If your Home Loan application is not Drawn Down within 90 days from the date we receive your Home Loan Protection application, your Home Loan Protection policy will not commence. When your Home Loan is closed If the Home Loan is closed this policy ends. We will write to you to confirm this. See the section When does the cover begin and end? on pages 7 8. DUTY OF DISCLOSURE Your Duty of Disclosure You have a duty, under the Insurance Contracts Act 1984, to tell us every matter that you know, or could reasonably be expected to know, is relevant to our decision whether to insure you and, if so, on what terms. The Duty of Disclosure applies before you enter into, extend, vary or reinstate a policy, and applies until the time when we issue a Policy Schedule or other written confirmation of the issue, extension, variation or reinstatement. If any information provided to us changes (including any change to your health, occupation or pastimes) before we send the Policy Schedule or other written confirmation of cover to you, you must tell us. The duty does not require disclosure of any matter: that diminishes the risk to be undertaken; or that is of common knowledge; or that we know or, in the ordinary course of our business, ought to know; or as to which compliance with your duty is waived by us. Non-disclosure If you fail to comply with your duty and we would not have entered into the policy if the failure had not occurred, we may: vary the policy to reduce the Sum Insured or to reflect the terms that would have applied if you had complied with your duty; or treat the policy as never having existed if it is within three (3) years of entering into the policy or your non-disclosure was fraudulent. 13

16 PRIVACY In this section we refers to St.George Life, St.George Bank, Westpac and its related bodies corporate as defined in the Corporations Act 2001 (Cth). Why we collect your personal information We collect personal information from you to process your application, provide you with your product or service, calculate your premium, assess any claims made by you and manage your product or service. We may also use your information to comply with legislative or regulatory requirements in any jurisdiction, prevent fraud, crime or other activity that may cause harm in relation to our products or services, and help us run our business. We may also use your information to tell you about products or services we think may interest you. If you do not provide all the information we request, we may need to reject your application or claim, or we may no longer be able to provide a product or service to you. Disclosing your personal information We may disclose your personal information to other members of the Westpac Group* and its reinsurers, anyone we engage to do something on our behalf such as a service provider, and other organisations that assist us with our business. We may disclose your personal information to an entity which is located outside Australia. Details of the countries where the overseas recipients are likely to be located are in the Westpac Privacy Policy. As a provider of financial services, we have obligations to disclose some personal information to government agencies and regulators in Australia, and in some cases offshore. We are not able to ensure that foreign government agencies or regulators will comply with Australian privacy laws, although they may have their own privacy laws. By using our products or services, you consent to these disclosures. Other important information We are authorised to collect personal information from you by certain laws. Details of these laws are in the St.George Privacy Policy. The St.George Privacy Policy is available online at: (search for Privacy ) or by calling It covers: how you can access the personal information we hold about you and ask for it to be corrected; how you may complain about a breach of the Australian Privacy Principles, or a registered privacy code and how we will deal with your complaint; how we collect, hold, use and disclose your personal information in more detail. The St.George Privacy Policy will be updated from time to time. Where you have provided information about another individual, you must make them aware of that fact and the contents of this Privacy Statement. We will use your personal information to contact you or send you information about other products and services offered by the Westpac Group* or its preferred suppliers. If you do not wish to receive marketing communications from us please call us on or visit any of our branches. *The Westpac Group means Westpac Banking Corporation and its related corporate bodies. 14

17 REMUNERATION St.George Bank and its agents may receive up to 20% of premiums from us for providing information and support in the sale of Home Loan Protection. St.George Bank may pay referrers or aggregators (such as mortgage brokers) remuneration of up to 20% of premiums for providing information and support in the sale of Home Loan Protection. The remuneration payable is paid by us out of the premium we receive and is not an additional cost to you. When a representative of St.George Bank provides information on Home Loan Protection and you decide to apply for the insurance, he or she may benefit indirectly because these applications play a part in their overall performance. Good overall performance on their part can qualify them for bonus payments. Any such bonus payments are not an additional cost to you. TAX IMPLICATIONS Generally, the premium is not tax deductible and the policy benefits are not assessable either as ordinary income or as a capital gain to you. This statement reflects our view of the taxation law in its present form. You should check your own tax situation with your accountant or taxation adviser. THIS POLICY HAS NO CASH VALUE This is not a savings plan. This product does not allow you to share in any profit or surplus and your policy does not have a surrender or cash value. WHERE WE PUT YOUR MONEY We pay your premiums into a statutory fund called the St.George Life Limited Statutory Fund Number 1, and benefits under your policy are paid out from that fund. The Life Insurance Act 1995 (Cth) contains rules designed to protect the money in the fund. RELEVANT LAW This policy is governed by the laws of Australia. CURRENCY All dollar ($) amounts referred to are in Australian currency. Claims and premiums are payable in Australian dollars. NO ASSIGNMENT The policy is not capable of assignment without our prior written consent. FUTURE IMPROVEMENTS If we improve the Home Loan Protection policy terms in future we may add these improvements to your policy. We will give you 30 days written notice of any improvements to your policy. 15

18 Enquiries and complaints We are always striving to provide our customers with the best possible service, so we will do our best to resolve any complaint that you have quickly and fairly. If you have a complaint about anything related to this Home Loan Protection policy, here s what you should do. STEP 1 We ask that you first contact one of our consultants on between 9am to 5pm (Sydney time), Monday to Friday, to discuss your complaint. If our consultant is unable to resolve the matter, they will refer it to a Senior Officer or Manager. The Senior Officer or Manager will acknowledge your complaint within two (2) business days and try to resolve your complaint within 15 business days. However, if we consider that further information, assessment or investigation of the complaint is required, we will agree reasonable alternative timeframes with you. STEP 2 If you are still not satisfied after the Senior Officer or Manager has investigated the issue, you may ask for us to refer the dispute to our Internal Dispute Resolution Officer. The Internal Dispute Resolution Officer s contact details are: Internal Dispute Resolution Officer St.George Life Locked Bag 1 Kogarah NSW 1485 Phone The Internal Dispute Resolution Officer will provide you with a response within 15 business days. With both steps 1 and 2, we will do our best to resolve your complaint quickly and fairly. However, in cases where further information, assessment or investigation is required, we will agree reasonable alternative timeframes with you. STEP 3 If 45 days have passed since you first told us about your complaint and you haven t heard back from us, or if you are not satisfied with the decision made, or we cannot otherwise reach an agreement, you can refer your dispute to the Financial Ombudsman Service. This is a free independent dispute resolution service for customers who have a general insurance dispute. The Financial Ombudsman Service s contact details are: Financial Ombudsman Service Address GPO Box 3, Melbourne VIC 3001 Phone Fax (03) info@fos.org.au Website 16

19 Definitions In this PDS, the following definitions apply. Cancer means a malignant tumour pathologically confirmed and characterised by the uncontrolled spread of malignant cells and the invasion of normal tissue. Also included are Hodgkin s disease, lymphoma, colorectal cancer (from Dukes stage A) and leukaemia. The following are specifically excluded: a. all skin cancers except: metastatic squamous cell carcinomas; and melanomas of 1.0 millimetre or more Breslow thickness, or Clark Level 3 or more depth of invasion, or with evidence of ulceration; b. all tumours which are histologically described as microcarcinoma, pre-malignant or showing the malignant changes of carcinoma in situ, including cervical dysplasia rated as CIN 1, 2 or 3; Carcinoma in situ of the breast is not excluded if it results directly in: the removal of the entire breast. This procedure must be performed specifically to arrest the spread of malignancy and be considered the appropriate and necessary treatment; or breast conserving surgery and adjuvant therapy (such as radiotherapy and/or chemotherapy). The surgery and treatment must be undertaken specifically to arrest the spread of malignancy, and be considered the appropriate and necessary treatment as confirmed by an appropriate specialist doctor acceptable to us. Chemotherapy means the use of drugs as prescribed by an appropriate specialist doctor specifically designed to kill or destroy cancer cells; c. chronic lymphocytic leukaemia (less than RAI stage 1); and d. prostatic tumours which are histologically described as TNM classification T1 (including T1a,T1b and T1c), or characterised by Gleason Score of less than 6, or are of another equivalent or lesser classification. Prostate cancer is covered if it results directly in total prostatectomy. This procedure must be performed specifically to arrest the spread of malignancy and be considered the appropriate and necessary treatment. Coronary Artery Bypass Surgery means the use of bypass graft(s) to one (1) or more coronary arteries for treatment of coronary artery disease. The surgery must be the most appropriate treatment for the disease. All non-surgical procedures such as angioplasty, laser or other intra-arterial techniques are excluded. Covered Medical Condition means: Cancer; Coronary Artery Bypass Surgery; Heart Attack; Open Heart Surgery; and Stroke. Drawn Down (or Draw Down) means your Home Loan is Drawn Down on the date on which funds are first released from your Home Loan to fund the purchase of your residential or investment property home. Gainful Employment means: for employees, a person is working for salary, wages or commission; for self-employed, a person is working in a business or professional practice and as a result of their personal exertion is generating an income from the business or professional practice. Heart Attack means death of heart muscle caused by inadequate blood supply, evidenced by typical rise and/or fall of cardiac biomarker blood tests with at least one (1) of the following: a. acute cardiac symptoms and signs consistent with a heart attack, b. new serial electrocardiograph changes associated with myocardial infarction, or c. imaging evidence of new loss of viable myocardium or new regional wall motion abnormality. 17

20 Heart Attack (continued) If the above tests are inconclusive or superseded by technological advances, we will consider other appropriate and medically recognised tests in support of a diagnosis. Events which meet the above criteria which are diagnosed as lesser acute coronary syndromes, including unstable angina, angina pectoris, myocite necrosis classified as microinfarction, and acute coronary insufficiency are excluded as part of this definition. An elective percutaneous procedure for coronary artery disease, which is the sole cause of a rise in cardiac biomarkers, is also specifically excluded under this definition. Home Loan means a residential or investment property home loan for which you have applied with St.George Bank, BankSA, or Bank of Melbourne. Illness means sickness or disability which first shows Symptoms after the cover starts. Injury means bodily injury caused solely by an accident which happens by chance after the cover starts. Insured Person(s) means the person (or persons) whose life is insured under this policy and is the person who has the rights and control to apply to change, cancel or extend this policy. (For a Joint Policy, both Insured Persons need to request the change, cancellation or extension of the policy in a manner acceptable to us.) Involuntary Unemployment (or Involuntary Unemployed) means: you are an employee (i.e. a person working for salary, wages or commission), and the role that you were performing is no longer required by your employer and your employment ends; or you are self-employed or in a partnership and your business stops operating due to actual or imminent insolvency or business factors beyond your reasonable control. Joint Policy means a policy where two (2) individuals who are listed as borrowers on a Home Loan, are also Insured Persons on a Home Loan Protection policy (or policies). Medical Practitioner means a person qualified and registered to practise medicine (other than you or members of your immediate family). Open Heart Surgery means open chest surgery for the surgical treatment of a cardiac defect, cardiac aneurysm or cardiac tumour. PDS means Product Disclosure Statement including policy terms. Policy Anniversary means the anniversary each year of the policy s commencement date. Policy Schedule means the most recent document that we issue to you which details the choices of cover you have made along with the Sum Insured. Sum Insured means the amount that has been agreed to be covered, as shown in the Policy Schedule, under this policy. Symptom means a departure from normal function or feeling which is noticed by the Insured Person, indicating the potential presence of Illness or other abnormality. The symptom is taken to have existed when first noticed by the Insured Person. Stroke means any cerebrovascular accident (CVA) or incident resulting in neurological deficit. The stroke must be: a. confirmed by a consultant neurologist; and b. evidenced by neuro-imaging (eg. CT, MRI or similar scanning technique). Cerebral events with reversible neurological deficits, migraine, hypoxic events, trauma, and neurovascular disease affecting the eye or vestibular functions are excluded. Terminal Illness means you have been diagnosed as having a life expectancy of less than 12 months, as confirmed by a registered Medical Practitioner approved by us. Waiting Period means the minimum period of time which must elapse before any benefit entitlement under Repayment Cover may accrue. you and your means each person named as an Insured Person in the application, who we agree to insure; and we, our and us refer to St.George Life, except where otherwise indicated. 18

21 Application for Home Loan Protection ONLY COMPLETE THIS APPLICATION IF YOU ARE PAYING MONTHLY PREMIUMS Home loan application or account number POLICY DETAILS A premium quote can be obtained from St.George Life by calling select option 3, 8am to 8pm (Sydney time), Monday to Friday. 1st Insured Person Life Cover Sum Insured $ Premium $ per month Repayment Cover Sum Insured $ Premium $ per month 2nd Insured Person Life Cover Sum Insured $ Premium $ per month Repayment Cover Sum Insured $ Premium $ per month Note: If you have a birthday prior to the application being accepted, any policy issued will be based on the premium rates for your age at the time of acceptance. 1ST INSURED PERSONS DETAILS Title Given names (in full) Surname Home address Postcode Home Phone Work Phone Mobile When assessing your application, we may phone you if we need more information to understand your situation. Please indicate which phone number above is your best contact Home Work Mobile Convenient times Monday to Friday, 9am to 5pm or from am/pm to am/pm Address Mon Tue Wed Thu Fri 1

22 2ND INSURED PERSONS DETAILS Title Given names (in full) Surname Home address Postcode Home Phone Work Phone Mobile When assessing your application, we may phone you if we need more information to understand your situation. Please indicate which phone number above is your best contact Home Work Mobile Convenient times Monday to Friday, 9am to 5pm or from am/pm to am/pm Address Mon Tue Wed Thu Fri DUTY OF DISCLOSURE Your duty of disclosure You have a duty, under the Insurance Contracts Act 1984, to tell us every matter that you know, or could reasonably be expected to know, is relevant to our decision whether to insure you and, if so, on what terms. The duty of disclosure applies before you enter into, extend, vary or reinstate a policy, and applies until the time when we issue a policy schedule or other written confirmation of the issue, extension, variation or reinstatement. If any information provided to us changes (including any change to your health, occupation or pastimes) before we send the policy schedule or other written confirmation of cover to you, you must tell us. The duty does not require disclosure of any matter: that diminishes the risk to be undertaken; or that is of common knowledge; or that we know or, in the ordinary course of our business, ought to know; or as to which compliance with your duty is waived by us. Non-disclosure If you fail to comply with your duty and we would not have entered into the policy if the failure had not occurred, we may: vary the policy to reduce the sum insured or to reflect the terms that would have applied if you had complied with your duty; or treat the policy as never having existed if it is within 3 years of entering into the policy or your non-disclosure was fraudulent. 1ST INSURED PERSONS DETAILS (CONTINUED) Date of birth Gender Male Marital Status Single / / Female Married/De facto Have you smoked or used a tobacco product (including cigarettes and nicotine replacement therapy) in the last 12 months? No If Yes, please advise what type (e.g. cigarettes) and average amount smoked per day Yes Please advise your: Height (cm) Weight (kg) Occupation 2

23 2ND INSURED PERSONS DETAILS (CONTINUED) Date of birth Gender Male Marital Status Single / / Female Married/De facto Have you smoked or used a tobacco product (including cigarettes and nicotine replacement therapy) in the last 12 months? No If Yes, please advise what type (e.g. cigarettes) and average amount smoked per day Yes Please advise your: Height (cm) Weight (kg) Occupation FURTHER DETAILS 1st Insured Person 2nd Insured Person 1 Are you working 20 or more hours per week in continuous and regular employment? 2 Have you ever had high blood pressure, high cholesterol, diabetes, epilepsy, alcohol or drug related problems or any mental or nervous condition? If Yes, please provide details in the table below: 3 Have you ever suffered from any disease or disorder of the heart (including chest pain), circulatory system (including stroke), kidney, bladder, lung, liver (including hepatitis), stomach, bowel or cancer of any kind? If Yes, please provide details in the table below: 4 Have you ever had arthritis or any back, neck, joint or muscle disorder that: you have had symptoms from or required any treatment for in the last 2 years; or required surgery; or requires any ongoing or future treatment? If Yes, please provide details in the table below: 5 Are you infected with, or do you have any increased risk of exposure* to, the Human Immunodeficiency Virus (HIV), Hepatitis B or Hepatitis C? If Yes, a confidential lifestyle questionnaire will be sent to you to be completed. *Increased risk of exposure may include, but is not limited to, in the last 3 years: Sex with a person who injects non-prescribed drugs, with a sex worker, or with someone you know or suspect to be HIV, Hepatitis B or Hepatitis C positive; or unprotected anal sex (except in a relationship where neither of you have had sex with anyone else in the last 3 years). 6 Do you have any other medical condition requiring ongoing treatment or do you contemplate seeking any medical examination, advice or treatment, including surgery, for anything not already disclosed (excluding minor complaints such as flu and colds)? If Yes, please provide details in the table below: Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Question number (2,3,4,6) Insured Persons 1 or 2 Condition, illness or injury Dates from to Length and type of treatment Time off work Degree of recovery Name/address of doctor attended If you require more space to provide your answers, please use the additional information section over the page. 3