1 ADVISER USE ONLY Dominion insurance solutions
2 About Dominion your leading platform solution The Dominion wrap platform is a comprehensive wrap administration service across superannuation, retirement and investment that allows you to efficiently tailor a wealth creation solution for your clients. You can transact, record and report on a diverse range of investments within superannuation, pension service and non-super investment portfolios. Dominion also allows you to conveniently package together investments, such as direct shares, managed funds, property trusts and term deposits, to provide a seamless solution for you and your clients. With Dominion, the hard work is done, allowing you more time for new business and client service. About OnePath OnePath is one of Australia s leading providers of wealth, insurance and advice solutions. OnePath have been helping Australians grow and protect their wealth for over 130 years, previously as Mercantile Mutual and more recently as ING Australia. Now as a wholly owned subsidiary of Australia and New Zealand Banking Group Limited (ANZ), OnePath operates as ANZ s Australian specialist wealth management and protection business. ANZ is a leading global and local bank with operations in more than 32 countries including Australia, New Zealand, Asia, the Pacific, the Middle East, Europe and America. ANZ provides products and services to more than 5.7 million retail customers worldwide and employs over 39,000 people. OnePath has a comprehensive range of wealth and insurance products available through financial advisers or direct to customers making it easier to find the solution that best suits client s needs. About Oasis Asset Management Dominion s administrator, Oasis Asset Management (Oasis) is a specialist wholesale platform provider and integral to OnePath. Oasis offers a complete range of customised platform services for securities dealers, financial advisers and investors. Their focus is on delivering quality platform administration, excellent client service and market leading front office software with integrated risk management.
3 Contents The insurance opportunity 2 Tax benefits of choosing insurance through super 3 Dominion's insurance offering 4 Applying for insurance 7 Medical requirements 8 Key product features 10 Premium deductions 12 Adviser remuneration options 12 1
4 The insurance opportunity According to a recent study*, the majority of Australians perceive life insurance as expensive, complicated and difficult to talk about. This results in many people delaying the decision to obtain life insurance, often indefinitely. However, insurance should be considered an essential element of a client s overall financial planning strategy. In fact, statistics reveal that: 88% of people interviewed feel life insurance is the best way to protect themselves and their assets 79% agreed life insurance is the best way to ensure their family is provided for if something happens to them 53% felt it s too risky not to have life insurance. * This is based on research conducted by Galileo Kaleidoscope from August to October 2008 for OnePath. Talking to clients about insurance By recommending insurance, you are helping your clients protect the wealth they ve worked hard to accumulate. During the fact-find stage, it is important to discuss with clients whether they would be able to meet their financial obligations, should something happen to the primary income earner. Some questions you could ask: How many people depend on you financially? Do you have an estate plan in place? What liabilities would you wish to discharge? What level of income would your family require in your absence? If you were unable to work for a substantial period of time, how would your family meet their day-to-day and ongoing living expenses? Dominion offers you access to award-winning insurance solutions allowing you to offer your clients a range of cover options that can be funded through super. These cover options include: Group Insurance Cover OneCare Insurance Cover To find out more about Dominion s leading insurance features please refer to page 4 of this guide. A valuable source of revenue for your business Insurance represents an opportunity to diversify your income stream and position your advisory business for growth. The following table shows the potential value that insurance through Dominion can add to your business. Potential revenue from insurance through Dominion* New Super Wrap accounts written ,000 New Group Insurance policies written Commission on Group Insurance 22.5% 22.5% 22.5% 22.5% New OneCare Insurance policies written Commission on OneCare Insurance 32% 32% 32% 32% Commission (indexed) p.a. $9,669 $22,759 $50,435 $98,780 * Commission figures shown are based on a Level commission, include GST and assume 85% of your Super Wrap clients take up insurance, with an average premium of $440 p.a. 2
5 Tax benefits of choosing insurance through super By choosing to fund insurance through superannuation, your clients are able to pay their insurance premiums tax-effectively from their cash account balance. Not only does this usually reduce the effective cost of your clients cover, it represents a convenient way to manage their premiums. Of course, your clients may continue to make additional taxeffective contributions to top-up their super including: pre-tax salary sacrifice contributions personal contributions spouse contributions Benefits of insurance through super Premiums paid through super will generally be tax deductible to the super fund and can reduce the tax paid on contributions Clients can access Death/Life Cover, Total and Permanent Disability (TPD) Cover and Income Protection Cover Clients dependants can receive tax-free lump sum death benefits Premiums are drawn from your clients cash account balances, reducing the risk of cover lapsing Clients receive greater cash flow flexibility by funding premiums from their super, rather than their direct income There is the ability to potentially fund a higher level of cover due to increased purchasing power through super Case study tax effectiveness of insurance through super Cameron, age 45, draws a salary of $100,000 per annum from his sign writing business, which he runs through a corporate entity. Cameron wants to be able to provide financial security for his wife in the event of his death. With the help of his financial adviser, he estimates he will need $1.2 million in combined Death and TPD Cover. Cameron s adviser suggests he obtain the benefits of this insurance through the Dominion Superannuation Master Trust. As Cameron names his wife as his dependant, she would receive this benefit tax-free in the event of his death*. His premiums are $2,000 per annum. Let s have a look at the savings Cameron can receive if he chooses to fund his insurance premiums inside super using his pre-tax salary: Outside super Inside super Premiums owed $2,000 $2,000 Amount of pre-tax income required $3,252 $2,000 Tax paid $1,252 $0 # Savings $0 $1,252 Cameron s sign writing business is left an additional $1,252 pre-tax because the tax on contributions into his super account is offset by a tax deduction for the premium (effectively meaning no contributions tax is paid). These tax savings could be paid as salary, which would put an extra $770 in Cameron s pocket after tax. Alternatively, he could take the amount as a super contribution, which would add an extra $1,064 in his super fund after contributions tax. Note that the figures used above are for illustrative purposes only. Your situation may differ depending on your marginal tax rates and we recommend that you seek independent tax advice for your personal circumstances. * This example is for illustrative purposes only and the outcomes would be different if non-dependants under tax or superannuation law were to receive part or all of the super death benefit proceeds. # $0 tax only applies if the super fund is able to claim a full tax deduction for premiums paid. 3
6 Dominion s insurance offering Dominion offers a range of insurance cover options through the Dominion Superannuation Master Trust including: Group Insurance Group Insurance, held in the Dominion Superannuation Master Trust, provides unlimited Death, up to $3 million in TPD Cover and up to $25,000 per month in GSC Cover for new and existing clients. OneCare External Master Trust Insurance OneCare External Master Trust Insurance offers your clients a comprehensive insurance solution that includes access to Income Secure Cover, unlimited Life Cover, up to $5 million in TPD Cover and Extra Care Cover. Insurance cover options The Dominion Superannuation Master Trust has a broad range of insurance cover options for you to develop a comprehensive protection package for your clients. Below are the available options: Death / Life Cover Group Insurance OneCare External Master Trust Insurance Minimum and maximum entry age Age next birthday 16 to 75 Age 15 to 74 No minimum Product parameters Minimum and maximum sum insured No maximum Terminal illness limit: $2,500,000 (with any balance payable on death) Minimum $50,000 No maximum Death benefit (includes terminal illness benefit) Optional TPD Cover Terminal illness benefit Built-in benefits and features Indexation If elected by member Stepped premium option Level premium option Future insurability Premium freeze* * This feature allows your clients to freeze their premium (partially or fully) so that it does not increase in future years. 4
7 Total and Permanent Disablement (TPD) Cover Group Insurance Minimum and maximum entry age Age next birthday 16 to 70 OneCare External Master Trust Insurance Age 15 to 60 *,# Age 15 to 74 (non-working) # Minimum and maximum sum insured No minimum Maximum $3 million Minimum $50,000 Maximum $5 million Product parameters TPD Definition: Working TPD Definition: Non-working (working less than 15 hours per week) Working more than 15 hours per week Unlikely to return to work Permanent impairment Specific loss Loss of independent existence Cognitive loss Unlikely to return to homemaking duties Permanent impairment Specific loss Loss of independent existence Cognitive loss Working more than 10 hours per week Unable to return to any/own/homemaker occupation Permanent impairment Loss of limbs and/or sight Loss of independent existence Cognitive loss Loss of limbs and/or sight Loss of independent existence Cognitive loss Non-working definition Own or similar any occupation definition Own occupation definition Homemaker definition Included in non-working definition Non-working definition Stand alone TPD available Stepped premium option Built-in benefits and features Level premium option Premium freeze Indexation If elected by member Future insurability * Any occupation, own occupation and home maker # Stepped premium for level premium, aged 15 to 60 for all TPD definitions 5
8 Income Protection Cover Group Insurance OneCare External Master Trust Insurance Cover type Group Salary Continuance Cover Income Secure Standard or Income Secure Special Risk Minimum and maximum entry age Age next birthday: 16 to age 65 (to age 65 benefit period) to age 70 (2 year benefit period) Age 19 to 60 Product parameters Provides core income protection for those who are unable to work due to illness or injury Minimum and maximum sum insured No minimum up to $25,000 per month $1,250 $60,000 per month* Percentage insured 75% plus up to 10% for continuing SGC 75% plus 5% if priority income option is elected Minimum work hours Working full time or part time for more than 15 hours per week White collar 20 hours per week Blue collar 30 hours per week Waiting period options 30 days, 60 days, 90 days 14 days #, 30 days, 60 days, 90 days, 180 days, 1 year and 2 years Built-in benefits and features Benefit period options 2 years and to age 65 2 years and 6 years to age 50 #, 55 #, 60 #, 65 #, 70 # Stepped premium option Level premium option Premium waiver option Stand alone cover option Basic death benefit No claim benefit Rehabilitation and retraining benefit Conversion to living expense cover ## * Amounts insured over $30,000 are limited to a two year benefit period and amounts applied for in excess of $40,000 are subject to a maximum entry age of 54. # Not applicable to Income Secure Special Risk. ## At the expiry of Income Secure Cover a conversion to a separate non-superannuation policy will occur. Full details of the Group Insurance product offering is available in the Dominion Superannuation Master Trust Product Disclosure Statement Part 2 Group Insurance. Full details of the OneCare External Master Trust Insurance product offering is available in the OneCare External Master Trust PDS. 6
9 Applying for insurance The Dominion Superannuation Master Trust provides you with a range of online services to make it faster and easier to provide insurance cover options to your clients. This functionality enables you to submit applications online and manage them through the underwriting process. How to apply for insurance Group Insurance OneCare External Master Trust Insurance Application requirements Application submission method Application tracking For up to $350,000 in cover Short Form Personal Statement For up to $800,000 in cover transferred from another insurer Insurance Transfer Personal Statement form Mail paper-based application form Online via OnePath s RiskWorks online case management system For all applications OneCare personal statement Desktop OneCare Express Mail paper-based application form Online via OnePath s Adviser Advantage Applying for OneCare External Master Trust Insurance via OneCare Express OneCare Express online applications allow you to apply for OneCare External Master Trust Insurance for your clients through your client s account. With an intuitive underwriting rules engine and quicker processing of applications, you can provide cover faster for your clients. Using OneCare Express you can: give eligible clients instant cover with almost 50% of applications generally accepted upon submission complete applications quickly with intuitive questioning that only asks for details that are relevant to your client keep a record of client transactions by saving PDF copies of submitted applications. Applying for Group Insurance via RiskWorks online case management system RiskWorks is an online case management system for monitoring the progress of your client s Group Insurance application. It provides you with greater visibility of the underwriting process and allows outstanding requirements to be managed in real time. Using RiskWorks you can: view the details of your client s applications including their personal statement, the status of any underwriting requirements and the final underwriting decision correspond with underwriters and case managers by viewing and adding notes to applications receive notifications for key events such as additional underwriting requirements or case decisions report on the status of applications in suspense or finalised applications. 7
10 Medical requirements To provide the right protection for your clients needs, your clients may need to undergo medical examinations based on the requested level of cover. Group Life Insurance Insured benefit Ages 16 to 44 Up to $2,500,000 Death Only: $2,500,001 $5,000,000 Death & TPD: $2,500,001 $3,000,000 Death Only: $5,000,001 and above Requirements Personal Statement Personal Statement, Blood Screen (Fasting MBA20, HIV, Hepatitis B&C Serology), MediQuick (Fast Check Medical) and PMAR by usual doctor Individual consideration by the Insurer Ages 45 to 54 Up to $1,000,000 Personal Statement $1,000,001 to $1,250,000 Personal Statement, Blood Screen (Fasting MBA20, HIV, Hepatitis B&C Serology) $1,250,001 to $3,000,000 Death Only $3,000,001 and above Personal Statement, Blood Screen (Fasting MBA20, HIV, Hepatitis B&C Serology), MediQuick (Fast Check Medical) and PMAR by usual doctor Individual consideration by the Insurer Ages 55 and above Up to $750,000 Personal Statement $750,001 to $1,000,000 Personal Statement, Blood Screen (Fasting MBA20, HIV, Hepatitis B&C Serology) $1,000,001 to $2,000,000 Personal Statement, Blood Screen (Fasting MBA20, HIV, Hepatitis B&C Serology), MediQuick (Fast Check Medical) and PMAR by usual doctor $2,000,001 and above Individual consideration by the Insurer Group Salary Continuance Insured benefit Up to $10,000 $10,001 to $25,000 Requirements Personal Statement Personal Statement, Blood Screen (Fasting MBA20, HIV, Hepatitis B&C Serology), MediQuick (Fast Check Medical) and PMAR by usual doctor 8
11 OneCare Insurance Life and TPD Cover Current age MediQuick* HIV Test, Hep B & C Fasting MBA-20 Full Blood Count Exercise ECG PMAR GP medical exam Specialist medical exam $2,500,001 $2,500,001 $2,500,001 $5,000,001 $5,000,001 $2,500,001 $5,000, $1,500,001 $1,500,001 $1,500,001 $5,000,001 $5,000,001 $2,500,001 $3,000,001 $5,000, $1,000,001 $1,000,001 $1,000,001 $5,000,001 $5,000,001 $2,500,001 $3,000,001 $5,000, $500,001 $750,001 $500,001 $5,000,001 $5,000,001 $2,500,001 $3,000,001 $5,000, $250,001 $750,001 $500,001 $5,000,001 $5,000,001 $2,500,001 $3,000,001 $5,000, $100,001 $750,001 $250,001 $5,000,001 $5,000,001 $2,500,001 $3,000,001 $5,000,001 OneCare Insurance Income Secure Cover Current age MediQuick* HIV Test, Hep B & C Fasting MBA-20 PMAR Full Blood Count (including ESR) Microscopic Urinalysis PSA levels / Mammogram results Specialist medical exam Stress Echocardio -gram $10,001 $10,001 $10,001 $15,001 $40,001 $40,001 $40,001 $40, $10,001 $10,001 $10,001 $15,001 $40,001 $40,001 $40,001 $40, $10,001 $10,001 $10,001 $15,001 $40,001 $40,001 $40,001 $40,001 $40, $10,001 $10,001 $10,001 $15,001 $40,001 $40,001 $40,001 $40,001 $40, $10,001 $10,001 $10,001 $15,001 $40,001 $40,001 $40,001 $40,001 $40,001 * MediQuick is a simplified paramedical examination. The life insured completes the Personal Statement themselves and is examined by a paramedical service provider (PSP) at their work place or home. Under MediQuick, the PSP will collect height, weight and blood pressure measurements and conduct a urinalysis. The PSP will also take blood samples if required at the appropriate limits for HIV, Hepatitis B and C, Fasting MBA-20 and Full Blood Count tests. If the life insured would prefer, they can choose to go to their General Practitioner (GP) for these tests. When arranging a MediQuick, it is necessary for all the applicable Personal Statement questions in the OneCare Application Form to be completed. 9
12 Key product features Group Insurance and OneCare External Master Trust Insurance Cover options have been designed with convenience and innovation in mind. Below is an overview of some of the key product features available to you and your clients. Group Insurance Guaranteed insurability The guaranteed insurability option provides cover that keeps up with your clients ever changing lifestyle. These options allow clients to increase their cover by up to $200,000 without further medical underwriting, following certain defined events. The following life events applicable to guaranteed insurability under Group Insurance are: marriage birth or adoption of a new child child commencing secondary school. Interim cover Clients who apply for Death Only Cover, Death and TPD Cover, Group Salary Continuance Cover, or an increase in cover may be provided with interim accident cover while their cover is being assessed, as described in the Dominion Superannuation Master Trust PDS. This interim cover commences from the date that OnePath Life receives your client s application for insurance and continues until the earlier of: the date OnePath Life notifies you in writing that they accept or reject the application for cover 90 days after the date interim cover commences when cover otherwise ends. Where interim cover applies, a benefit is only payable in the event of an accident as defined in the Dominion Superannuation Master Trust Part 2 Group Insurance PDS. Indexation linking To ensure your clients insurance keeps up with the cost of living, they can elect for their Group Insurance Death Only or Death & TPD sum insured to increase annually by the indexation factor. Terminal illness benefit OneCare within the Dominion Superannuation Master Trust provides a terminal illness benefit in the event the life insured becomes terminally ill: while the policy is in force before cover ends before age 70. Further key product features available under Group Insurance are provided in the Dominion Superannuation Master Trust Part 2 Group Insurance PDS. OneCare External Master Trust Insurance Future insurability The future insurability option provides cover that keeps up with your clients ever changing lifestyle. These options allow clients to increase their cover by up to the lesser of $200,000 or 25% of the amount insured at the cover start date without further medical underwriting, following certain defined events. The following life events applicable to future insurability under OneCare Insurance are: marriage birth or adoption of a new child child commencing secondary school completes an undergraduate degree at a government recognised Australian university spouse death divorce becomes a carer for the first time and is financially responsible for provision of such care, and/or is physically providing such care change in tax dependency status as a result of the life insured ceasing to have any tax dependants as defined by current law having an increase in a salary package of 15% or more the life insured takes out or increases a mortgage on their principal place of residence with an accredited mortgage provider (excludes re-draw and refinancing)*. * Lesser of $200,000, 50% of the Life Cover amount insured at the cover start date, 25% of the TPD/Extra Care Cover amount insured at the cover start date, the amount of the mortgage, or increase to the mortgage. 10
13 Interim cover Clients who apply for Life Cover, TPD Cover, Income Secure Cover or an increase in cover may be provided with interim cover while their cover is being assessed. This interim cover commences from the date that OnePath Life receives your client s fully completed, signed and dated OneCare application form for insurance and continues until the earlier of: the date OnePath Life accepts, declines or defers the application in respect of the life insured the date the policy owner withdraws the application the date OnePath Life cancels this interim cover at its complete discretion by written notice to the policy owner 21 days from the date OnePath Life offers varied terms of acceptance of the application, such as a premium loading or an exclusion, requiring acceptance by the policy owner the date you ceased to be at work for Income Secure Cover you attaining the cover expiry age specified below: Life Cover 75 years TPD Cover 60 years Income Secure Cover 60 years Extra Care Cover 60 years. The full terms and conditions applicable to interim cover are disclosed in the OneCare External Master Trust PDS. Indexation linking To ensure your clients insurance keeps up with the cost of living, indexation is automatic on all covers provided under OneCare External Master Trust Insurance. Terminal illness benefit OneCare within the Dominion Superannuation Master Trust provides a terminal illness benefit in the event the life insured becomes terminally ill: while the policy is in force before cover ends before age 70. Further key product features available under OneCare External Master Trust Insurance are provided in the OneCare External Master Trust PDS. 11
14 Premium deductions Group Insurance Group Insurance premiums will be automatically deducted from your client s cash account on the first business day of the month in advance. OneCare External Master Trust Insurance OneCare External Master Trust Insurance premiums will be automatically deducted from your client s cash account, on the fifth day of the month, in accordance with their elected frequency of payment. The payment frequencies available to your clients are monthly, half yearly and yearly. Adviser remuneration options Level commission is available through Group Insurance and upfront, hybrid, stepped and level commission options are available through OneCare External Master Trust Insurance which gives you the flexibility to control your income stream. Importantly, choosing one type of OneCare External Master Trust Insurance commission option over another will not affect your client s premiums. Group Insurance Death Only Cover Cover available Commission (including GST) Death and TPD Cover GSC Cover Level 22.5% OneCare External Master Trust Insurance Life Cover (including terminal illness) Cover available Life and Total and Permanent Disablement (TPD) Cover Extra Care Cover Income Secure Policy year Upfront (p.a.) Stepped (p.a.) Hybrid (p.a.) Level (p.a.) Year 1 115% 95% 70% 32% Commission* (including GST) Year 2 11% 12.5% 24% 32% Year 3 11% 15% 24% 32% Year 4 11% 17.5% 24% 32% Year % 20% 24% 32% * Standard commission rates apply when the life insured s cover commences at least five years before maximum entry age. 12
15 Contact details Client Services Available Monday to Friday (other than national public holidays) 8.30 am 6.00 pm (Eastern Standard Time) Telephone: Facsimile: (02) Website: OneCare Risk Adviser Services Telephone: Dominion Superannuation Master Trust Locked Bag 1000 WOLLONGONG DC NSW 2500 Trustee Oasis Fund Management Limited 347 Kent Street, Sydney NSW 2000 ABN AFSL Administrator Oasis Asset Management Limited 347 Kent Street, Sydney NSW 2000 ABN Insurer OnePath Life Limited 347 Kent Street Sydney NSW 2000 ABN AFSL Disclaimer: This document is issued by Oasis Fund Management Limited, ABN (OFM), as trustee of the Oasis Superannuation Master Trust, ABN (Fund). OFM is a wholly owned subsidiary of OnePath Australia Limited (ABN ) (OnePath). OnePath is a wholly owned subsidiary of ANZ. OneCare is issued to OFM by OnePath Life (ABN , AFSL ). Other than as set out in the PDS, an investment in this product does not represent a deposit with or other liability of OFM, ANZ or other member companies of the ANZ Group. Neither ANZ nor any member of the ANZ Group stands behind or guarantees the issuer. This material is current as at 22 June 2011 but is subject to change. OFM reserves the right to change matters which are the subject of representations. Updated information will be available free of charge by calling Client Services. This document contains general information only, has been prepared only for financial advisers. This document does not take into account your client s objectives, financial situation or needs and may not be reproduced or distributed without the issuer s prior written permission. OFM recommends that, before making a decision in relation to any features in this product, your client seeks professional advice and reads the relevant applicable Product Disclosure Statement available on or by calling Client Services.