Insurance booklet. Industry division. Contents. Issued 1 December 2013

Transcription

1 Contents 1. Death, Terminal Illness and Total and Permanent Disablement Cover 3 2. Income Protection 9 Insurance booklet Industry division Issued 1 December 2013 The information in this document forms part of the Product Disclosure Statement for Club Plus Super Industry Division dated 1 December An application to apply for insurance cover or increase your existing cover is on the back of this booklet. by your side for over 25 years

2 Supporting documentation required with this booklet are: Industry Product Disclosure Guide Dated 1 December 2013 The insurance is arranged by Club Plus Super and is provided by The Colonial Mutual Life Assurance Society Limited ABN AFS Licence (referred to in this booklet as CommInsure ). This Industry Division Insurance Booklet should be read as a guide only. The full policy terms and conditions are outlined in the Fund policy documents issued by CMLA (CommInsure) which can be obtained on request from Club Plus Super. All cover provided is subject to the terms and conditions contained in the policy documents. The full terms and conditions contained in the policies take precedence over this guide. Please read all of this section to ensure that you understand how your insurance works and when you are covered. If you have any questions please call the Member Hotline on This Insurance Booklet for Club Plus Super Industry Division is issued by Club Plus Superannuation Pty Ltd ABN Australian Financial Services Licence , as Trustee for the Club Plus Superannuation Scheme ABN Club Plus Superannuation Pty Limited holds Registerable Superannuation Entity Licence.L and Club Plus Superannuation holds Fund Registration. R The information in this Booklet is only a guide. It does not take into account your particular goals, financial situation or needs. Before acting on information you should consider the appropriateness of the information having regard to your particular goals, financial situation and needs. We recommend that you speak with a qualified and independent financial adviser. The issue of this Booklet is authorised solely by Club Plus Superannuation Pty Ltd (Trustee, we and us). other person or company (whether or not related to the Trustee) is responsible for any information contained in the Booklet. If you would like to consult a qualified financial planner before making your decision, you can obtain no commission based professional financial advice from Club Plus Financial Planning on a range of financial issues including superannuation, retirement planning, wealth creation, income protection and personal life insurance. Club Plus Financial Planning Pty Ltd (Club Plus Financial Planning), ABN acting as Corporate Authorised Representative # of Adviser Network Pty Ltd, ABN ( Licensee ). The Licensee holds a current Australian Financial Services Licence # and is responsible for the financial services provided to you.

3 Death, Terminal Illness and Total and Permanent Disablement Cover As a member of the Industry Division of Club Plus Super, you will automatically be accepted for one unit of Death, Terminal Illness and TPD insurance cover, without medical assessment, up to age 70 at a cost of $1.50 per week. Your level of cover is based on your age and decreases each birthday. You can vary this default level of unitised cover by choosing to fix cover, remove cover for TPD by electing Death Only cover or increase the level of unitised or fixed cover. Although you are covered for Death, Terminal Illness and TPD, you can only claim one insurance benefit. For example, if you become Totally and Permanently Disabled and you claim a TPD insurance benefit and you die after receiving the TPD benefit, your beneficiaries are not entitled to claim a Death or Terminal Illness insurance benefit. New members automatically receive one unit of Death, Terminal Illness and TPD insurance (default cover). Your default cover for Death, Terminal Illness and TPD insurance cover costs $1.50 per week per unit of cover. Insurance premiums are deducted from your account on the last Friday of each month. The amount of insurance cover you have will depend on your age. At the end of each month, your insurance premiums are deducted from your account and the premiums are forwarded to Club Plus Super s life insurer, CommInsure. Death, Terminal Illness and TPD insurance cover is available to eligible Club Plus Super members 24 hours a day, seven days a week anywhere in the world provided you have sufficient funds in your membership account to continue paying premiums and you haven t opted out of the cover. When does cover start? Your default cover for Death, Terminal Illness and TPD starts on the later of the following dates: the date you commence employment with your employer; and where your employer s first employer contribution to Club Plus Super does not relate to the date you commenced employment with your employer (e.g. if your employer s first contribution was made to another superannuation fund on your behalf) the date which is the beginning of the period to which your employer s first contribution to Club Plus Super on your behalf relates. If the employer contribution doesn t relate to your first 180 days of employment with the employer, limited cover will apply for 12 months. However, if you are not in active employment on the date cover starts, then your Death, Terminal Illness and TPD insurance cover will be on a Limited Cover basis only. Once you have returned to active employment for two consecutive months, the Limited Cover provision will be removed and full cover will apply (see page 6 for definitions). What is the level of cover? The following table shows the level of cover for one unit of Death, Terminal Illness and TPD insurance cover according to the member s age. Where the member obtains additional units of cover, the number of units of cover is multiplied by the amount shown in the table. Age Death and TPD cover (one unit) $ Age Death and TPD cover (one unit) $ , , , , , , , , , , , , , , , , , , , , , , , , , , nil When does cover end? Your Death, Terminal Illness and TPD insurance cover will continue under Club Plus Super until one of the following happens: a Death, Terminal Illness or Total and Permanent Disablement Insurance benefit becomes payable; or you die; or you reach the cover expiry age which at present is age 70; or the date we receive your written request for cover to end; or the date you cease to be a member of Club Plus Super; or the date you no longer have sufficient funds in your account to cover the cost of the next insurance premium; or the date you join any armed forces, other than the Australian Armed Forces Reserves; or the policy terminates. If your cover ends and you later wish to have your cover reinstated, the Automatic Acceptance Limit may not apply to you and you may need to apply for cover by completing a Personal Statement form. These forms must include evidence of health, satisfactory to the insurer, and must be accepted in writing by the insurer. 3

4 Death, Terminal Illness and Total and Permanent Disablement Cover (cont.) Is insurance cover compulsory? Although one unit of Death, Terminal Illness and TPD insurance cover is automatic when you join Club Plus Super, it is not compulsory and you may choose to cancel cover at any time or you can just opt-out of the TPD cover by electing to have Death Only cover. You will need to advise Club Plus Super via the Insurance Cancellation or Reduction form. If you elect not to have insurance cover and subsequently want cover at a later date, you will only be eligible for cover if you provide evidence of health satisfactory to the insurer and the insurer accepts you for cover. Do you want additional cover? When a new member application is received by Club Plus Super, a Welcome Letter and Special Offer form will be sent. The Special Offer form allows a new member to apply for an additional unit of Death, Terminal Illness and TPD cover without having to provide evidence of health or other underwriting. To take advantage of the additional unit, the Special Offer form will need to be completed and returned within 60 days of the date of the Welcome Letter. Alternatively, additional cover can be applied for at any time, but you will need to complete the Personal Statement Form, available at the back of this booklet. The total amount of insured cover cannot exceed $2,000,000. When does cover start if I apply for additional cover? All applications for additional cover will start from the date the insurer advises acceptance in writing. However, CommInsure will provide accidental Death and accidental TPD cover while an application for cover, or an increase in cover, is being assessed. Under this type of cover, the Death or Total and Permanent Disablement must occur within 60 days of the accident. Interim accident cover is available for death and TPD resulting from a bodily injury caused solely and directly by accidental, external and visible means, independent of any other cause. Accidental Death cover and accidental TPD cover is provided based on the level of cover or additional cover applied for (subject to maximum of $1,000,000) and ends 60 days after your request for additional cover. For full details contact the Club Plus Super Member Hotline on Exclusions What is the cost of Death, Terminal Illness and TPD insurance cover? Death, Terminal Illness and TPD insurance cover costs $1.50 per unit per week, while Death and Terminal Illness Only cover costs $0.90 per unit per week. The cost is deducted from your account balance on the last Friday of each month. If your account balance is insufficient to cover your next insurance premium, you will be notified that there is insufficient funds to cover the cost of the insurance premium. If no further contribution is made, your cover will end. Significant Events Cover You can take up extra Death, Terminal Illness and TPD cover without having to provide evidence of health for a range of significant events. You can increase your existing cover by one unit when you experience one of the following significant events: milestone birthdays of 30, 40 and 50; marriage; birth or adoption of a child; taking out a mortgage to buy a primary residence; divorce; and child starting secondary school. You can exercise this option once in any 12 month period and satisfactory proof of the event is required such as a marriage certificate or decree nisi. You must apply for the extra cover within 60 days of the significant event or of the most recent member statement whichever is the later and you must be in active employment on the date of application. To apply, you will need to complete a Significant Events Cover Option form. te If your application for additional cover is declined, any existing insurance cover under Club Plus Super is not affected. benefit will be paid if your Death, Terminal Illness or Total and Permanent Disablement is caused directly or indirectly by an act of war which occurs outside of Australia. In the event that the World Health Organisation declares a Level 5 Pandemic situation, no benefit will be payable where a member dies within 30 days of cover commencing, and the sole or dominant cause of the member s death is a pandemic illness (or a condition which arose as a direct consequence of a pandemic illness). 4

5 Death Only Cover A member who does not wish to have TPD cover can cancel this by changing to Death Only Cover, which is $0.90 per unit per week. This cover may also be suitable for a member who requires more Death cover than TPD cover. Example James, aged 38, requires approximately $500,000 Death insurance and $100,000 TPD insurance. Therefore, James decides to take the following: 1 unit of Death and TPD ($131,500). 3 units of Death Only cover ($394,500). Fixed Cover The Death, Terminal Illness and TPD cover you automatically receive is one unit of cover. The value of a unit of cover gradually decreases as you get older. If you do not want your cover to reduce as you get older, you can apply for Fixed Cover. When you apply for Fixed Cover, the number of units of cover you have will be converted to Fixed Cover in multiples of the nearest $1,000. Fixing your cover means the sum insured will remain the same each year, however the insurance premium deducted from your account will increase each year. How to calculate the weekly premium cost for Fixed Cover The table on page 6 shows the applicable premium multiplier to be used in calculating the relevant cost per week dependent on age. To calculate the premium, fill in the relevant sections (a), (b), (c), (d) for the cover required. Then transfer these amounts into the relevant calculation below. Example Using the previous example, James decides to fix his cover, therefore, his unitised cover will be rounded up to the nearest $1,000. Death & TPD required (James) Death only cover required Cover amount required (a) $132,000 (b) $395,000 Death & TPD required; (a) $ (c) Death only cover required. (b) $ Death & TPD Premium calculation Premium multiplier based on age (c) (d) (d) Example (a) $132,000 $1,000 x (c) = $1.51 (Premium per week) (a) $ x (c) $1,000 = $ (Premium per week) Death & TPD Premium calculation Example (a) $395,000 $1,000 x (d) = $2.70 (Premium per week) (a) $ x (c) $1,000 = $ (Premium per week) 5

6 Death, Terminal Illness and Total and Permanent Disablement Cover (cont.) Fixed Cover Premium cost ($) per week per $1,000 Sum Insured Current Age Death & TPD Death Only Current Age Death & TPD Death Only n/a n/a You can switch between unitised and fixed cover at any time by completing the Insurance Variation form. The value of your unitised cover will be rounded up to the nearest $1,000 for Fixed Cover. If you want more Fixed Cover, you can apply by completing a Personal Statement form, and providing health information. Once you have Fixed Cover, you can switch back to unitised cover and the amount of Fixed Cover you have will be rounded down to the nearest number of units. Insurance definitions Certain words have specific meanings in relation to the policy terms and conditions. The policy documents detail all of the definitions. A few of those used in this Insurance Booklet are detailed here. Total and Permanent Disablement (TPD) If you cease work with a Club Plus Super employer due to injury or illness, you may be entitled to receive payment of the insured amount if you have TPD insurance cover. In order to be eligible to receive a TPD benefit payment you must meet the definition of TPD in the relevant insurance policy. Under Club Plus Super s current policy you will be considered Total and Permanently Disabled if, in the opinion of the insurer, you meet one of the following criteria: 1. You suffer, as a result of injury or illness, the loss of the use of two limbs or the loss of sight of both eyes, or the loss of one limb and the sight of one eye (where limb is defined as the whole hand or whole foot); or 2. You were employed at any time during the 12 months immediately before the incident date, and having been absent from your occupation with your Club Plus Super employer through injury or illness for three consecutive months from the incident date, and having provided proof to the satisfaction of CommInsure that you have become incapacitated to such an extent as to render you unlikely ever to engage in any gainful profession, trade or occupation for which you are reasonably qualified by reason of education, training or experience; or 3. As a result of injury or illness, you are totally unable to perform without the physical assistance of another person, any two of the following activities of daily living (and you are permanently and irreversibly unable to so do for life): i. Dressing the ability to put on and take off clothing; ii. Toileting the ability to use the toilet, including getting on and off; iii. Mobility the ability to get in and out of bed and a chair; iv. Continence the ability to control bowel and bladder function; v. Feeding the ability to get food from a plate into the mouth; and 6

7 4. i. you have not been employed in the 12 months immediately before the incident date, and during that time you were capable of performing full-time unpaid domestic duties (even if you were not actually performing such duties); and ii. as a result of illness or injury, you have been unable to perform domestic duties for six consecutive month from the incident date, and having provided proof to the satisfaction of CommInsure that you are unlikely ever to be able to engage in unpaid domestic duties, or any occupation for which you are reasonably suited by education, training or experience; and ever to be able to engage in unpaid domestic duties, or any occupation for which you are reasonably suited by education, training or experience; and iii. you are so incapacitated that you are unable to leave your home without the assistance of another person; or 5. as a result of illness or injury, you are totally and permanently unable to perform at least four of the following activities of daily work: i. Bending The ability to bend, kneel or squat to pick something up from the floor and straighten up again. ii. Communicating The ability to: clearly hear with or without a hearing aid or alternative aid if required; comprehend and express yourself by spoken or written language with clarity; and successfully function on a day to day basis and in a work environment. iii. Vision (reading) The ability to read, with or without correction with suitable lenses, to the extent that an ophthalmologist can certify that: visual acuity is equal to, or better than, 6/48 in both eyes; or constriction is within or greater than 20 degrees of fixation in the eye with the better vision. iv. Walking The ability to walk more than 200m on a level surface without stopping due to breathlessness, angina or severe pain elsewhere in the body. v. Lifting The ability to lift, carry or otherwise move objects weighing up to 5kg using either or both hands. vi. Manual Dexterity The ability, with reasonable precision and success, to: use at least one hand, its thumb and fingers, including the ability to pick up and manipulate small objects; and use a keyboard. Incident date means the later of: A. the date on which a medical practitioner examines you and certifies in writing that you suffer from the illness or injury that is the principal cause of your disablement; and B. the date you ceased all work, and must occur while you are covered under the insurance policy. If you believe you satisfy the above definition, you can lodge a claim by completing a claim form, available on request from Club Plus Super, and providing medical evidence specifying the nature of your injury or illness. Due to legal requirements, the claims assessment process is often complicated and it may be some time before your TPD benefit is paid. In accordance with the insurance policy, you must have been absent from work for three or six consecutive months from the incident date before CommInsure can determine whether you meet the definition of TPD in the policy. Terminal Illness Under Club Plus Super s current policy you will be considered to suffer from a Terminal Illness if you suffer from an illness which: a medical practitioner (who is accepted by the insurer as an accepted medical practitioner under the policy), specialising in your sickness certifies in writing will, despite reasonable medical treatment, lead to your death within 12 months of the date of the certification; and the insurer is satisfied, on medical or other evidence, will despite reasonable medical treatment lead to your death within 12 months of the date of this certification. If you believe your illness satisfies the above definition, you can lodge a claim by completing a claim form, available on request from Club Plus Super, and providing medical evidence specifying the nature of your illness. Importantly, however, under superannuation law, you will only be able to be paid your Terminal Illness benefit from the fund if you are Permanently Incapacitated or you satisfy one of the other conditions of release. Active Employment To be in Active Employment you must be employed to carry out identifiable duties by your Club Plus Super Employer and in CommInsure s opinion you are not restricted by injury or illness from being capable of carrying out the identifiable duties and normal work hours of your occupation on a full time basis. If you are not in Active Employment on the day your cover commences, you are still insured under the policy on Limited Cover terms until such time as you have returned to active employment for two consecutive months; at which point full cover is reinstated. You must be undergoing appropriate treatment/care prescribed by a medical practitioner specialising in your illness or injury and any claim must be supported by medical or other evidence. 7

8 Death, Terminal Illness and Total and Permanent Disablement Cover (cont.) What is Limited Cover? Members on Limited Cover are only insured for claims that arise from an illness that first becomes apparent or an injury that first occurs on or that has occurred after the date cover has commenced (i.e. therefore excluding pre-existing illnesses or injuries). The amount of your Limited Cover will be one unit of Death, Terminal Illness and Total and Permanent Disablement cover. However, whilst you have only Limited Cover, a benefit will not be paid if: you die due to suicide which happens within 13 months of cover commencing; or you suffer from a terminal illness or become totally and permanently disabled due to intentional self-inflicted injury or infection or attempt at suicide. What does at work mean? You are at work if you are: actively performing all the duties and work hours of your usual occupation with your employer free from any limitation due to illness or injury and you are not entitled to or receiving income support benefits from any source (e.g. workers compensation benefits); or on leave approved by your employer for reasons other than illness or injury, and on the last working day immediately before you commenced the leave you were: i. actively performing all the duties and work hours of your usual occupation with your employer free from any limitation due to illness or injury; and ii. not entitled to or receiving income support benefits from any source (e.g. Workers Compensation benefits). 8

9 Income Protection Short Term Income Protection As a member of the Industry Division of Club Plus Super, you will automatically receive Short Term Income Protection cover (default) which will provide you with a replacement for your income for up to two years in the event that a sickness or injury prevents you from working. The automatic Short Term Income Protection Insurance cover you are provided without having to supply evidence of health is up to 90% of your income plus 9.25% SG contributions (subject to a maximum of $16,000 per month. You can apply for more than the $16,000. Up to $30,000 per month is available with underwriting). The maximum benefit payable at any time will be 90% of your income plus a 9.25% super contribution. Additional Benefits include: Recurrent Disability Benefit the waiting period will not apply if you claim for the same or related cause within six months of last being on claim Death Benefit members covered under this policy will receive a one-off benefit equivalent to one week s disability benefit if they pass away whilst being on claim for income protection Partial Income Protection Benefits you can continue to work on a part-time basis during your recovery and you may still be eligible to receive benefits under this plan. Do I need income protection if I am already covered for Total and Permanent Disablement? The two types of insurance cover you for different circumstances. The main differences are: Total and Permanent Disablement This insurance covers you in the event that you suffer an illness or injury that permanently prevents you from working at any occupation that it is reasonable to expect you to perform. The benefit is payable as a lump sum, and you can take out up to $2,000,000 worth of cover with Club Plus Super. Income Protection Insurance This insurance covers you in the event that you suffer a sickness or accident that temporarily prevents you from working at full capacity in your current occupation. The benefit is generally payable as a monthly payment (plus Superannuation Guarantee) and the Short Term Income Protection is only payable for a period of up to 24 months. It is recommended that before making any decision regarding your insurance coverage that you seek advice from a qualified financial adviser. Please note that the information above is of a general nature and is intended only as a brief guide to the policy. Actual terms and conditions etc. will be governed by the policy document, which is available on request. When will cover commence? For new members your automatic income protection cover commences for you on the later of the following: The date on which you commence employment with a Club Plus Super employer; The date on which you commence employment with a Club Plus Super employer, provided you were in active employment on that day; The beginning of the period to which your employer s first contribution to Club Plus Super on your behalf relates, provided the beginning of the period the first contribution relates is within 180 days of the employee commencing employment with the employer. The date in which we agree to provide coverage for you (if you were previously not entitled, or opted out). If you are not in active employment on the day your default income protection cover started, your cover will be limited cover until you are in active employment for two consecutive months. If the first employer contribution is not made within 180 days of you commencing employment with your employer, you will receive limited cover until you are underwritten and the insurer agrees to provide full cover. What does active employment mean? You are in active employment if, 1) you are employed by an employer to carry out identifiable duties, 2) you are actually performing those duties, and 3) in CommInsure s opinion you are not restricted by injury or illness from being capable of carrying out the identifiable duties of your current and normal occupation on a full time basis. When will I be eligible to claim? You must be disabled for the waiting period of 21 days before any Income Protection Benefit will be paid. The waiting period starts on the date a medical practitioner certifies you are disabled. You must be totally disabled for at least 14 out of the first 19 consecutive days of the waiting period to qualify for any Income Protection benefit. When are you covered? As an active employed member, you will have Short Term Income Protection cover, provided your employer participates in Club Plus Super and makes your regular Superannuation Guarantee (SG) contributions into your Club Plus Super account. You are covered 24 hours a day, seven days a week, worldwide for the period to which your SG contributions relate. Short Term Income Protection (Default) Insurance cover of up to 90% of your income plus 9.25% SG contributions (maximum cover without underwriting of $16,000 per month or $30,000 with underwriting). 9

10 Income Protection (cont.) When does cover cease? Your cover ceases when one of the following events occurs: You cease to be employed by an employer that either participates in Club Plus Super or is deemed to be an employer by the Trustee; You die; The date which is the end of the period to which the last employer Superannuation Guarantee (SG) contribution made on your behalf relates; Example Jo works for City Bowling Club and earns $30,000 per year (approximately $577 per week). The SG contributions her employer makes are $2,775 per year ($53.37 per week). The cost for Short Term Income Protection is $ per year ($4.03 per week). This means that for around $4 per week, Jo will be covered for up to $27,000 (90% of her salary) plus SG contributions of $2,775 per year, if she was unable to work due to injury or Illness. The date you reach the age of 70; The date you join any Armed Forces (except the Australian Armed Forces Reserve); If you go on leave without pay, and the leave without pay requirements are satisfied, the date which is 12 months after the leave commenced; If you go on leave without pay, and the leave without pay requirements are not satisfied, the date such leave commences; The date we receive a request from you to cancel cover; The policy terminates. Please note that cover will continue even if you are receiving income protection payments as a result of a sickness or injury. If your cover ends and you later wish to have your cover reinstated, the Automatic Acceptance Limit will not apply and you will need to apply for cover by completing a Personal Statement form. How much does cover cost? The cost of insurance will be based on the amount that your employer pays in Superannuation Guarantee (SG) contributions. The amount deducted from your member account each week will equate to 7.56% of SG contributions made by your employer. 10

11 Long Term Income Protection How much cover is provided? You can be covered for up to 90% of your salary, overtime and allowances, for which your employer is making superannuation contributions on your behalf. Up to $16,000 per month is available without you having to provide any evidence of health. Amounts over $16,000 per month will require underwriting by CommInsure. The overall maximum level of cover is $30,000 per month. You will need to complete the Personal Statement form if you require more than $16,000 per month cover. Your salary at claim time is calculated by averaging it over the 12 months preceding your claim. Please note if you have agreed with your employer to salary sacrifice part of your income, the part of your income that you have sacrificed will not be included in your salary if your employer is not making SG contributions on that amount, and your premium will be reflected accordingly. Please refer to the examples on the right. The benefit amount will depend on how much of your income your employer takes into account when determining their SG liability. Please note that the following conditions apply: The maximum period that a benefit will be paid in respect of any sickness or injury is 24 months; The amount payable will be reduced by any other payments received, e.g. sick leave, Workers Compensation, and any benefits payable under another income protection policy; Superannuation Guarantee Contributions of 9.25% of the income that you received prior to the sickness or injury will be paid into your Club Plus Super account on your behalf for the duration of the claim payment period; Insurance premiums will continue to be deducted and your Income Protection insurance cover will be maintained throughout the payment period; You will be covered until you turn 70 years of age. Your Short Term Income Protection (default) cover provides benefit payments for up to 24 months for sickness or injury after an initial waiting period of 21 days. You have the option to take up Long Term Income Protection which provides cover of up to 75% of income plus 9.25% SG contributions, has a waiting period of two years, with payments payable while you are totally or partially disabled, up to age 65, complimenting the Short Term Income Protection cover. If you have Long Term Income Protection, you will be covered until: There are insufficient funds in your Club Plus Super member account to deduct premiums; The date you reach the age of 65; The date you join any Armed Forces (except the Australian Armed Forces Reserve); The date we receive a request from you to cancel cover; You are no longer a member of the fund; If you go on leave without pay and the leave without pay requirements are not satisfied, the date such leave commences; If you go on leave without pay and the leave without pay requirements are satisfied, the date which is 12 months after the leave commenced; If you die; or If the policy terminates. To apply for Long Term Income Protection, please complete the Personal Statement form at the back of this booklet. Examples Pre-salary sacrifice income $50,000 Salary sacrificed amount $20,000 Post-salary sacrifice income $30,000 Example 1: Pre-salary sacrificed income Employer calculates SG based on income including salary sacrifice. SG = 9.25% of $50,000 (insurance premium is a percentage of the SG). Income Protection benefit is up to 90% of $50,000 (plus 9.25% SG contributions). Example 2: Post-salary sacrificed income Employer calculates SG based on post salary sacrifice income only. SG = 9.25% of $30,000 (insurance premium is a percentage of the SG). Income protection benefit is up to 90% of $30,000 (plus 9.25% SG contributions). 11

12 Income Protection (cont.) How much does Long Term Income Protection Cover cost? The cost for Long Term Income Protection is calculated using the premium multiplier from the table below. Long Term Income Protection weekly premium rates ($) per $100 of monthly benefit Age Next Birthday Male Female Age Next Birthday Male Female

13 Example: Jake will be 22 years old on his next birthday and earns $60,000 per year ($5,000 per month). Under Long Term Income Protection he can be covered for up to 75% of income ($45,000 per year or $3,750 per month) plus SG ($5,500 per year or $ per month). Therefore his total monthly benefit is $4, The premium states weekly premium rate per $100 of monthly benefit. The calculation will therefore be based on the total monthly benefit of $4, (75% of salary plus SG). The calculation is x 42 = $1.78 per week. Example (Jake) $60,000 x 75% Gross salary) = (a) $45,000 $60,000 x 9.25% (Gross salary) = (b) $5,550 (a) $45,000 + (b) $5,550 = (c) $50,550 (c) $50,550 / 12 = (d) $4, $4,200 / 100 x = $1.78 per week Exclusions Cover will not be provided for claims resulting from an injury or illness caused directly or indirectly as a result of: intentional self-inflicted injury or infection, or attempt at suicide (whether or not the person is sane at the time); normal pregnancy or childbirth; or war. Is cover compulsory? Sum Insured $ x 75% (Gross salary) = (a) $ Superannuation Guarantee (SG) $ x 9.25% (Gross salary) = (b) $ Annual Total Benefit (a) $ + (b) $ = (c) $ Monthly Benefit (c) $ / 12 = (d) $ Weekly Premium (d) $ Your example /100 x (premium multiplier) = $ per week, you can elect to opt out of Income Protection insurance at any time by advising Club Plus Super in writing. How do I claim a benefit? Claims for benefits are to be made in writing. The claim form is available from or by calling Every claim for an Income Protection Benefit under the insurance policy shall be made in the form prescribed by The Colonial Mutual Life Assurance Society Ltd and shall be accompanied by such evidence of sickness, accident and resulting injury and/or death as CommInsure may determine. notice period is required before a benefit is payable, but no benefit is payable until CommInsure has assessed the claim and agreed that a benefit should be payable under these Rules. All certificates and evidence required by CommInsure to assess your claim shall be furnished as required at the Insured Person s expense. CommInsure will, upon receipt of a notice of claim furnish such forms as are usually required by CommInsure for filing Proof of Claim. Written Proof of Claim must be furnished to CommInsure at their office within ninety (90) days after the date of the Event. Failure to furnish such proof within the time required shall not invalidate nor reduce any claim if it was not reasonably possible to do so, provided that the proof is furnished as soon as is reasonably possible and in no event except in the absence of legal capacity, later than twelve (12) calendar months from the time it would normally be required. Additional insurance benefits All Club Plus Super members who have Short Term Income Protection Insurance Cover will be entitled to additional benefits. The additional insurance benefits are provided and underwritten by CommInsure and include Rehabilitation Expense Assistance, Household Duty Assistance, Accommodation Benefit and Transportation Benefit as listed below: 1. Rehabilitation Assistance CommInsure will cover approved rehabilitation expenses whilst you are on claim under the Income Protection policy. The rehabilitation costs must be approved by a medical practitioner as being necessary to assist you in returning to work, and be approved by CommInsure in advance of them being incurred. The maximum amount payable will be 24 times your monthly cover amount. Rehabilitation costs will be paid directly to the provider, and are made in addition to your monthly benefit payments whilst under claim. 2. Recurrent Disability Benefit The waiting period will not apply if you claim for the same or related cause within 6 months of last being on claim. However, it is important to note that where this benefit is received, CommInsure will treat this as a continuation of the original claim and add both periods of claim together to determine when the two year benefit payment period ends. 13

14 Income Protection (cont.) 3. Household Duty Assistance If you are disabled CommInsure will pay you a benefit in the event your non-working spouse or partner has been injured and is therefore unable to perform household duties. The benefit will be $200 per week, payable from the week after your spouse or partner has been injured, and for a maximum of 10 weeks. 4. Accommodation Benefit CommInsure will pay you $250 per day if: AA BB CC DD you are injured or become disabled whilst you are away from home (by more than 100km), and a medical practitioner advises you to remain there; or your medical practitioner advises you to travel to a place more than 100km from your residence for treatment of the illness/ injury; and you are confined to bed; and an immediate member of your family is accommodated near to you, away from their place of residence. Payments will be made for a maximum of 30 days in any 12 month period for which you are eligible to receive the Accommodation Benefit. 5. Transportation Benefit CommInsure will pay a set benefit of $250 towards transportation expenses if, as a result of a condition that leads to your total disability, you require emergency transportation to a hospital within Australia. Insurance definitions Totally Disabled You will be considered totally disabled if, because of illness or injury, you are: AA BB CC unable to perform at least one income producing duty of your own occupation; under the regular care of, and following the advice of, a medical practitioner; and not working in any occupation, whether or not for reward. Partially disabled You will be considered partially disabled if you are not totally disabled but, because of injury or illness, you: AA BB CC DD EE have been totally disabled for at least 14 days; are unable to work in your own occupation at full capacity immediately after you became totally disabled because of the illness or injury that caused your total disability; are working in your own occupation in a reduced capacity or working in another occupation; earn a monthly income that is less than your pre-disability income; and are under the regular care of, and following the advice of, a medical practitioner. At Work AA BB the person is actively performing all the duties and work hours of his or her usual occupation free of any limitation due to illness or injury and is not entitled to or receiving income support benefits from any source including workers compensation benefits, statutory transport accident benefits and disability income benefits; or the person: i. (i) is on employer approved leave for reasons other than illness or injury; and ii. (ii) was, on the last working day for the person immediately before he or she commenced the employer approved leave: actively performing all the duties and work hours of his or her usual occupation free from any limitation due to illness or injury; and not entitled to or receiving income support benefits from any source including Workers Compensation benefits, statutory transport accident benefits and disability income benefits. A person who does not meet this definition is correspondingly described as being not at work. Limited cover The person is only covered for disability arising from: AA BB an illness that first becomes apparent; or an injury that first occurs; on or after the date the cover last started or restarted for the person under this policy. Please send completed form to: CommInsure Claims Team P O Box 322 Silverwater NSW

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16 contact us Locked Bag 5007, Parramatta, NSW, 2124 employer hotline: member hotline: pension hotline: financial planning: Registered address: Locked Bag 5007 Parramatta NSW 2124 Club Plus Superannuation Pty Limited ABN , AFSL , RSEL. L as trustee of Club Plus Superannuation Scheme ABN , RSE Registration. R This information is for illustrative purposes only and does not take into account any personal financial circumstances. by your side for over 25 years CP/INS/BKT /13 ISS4

17 Personal statement Please complete this form if you wish to apply for insurance cover or increase your existing cover with Club Plus Super. All members must complete Section A and B and other relevant sections as indicated on the form. Return your signed and completed form to: Club Plus Super, Locked Bag 5007, Parramatta NSW Section A - Your details Membership number Surname Given Name of superannuation fund CLUB PLUS SUPER Salary or yearly remuneration Occupation Employer Date of / / 1. What is your: Height cm or ft/in Weight kg or st/lb 2. Have you smoked in the last 12 months? If yes, please indicate what you What is your average? per day per week or per year 3. Do you drink alcohol? If yes, please provide the average number of standard drinks consumed: per day per week or per year This application, if accepted by the insurer, will replace any existing level and type of insurance cover you currently hold in Club Plus Super. The insurer may require you to undertake a blood test or attend a medical examination at the insurer s expense. Please note: any existing cover will not be affected should your application be declined. I wish to apply for / increase my cover to the following: (mark one or more of the boxes below) Unitised cover Death and TPD Death only number of units number of units Fixed cover* Death and TPD $,000 Death only $,000 *Fixed cover must be in multiples of $1,000. I wish to apply for / increase my cover to the following: (mark one or more of the boxes below) Short-term Income Protection $,000 per annum Long-term Income Protection $,000 per annum member hotline: website: address: Locked Bag 5007, Parramatta NSW 2124 CommInsure is a registered business name of The Colonial Mutual Life Assurance Society Limited ABN AFSL (CMLA)Club Plus Superannuation Pty Limited ABN RSE Licence number L , AFSL as trustee of Club Plus Superannuation Scheme ABN , RSE Registration number R CP/MBR/PS /13 ISS10

18 Personal statement page 2 Section B - Personal statement 1. Do you engage in any hazardous pastimes or pursuits such as, but not limited to, football (other than touch or Oztag), motorised sports, parachuting, hang-gliding, abseiling, mountaineering activities, aviation (other than a fare paying passenger), scuba diving or any sport(s) in a professional capacity? A 2. Have you: a) Recently applied for or do you have a policy for life, total and permanent disability, trauma or salary continuance? B b) Ever had an application for life, disability, trauma, accident or sickness insurance on your life declined, deferred or accepted with a loading, exclusion or special terms? B c) Ever claimed a lump sum or accident or sickness benefit from any insurance policy, including but not limited to superannuation, workers compensation, disability pension or Veterans Affairs? B 3. Have you ever received medical advice, been treated for or diagnosed with back, neck, hip, shoulder, knee or elbow complaints, sciatica, disc or spine complaints, injury of any joint, bones or muscle, arthritis, gout or repetitive strain injury (RSI)? 4. Have you ever received medical advice, been treated for or diagnosed with depression or a mental disorder, including but not limited to stress, anxiety, chronic tiredness or lethargy, panic attacks, post traumatic stress, behavioural or nervous disorder, myalgia or fibromyalgia or chronic fatigue syndrome? C D 5. Have you received medical advice, undergone any treatment, investigation or operation for, or had: a) High blood pressure or raised cholesterol? E b) Cyst, mole, sunspots or melanoma? F 6. Have you: a) Taken any illegal drugs in the last five years? * b) Been advised or received counselling or treatment for alcohol or substance abuse? * c) Been infected with or tested positive for HIV/AIDS, Hepatitis B and/or C? * d) In the last five years, ever engaged in unprotected male to male sexual intercourse or worked as or engaged the services of a prostitute? * 7. Have you received medical advice, undergone any treatment, investigation or operation for, or had: a) Heart complaint, stroke or neurological disorder, including multiple sclerosis? G b) Cancer, leukaemia, diabetes or chronic kidney complaint? G c) Asthma (other than childhood), bronchitis or any other lung complaint requiring hospitalisation? G 8. Apart from anything already stated: a) Are you considering seeking medical advice, treatment, tests or surgery in the future? G b) Have you, in the last five years, received any medical advice, any medical treatment, investigation or had any operation not mentioned above (apart from colds, flu, contraceptive advice)? G 9. To the best of your knowledge, have any of your natural parents, brothers or sisters suffered from or been diagnosed with: a) Heart or circulatory problems, stroke, high blood pressure, diabetes? H b) Depression or any other mental illness? H c) Cancer of any type? H d) Huntington s disease, muscular dystrophy, polycystic kidney disease or any other hereditary disease? H Have you answered yes to any questions (1 to 5) or (7 to 9) in Section B? Go straight to Section E. Do not complete Section C or D. For each yes answer you must complete a corresponding questionnaire, as noted in the column beside your yes answer above. Proceed to relevant questionnaire in Section C. *If you have answered `yes to question 6, a confidential questionnaire will be sent to you.

19 Personal statement page 3 Section C - Questionnaire A - Pastimes questionnaire Only complete if you answered yes to question 1 of Section B Personal statement 1. Do you engage in any of the following hazardous pastimes or pursuits? a) Flying (other than as a fare paying passenger on a commercial airline) b) Underwater diving (scuba) If yes (i) do you dive more than 40 metres in depth? (ii) do you dive alone? c) Football of any code (other than touch or Oztag) d) Motor sports of any kind, e.g. motor cross, rally driving, ocean racing, motor car or bike racing e) Trail bike riding f) Any other sport or hazardous activity, e.g. parachuting, hang-gliding, body contact sports, para-gliding, competitive water sports or recreations involving heights. If you have answered yes to any of the above questions, please answer the following questions: What are the activity(ies) you engage in? At what level do you participate? (tick ( ) the appropriate box) Recreational only (non competition) Recreational with competition Semi-professional/professional Number of times you participate on average in this activity(ies) per annum, e.g. hours flown, number of dives, events. Do you receive income from participating in this activity(ies)? Section B - Insurance history questionnaire Only complete if you answered yes to any part of question 2 of Section B Personal statement 1. Other than this application, do you have or have you recently applied for life, total and permanent disability, trauma, or salary continuance on your life with CommInsure, or any other insurance company? If yes, please provide details below: Insurance company Type of cover Insurance benefit To be replaced? Date commenced $ / / $ / / $ / / 2. Has an application for life, total and permanent disability, trauma, or salary continuance on your life ever been declined, deferred or accepted with a loading, exclusion or special terms? If yes, please provide details below: Insurance company When was the decision made on the application? Terms offered and reason 3. Are you claiming or have you ever claimed a benefit from any source, e.g. TPD benefit, from any superannuation fund, Workers Compensation, Disability Pension, Veterans Affairs or any other insurance policy providing accident or sickness benefits? If yes, please provide details below: Benefit type/source/reason for claim Date commenced Claim amount Date finalised / / $ / / / / $ / / / / $ / /