Goldman Sachs & JBWere Superannuation Fund. Life is a journey, full of important events, stages and milestones each with its own financial obligation.

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1 Goldman Sachs & JBWere Superannuation Fund 2015 INSURANCE PULSE CHECK SOLD Life changes. Your insurance needs to as well. Life is a journey, full of important events, stages and milestones each with its own financial obligation. Whenever your life changes in a major way, you should update your insurance. It s important to ensure your insurance covers your needs and that you re not paying for cover you re not likely to need. Take this quick insurance pulse check to give you peace of mind.

2 THE RIGHT COVER FOR YOU Many Australians are under-insured and it can be a challenge to work out how much cover you need. The Goldman Sachs & JBWere Superannuation Fund has provided information in this brochure to help you check your cover and work out whether it s adequate and relevant. When looking through it remember: your current level of default cover may not be enough for all of your needs; you may need to increase your life cover if you have children or other dependents; your level of cover will automatically update if you get a pay rise; your level of cover will not automatically update if you have children or take out a loan. When you re working out how much cover you may need, think about the people who depend on you. You ll need to consider any financial obligations you have such as a mortgage or other loans, the value of your assets and any future responsibilities. These can be complex issues which a financial adviser might be able to assist you with. But this brochure will get you started. HOW MUCH IS ENOUGH? GET SOME ADVICE It really depends on your circumstances and stage in life. If you have a young family and a mortgage, industry experts recommend life insurance that will pay between 10 and 13 times your annual pre-tax income. However, if you have no dependent kids and fewer financial commitments than you used to, then less cover may be appropriate. A financial adviser can review your current level of insurance cover and provide an insurance consultation at no cost. To take advantage of this offer, simply request an appointment by calling the Fund Helpline on You can also use our interactive insurance calculator to see how much insurance you might need.

3 THE BASICS TYPES OF INSURANCE There are three types of insurance cover to consider with your superannuation: Income protection insurance often called Salary Continuance Insurance (SCI) or total but temporary disablement (TTD) provides a monthly income when you re totally unable to work because of injury or illness think of it as extended sick leave. Goldman Sachs & JBWere Superannuation Fund SCI is a long term benefit available until you re 65 whereas most TTD arrangements are for between two and five years. Total and Permanent Disablement (TPD) cover pays a lump sum if you re no longer able to work due to total and permanent disablement. If this happens, your insured benefit may be paid to you and/or your super account; and GOLDMAN SACHS & JBWERE SUPERANNUATION FUND INSURANCE FEATURES SNAPSHOT Your Trustee has taken advantage of pooling arrangements and negotiated comprehensive insurance cover at competitive premiums with its insurer. The cost of insurance in super is often cheaper than outside super and the premiums are paid directly from your account, making it really simple and easy to manage. There s also no fear of forgetting a payment (potentially leaving you without cover) since we automatically deduct the premium from your super. Default features for fulltime and contractor members under 65 years of age: Death cover TPD cover 18% x your salary x complete years and months until you turn 65 $50,000 or equal to your Death benefit above (if you elected it within 90 days of joining) Life insurance (or death cover) pays a lump sum to your beneficiaries in the event of your death. Long term Salary Continuance Insurance 75% of your income up to $17,500 a month. You can elect to increase it to up to $30,000 a month Your insured benefit will be paid to your dependents or estate in addition to your super account balance. Some insurance cover isn t generally available in super - for example, trauma cover and health insurance. Trauma cover provides a lump sum if you re diagnosed with a serious medical condition such as cancer or stroke. The lump sum payment can help you to preserve the quality of your lifestyle while you re recovering. Private health insurance covers specified medical expenses, generally by providing part-payments for accounts you ve already paid. Common ways you can change your insurance: The ability to opt down your Death/TPD cover from 18% to 10% x your salary You can opt out of your Death, TPD and SCI cover You can get voluntary cover, subject to providing proof of health (underwriting) You can retain cover if you leave your employer (as long as you meet certain criteria) Insurance contains several conditions. Read more here

4 LIFE CHANGES A few moments thinking about your insurance cover can go a long way to avoid being under-insured and caught out when you or your family need it most. Can you really put you or your family s financial wellbeing in the I ll get to it later basket? SOLD 1. BUYING A HOUSE Buying a house or significantly increasing your mortgage especially if it is your primary place of residence generally brings with it added financial commitments that need to be serviced no matter what happens to your earning ability. If you re single you need to think about income protection insurance in case you re totally unable to work because of injury or illness. However, because you don t have dependents, then you might want to reduce the life insurance component. If you do have a partner or children, you have the added responsibility of ensuring they could cope financially if you were to die or become permanently disabled. Could you cope? Weekly disability pension for singles: $356 Average Australian weekly (ordinary time) earnings for a full-time adult: $1,393 The average full-time adult earns about $1000 more per week than what is offered under the government scheme 2. MARRIAGE OR DIVORCE Becoming part of a partnership is a major milestone. You need to determine with your partner how your assets would be managed in the event of either one of you dying or becoming permanently disabled. Nominating your beneficiaries becomes key. Likewise if you re divorced, you need to examine your insurance circumstances (along with all your assets) to see if the cover you have is still pertinent as there is no use paying for what you don t need. Depending on how your separate income levels will impact your lifestyle, you will want to examine your respective levels of life insurance to ensure each partner has enough for their lifestyle should one of you die. Ensuring you have adequate income protection insurance is a wise choice if you are self-employed or a contractor.

5 LIFE CHANGES 3. HAVING CHILDREN Adding children into the mix either by having them yourself or by adopting adds another layer to your insurance needs. You now need to think about their development, and how they would cope if you were permanently disabled when they are young, or how they would be left financially were you to die. Like entering a marriage you will want to examine your respective SCI, TPD and death insurance cover levels. However, now you have the added component of thinking about the level of cover you want to support the development of your children as they grow up. 4. KIDS LEAVING HOME Chances are, by the time your children have left home, you re a little older and your insurance needs can be re-evaluated. You re probably more financially secure so can look at appropriate levels of insurance that meet your financial needs. You can examine your respective SCI, TPD and death insurance cover levels, bearing in mind that your children will not need as much long-term financial support as when they were younger. You can now also think about being financially stable in your retirement. 60% of Australians with children don t have enough life insurance cover to allow their partner to support their children for more than a year if they were to die. (IFSA media release, Life and risk sales up Aussies hear wealth protection message, 26 April 2007)

6 THREE THINGS THAT MAKE IT EASY TO CHANGE YOUR INSURANCE BIG COVER, NO FUSS HIGH VALUE AUTOMATIC ACCEPTANCE LIMITS If you are eligible for SCI, TPD or death cover then the amount of cover you automatically get on joining the Fund without any health checks is called an Automatic Acceptance Limit (AAL). Normally, if you need insurance beyond this limit you have to undergo health checks and provide other personal information. Goldman Sachs & JBWere Superannuation Fund members enjoy a high value AAL of $1.5 million for death and TPD insurance and $17,500 per month for SCI insurance (which can be increased to $30,000 a month). Generally, this means your insurance levels will automatically increase as your salary increases, without the need for continued medical evidence. ONE-SHOT UNDERWRITING Under a one-shot underwriting agreement, members with insurance levels below the AAL will never need to be underwritten to provide proof of health even if later salary-related insurance increases go over the limit. This is a great member benefit that means less hassle for you. Those eligible members with insurance levels above the AAL will need to be underwritten only for the amount over the AAL. Once accepted, you will never be asked to provide proof of health for non-discretionary increases in your cover. LARGE MAXIMUM BENEFIT LIMITS Maximum death benefit amounts are unlimited. Maximum TPD benefit amounts are $3 million for members aged up to 65. SCI maximum benefit amounts are $30,000 per month. Maximum interim cover is designed to protect you between the time you apply for insurance and when your application for cover is completed. For death and TPD insurance this amount is $1.5 million. For SCI you will have interim cover for the amount you are being assessed for up to a maximum of $17,500.

7 FIND OUT MORE It s something that many of us don t wish to think about but accidents and illness can and do happen. And while your income may come to a sudden halt if you were no longer able to work, the bills are unlikely to stop coming in. If you don t have a plan that can cover your costs if your health fails, it may well be time to prepare one. This insurance pulse check can help you to assess your insurance needs inside and outside super and help you start to prepare a plan to give you peace of mind. The Goldman Sachs & JBWere Superannuation Fund is holding financial advice seminars on 22 October in Melbourne and Sydney offices where you can go over this in more detail. Click here to book your spot. NOMINATING BENEFICIARIES ENSURING YOUR INSURANCE PAYOUT GOES WHERE YOU WANT IT If you do not make any death benefit nomination it is up to the Trustee how to pay your benefit. You can make a binding or non-binding nomination expressing who you would like to receive your death benefit payout. With a non-binding death benefit nomination, the Trustee will take your nomination into account but is not bound to follow it. However, a valid binding nomination will provide you with greater certainty that your death benefit payout will be paid as you specify, as the Trustee has no discretion when paying a death benefit that is subject to a valid binding nomination. A binding nomination needs to meet specific requirements and be updated at least every three years. It should also be reviewed if your circumstances change (for example, birth of children, or a marriage, separation or divorce). You can update your binding beneficiaries here. Prepared by Mercer Outsourcing (Australia) Pty Ltd ABN , Australian Financial Services Licence # together with Goldman Sachs & JBWere Superannuation Fund ABN This information is provided through an Insurance Policy between the BEST Superannuation Pty Ltd ABN , RSE Licence Number L (Trustee) and the Insurer, AIA Australia Limited, ABN Any advice contained in this document is of a general nature only, and does not take into account the personal needs and circumstances of any particular individual. Prior to acting on any information contained in this document, you need to take into account your own financial circumstances, consider the Product Disclosure Statement for any product you are considering, and seek professional advice from a licensed or appropriately authorised financial adviser if you are unsure of what action to take. Goldman Sachs & JBWere Superannuation Fund ABN Copyright All rights reserved. MERCER is an Australian registered trade mark of Mercer (Australia) Pty Ltd ABN Copyright 2015 Mercer LLC. All rights reserved.