The details of your insurance

Transcription

1 THE FACTS OF LIFE The details of your insurance NAB Essentials Product Disclosure Statement Preparation date: 26 August 2014 Issued by MLC Limited ABN AFSL

2 This Product Disclosure Statement (PDS) takes you through the different insurance products available through NAB Essentials as well as some general information you need to know when choosing insurance. Important information MLC Limited (MLC, we, us or our) ABN AFSL is the issuer of NAB Essentials insurance which has been branded by National Australia Bank Limited (NAB) ABN AFSL The insurance policy is not a deposit with or a liability of NAB, or any other related bodies corporate of NAB (other than MLC as insurer). MLC is not an authorised deposit taking institution. Neither NAB, nor its related bodies corporate (other than MLC) provide any form of guarantee or accept any liability for the issuance of this product. MLC is a wholly owned subsidiary of NAB and is part of the wealth management division of NAB Group. MLC is the issuer of this PDS and takes full responsibility for the whole of the PDS. In providing this information we haven t taken account of your objectives, financial situation or needs. Because of this you should consider whether the information in this PDS is appropriate having regard to your situation. Contents Things to consider when choosing insurance 2 Why NAB Essentials? 4 NAB Essential Life 6 NAB Essential Critical Illness 10 NAB Essential Injury 12 Additional information you need to know 17 Duty of Disclosure 21 Privacy Notification 22 Glossary and definitions 28

3 Things to consider when choosing insurance How much insurance do you need? Deciding on the right amount of insurance is a very personal choice, so you need to consider a range of factors including your: financial commitments savings and investment plans income and lifestyle family commitments, and age. Replacing your existing insurance If you re replacing your existing insurance, we recommend you compare your existing policy with the insurance products being offered in this Product Disclosure Statement (PDS). Your new insurance may not provide the same benefits available under your existing policy. If you cancel your existing policy before your new insurance is in place there s a risk you may not be insured. How to read this PDS This document will provide you information on what cover options are available under NAB Essentials. It also includes general information about insurance. The glossary and definitions section provides more detailed information on some of the features, plus general definitions of the terms used. Where you see words with initial capital letters, such as Pre-existing Condition, these words have particular meanings which are explained in the glossary. The full terms and conditions for each insurance product are contained in the respective policy documents. These documents are available free of charge, just call us on and we ll send you a copy. MLC, a NAB Group company is the issuer of this PDS and the provider of insurance. Your contract is with MLC. What you need to tell us It s important you tell us everything that may be relevant to us when deciding to accept your application. Please read the Duty of Disclosure on page 21 for more information. If you don t provide all the relevant information, your insurance may be reduced or cancelled. NAB Essentials

4 Why NAB Essentials? While the benefits of life insurance may seem obvious, most of us would rather spend time and money on more enjoyable things. But what would happen to you and your family if you became seriously ill, injured or died? Money will never replace a loved one. But it can help your family be safe and secure if you re not there to protect them. Easy and convenient NAB Essentials is a range of hassle-free and affordable life insurance products. What s available NAB Essential Life NAB Essential Critical Illness NAB Essential Injury What does it cover? A lump sum payment is made if you re diagnosed with a Terminal Illness or you die. You receive a lump sum payment if you are diagnosed with a Critical Illness. You receive a lump sum amount if you have a listed fracture as a result of an Accident. You may also receive a daily amount if you re not able to carry out Activities of Daily Living as a result of your Injury. How much can you apply for? Age up to $1 million Age up to $750,000 Age up to $500,000 Up to $500,000 Up to $40,000 lump sum and/or Up to $800 per day No medical examinations You don t need a medical examination. All you need to do is call us on and, by answering a few simple questions, you can apply for your insurance in minutes. And you can choose one or more types of insurance, to suit your needs. Application age Maximum age to receive benefit NAB Essential Life Age Up to age 75 NAB Essential Critical Illness Age Up to age 65 NAB Essential Injury Age Up to age 80 (benefits reduce by 50% after age 75) Keeping your insurance up to date We continuously look for ways to improve the features and benefits of our insurance, so you ll receive better protection. Where it won t affect your premiums, we will add those improvements to your insurance. We will also inform you of any improvements we make. To make a claim, an Injury or Critical Illness must meet the relevant definition in this PDS on pages It s important you read the rest of this document so you fully understand what each of these insurances cover and how they work. NAB Essentials

5 NAB Essential Life With NAB Essential Life a lump sum payment is made if you re diagnosed with a Terminal Illness or you die. Benefits include: up to $1 million to help protect your family hassle-free online or over the phone application, with no medical examinations you will receive 100% of the benefit if you re diagnosed with a Terminal Illness an advance payment of $10,000 to help cover funeral costs insurance up to 75 years of age, and peace of mind you re insured all day, every day anywhere in the world. There are some instances when we won t pay a benefit. When won t a benefit be paid? We won t pay any benefits for death or Terminal Illness arising directly or indirectly from: suicide, attempted suicide or an intentional self-inflicted injury or illness within 13 months from starting, increasing (for the increased amount) or reinstating your policy being under the influence of alcohol or drugs unless taken under the direction of a Medical Practitioner involvement in criminal activity participating in mountaineering, rock climbing, motor sports, scuba diving at a depth of more than 30 metres, or flying other than as a passenger on a regularly scheduled flight of a licensed commercial airline, or working underground, with explosives or at heights greater than 10 metres. Who can apply? You can apply if you re an Australian permanent resident aged 18 to 64 years and you don t already have a NAB or MLC Essential Life policy. You can apply to increase your existing policy at any time. How much insurance can you apply for? You can apply for between $100,000 and $1 million depending on your age when you apply. Age Application age $1,000, $750, $500,000 When you move into a new age bracket your insurance remains at the amount you originally chose plus any automatic increases for inflation. If you cancel and then re-apply for a new policy, your maximum insurance amount will depend on your age when you re-apply. What happens as you get older? As you get older your entitlement to the maximum insurance amount doesn t change. For example if you apply for $800,000 at age 44 you can increase up to $1,000,000 at any age. Your insurance amount won t be reduced because of age. For example, if you have a policy for $1,000,000 at age 44, this won t be reduced to $750,000 when you turn 45. You ll also get annual CPI increases so your insurance keeps up with inflation unless you advise us otherwise. NAB Essentials 7

6 NAB Essential Life What if you don t qualify for NAB Essential Life? If you don t qualify for NAB Essential Life insurance, we may offer you NAB Essential Accidental Death Insurance. This insurance will provide a benefit if you have an Accident and die within 12 months as a result. When won t a benefit be paid for NAB Essential Accidental Death? We won t pay any benefits for death arising directly or indirectly from: an injury which occurred before you started your policy suicide, attempted suicide or intentional self-inflicted injury or illness being under the influence of alcohol or drugs unless taken under the direction of a Medical Practitioner involvement in criminal activity participating in mountaineering, rock climbing, motor sports, scuba diving at a depth of more than 30 metres, or flying other than as a passenger on a regularly scheduled flight of a licensed commercial airline working underground, with explosives or at heights greater than 10 metres, or an illness. LIFE S BETTER When there s less to worry about NAB Essentials

7 NAB Essential Critical Illness With NAB Essential Critical Illness you receive a lump sum if you suffer one of the following critical conditions: Cancer Coronary Artery Bypass Surgery Heart Attack Major Head Trauma Severe Burns, or Stroke. See page 29 for the full definitions. An appropriate Specialist and our medical adviser must both agree that the definition for that condition has been fully met. Benefits include: up to $500,000 to help you financially hassle-free over the phone application with no medical examinations, and peace of mind you re insured all day, every day anywhere in the world. There are some instances when we won t pay a benefit. When won t a benefit be paid? You ll need to survive the critical condition, for 14 days to receive the benefit. We won t pay benefits for any condition arising directly or indirectly from: a Pre-existing Condition as outlined on page 31 not meeting the definitions of the listed condition attempted suicide or intentional self-inflicted injury or illness being under the influence of alcohol or drugs unless taken under the direction of a Medical Practitioner involvement in criminal activity a condition which first appeared, happened or was diagnosed within 90 days of starting, increasing (for the increased amount) or reinstating your policy. (Only applies to Heart Attack, Stroke and Cancer), and surgical procedures when the underlying condition requiring surgical intervention first appears, first happens, or is diagnosed within 90 days of starting, increasing (for the increased amount) or reinstating your policy. (Only applies to Coronary Artery Bypass Surgery). In addition to the exclusions mentioned above, we won t pay any benefits for Major Head Trauma or Severe Burns arising directly or indirectly from: war or warlike operations participating in mountaineering, rock climbing, motor sports, scuba diving at a depth of more than 30 metres and flying, other than as a passenger on a regularly scheduled flight of a licensed commercial airline, or working underground, with explosives or at heights greater than 10 metres. Who can apply? You can apply if you re an Australian permanent resident aged 18 to 54 years old and you don t already have a NAB or MLC Essential Critical Illness policy. You can apply to increase your existing policy at any time. How much insurance can you apply for? You can apply for between $20,000 and $500,000.

8 NAB Essential Injury With NAB Essential Injury, if you have an Accident up to four benefits can be paid. Living Assist Benefit Homecare Assist Benefit Transport Assist Benefit Fracture Benefit Daily benefits while you re injured and unable to perform three Activities of Daily Living as a result of an Accident. The Living Assist Benefit will double if the Injury occurs while you re overseas. Daily benefits to help cover your homecare expenses resulting from your Injury. This benefit is only payable if you receive a Living Assist Benefit. An amount to cover transport costs to and from medical appointments in Australia. This benefit is only payable if you receive a Living Assist Benefit. A lump sum payment if you have a listed Fracture as a result of an Accident. For more information about these benefits, please go to page 33. For a benefit to be paid, an appropriate Specialist and our medical adviser must both agree that the definition for a condition has been fully met. Benefits include: up to $200,000 for an Injury resulting from an Accident hassle-free over the phone application with no medical examinations you can include your Partner on your policy at a discounted rate you may receive an increased benefit if an Injury occurs when overseas, to help with the extra costs you can claim as often as you need as long as you don t exceed your maximum total payable for the life of the policy, and peace of mind you re insured all day, every day anywhere in the world. There are some instances when we won t pay a benefit. When won t a benefit be paid? We won t pay benefits for any Injury or Fracture arising directly or indirectly from: a Pre-existing Condition as outlined on page 35 attempted suicide or intentional self-inflicted Injury or illness being under the influence of alcohol or drugs unless taken under the direction of a Medical Practitioner involvement in criminal activity war or warlike operations participating in professional sports, or dangerous pursuits including mountaineering, rock climbing, boxing, caving, motor sports, yacht-racing, horse-racing, jet-skiing, martial arts, off-piste skiing, potholing, skydiving, scuba diving at a depth of more than 30 metres or diving in a cave flying, other than as a passenger on a regularly scheduled flight of a licensed commercial airline working underground, offshore in the oil, gas or petroleum industry, with explosives, or at heights greater than 10 metres, and any disease, illness of any kind (including mental illness) or surgical treatment. Who can apply? You can apply if you re an Australian permanent resident aged 18 to 64 years old and you don t already have a NAB or MLC Essential Injury policy. You can apply to increase your existing policy at any time. You can include your Partner in your NAB Essential Injury insurance for an increase in premium. Your Partner will be added as a Life Insured on your policy. Any Partner benefit will be paid to you as the policy owner, not directly to your Partner. You can cancel your Partner s cover at any time.

9 NAB Essential Injury How much insurance can you apply for? There are five different plan options for you to choose from. Plan/Benefit Benefit limit per Accident Plan A Plan B Plan C Plan D Plan E Living Assist up to 90 days $200 per day $400 per day $500 per day $600 per day $800 per day Homecare Assist up to 45 days Up to $50 per day Up to $100 per day Up to $125 per day Up to $150 per day Up to $200 per day Transport Assist lump sum Up to $200 Up to $400 Up to $500 Up to $600 Up to $800 Fracture Benefit lump sum Up to $10,000 Up to $20,000 Up to $25,000 Up to $30,000 Up to $40,000 Maximum total payable for the life of the policy $50,000 $100,000 $125,000 $150,000 $200,000 What are the Fracture Benefits? Depending on your Fracture, a percentage of the Fracture Benefit will be paid as listed below: Fractures Hip or pelvis 100% Skull 60% Thigh, heel or upper arm 50% Ankle, lower leg, shoulder blade, or elbow Percentage of Fracture Benefit you receive for each Fracture 40% Lower jaw or collarbone 30% Lower arm or wrist 25% Vertebrae 20% Sternum, kneecap or cheekbone 15% Hand, foot or coccyx 10% Nose or ribs 5% Toe, thumb or finger 2% Multiple Fractures as a result of a single Accident can be claimed provided the combined benefit doesn t exceed the maximum Fracture Benefit payable (refer to the table above). For example, John takes out NAB Essential Injury insurance under Plan B which gives him a Fracture Benefit of up to $20,000. He has an Accident and fractures his hip and both legs. The percentage of Fracture Benefit he s entitled to is 100% for his hip and 40% for each leg. Because the maximum Fracture Benefit he can receive for one Accident is 100%, he receives $20,000 for that Accident. What happens when you reach age 75? You can still make a claim but your benefits reduce by 50%. Your premiums don t change. For example: James took out NAB Essential Injury insurance and chose Plan E with a Living Assist benefit of $800 per day. At age 75 James has an Injury caused by an Accident and claims the Living Assist Benefit for 30 days. As a result of his Injury, James receives a benefit payment of $12,000 ($800 x 30 days x 50%).

10 NAB Essential Injury Additional information you need to know Limitations for osteoporosis We won t pay a benefit for any Fracture where osteoporosis has been diagnosed before the start of the policy. After the start of the policy, if you re diagnosed with osteoporosis the Fracture Benefit will only be paid once. No further Fracture Benefit will be paid for the life of the policy. If you ve received a Fracture Benefit prior to being diagnosed with osteoporosis you will still be eligible for one more Fracture Benefit subject to the maximum total payable for the life of the policy. When does your insurance start? Your insurance starts when we accept your application. We ll confirm this date in your Policy Schedule which you ll receive with your welcome pack, along with other details about your insurance. Welcome pack Once your application has been approved we ll send you a welcome pack, which will include your Policy Schedule and policy document. Want to increase your insurance? Your insurance will automatically increase on the anniversary of the start date of your policy each year by 3% or CPI, whichever is higher, to help protect you from inflation. If you don t want this increase please let us know. You can also apply to increase your insurance at any time, but you may need to answer some health questions. You can decrease your insurance at any time. Any changes to your insurance will take effect when you pay your next premium. Who will be paid the insurance benefits? Benefits are paid to the policy owner named in the Policy Schedule. If the policy owner is deceased, the benefit will be paid to their estate. Your premium NAB Essential Life NAB Essential Critical Illness NAB Essential Injury Your premium is based on the amount of insurance you choose and your: gender smoking status, and age. Premiums generally increase with age and are higher for smokers than non-smokers. Your premium is based on: the amount of insurance you choose, and your age on the date you apply. Your premium will be confirmed in your Policy Schedule. 7

11 Additional information you need to know Will premiums change? Your premiums will automatically increase on your policy anniversary each year: for inflation, as a result of the increase in benefit of 3% or CPI, whichever is higher you can choose not to increase for inflation by calling us for your age if you have NAB Essential Life or NAB Essential Critical Illness insurance. We may change the way we calculate our premiums at any time. Because of this, your premium may increase or decrease. However, we ll: give you one month s written notice before premiums change only change your premiums on your anniversary date following any change, and not single you out for a change in premiums. We reserve the right to recover from you the cost of any duty, tax, excise, impost, charges or deductions applied by the Australian Government or any State or Territory Government, as they may apply to your policy from time to time. There s no Goods and Services Tax (GST) charged on the premium. How you pay your premiums You can pay your premiums fortnightly or monthly in advance, by credit card or direct debit from your bank account. By giving us your bank details you agree to us deducting money from your account to pay your premiums. For a copy of the Direct Debit Service agreement please call us on Tax Generally, your premiums won t be tax deductible and the benefit will be tax-free, whether paid to you or your estate. Please note, that neither NAB nor MLC is a registered tax agent. We recommend you seek professional tax advice from a registered tax agent rather than rely on this general tax information to determine your personal obligations. When will your insurance end? Your insurance ends when: you reach the anniversary of your start date you receive a benefit under the policy your premiums aren t paid you cancel your insurance you make a fraudulent claim, or NAB Essential Life after you turn 75 NAB Essential Critical Illness after you turn 65 NAB Essential Injury after you turn 80 you can make multiple claims up to your maximum total payable for the life of the policy you die. If your NAB Essential Injury policy includes your Partner, their insurance will end when your insurance ends. Want to change your mind? If you re not satisfied that your NAB Essentials insurance meets your needs, you can cancel it at any time by contacting us. If you cancel within 30 days of your insurance starting we ll refund the premiums you paid during that time. Duplication of cover If you have more than one policy of the same type (either NAB or MLC), you may claim under one policy, but not both. The duplicate policy will be cancelled and the premiums refunded.

12 Additional information you need to know Duty of disclosure Product changes The information in the PDS may change from time to time. We ll write and tell you about any changes we make that are materially adverse. Any other changes can be seen on nab.com.au/nabessentials Alternatively, you can call us on and we ll send you a paper copy. If we decide to discontinue any of the NAB Essentials products we will replace your insurance with a policy providing the same or better benefits. Resolving complaints We like our customers to be happy. If you re not satisfied with any of our products, or the service you ve received so far, we d like an opportunity to put this right. We can usually resolve complaints over the phone. If we can t, or you re not satisfied with the outcome, then please write to us at: MLC Complaints Resolutions PO Box 8446 Parramatta Westfield NSW 2150 For more information please go to mlc.com.au/complaint What you must tell us Before you enter into a contract of life insurance with us, you have a duty, under the Insurance Contracts Act 1984, to disclose to us every matter that you know, or could reasonably be expected to know, which is relevant to our decision to accept the risk of the insurance and, if so, on what terms. You have the same duty to disclose those matters to us before such a contract of life insurance is extended, varied or reinstated. Your duty, however, doesn t require disclosure of a matter: that diminishes the risk to be undertaken by us that is of common knowledge that we know or, in the ordinary course of business, ought to know, or for which your duty of compliance is waived by us. Non-disclosure If you fail to comply with your Duty of Disclosure, and we wouldn t have entered into the contract on any terms if the failure had not occurred, we may avoid the contract within three years of entering into it. If your non-disclosure is fraudulent, we may avoid the contract at any time. Even if we are entitled to avoid a contract of life insurance, we may, within three years of entering into it, elect not to avoid it but reduce the sum you ve been insured for. This is in accordance with a formula that takes into account the premium that would have been payable if you d disclosed all relevant matters to us. Your Duty of Disclosure continues until the contract of life insurance has been accepted by us (the insurer) and a policy is issued. It also applies if the contract is extended, varied or reinstated.

13 Privacy Notification We respect your personal information. The notification tells you how we collect your information, what we use it for and who we share it with. It also points out some key features of our Privacy Policy available at mlc.com.au/privacy MLC Limited is part of the NAB Group, comprising National Australia Bank Limited ABN and its related companies (the Group ) which includes all the banking, financing, funds management, financial planning, superannuation, insurance, broking and e-commerce organisations in the Group. We may share your personal information with other Group members. This could depend on the product or service you have applied for and the Group member you are dealing with. How we collect information We ll collect your personal information from you directly whenever we can. Sometimes we collect your personal information from third parties. Sometimes we collect information about you from other sources, for example, from your doctor, medical professionals, medical facilities or health authorities who verify any health information you may provide. Instances of when we may need to collect information from third parties include: where we can t get hold of you and we rely on publicly available information to update your contact details; when we need information from your doctor or medical professional, or your employer, about a claim you have made or your medical history; at your request, we exchange information with your legal or financial advisers or other representatives. You may not be aware that we have done so (for example, when we collect information about you from an investigator) and in such a case if we collect information that can be used to identify you, we will take reasonable steps to let you know of that collection. We may collect information about you because we are required or authorised by law to collect it. There are laws that affect financial institutions, including company and tax law, which require us to collect personal information, for example, we require personal information to verify your identity under Commonwealth Anti-Money Laundering law. How we use your information We use your information to provide you with the product or service you asked for, and for other purposes including: giving you information about a product or service; considering whether you are eligible for a product or service; processing your application and providing you with a product or service; administering the product or service we provide you, which includes answering your requests and complaints, varying products and services and managing our relevant product portfolios; identifying you or verifying your authority to act on behalf of a customer; assisting in arrangements with other organisations in relation to a product or service we make available to you; allowing us to run our business and perform administrative and operational tasks, such as: training staff; developing and marketing products and services; risk management; systems development and testing, including our websites and other online channels; undertaking planning, research and statistical analysis;

14 Privacy Notification determining whether a beneficiary will be paid a benefit; preventing or investigating any fraud or crime, or any suspected fraud or crime; as required by law, regulation or codes binding us; and for any purpose for which you have given your consent. We use your information to tell you about other products or services that may be of interest to you, or running competitions and other promotions (this can be via , telephone, SMS, IM, mail, or any other electronic means including via social networking forums) unless you tell us not to. You can let us know at any time if you no longer wish to receive direct marketing offers from the Group. We will process your request as soon as practicable. What happens if you don t provide your information to us? If you don t provide your information to us, we may not be able to: provide you with the product or service you want; manage or administer your product or service, for example, assess a claim, or pay a benefit under a policy or product; verify your identity or protect against fraud; or let you know about other products or services from our Group that might better meet your financial, e-commerce and lifestyle needs. Sharing Your Information We may share your information with other organisations for any purposes for which we use your information. We may need to share your personal information at your request for instance, your representative or any person acting on your behalf (for example, financial advisers, lawyers, settlement agents, accountants, executors, administrators, trustees, guardians, brokers or auditors), and your referee such as your employer (to confirm details about you). We may disclose your personal information to third parties (outside of the Group) including: those involved in providing, managing or administering your product or service; authorised representatives of the Group who sell products or services on our behalf; medical professionals, medical facilities or health authorities who verify any health information you may provide; valuers, insurers, re-insurers, claims assessors and investigators; fraud reporting agencies (including organisations that assist with fraud investigations and organisations established to identify, investigate and/or prevent any fraud, suspected fraud, crime, suspected crime, or misconduct of a serious nature); government or regulatory bodies (including ASIC and the ATO) as required or authorised by law (in some instances these bodies may share it with relevant foreign authorities); our accountants, auditors or lawyers and other external advisers; organisations that maintain, review and develop our business systems, procedures and technology infrastructure, including testing or upgrading our computer systems; organisations that participate with us in payments systems including merchants, payment organisations and organisations that produce cards, cheque books and statements for us; our joint venture partners that conduct business with us; organisations involved in a corporate reorganisation or transfer of Group assets or business;

15 Privacy Notification organisations that assist with our product planning, research and development; mailing houses and telemarketing agencies who assist us to communicate with you; other organisations involved in our normal business practices, including our agents and contractors; and where you ve given your consent. We will only use and share your sensitive information in accordance with the Privacy Act. Sharing outside Australia We run our business in Australia and overseas. We may need to share some of your information with organisations outside Australia. Sometimes, we may need to ask you before this happens. You can view a list of the countries in which those overseas organisations are located at nab.com.au/privacy/overseas-countries-list/ We may store your information in cloud or other types of networked or electronic storage. As electronic or networked storage can be accessed from various countries via an internet connection, it s not always practicable to know in which country your information may be held. If your information is stored in this way, disclosures may occur in countries other than those listed. Overseas organisations may be required to disclose information we share with them under a foreign law. In those instances, we will not be responsible for that disclosure. Complaints If you have a complaint about a privacy issue, please tell us about it. You can find out how to make a complaint and how we will deal with these complaints, by reading our Privacy Policy. Our Privacy Policy Our Privacy Policy is available at mlc.com.au/privacy or by calling and asking us for a copy. (Hearing impaired customers can call TTY ) Contact Us We care about your privacy and welcome your feedback. Please contact us if you have any questions or comments about our privacy policies and procedures. You can contact us by: submitting an online Compliments, Suggestions or Complaints form via nab.com.au calling our contact centre on (Hearing impaired customers can call TTY ). Accessing or Correcting your Information You can ask us to access information or to correct information that we hold about you. You can find out how to access and correct your information by reading our Privacy Policy. 7

16 Glossary and definitions General glossary and definitions Accident means an event where bodily injury is caused directly and solely by violent, external and visible means, independently of all other causes. Life Insured means you and any other person specified as a life insured in the Policy Schedule. Medical Practitioner means a medical practitioner registered in Australia who is not you, a Partner or a relative. If registered other than in Australia, your medical practitioner must have qualifications equivalent to a medical practitioner registered in Australia and be approved by us. Policy Schedule means the schedule we send you once we accept your application, which outlines your coverage under the contract of insurance (start date, types of cover, level of cover etc) and which is updated each year on the anniversary date. Pre-existing Condition has a different definition, depending on the insurance you re considering. For NAB Essential Critical Illness see page 31. For NAB Essential Injury see page 35. Specialist means a doctor who is an appropriate specialist in a relevant medical field. We, us or our means MLC Limited. You/your means the owner of the policy named in the Policy Schedule. NAB means National Australia Bank Limited ABN NAB Essential Life glossary and definitions Terminal Illness means an illness which, in the opinion of an appropriate Specialist approved by us, would reasonably be expected to reduce your life expectancy to less than 12 months. NAB Essential Critical Illness glossary and definitions Cancer means the presence of one or more malignant tumours, characterised by uncontrolled growth and spread of malignant cells and the invasion of normal tissue, requiring treatment by surgery, radiotherapy, chemotherapy or another major interventionist therapy. This does not include: all tumours that are histologically described as premalignant, or showing the malignant changes of carcinoma in situ, including cervical dysplasia CIN-1, CIN-2 and CIN-3 any skin cancer, including hyperkeratosis, basal cell carcinomas, squamous cell carcinomas (unless there is evidence of metastases) other than malignant melanoma at least 1.5mm thick or at least Clark level 3 of invasion T2 or a lesser stage colorectal cancer tumours of the prostate described as TNM classification T1 (including T1(a) or T1(b)) or any other equivalent or lesser classification papillary micro-carcinoma of the thyroid or bladder carcinoma in situ of the breast unless it results directly in the removal of the entire breast. The procedure must be performed specifically to arrest the spread of malignancy, and be considered the appropriate and necessary treatment tumours treated by endoscopic procedures alone, and chronic lymphocytic leukaemia in its early stages (less than RAI stage 2).

17 Glossary and definitions Coronary Artery Bypass Surgery means the openheart surgical grafting of a bypass to a coronary artery to overcome narrowing or obstruction. It must be considered necessary by a Specialist treating the condition, and a Specialist nominated by us. Confirmation that the surgery has been performed will be required. This does not include: coronary artery angioplasty cardiac keyhole surgery, or laser or other intra-arterial procedures. Critical Illness means one of the following critical conditions: Cancer Coronary Artery Bypass Surgery Heart Attack Major Head Trauma Severe Burns, or Stroke. Heart Attack means the death of part of the heart muscle because of inadequate blood supply. The diagnosis must be based on electrocardiogram changes and either: higher levels of cardiac enzyme (CK-MB) than normal, or an elevation (other than as a result of cardiac or coronary intervention or angina) of Troponin I in excess of 2.0 µg/l (micro-grams per litre) or Troponin T in excess of 0.6 µg/l. If the diagnosis based on the above criteria is inconclusive, then we will consider a claim based on conclusive evidence that the Life Insured has been diagnosed as having suffered a heart attack, resulting in either: new pathological Q waves, or a permanent left ventricular ejection fraction of 50% or less, measured three or more months after the event. We will also consider any claim based on any other medical test results provided by a cardiologist that unequivocally diagnoses myocardial infarction with the degree of severity as documented above, or greater. Simple angina pectoris is excluded. Major Head Trauma means a head injury caused by an Accident resulting in neurological deficit causing permanent loss of at least 25% of whole body function. The diagnosis must be made within 90 days of the Accident. This would not include any neurological deficit resulting from surgery whether accidental or not. Pre-existing Condition for NAB Essential Critical Illness means any illness or injury that first occurred, appeared or is diagnosed before the start, increase (for the increased amount) or reinstatement of your policy, or for which you have experienced symptoms or received medical treatment leading to a diagnosis after the start of your policy, increase or reinstatement and while this cover is in force. This does not include: any illness or injury you weren t aware of, or couldn t have been reasonably expected to be aware of, or a condition which we asked you about at the time you applied for, increased or reinstated the insurance and, after a full and accurate response, we issued the policy or the increase, or reinstated your policy.

18 Glossary and definitions Severe Burns means tissue injury caused by thermal, electrical or chemical agents causing third-degree burns to: at least 20% of the body area as measured by Rule 9 of the Lund & Browder Body Surface Chart, or both hands requiring surgical debridement (removal of dead, damaged or infected skin), or at least 20% of the face requiring surgical debridement (removal of dead, damaged or infected skin). Stroke means a cerebrovascular incident producing neurological sequelae lasting for at least 24 hours. This includes infarction of brain tissue, intracranial and subarachnoid haemorrhage, or embolisation from an extracranial source. This does not include: transient ischaemic attacks symptoms due to migraine vascular disease of the eye, optic nerve or vestibular function physical head injury from trauma or systemic hypoxia, and any blood vessel incident outside the cranium except embolism resulting in stroke. NAB Essential Injury glossary and definitions Activities of Daily Living are: 1. Washing/Bathing the ability to wash oneself either in a bath or shower or by sponge without the assistance of a Full-time Caregiver 2. Dressing the ability to put on and take off essential clothing without the assistance of the Full-time Caregiver. Essential clothing is considered to include the following: underwear, trousers, dress, skirt, shoes, and shirt 3. Eating the ability to feed oneself, once food has been prepared and made available, without the assistance of a Full-time Caregiver 4. Using the toilet the ability to get to and from, and on and off, the toilet without the assistance of a Full-time Caregiver, and 5. Mobility the ability to get in or out of bed, get in or out of a chair or wheel chair, or move from place to place by walking, without the assistance of a Full-time Caregiver. Fracture means traumatic injury to a bone caused by an Accident during which the continuity of the bone tissue is broken (ie a Medical Practitioner diagnoses that your bone has been fractured). Stress fractures are excluded. Fracture Benefit is payable only if you sustain a listed Fracture. The Fracture must be diagnosed within 90 days of the Accident. Two separate finger or toe Fractures will receive two finger or toe benefits. If three or more fingers or toes are fractured, then the hand or foot benefit will be paid for this injury. Two or more Fractures in the same area are considered to be one Fracture and will receive one benefit payment only. For example, two or more Fractures of the vertebrae are considered to be one Fracture and Fractures on two or more ribs are considered to be one Fracture.

19 Glossary and definitions Full-time Caregiver means a person(s) acceptable to us, 18 years and over, who assists with the Activities of Daily Living for an appropriate period of time to enable the proper care of the injured person, to our satisfaction. Proof of full-time care will be required at the time of claim. Homecare Assist Benefit provides a contribution towards reasonable expenses for home assistance in Australia, which may include cleaning, cooking, gardening or minor alterations required to your place of residence. It does not include medical expenses. Homecare Assist will only be paid once proof of services has been provided through a tax receipt as approved by us, and which includes the supplier s Australian Business Number (ABN). The Homecare Assist Benefit is paid in addition to the Living Assist Benefit. Injury means bodily injury which occurs whilst the policy is in force. Living Assist Benefit is payable when a Medical Practitioner has certified the Life Insured, as a result of an Accident, is unable to perform at least three Activities of Daily Living without the assistance of a Full-time Caregiver. If the Living Assist Benefit period exceeds seven days we need further supportive evidence, including from the Medical Practitioner, for each seven-day period. This benefit is paid from the second day of becoming entitled to the benefit. The inability to perform three Activities of Daily Living must start within 90 days of the Accident. If the Injury occurs when overseas the Life Insured must be under the continuous care of a Medical Practitioner or registered nurse approved by us. The double overseas benefit is limited to the stay overseas. The benefit will reduce if you return to Australia. If you made a claim and received benefits because of an Accident and you were unable to perform three Activities of Daily Living and the inability recurs, it will be treated as a continuance of your original claim. The inability recurs if it arises directly or indirectly from the original Accident. Partner means a person: 1. who is legally married to you, or 2. your de-facto spouse (including same-sex partner). Pre-existing Condition for NAB Essential Injury means any illness or Injury that first occurred, appeared or was diagnosed before the start, increase (for the increased amount) or reinstatement of your policy, or for which you have experienced symptoms or received medical treatment leading to a diagnosis after the start of your policy, increase or reinstatement and while this cover is in force. This does not include any illness or Injury you weren t aware of, or couldn t have been reasonably expected to be aware of.

20 Transport Assist Benefit provides for the reimbursement of reasonable expenses for travel to and from medical appointments in Australia. Transports covered are taxi, bus, train and ferry. The benefit will only be paid once proof of travel expenses has been provided, including receipts for travel, along with proof of your medical appointment. It does not include medical expenses. You may claim the Transport Assist Benefit and Homecare Assist Benefit at the same time. The Transport Assist Benefit is paid in addition to the Living Assist Benefit. LIFE S GOOD When you don t have to worry 7