Telstra Super Personal Plus Insurance Guide

Transcription

1 03/ 1 September 2015 INSURANCE GUIDE Telstra Super Personal Plus Insurance Guide Making the most of your future.

2 Contents Telstra Super Personal Plus insurance cover Types of insurance cover available Automatic base death and TPD cover Flexible insurance options with Telstra Super Life Events cover Transfer your insurance to Telstra Super Determining how much insurance you may need Calculate the level of cover you require Changing your insurance cover Insurance premiums Top-up death and TPD cover (voluntary) Interim accident cover Income protection cover (voluntary) About this Guide The cover described in this Guide is insured by TAL Life Limited (TAL) ABN AFSL The following insurance information is intended as a guide only. For all terms and conditions please contact us on to obtain a copy of the relevant Policy document. Glossary To help keep this Guide as simple as possible for you, we have included explanations of some insurance terms in our glossary on pages 18 to 21. These words are in bold print when they appear throughout this Guide.

3 When are insurance payments made? Overseas or on leave? Leaving Telstra Super Need more information about insurance cover? Definitions of medical conditions Glossary Telephone Facsimile The information in this document forms part of the Telstra Super Personal Plus Product Disclosure Statement (PDS), dated 1 September You should read the information in this document (which forms part of the PDS) before making a decision. The complete terms & conditions of Telstra Super insurance are contained in the insurance policy (Policy). The information in this document is general information only and does not take into account your personal financial situation or needs. You should obtain financial advice tailored to your personal circumstances before making an investment decision. Telstra Super Pty Ltd. Telstra Super Pty Ltd ABN , AFSL is the Trustee of the Telstra Superannuation Scheme (Telstra Super) ABN Telstra Super Pty Ltd ABN , AFSL , the trustee of the Telstra Superannuation Scheme (Telstra Super) ABN is referred to throughout this PDS as the Trustee, our, we or us.

4 03/ TELSTRA SUPER PERSONAL PLUS INSURANCE GUIDE 01/ Telstra Super Personal Plus insurance cover Telstra Super recognises the importance of adequate levels of insurance and we are committed to providing our members with comprehensive, affordable and convenient cover. Types of insurance cover available Telstra Super offers you the following types of insurance cover. Death and Total & Permanent Disablement (TPD) cover Death and TPD insurance cover means that you, your dependant/s and/or your legal personal representative could receive a lump sum insurance payment, paid in addition to the balance of your super account in the event of your death or total and permanent disablement. Income protection cover Income protection insurance provides you with a replacement income while you re temporarily unable to continue performing the regular duties of your occupation. The replacement income is up to 75% of your income excluding super, with an additional 10% of your income excluding super to be paid to your superannuation account. You can receive payments for either two years or five years, after your chosen waiting period, provided you continue to meet the definition of total disablement or partial disablement in the Policy. Terminal illness benefit In the unfortunate circumstance you are diagnosed with a terminal illness and have a life expectancy of less than 12 months, you can apply to be paid a terminal illness benefit. You don t have to have stopped working to qualify for this benefit. A terminal illness payment is the early payment of your death benefit. All references to age are age next birthday as at the last 1 July. Automatic base death and TPD cover You should refer to the Insurance in your super section in the Telstra Super Personal Plus PDS for information regarding your automatic insurance as this depends on a number of different factors. Automatic* base cover is determined by your age next birthday as at the last 1 July. Table 1 on page 3 shows the amount of age-based death and TPD cover eligible members will automatically receive for a low fee of $2.27 per week. Death cover is $1.18 per week on the same scale. Automatic cover means you don t have to undergo any health checks to receive this cover. Example If you turned 25 years old on 1 December 2014 and today is 1 January 2015, your age next birthday as at the last 1 July is 25 years old, which means you will automatically* receive $155,194 worth of death cover and $155,194 of TPD cover. * Members who are aged 76 or over are ineligible for automatic death insurance cover. Members who are aged 66 or over, or who have previously received a TPD payment from Telstra Super are ineligible for automatic TPD insurance cover. New employees of Telstra-approved employers (Telstra Stores) or current employees who were previously with their employer s default super fund are subject to the 'At work' test and other provisions contained in the Policy. Employees of Telstra-approved employers with less than 10 staff, or those who were not members of their employer s default super fund, are ineligible for automatic insurance cover and must complete the Insurance Application Telstra Stores form to apply for age-based death and TPD cover. Employees of Telstra-approved employers are ineligible for automatic insurance cover if they are suffering symptoms of ill health or disability to the extent that they are Totally & Permanently Disabled (TPD), have previously received a TPD payment or have been diagnosed with a terminal illness. Other provisions apply. Page 2

5 Table 1: Age-based death and TPD cover Top-up death and TPD cover (voluntary) You can apply to increase your level of insurance to meet your personal needs. Annual top-up premium rates are based on each $1,000 sum Example How premiums are calculated insured and are shown in Table 2 on page 4. The following example shows how to calculate premiums for top-up cover. Refer to the Insurance premiums section on page 13 for further information. Naomi will be turning 35 next birthday. When she joined Telstra Super Personal Plus she received age-based base death and TPD cover providing an insured benefit of $134,681. For added peace of mind, Naomi would like to apply for an extra $500,000 of top-up death and TPD cover. To work out how much this would cost her, Naomi refers to Table 2 and uses the following information: Age next birthday 35 Top-up death and TPD amount $500,000 Base death & TPD premium Top-up death & TPD premium = $2.27 x 52 (weeks per year) = $ = Elected amount of cover 1,000 x top-up death and TPD premium rate = $500,000 1,000 x $0.56 = $280 for the year Total premium payable = Base death & TPD premium + Top-up death and TPD premium = $ $280 = $ for the year. Naomi receives a total insured benefit of $634,681 for death and TPD at a premium of $ per year. Case study TPD cover helps a family recover Less than a year after taking out her additional death and TPD cover, Naomi was injured in an accident which resulted in her total and permanent disablement. Naomi s husband, James was working full-time and daughter Emma was about to start school. The TPD cover Naomi had through Telstra Super Personal Plus helped repay the family s home loan and covered the cost of Emma s education. In addition, it gave the family access to funds to pay their living expenses while James helped Naomi during her initial recovery and transition period, before he returned to full-time work. Age next birthday* Death cover TPD cover , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,415 96, ,686 90, ,484 84, ,696 78, ,898 73, ,134 68, ,511 61, ,524 56, ,109 52, ,413 48, ,718 44, ,204 41, ,868 37, ,533 34, ,376 31, ,095 29, ,335 25, ,451 22, ,980 19, ,000 18, ,585 16, ,760 14, ,964 13, ,244 13, ,794 12, ,254 12, , , , , , , , , , ,676 0 * As at last 1 July. Page 3

6 Handy hints To check your current level of insurance cover log in to SuperOnline and click on My Insurance. Alternatively, you can call us. To view, nominate or update your beneficiary details, log in to SuperOnline or download a Nomination of Beneficiaries form from our website. To estimate your insurance cover and how much it will cost, use our Insurance premium and cover calculator in the Tools & Forms section on our website. Occupational loadings for class Occupation Death only Death & TPD White collar Light blue Medium blue Heavy blue Table 2: Top-up death and TPD rates annual cost per $1,000 sum insured Age Next Birthday* Death only Death & TPD Male Female Male Female * As at last 1 July. Page 4

7 Interim accident cover If you apply for additional insurance cover, you will receive interim accident cover for the period of time whilst your application is being assessed (known as the interim accident cover period). If you have an accident during the interim accident cover period which results in your death or TPD or total disablement, you will be covered for the applied amount (up to the maximum interim accident benefit of $1.5 million for death or TPD and $15,000 per month for income protection) for the period starting from the date we receive your completed application and finishing when: 1. your application is withdrawn, accepted or rejected 2. the Policy is terminated 3. tal cancels your interim accident cover 4. you reach cover cessation age, which is 65 for TPD, 75 for death cover, and the date you turn 65 for income protection 5. the date any existing cover under the Policy ceases days has passed, whichever is earliest. Income protection cover (voluntary) If you are under age 65 and currently employed working at least 15 hours per week, you can apply for income protection cover. Premiums for this cover will be deducted from your Telstra Super Personal Plus account at the end of each quarter, when you leave the fund or when you transfer your super to a different Telstra Super product. Income protection covers you in the event of total disablement or partial disablement meaning you are temporarily unable to continue performing the regular duties of your occupation. It provides you with an income of up to 75% of your income excluding super, with an additional 10% of your income excluding super to be paid to your superannuation account. Payments are made for the duration of the applicable benefit period (either two or five years), distributed in arrears after your chosen waiting period (either 30, 60, 90 or 120 days), provided you continue to meet the definition of total disablement or partial disablement in the Policy. You do not have to be permanently unable to work to get income protection payments and you may be eligible for payments while you are waiting for your TPD claim to be assessed. Your level of income protection cover is dependent upon your income and is calculated as follows: Income protection benefit 75% x income excluding super = Annual income protection benefit 12 = Monthly income protection benefit Superannuation contribution 10% x income excluding super = Annual superannuation contribution 12 = Monthly superannuation contribution Benefits are subject to a maximum monthly benefit of $50,000 for a two year benefit period and a monthly benefit of $30,000 for a five year benefit period. Income protection payments will be reduced by the amount of any other payments you receive for the payment period (such as sick leave payments or workers compensation payments). Social security benefits and motor accident compensation are not offset against benefits. Depending on your level of income protection cover requiring assessment, TAL has different medical requirements. The initial requirements are outlined in Table 5 on page 12 under Changing your insurance cover. Your annual income protection premium is calculated as: Annual income protection benefit 1,000 x premium rates per $1,000 sum insured = Annual income protection premium To tailor your insurance to suit your needs you can apply for either a two or five year benefit period* and a waiting period of either 30, 60, 90 or 120 days. Refer to Table 3 on page 7 for premium rates applicable to the various benefit and waiting periods. If you hold income protection cover with multiple insurance providers you also have the option to postpone the Telstra Super waiting period when claiming an income protection benefit. This allows you to receive an income protection benefit from another insurance provider first, and defer Telstra Super benefits until these payments are complete. To apply to change your existing waiting period and/or benefit period, please complete a Change of Insurance form and Personal Statement form. You will then be advised in writing of the acceptance or decline of the application. Applying for income protection cover When applying for income protection cover you will need to provide evidence of your current salary in the form of a Year to Date payslip and cannot be underwritten for an amount greater than your current salary. Should you subsequently receive an increase in salary you will need to apply to be underwritten for this increase by completing a Change of Insurance form and a Personal Statement. If you claim an income protection benefit you will also be required to provide evidence of your current salary at the time of claim. For this reason it is imperative that you review your insurance arrangements on a regular basis to ensure that you have sufficient cover. You can find out more about the cost of insurance or changing your cover on our website or by calling us. Existing members transferring from another Telstra Super product Telstra Super Corporate Plus, Telstra Super Division 5 and Sensis Super Plus Defined Benefit members with existing income protection cover will have that cover automatically transferred to Telstra Super Personal Plus. For former Defined Benefit members, your income protection cover will be 75% of your income excluding super, with an additional 10% of your income excluding super to be paid to your superannuation account (this already applies to Telstra Super Corporate Plus members). For the cover to be retained you will need to provide a Superannuation Guarantee (SG) contribution from your new employer, along with details of your new salary and occupation within 120 days of you leaving your previous employer. Details of these requirements are outlined in the Telstra Super Personal Plus welcome letter. Where cover is cancelled due to non-receipt of salary or occupation information or superannuation guarantee contribution within 120 days of leaving the former employer, any premiums paid for the 120 days will be refunded. Members would need to re-apply for cover after the 120 day period if they wish to obtain cover. Eligible members transferring from Telstra Super Division 2 can apply for income protection cover, as outlined above. * Members employed in a heavy blue occupation are unable to increase their benefit period to five years. Subject to the At work requirements and other eligibility criteria and exclusions contained in the Policy. Former Defined Benefit members are subject to the active employment test contained in the Policy. Page 5

8 Handy hint Many of the insurance forms referred to in this Guide are available on our website: or by calling Alternatively, log in to SuperOnline to access a pre-populated form. Example Calculating income protection premiums and benefit payable Jack is a Telstra Super Personal Plus member. He is 26 years old next birthday, a white collar worker and his salary excluding super is $42,000. Jack has little savings since returning from an overseas trip. Aware that he would be in financial hardship should he be unable to earn his income, Jack decides to take out income protection insurance with Telstra Super Personal Plus with a benefit period of two years and 90 day waiting period. Jack s income protection benefit is calculated as: 75% x $42,000 = $31,500 annual income protection benefit $31, = $2,625 (before tax) monthly income protection benefit Superannuation contribution 10% x $42,000 = $4,200 annual superannuation contribution $4, = $350 monthly superannuation contribution Jack s annual income protection premiums are: Annual income protection benefit 1,000 x premium rates = ($31,500 + $4,200) 1,000 x $1.81 = $64.62* Case study How income protection helped Jack get back on his feet Jack loves the outdoors and regularly goes rock climbing. However, one weekend while climbing, Jack falls and seriously injures his back. After an initial hospital stay of two months, Jack s doctor informs him he will need four months of in-hospital rehabilitation and a further nine months at home recuperating, before he can safely resume work. Jack immediately submits an income protection claim. After the 90 day waiting period, Jack is advised of its acceptance and receives $2,625 per month (before tax) from his income protection insurance plus an additional $350 paid into his superannuation account. This covers Jack s living expenses, allowing him to focus on his recovery. * Stamp duty is payable in addition to the income protection premiums above and varies depending on your state of residence. Page 6

9 Table 3: Annual income protection premium rates per $1,000 sum insured* Benefit period 2 Years 5 Years Waiting period 30 days 60 days 90 days 120 days 30 days 60 days 90 days 120 days ANB Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Occupational loadings Occupation Income Protection White collar 1.00 Light blue 1.40 Medium blue 2.50 Heavy blue 2.50 * Stamp duty is payable in addition to the above rates. Age next birthday as at last 1 July. Page 7

10 02/ Flexible insurance options with Telstra Super Life Events cover - keeping pace with life s significant changes When a significant event occurs in your life, such as getting married, buying a home or welcoming a new child to the family, it s an opportune time to consider if your insurance cover is adequate for your increased financial obligations. With Telstra Super s Life Events cover you can apply* to increase your death or death and TPD cover upon the occurrence of a specified Life Event, without providing any medical evidence. To take advantage of Life Events cover, apply within 90 days (excluding the day on which the Life Event occurred) of any of the following specified events: Birth of a child/ren Adoption of a child/ren Marriage Commencement of a recognised relationship Divorce Cessation of a recognised relationship # Effecting a new mortgage for the purchase or construction of a primary residence or investment property in Australia (either alone or jointly with another person)^ Financing renovation/improvement to a primary residence or investment property in Australia (minimum cost $30,000)**. Death of a spouse Child starting primary or secondary school Buying a business with a business loan greater than $100,000^^ 30th, 35th, 40th and 45th birthdays. ## You also have a second opportunity to apply for Life Events cover within 90 days of the end of the financial year, due to a life event that occurred during that financial year. Insurance cover provided through Life Events will be subject to the annual top-up premium rates set out in Table 2 on page 4. The following table shows the amount by which you can apply to increase your existing death or death and TPD cover. The total amount of cover you have after you have been granted Life Events cover must be within the maximum cover limits (unlimited for death cover and $5 million for TPD cover). Existing sum insured (including base & top-up) Maximum additional insurance (top-up) Up to $100,000 $25,000 $100,001 up to $200,000 $200,001 up to $300,000 $300,001 up to $400,000 $400,001 up to $500,000 $75,000 $100,000 $125,000 $150,000 Over $500,000 $250,000 * You must be a current member of Telstra Super Personal Plus, aged under 65. After the acceptance of a Life Event application, you cannot submit another Life Event application (whether for the same type of Life Event or not) until 12 months have elapsed from the date of commencement of the additional cover. The total amount of Life Events cover you can obtain under the Policy is $750, days after the earlier of: date of the order effecting adoption; and the date of entry in a public official record of the adoption of a child. 90 days after the effective date of the registration of a: significant relationship for which deeds of relationship have been registered under the Relationships Act 2003 (Tas); registered domestic relationship within the meaning of the Relationships Act 2008 (Vic); civil partnership under the Civil Partnerships Act 2008 (ACT); registered relationship within the meaning of the Relationships Register Act 2010 (NSW); or any other similar state based registration scheme. 90 days after the date of the decree absolute. # 90 days after the effective date of the revocation of: significant relationship for which deeds of relationship have been registered under the Relationships Act 2003 (Tas); registered domestic relationship within the meaning of the Relationships Act 2008 (VIC); civil partnership under the Civil Partnerships Act 2008 (ACT); registered relationship within the meaning of the Relationships Register Act 2010 (NSW); or any other similar state based registration scheme. ^ 90 days after the date of settlement. ** 90 days after the confirmation of receipt of financing. 90 days after the date of death. 90 days after the child starts primary or secondary school (as applicable). ^^ 90 days after receipt of confirmation of financing. ## 90 days after relevant birthdays. Page 8

11 Applying for Life Events cover To apply for additional death or death and TPD insurance cover simply complete and submit a Life Event Application form (available from our website or by calling us), along with the required certified supporting documentation. You can obtain Life Events cover up to three times during your membership. Upon completion of assessment you will be advised in writing of the acceptance or decline of the application. A Life Event application will generally be accepted where the member satisfies the eligibility criteria and the member is able to provide satisfactory documentation supporting the occurrence of the Life Event. The Life Events cover will commence on the date the cover is accepted in writing. It may be subject to the same exclusions and other special conditions which apply to your existing cover. No claim will be payable on the additional cover if the death or disablement is due to intentional selfinflicted injury in the first 13 months. For further information on increasing your insurance cover due to a specified Life Event, please call us. Case study Extra security for an expanding family David is a Telstra Super Personal Plus member. He is 30 years old. As part of his Telstra Super membership he currently has $134,681 of age-based death and TPD cover and $250,000 of top-up cover. David and his partner Julia have two young children and are delighted to find out they are expecting a third child. David and Julia review their insurance cover and decide that, in light of their expanding family, they would like to increase David s insurance cover. Within 90 days of new baby, Chloe, being born David submits a Life Events Application for $125,000. No medical reports are required enabling the busy new father to submit the application quickly and easily. David s application is successful, giving the family total cover of $509,681. Page 9

12 Transfer your insurance to Telstra Super If you currently have death or death and TPD insurance with another super fund or life insurance company, you can apply to transfer that cover to us. By consolidating your insurance with Telstra Super you can take advantage of our bulk insurance rates, potentially saving on premiums, while simplifying your insurance arrangements. To take advantage of this handy feature, simply complete the Insurance Transfer Application form available from our website or by calling us. If your application is successful, you will be provided with the equivalent amount of top-up cover in Telstra Super as provided by your previous superannuation fund or insurer (the annual top-up rates in Table 2 on page 4 apply). Any transferred death and/or death and TPD cover will apply in addition to any existing cover you currently hold with Telstra Super. A cap of $2,000,000 on all transfers applies. It is important that you do not cancel your existing cover with your current superannuation fund or insurer until you have received written confirmation that your Insurance Transfer Application has been accepted. Case study Saving on insurance with Telstra Super Sarah is a current Telstra Super Personal Plus member. She is 40 years old next birthday, a white collar worker and has $96,415 of age-based death and TPD cover as part of her membership. Sarah also has $250,000 death insurance with another insurer which costs her $20 per month. Sarah decides to see how much her additional death insurance would cost if she transferred it to Telstra Super. She refers to Table 2 on page 4 and uses the following calculation to determine her premiums: Sarah s age next birthday = 40 Death insurance amount to be transferred = $250,000 Annual top-up death premium per $1,000 insured = $0.50 Top-up death premium payable = $250,000/1000 x $0.50 = $125/year or $10.42 per month. Sarah applies to transfer her death cover to Telstra Super and her application is accepted. By transferring her insurance to Telstra Super, Sarah saves $9.58 per month or $ per year. In addition, Sarah enjoys simplified financial arrangements, with all insurance premiums conveniently deducted from her Telstra Super account at the end of each quarter. Page 10

13 03/ Determining how much insurance you may need Determining how much cover you may need is as important as having the insurance cover itself. 95% of families do not have adequate levels of insurance 1. So, how do you determine an adequate level of insurance for your needs? Essentially your level of insurance cover should be able to replace your projected income over your working life. This lump sum amount would then need to be invested to provide the required cashflow to maintain you and/ or your family s standard of living or to ensure your estate is not left in debt. The table to the right provided by TAL illustrates your total potential lifetime earnings in today s dollars*. While your level of insurance cover may not need to match this amount, you need to carefully consider how you would fund this loss of income. Calculate the level of cover you require Step 1 Check your current level of cover by logging into SuperOnline or by calling us. Step 2 To help determine the level of insurance cover you may require, refer to the following table and factor in the potential costs: ongoing costs to maintain your family s lifestyle and home children s education (primary, secondary and tertiary) existing debts (mortgage, credit cards, personal loans or car loan) other expenses such as hospital/ medical costs, rehabilitation, home repairs or upgrades as a result of permanent disablement funeral expenses. The above costs can be offset by your existing assets (including your super balance, savings and any investments) to determine the insurance cover you may cover. If you already have insurance cover and there is a difference between your current level of cover and your required level of cover, consider applying to increase your insurance. Current Current annual income age $35,000 $65,000 $85,000 $100,000 $125,000 $150, ,034,000 1,920,000 2,511,000 2,954,000 3,692,000 4,431, ,000 1,769,000 2,314,000 2,722,000 3,402,000 4,083, ,000 1,603,000 2,097,000 2,467,000 3,084,000 3,700, ,000 1,421,000 1,858,000 2,186,000 2,732,000 3,279, ,000 1,220,000 1,595,000 1,877,000 2,346,000 2,815, , ,000 1,306,000 1,536,000 1,920,000 2,304, , , ,000 1,161,000 1,452,000 1,742, , , , , ,000 1,123, , , , , , ,000 Table provided by TAL. * Assumes interest at 5% and salary inflation at 3%. 1. Lifewise/NATSEM Underinsurance Report 2010 Page 11

14 04/ Changing your insurance cover You can make changes to your insurance cover at any time by completing a Change of Insurance form. Use this form to apply for top-up death cover, TPD cover or income protection cover, or to cancel any existing cover. Any cancellations of cover received within 30 days of you joining Telstra Super Personal Plus will not incur premiums. Handy hint It is important to note that if you cancel any insurance, including any automatic cover, and wish to reapply at a later date, evidence of your occupation, health and lifestyle will need to be provided to TAL for assessment. TAL may place an exclusion or premium loading on cover or may decline cover as a result of their assessment. To apply for additional cover: 1. Complete the Change of Insurance form and Personal Statement available from our website or by calling us. 2. post the completed forms to: telstra Super Insured Benefits Group PO Box MELBOURNE VIC 8001 When we receive your application, it is forwarded to TAL for assessment. Depending on the level of cover you apply for, TAL may request different medical requirements to assess your application. Tables 4 and 5 outline the initial requirements. Telstra Super will advise you when any of these medical tests or examinations are required. Once all the information is supplied to TAL and they have assessed your application, Telstra Super will advise you of the outcome. If within 14 days of the commencement of cover you advise in writing that you wish to cancel the cover, you can request a refund of any premium you may have paid. Evidence of health and lifestyle and claim information is treated in the strictest confidence at Telstra Super and is not made available to your employer or any other party without your authority, unless obliged by law. Table 4: Initial requirements death and TPD cover applications Under age 55 Age 55 and over Member s total sum Initial requirements insured death and TPD Up to $1,500,000 Personal Statement $1,500,001 up to $2,000,000 Personal Statement and blood tests $2,000,001 up to $3,000,000 Personal Statement, blood tests and abbreviated medical examination by paramedical or own doctor Over $3,000,000 Will be referred to underwriter Up to $1,000,000 Personal Statement $1,000,001 up to $2,000,000 Personal Statement and blood tests $2,000,001 up to $3,000,000 Personal Statement, blood tests and abbreviated medical examination by paramedical or own doctor Over $3,000,000 Will be referred to underwriter Table 5: Initial requirements for income protection cover applications Age 16 to 65 Monthly benefit Initial requirements Up to $12,000 Personal Statement $12,001 up to $20,000 Personal Statement and blood tests $20,001 up to $25,000 Personal Statement, blood tests and full medical examination by paramedical or own doctor Over $25,000 Will be referred to underwriter Page 12

15 05/ Insurance premiums 06/ When are insurance payments made? Insurance premiums will be deducted from your Telstra Super Personal Plus account at the end of each quarter, or if you leave the fund or transfer your super to another Telstra Super product. Premiums for income protection cover obtained through a super arrangement are generally not tax deductible, however premiums are paid directly from your super account monies, which are concessionally taxed at 15% for annual incomes under $300,000 and 30% for annual incomes above $300,000. Your premiums will vary annually with changes to your age and income. See Table 2 on page 4 for the annual applicable top-up premium rates for death and death and TPD insurance, Table 6: Occupational loadings based on every $1,000 sum insured. See Table 3 on page 7 for the applicable annual premium rates for income protection cover, based on every $1,000 sum insured. Top-up and income protection premium rates are applicable to white collar employees and additional occupational and health loadings may apply depending on your occupation and health status see Table 6. Members given a premium loading or exclusion at the conclusion of the assessment process will be given an opportunity to cancel their application, should they wish not to proceed. Occupation Death cover TPD Income protection White collar Light blue Medium blue Heavy blue Death and TPD benefit Your base level of cover and any top-up insurance means you, your dependants and/or legal personal representative(s) (as applicable) could receive a lump sum insurance payment paid in addition to the balance of your super account, in the event of your death or total and permanent disablement. An anti-detriment payment may also be payable. See page 12 of the Additional Information About Your Super Guide for more information. Terminal illness benefit You will qualify for a Terminal illness benefit if you suffer from a sickness or injury which: two medical practitioners (one of whom specialises in your illness) believe will lead to your death within 12 months of the date of written certification, despite reasonable medical treatment, and TAL is satisfied, on medical or other evidence, will lead to your death within 12 months of the date of the certifications, despite reasonable medical treatment. The amount of the benefit that is paid is the insured death cover amount (up to $5 million) and your account balance. Page 13

16 TPD benefit To obtain an insurance payout for TPD you must have TPD cover and: satisfy the requirements of the Telstra Super Trust Deed and TAL Policy document; and either have ceased work with your employer (and been off work for at least three months*) if the Unable to work TPD definition applies; or meet one of 19 specified medical conditions (see pages 16 and 17) in which case there is no waiting period to receive the benefit (referred to as the Day 1 TPD definition); or have been unable to perform any Domestic Duties for three consecutive months since the date of disablement if the Domestic Duties TPD definition applies; or be unable to perform certain Activities of Daily Working without the physical assistance of another person if the Activities of Daily Working TPD definition applies. The applicable TPD definition you must satisfy will depend upon whether at the date of disablement you were working, not working or performing Domestic Duties. Generally, the Unable to Work TPD definition or the Day 1 TPD definition applies if you were working for a minimum of 15 hours per week on average for the six months prior to the date of disablement (or such shorter period where applicable). The Domestic Duties TPD definition applies if you were not working and you were engaged in Domestic Duties for a minimum of 15 hours per week on average for the six months prior to the date of disablement (or such shorter period where applicable). * tal may exercise its discretion and waive any requirement that the member be absent from all active work for at least three consecutive months. The Activities of Daily Working TPD definition applies if you were not working and engaged in Domestic Duties or work for less than 15 hours per week on average for the six months prior to the date of disablement (or such shorter period where applicable). Income protection When are payments made? To obtain monthly payments for income protection, you must have income protection cover and: have been working a minimum of 15 hours or more per week averaged over the six consecutive months prior to your date of disablement or if you have been working for less than six months, the period since your cover commenced; and have been unable to work for your employer (and off work) for the applicable waiting period; and satisfy the TAL Policy definition of total disablement. You may be eligible to receive partial disablement payments if: you are totally disabled for no less than seven of the first 12 consecutive days of the applicable waiting period; and you are either partially or totally disabled for the rest of the applicable waiting period; and you decide to return to work on a reduced capacity resulting in a reduction in your income; and you are under the ongoing care of a registered Medical Practitioner. If eligible, income protection payments are paid monthly in arrears from the end of the applicable waiting period after the day you last worked for your employer. Up to 75% of your salary (excluding super) is paid directly to you, and 10% is paid to your Telstra Super Personal Plus account. Any period in which a benefit was payable but is calculated to be zero does not amount to an interruption to an entitlement to a disability benefit. Income protection payments will be reduced by the amount of any other payments you receive during a payment period (such as sick leave payments or workers compensation payments). Social security benefits and motor accident compensation are not offset against insurance benefits. Where a member is receiving income protection payments over a five year benefit period without a break, payments are indexed annually by 5% or the CPI increase (for the 12 months ending 30 September in each year) whichever is lesser. Under current legislation your income protection payments are treated as income and will be taxable. Premiums are waived by TAL while you are receiving income protection payments. When do payments stop? Your income protection payments cease upon occurrence of one of the following conditions (whichever occurs first): you return to work you have received payments for the total benefit period you cease to satisfy the definition of total or partial disablement you reach age 65, or you die. Income protection payments are subject to the continued approval of your eligibility by TAL and the Trustee. partial disablement benefits may be payable depending upon your income. Page 14

17 07/ Overseas or on leave? Subject to satisfying the relevant Policy conditions, worldwide death and TPD cover is provided 24 hours a day, 7 days a week for insured members who are overseas, as well as members who are on leave. Income protection cover continues for two years for members who are on unpaid leave. 08/ Leaving Telstra Super If you decide to withdraw your benefit from Telstra Super Personal Plus and leave the fund any death and TPD insurance cover you have will continue for a period of 60 days*. If you leave Telstra Super any outstanding premiums will be deducted from your account at that time. 09/ Need more information about insurance cover? Call us on from 8.00am to 5.30pm (Melbourne time), Monday to Friday. Visit Find out everything about your current insurance arrangements on our website. Your insurance needs are covered with Telstra Super Comprehensive We offer death, TPD and income protection insurance cover. You also have the option to apply to transfer any external insurance you may have, or to apply for extra cover when significant changes occur in your life. Our insurance cover is provided 24 hours a day, 365 days a year whether at work or play, offering genuine peace of mind. Affordable We ve negotiated bulk insurance rates to cover 100,000 members, potentially saving you hundreds of dollars per year in premium payments compared to insuring yourself individually. Convenient Having your insurance and super with the one provider simplifies your financial arrangements, with premiums conveniently deducted from your account at the end of each quarter. * The trustee will presently meet the cost of this extended insurance cover but reserves the right to pass this cost on to members in the future. Members will be advised of any change. Extended cover excludes income protection benefits once you leave your employer. Page 15

18 10/ Definitions of medical conditions The following words or expressions used in the Day 1 TPD definition have the meanings set out below. blindness The permanent loss of sight in both eyes, whether aided or unaided, due to sickness or accident to the extent that visual acuity is 6/60 or less in both eyes or to the extent that the visual field is reduced to 20 degrees or less of arc, as certified by an ophthalmologist. cardiomyopathy Condition of impaired ventricular function of variable aetiology (often not determined) resulting in significant physical impairment, i.e. Class 3 on the New York Heart Association classification of cardiac impairment. chronic lung disease Permanent end stage respiratory failure with FEV1 test results of consistently less than one litre, requiring continuous permanent oxygen therapy. dementia and alzheimer s disease Clinical diagnosis of dementia (including Alzheimer s disease) as confirmed by a consultant neurologist, psycho-geriatrician, psychiatrist or geriatrician. The diagnosis must confirm permanent irreversible failure of brain function resulting in significant cognitive impairment for which no other recognisable cause has been identified. Significant cognitive impairment means a deterioration in the person s Mini- Mental State Examination scores to 24 or less and deterioration would continue but for any effective treatment. Dementia related to alcohol, drug abuse or AIDS is excluded. diplegia The total loss of function of both sides of the body due to sickness or accident where such loss of function is permanent. hemiplegia The total loss of function of one side of the body due to sickness or accident, where such loss of function is permanent. loss of hearing Complete and irrecoverable loss of hearing, both natural and assisted, from both ears as a result of sickness or accident, as certified by a specialist we consider appropriate. loss of speech The total and irrecoverable loss of the ability to produce intelligible speech as a result of permanent damage to the larynx or its nerve supply or the speech centres of the brain. The loss must be certified by an appropriate medical specialist. major head trauma Injury to the head resulting in neurological deficit causing either: a permanent loss of at least 25% whole person function (as defined in the American Medical Association publication Guides to the Evaluation of Permanent Impairment 4th Edition or an equivalent guide to the evaluation of impairment approved by us); or the permanent and irreversible inability to perform without the assistance of another person any one of the following activities of daily living: dressing the ability to put on and take off clothing toileting the ability to use the toilet, including getting on and off mobility the ability to get in and out of bed and a chair feeding the ability to get food from a plate into the mouth continence the ability to control bowel and bladder function as certified by a consultant neurologist. motor neurone disease Motor neurone disease diagnosed by a consultant neurologist. multiple sclerosis The unequivocal diagnosis of multiple sclerosis as confirmed by a consultant neurologist and characterised by demyelination in the brain and/or spinal cord evidenced by Magnetic Resonance Imaging or other investigations acceptable to us. There must have been more than one episode of well-defined neurological deficit with persisting neurological abnormalities. Page 16