Contents 1 Protect yourself and

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1 Insurance handbook for Sole Traders Auth. No November 2015 The information in this document forms part of the Product Disclosure Statement for Cbus Sole Trader Super of 1 November Contents 1 Protect yourself and your family with Cbus insurance 3 2 Insurance cover summary 4 3 Default cover 5 4 About Death and TPD cover 7 5 Insurance scales for Death and TPD cover 8 6 Changing or increasing your Death and TPD cover 12 7 When does your Death and TPD cover stop? 15 8 Restarting your Death and TPD cover after it s been cancelled or expired 16 9 About IP cover Changing or increasing your IP cover When does IP cover stop? Restarting your IP cover after it s been cancelled or expired What happens if you start to receive Employer Contributions in Cbus Sole Trader Super? Making an insurance claim Insurance definitions Manage your account online Need help to sort out your insurance? Other questions about your super? 39

2 Auth. No This Product Disclosure Statement (PDS) is a summary of significant information about Cbus and contains a number of references to important information. Refers to incorporated by reference materials Refers to important information for you to note You should consider this information before making a decision. If you want a printed copy of the PDS or other information referenced, please call or us. Cbus Trustee: United Super Pty Ltd ABN AFSL Cbus ABN The contents of this PDS is general information only and does not take into account your financial situation or needs. You should obtain financial advice tailored to your own personal circumstances. Please note the information in this PDS is current as at 1 November 2015 and is subject to change between the time you read it and when you join Cbus. For updated information visit our website or call us. with Cbus 3 Together we ll look after your future Our members work in some of the toughest conditions of any industry. That s why we believe insurance is essential to make sure your income and your family s welfare are protected 24 hours a day, 7 days a week. This handbook tells you all about insurance through Cbus Sole Trader Super. When you join Cbus Sole Trader Super, you may receive cover automatically for Death, Total and Permanent Disablement (TPD) and Income Protection (IP). If you need more information or help, contact us on or cbusenq@cbusmail.com.au Important information The information in this Insurance handbook is current at the time of printing but may be subject to change due to amendments to legislation, fund rules or other causes. You can access the most up-to-date information at or call the Service Centre on A copy of this information will be provided to you on request free of charge. You will be advised of any change to the information that is materially adverse through the Fund s member magazine Cbus News or via a new Insurance handbook or Product Disclosure Statement (PDS). This Insurance handbook sets out the main features and benefits of insurance in Cbus Sole Trader. Please read it thoroughly. This Insurance handbook has been prepared and issued on 1 November 2015 by Cbus Trustee: United Super Pty Ltd. ABN AFSL Cbus ABN This document replaces the previous insurance information provided in the Insurance handbook for Sole Traders dated 8 September Insurance is issued under group policies taken out by the Trustee with the Insurer. The Fund s Insurer is TAL Life Limited ABN , AFSL ( Insurer, TAL ). Please note that the terms and conditions of the Trustee s policies with TAL will prevail over any information in this document related to TAL s provision of insured benefits. General advice warning This information is about Cbus. It doesn t take into account your specific needs, so you should look at your own financial position, objectives and requirements before making any financial decisions. Read the Cbus Sole Trader Super Product Disclosure Statement to decide whether Cbus is right for you. To obtain a copy, please call Privacy Your information is private. Cbus takes the utmost care with your personal information. Cbus collects personal information to manage memberships, claims and benefit payments. You can access a copy of our Privacy policy and Personal information collection statements at or by calling our Service Centre on The information in this document forms part of the Product Disclosure Statement for Cbus Sole Trader Super of 1 November Join Cbus Sole Trader Super Product Disclosure Statement: 1 November cbusenq@cbusmail.com.au Contents 1 About Cbus 2 2 How super works 2 3 Benefits of investing 4 Risks of super 3 5 How we invest your money 3 6 Fees and costs 4 7 How super is taxed 5 8 Insurance in your super 6 9 How to open an account 8 10 Other information /15

3 1 Protect yourself and your family with Cbus insurance Insurance is one of the best ways you can protect your future. It s about looking after yourself and your family if illness, injury or an accident stops you from working. That s why Cbus believes insurance is essential for all our members. Affordable insurance, around the clock. You re covered 24 hours a day, 7 days a week Easy to set up Affordable Costs come out of your super, not your bank account You can choose the type and amount of cover you need Cover designed for Cbus members You can check your cover online anywhere, anytime Whether you re at work or at home, you ll be protected If you re eligible, you get cover when you join Cbus and you don t have to show proof of your health to get it Because we buy our insurance as a group, costs are generally lower than insurance you buy as an individual Your super covers the cost of your insurance so you don t need to find room in your budget Because everyone s needs are different, you can tailor your cover to suit your needs We have three occupation categories for Death and TPD cover, and three for Income Protection cover designed to suit the risks of different types of work Register for our online Member SuperSite to see your insurance cover whenever you need to. To register: Call us on for your password You can then log in to Insurance handbook for Sole Traders 3

4 2 Insurance cover summary What types of cover can I get through Cbus Sole Trader Super? You can have three types of cover through Cbus Sole Trader Super: Death cover Total and Permanent Disablement (TPD) cover Income Protection (IP) cover Insurance FAQs Death cover provides a lump sum payment (on top of your account balance) if you die. You ll also be covered in the event you re diagnosed with a Terminal Illness that s likely to lead to your death within 24 months from the date of your diagnosis. TPD cover provides a lump sum payment (on top of your account balance) if you re unlikely to ever work again due to Illness or Injury and you meet the TPD definition under the Cbus Insurance Policy. TPD cover doesn t cover you if you re temporarily or partially disabled. This means it won t cover you if you have to stop work due to an Injury or Illness, but can later return to work in your job or any other job for which you re reasonably suited based on your education, training and experience. IP cover provides a monthly income if you can t work because you have had an as long as you meet the disability definitions under the Cbus Insurance Policy. You may also apply for your IP cover to protect you in case you can t work because of Illness by completing an Application to vary income protection cover. How do I get insurance cover? Default cover (see page 5) The first time you join Cbus Sole Trader Super, you may be eligible to receive one unit of Death and TPD cover and six units of only IP insurance cover without having to provide any health evidence, provided that you meet the eligibility conditions. This is called Default cover. You can apply to change your Default cover at any time after you join. How much cover can I have? The amount and type of cover you can have depends on your age, the number of insurance units you choose and your occupation category. When does my cover start? Your Default cover will start automatically subject to eligibility, on the later of: the date we accept your application to join Cbus Sole Trader Super; and your account balance being at least $250 within 31 days of us receiving your application to join. Who pays for my cover? The cost of cover is paid for out of your super account balance each month, as long as your cover hasn t stopped see pages 15 and 24 on when Death, TPD and IP cover stop. How is the cost of cover calculated? The total cost depends on how many units of cover you choose, the type of cover, your age and your occupation category. How much cover do I need? The Default cover you receive when you join Cbus may not be enough to cover your needs. If it isn t, you can apply to change it (see Changing or increasing your cover on pages 12 and 18). Before you choose how much cover you want, think carefully about what financial support you or your family would need if you died before you retire, or if you could never work again. Think about: income how much you earn today (and what could you be earning in the future)? dependants do you have a spouse, de-facto spouse, children or other financial dependants? debts do you have a mortgage, loan or other debts? assets do you own any property or shares? We can help you work out how much, or what type of cover can meet your needs. Call us on to speak to the Cbus Advice Team. Insurance terms: how to find out what they mean When you see an insurance term written in bold italics like this: or Illness you can find its meaning in the insurance definitions section on pages Need help to choose your cover? Cbus can help you work out how much, or what type, of cover can meet your needs. You can: Try our handy insurance calculator at for a snapshot of what you might need. Call us on and speak to the Cbus Advice Team. If you would like to arrange a meeting with a financial planner for more comprehensive personal financial advice, the Cbus Advice Team can refer you to an accredited Certified Financial Planner (CFP ) who meets strict professional qualification and service criteria set by Cbus and the Financial Planning Association (FPA) of Australia. The financial planner can offer you advice on a feefor-service basis. Your first meeting is at no cost and any fees for advice will be agreed with you in advance. 4 Insurance handbook for Sole Traders

5 3 Default cover What is Default cover? Default cover is the type and level of cover you receive when you first become a Cbus Sole Trader Super member (as long as you re eligible). You ll receive Default cover under the Manual occupation category. You may be eligible to change your occupation category from Manual to the Non-Manual, Professional (Death & TPD only) or Skilled Trades (IP only) occupation categories when you complete your Join Cbus Sole Trader Super form. Refer to Applying to change your cover when you join on page 12. The number and cost of Default Death, TPD and IP cover units you receive will depend on your age and the type of cover you are eligible for, as shown in the table below. Default insurance cover as at 1 November 2015 Age Default units of cover Cost of Default insurance cover years 1 unit of Manual Death and TPD 6 units of IP: - only - 2 year benefit period - 30 day waiting period years 1 unit of Manual Death only cover Death and TPD: $3.58 per week IP: the cost of IP will vary depending on your age. Refer to the section on How much will Default IP cover cost below. Death only: $1.33 per week Default cover is subject to eligibility conditions, please refer to the section Am I eligible for Default cover? on the right for more details. How much is your Default Death and TPD cover worth? The table below shows the amount your Default Death and TPD cover may be worth based on your age. After age 50, the value of a unit of cover reduces. Manual Default cover Age Death TPD Age Death TPD $52,000 $26, $23,000 $11, $48,000 $24, $21,000 $10, $44,000 $22, $19,000 $9, $39,500 $19, $17,000 $8, $35,000 $17, $15,000 $7, $33,000 $16, $12,500 $0 56 $31,000 $15, $10,000 $0 57 $29,000 $14, $8,000 $0 58 $27,000 $13, $6,000 $0 59 $25,000 $12, $6,000 $0 How much is your Default IP cover worth? Six units of IP insurance cover can pay you up to $600 per week (under the eligibility conditions and limitations explained on pages 17-23). only IP provides cover if you claim due to an which happened after your cover started. The waiting period is the amount of time you have to be off work due to your before you re eligible to receive monthly income payments. The waiting period is explained on page 21. The benefit period is the maximum amount of time you can receive monthly income payments while you are Totally Disabled or Partially Disabled. The benefit period is explained on page 21. How much will Default IP cover cost? The cost of Default IP cover depends on your age. The table below shows the weekly cost of Default IP cover (six units) based on your age. Weekly cost of Default IP cover Age range Manual $4.08 $3.96 $3.72 $4.32 $5.16 Age range Manual $6.48 $7.98 $9.54 $10.92 $11.04 Am I eligible for Default cover? You must meet some conditions to be eligible for Default cover through Cbus Sole Trader Super. You ll receive cover if: we receive your initial contribution of at least $250, within 31 days from the date we receive your accurately completed Join Cbus Sole Trader Super form, and we accept you as a member of Cbus Sole Trader Super, and you meet all the eligibility criteria for cover set out in the table on page 6. Insurance handbook for Sole Traders 5

6 3 Default insurance cover (continued) You ll receive Default Death and TPD cover as long as: You re age 15 or over and under age 65 for TPD cover under age 70 for Death cover; and We receive your accurately completed Join Cbus Sole Trader Super form within 31 days of you signing and dating it. You have a minimum account balance of $250 within 31 days of us accepting your accurately completed Join Cbus Sole Trader Super form. You re not currently applying for, not entitled to, or haven t been paid a TPD or terminal illness benefit from any super fund or life insurance policy; and You ve not been diagnosed with an illness that s likely to lead to your death within 24 months from the date of your diagnosis; and You re in Active Employment on the date your cover starts. If you re under age 15 * or age 70 or over, you won t be eligible for any insurance cover. If you re aged 65 to 69, you ll only be eligible for Default Death cover. You ll need to apply for TPD cover. If you don t meet either of these conditions, you won t be eligible for Default cover. If you don't meet either of these conditions, you won't be eligible for any insurance cover. If you don t meet this condition, you ll only receive Death and New Events Cover for TPD until you re in Active Employment, at which time you will receive TPD cover for all events. Default only IP cover will be provided as long as: You re age 15 or over and under age 65; and You re an Australian Resident; and We receive your accurately completed Join Cbus Sole Trader Super form within 31 days of you signing and dating it; and You have a minimum account balance of $250 within 31 days of us accepting your accurately completed Join Cbus Sole Trader Super form; and You re working 15 or more hours a week at the time of completing your application; and You re not working in an Excluded Occupation (read page 34 for a list of Excluded Occupations); and You re not currently applying for, not entitled to, or haven t been paid a TPD or terminal illness benefit from any super fund or life insurance policy; and You ve not been diagnosed with an illness that s likely to lead to your death within 24 months from the date of your diagnosis. If any of these conditions aren t met, you won t be eligible for IP under Cbus Sole Trader Super. * You re not eligible to become a member if you re under age 15. Important Note: Your eligibility for cover will be checked when you claim and your benefits payments may change or be denied if you didn t give correct details when you joined Cbus Sole Trader Super. When will my cover start? Subject to your Join Cbus Sole Trader Super form being accepted by Cbus, your Default cover will start from the later of: the date we accept your signed Join Cbus Sole Trader Super form, and the date on which you have a minimum account balance of $250, provided that this is within 31 days of us receiving your accurately completed Join Cbus Sole Trader Super form. If you don t meet this condition, you won t be eligible for Default cover. Can I decrease or cancel my Default cover? Decreasing IP when you join Cbus believes members should have access to insurance cover to protect themselves and their family. However, you can decrease your IP cover when completing your Join Cbus Sole Trader Super form if the Default six units is too much cover for your level of income. All you need to do is indicate the number of units you need between one and six. We suggest you read How much cover can IP insurance give you? on page 17 to work out how much cover you need before you decrease your Default IP cover. Decreasing or cancelling all types of cover You can also decrease or cancel your Death, TPD and/or IP cover at any time by completing an Application to decrease or cancel insurance cover form at (or call for a copy). Note: The only way you can cancel your insurance cover with us is by completing this form. Until we receive your request to decrease or cancel your cover, any Default cover you have will stay in place (as long as your cover doesn t stop for another reason see pages 15 and 24). You should know that if you change your mind and later want cover, you ll need to complete an Application to increase insurance cover (for Death and TPD) or an Application to vary income protection cover (for IP cover) and provide information relevant to your application. This may include having medical tests to help the Insurer assess your application. Any increase in your cover will be subject to acceptance of your application by the Insurer. You ll receive the cover that is available at the time your application is accepted. We strongly suggest you speak to Cbus on before you decide to decrease or cancel your cover. Not sure if you have Default cover? You can check how much cover you have on your most recent statement, online at or call us on Insurance handbook for Sole Traders

7 4 About Death and TPD cover How much cover can Death and TPD insurance give you? Before you work out how many units of cover you want, you need to know how much money each unit is worth. This depends on: your age, and which occupation category you get cover under (see below). The tables on the following pages will help you work out how much Death and TPD insurance is right for you and your family. Occupation categories for Death and TPD cover As part of the Join Cbus Sole Trader Super form, we ask you some questions about your job. Your answers determine which occupation category you can be covered under. Each category has its own insurance scale which tells you how much each unit of cover is worth. To see how much each unit of cover is worth under the different occupation categories, check the insurance scales on pages It s important to answer questions about your job on the Join Cbus Sole Trader Super form so we can maximise your level of cover. You could be eligible for more cover per unit, for the same cost. You can apply to change your occupation category at any time see page 15 for details. Eligibility for occupation category Example occupations Manual Non-Manual Professional Perform any manual (physical) work, or Spend more than 20% of your working time outside of an office environment Note: If you don t answer any occupation questions when you join, you ll be covered under this category. Carpenter, Plasterer, Bricklayer, Plumber Perform work of a clerical, administrative, managerial or professional nature, and Perform a minimum of 80% of your work in an office environment, and Don t perform any manual (physical) work. Bookkeeper, Tax Adviser, Insurance Broker Perform work of an entirely sedentary professional nature, and Perform a minimum of 80% of your work in an office environment, and Don t perform any manual (physical) work, and Have an Annual Taxable Income of more than $100,000 (which can be applied pro rata for permanent part-time workers), and either of the following applies: - you hold a university qualification (Bachelor degree or above), or - you re a Senior Manager or Executive within the organisation in which you re employed (see definitions on page 35). Accountant, Architect, Lawyer Cover Period Death Age Age Age Cover Period TPD Age 15 69* Age 15 69* Age 15 69* Death and TPD cost per unit per week Death only cost per unit per week TPD only cost per unit per week $3.58 $3.58 $3.58 $1.33 $1.55 $1.55 $2.25 N/A N/A * You need to apply for TPD cover from ages 65 to 69, otherwise cover stops at age 65. Cover can be extended if you apply within the 12 months before turning 65, subject to acceptance by the Insurer. See Extra TPD units for Manual members on page 13 for more information. Insurance handbook for Sole Traders 7

8 5 Insurance scales for Death and TPD cover Insurance scales How to read the scales Look up your age on the table that matches your occupation category (from page 7). The more units of cover you have, the higher the amount you could receive if you make a claim. However, that amount will reduce as you get older. The weekly cost also increases with the number of units you choose, and this will come out of your super account. 8 Insurance handbook for Sole Traders

9 Manual scale This is your scale if you: perform any manual (physical) work, or spend more than 20% of your working time outside an office environment. 1 unit 2 units 3 units 4 units Case study Age $3.58 a week $7.16 a week $10.74 a week $14.32 a week Death TPD Death TPD Death TPD Death TPD $52,000 $26,000 $104,000 $52,000 $156,000 $78,000 $208,000 $104, $48,000 $24,000 $96,000 $48,000 $144,000 $72,000 $192,000 $96, $44,000 $22,000 $88,000 $44,000 $132,000 $66,000 $176,000 $88, $39,500 $19,750 $79,000 $39,500 $118,500 $59,250 $158,000 $79, $35,000 $17,500 $70,000 $35,000 $105,000 $52,500 $140,000 $70, $33,000 $16,500 $66,000 $33,000 $99,000 $49,500 $132,000 $66, $31,000 $15,500 $62,000 $31,000 $93,000 $46,500 $124,000 $62, $29,000 $14,500 $58,000 $29,000 $87,000 $43,500 $116,000 $58, $27,000 $13,500 $54,000 $27,000 $81,000 $40,500 $108,000 $54, $25,000 $12,500 $50,000 $25,000 $75,000 $37,500 $100,000 $50, $23,000 $11,500 $46,000 $23,000 $69,000 $34,500 $92,000 $46, $21,000 $10,500 $42,000 $21,000 $63,000 $31,500 $84,000 $42, $19,000 $9,500 $38,000 $19,000 $57,000 $28,500 $76,000 $38, $17,000 $8,500 $34,000 $17,000 $51,000 $25,500 $68,000 $34, $15,000 $7,500 $30,000 $15,000 $45,000 $22,500 $60,000 $30, $12,500 $6,250 $25,000 $12,500 $37,500 $18,750 $50,000 $25, $10,000 $5,000 $20,000 $10,000 $30,000 $15,000 $40,000 $20, $8,000 $4,000 $16,000 $8,000 $24,000 $12,000 $32,000 $16, $6,000 $3,000 $12,000 $6,000 $18,000 $9,000 $24,000 $12,000 Note: You need to apply for TPD cover from ages 65 to 69, otherwise cover stops at age 65. Cover can be extended if you apply within the 12 months before turning 65, subject to acceptance by the Insurer. Adrian is a 32 year old Plasterer who wants to apply for cover above the Default level (1 unit of Death and TPD) when joining. He decides to apply for 1 additional unit of TPD to match his current dollar amount of Death cover. Adrian completes an Application to increase insurance cover and supplies information about his health to the Insurer. Adrian s insurance cover Amount of Death cover 1 x $52,000 = $52,000 Amount of TPD cover 2 x $26,000 = $52,000 Total cost per week: $ unit of Death and TPD cover: 1 x $3.58 = $ additional unit of TPD cover: 1 x $2.25 = $2.25 Insurance handbook for Sole Traders 9

10 5 Insurance scales for Death and TPD cover (continued) Non-Manual scale This is your scale if you: perform work of a clerical, administrative, managerial, or professional nature, and perform a minimum of 80% of your work in an office environment, and don t perform any manual (physical) work. 1 unit 2 units 3 units 4 units Age $3.58 a week $7.16 a week $10.74 a week $14.32 a week Death TPD Death TPD Death TPD Death TPD $122,500 $122,500 $245,000 $245,000 $367,500 $367,500 $490,000 $490, $119,400 $119,400 $238,800 $238,800 $358,200 $358,200 $477,600 $477, $116,100 $116,100 $232,200 $232,200 $348,300 $348,300 $464,400 $464, $112,900 $112,900 $225,800 $225,800 $338,700 $338,700 $451,600 $451, $109,400 $109,400 $218,800 $218,800 $328,200 $328,200 $437,600 $437, $105,700 $105,700 $211,400 $211,400 $317,100 $317,100 $422,800 $422, $102,000 $102,000 $204,000 $204,000 $306,000 $306,000 $408,000 $408, $96,700 $96,700 $193,400 $193,400 $290,100 $290,100 $386,800 $386, $91,500 $91,500 $183,000 $183,000 $274,500 $274,500 $366,000 $366, $86,200 $86,200 $172,400 $172,400 $258,600 $258,600 $344,800 $344, $81,000 $81,000 $162,000 $162,000 $243,000 $243,000 $324,000 $324, $75,500 $75,500 $151,000 $151,000 $226,500 $226,500 $302,000 $302, $72,400 $72,400 $144,800 $144,800 $217,200 $217,200 $289,600 $289, $69,300 $69,300 $138,600 $138,600 $207,900 $207,900 $277,200 $277, $66,200 $66,200 $132,400 $132,400 $198,600 $198,600 $264,800 $264, $63,200 $63,200 $126,400 $126,400 $189,600 $189,600 $252,800 $252, $61,500 $61,500 $123,000 $123,000 $184,500 $184,500 $246,000 $246, $61,000 $61,000 $122,000 $122,000 $183,000 $183,000 $244,000 $244, $60,400 $60,400 $120,800 $120,800 $181,200 $181,200 $241,600 $241, $60,200 $60,200 $120,400 $120,400 $180,600 $180,600 $240,800 $240, $60,100 $60,100 $120,200 $120,200 $180,300 $180,300 $240,400 $240, $59,800 $47,300 $119,600 $94,600 $179,400 $141,900 $239,200 $189, $55,300 $43,500 $110,600 $87,000 $165,900 $130,500 $221,200 $174, $50,800 $39,700 $101,600 $79,400 $152,400 $119,100 $203,200 $158, $45,700 $33,900 $91,400 $67,800 $137,100 $101,700 $182,800 $135, $42,200 $26,500 $84,400 $53,000 $126,600 $79,500 $168,800 $106, $39,600 $26,500 $79,200 $53,000 $118,800 $79,500 $158,400 $106, $37,000 $23,800 $74,000 $47,600 $111,000 $71,400 $148,000 $95, $34,400 $21,100 $68,800 $42,200 $103,200 $63,300 $137,600 $84, $31,600 $18,500 $63,200 $37,000 $94,800 $55,500 $126,400 $74, $29,000 $15,800 $58,000 $31,600 $87,000 $47,400 $116,000 $63, $26,600 $13,300 $53,200 $26,600 $79,800 $39,900 $106,400 $53, $24,200 $12,100 $48,400 $24,200 $72,600 $36,300 $96,800 $48, $22,000 $11,000 $44,000 $22,000 $66,000 $33,000 $88,000 $44, $20,500 $10,250 $41,000 $20,500 $61,500 $30,750 $82,000 $41, $20,500 $10,250 $41,000 $20,500 $61,500 $30,750 $82,000 $41, $14,400 $7,200 $28,800 $14,400 $43,200 $21,600 $57,600 $28, $11,500 $5,750 $23,000 $11,500 $34,500 $17,250 $46,000 $23, $9,400 $4,700 $18,800 $9,400 $28,200 $14,100 $37,600 $18, $8,200 $4,100 $16,400 $8,200 $24,600 $12,300 $32,800 $16,400 Note: You need to apply for TPD cover from ages 65 to 69, otherwise cover stops at age 65. Cover can be extended if you apply within the 12 months before turning 65, subject to acceptance by the Insurer. Case study Emily is 41 years old and has a bookkeeping business. She s been a member of Cbus for a couple of years, and after reviewing her finances has decided to increase her insurance cover. Emily currently has 4 units of Death and TPD cover and wants to apply for an additional 2 units of cover. Emily s insurance cover Amount of Death cover 6 x $72,400 = $434,400 Amount of TPD cover 6 x $72,400 = $434,400 Total cost per week 6 x $3.58 = $21.48 Emily completes an Application to increase insurance cover and supplies information about her health to the Insurer. 10 Insurance handbook for Sole Traders

11 Professional scale This is your scale if you: perform work of an entirely sedentary professional nature, and perform a minimum of 80% of work in an office environment, and don t perform any manual (physical) work, and have an Annual Taxable Income of more than $100,000 (which can be applied pro rata for permanent part-time workers), and either of the following applies: - you hold a university qualification (Bachelor degree or above), or - you re a Senior Manager or Executive within the organisation in which you re employed (see definitions on page 35). 1 unit 2 units 3 units 4 units Age $3.58 a week $7.16 a week $10.74 a week $14.32 a week Death TPD Death TPD Death TPD Death TPD $153,125 $153,125 $306,250 $306,250 $459,375 $459,375 $612,500 $612, $149,250 $149,250 $298,500 $298,500 $447,750 $447,750 $597,000 $597, $145,125 $145,125 $290,250 $290,250 $435,375 $435,375 $580,500 $580, $141,125 $141,125 $282,250 $282,250 $423,375 $423,375 $564,500 $564, $136,750 $136,750 $273,500 $273,500 $410,250 $410,250 $547,000 $547, $132,125 $132,125 $264,250 $264,250 $396,375 $396,375 $528,500 $528, $127,500 $127,500 $255,000 $255,000 $382,500 $382,500 $510,000 $510, $120,875 $120,875 $241,750 $241,750 $362,625 $362,625 $483,500 $483, $114,375 $114,375 $228,750 $228,750 $343,125 $343,125 $457,500 $457, $107,750 $107,750 $215,500 $215,500 $323,250 $323,250 $431,000 $431, $101,250 $101,250 $202,500 $202,500 $303,750 $303,750 $405,000 $405, $94,375 $94,375 $188,750 $188,750 $283,125 $283,125 $377,500 $377, $90,500 $90,500 $181,000 $181,000 $271,500 $271,500 $362,000 $362, $86,625 $86,625 $173,250 $173,250 $259,875 $259,875 $346,500 $346, $82,750 $82,750 $165,500 $165,500 $248,250 $248,250 $331,000 $331, $79,000 $79,000 $158,000 $158,000 $237,000 $237,000 $316,000 $316, $76,875 $76,875 $153,750 $153,750 $230,625 $230,625 $307,500 $307, $76,250 $76,250 $152,500 $152,500 $228,750 $228,750 $305,000 $305, $75,500 $75,500 $151,000 $151,000 $226,500 $226,500 $302,000 $302, $75,250 $75,250 $150,500 $150,500 $225,750 $225,750 $301,000 $301, $75,125 $75,125 $150,250 $150,250 $225,375 $225,375 $300,500 $300, $74,750 $59,125 $149,500 $118,250 $224,250 $177,375 $299,000 $236, $69,125 $54,375 $138,250 $108,750 $207,375 $163,125 $276,500 $217, $63,500 $49,625 $127,000 $99,250 $190,500 $148,875 $254,000 $198, $57,125 $42,375 $114,250 $84,750 $171,375 $127,125 $228,500 $169, $52,750 $33,125 $105,500 $66,250 $158,250 $99,375 $211,000 $132, $49,500 $33,125 $99,000 $66,250 $148,500 $99,375 $198,000 $132, $46,250 $29,750 $92,500 $59,500 $138,750 $89,250 $185,000 $119, $43,000 $26,375 $86,000 $52,750 $129,000 $79,125 $172,000 $105, $39,500 $23,125 $79,000 $46,250 $118,500 $69,375 $158,000 $92, $36,250 $19,750 $72,500 $39,500 $108,750 $59,250 $145,000 $79, $33,250 $16,625 $66,500 $33,250 $99,750 $49,875 $133,000 $66, $30,250 $15,125 $60,500 $30,250 $90,750 $45,375 $121,000 $60, $27,500 $13,750 $55,000 $27,500 $82,500 $41,250 $110,000 $55, $25,625 $12,813 $51,250 $25,626 $76,875 $38,439 $102,500 $51, $25,625 $12,813 $51,250 $25,626 $76,875 $38,439 $102,500 $51, $18,000 $9,000 $36,000 $18,000 $54,000 $27,000 $72,000 $36, $14,375 $7,188 $28,750 $14,376 $43,125 $21,564 $57,500 $28, $11,750 $5,875 $23,500 $11,750 $35,250 $17,625 $47,000 $23, $10,250 $5,125 $20,500 $10,250 $30,750 $15,375 $41,000 $20, $10,250 $5,125 $20,500 $10,250 $30,750 $15,375 $41,000 $20,500 Note: You need to apply for TPD cover from ages 65 to 69, otherwise cover stops at age 65. Cover can be extended if you apply within the 12 months before turning 65, subject to acceptance by the Insurer. Case study Max is a 45 year old architect, who wants to apply for cover above the Default level (1 unit of Death and TPD) when joining. He decides to apply for an additional 2 units of Death and TPD by completing an Application to increase insurance cover and supplying information about his health to the Insurer. Max s insurance cover Amount of Death cover 3 x $76,875 = $230,625 Amount of TPD cover 3 x $76,875 = $230,625 Total cost per week 3 x $3.58 = $10.74 Insurance handbook for Sole Traders 11

12 6 Changing or increasing your Death and TPD cover You can apply to change your Death and TPD cover at any time. if you re a Manual member: - you can apply for equal Death and TPD cover up to a maximum of 10 units of Death and 20 units of TPD. For example, at age 40: 10 units of Death = $520,000 and 20 units of TPD = $520, you don t need to have equal Death and TPD cover if you don t want to. You can apply to have any combination of Death and TPD cover (up to the limits shown above) as long as the dollar value of your TPD cover doesn t exceed your Death cover. For example, at age 40 you could choose to have 10 units of Death = $520,000 and 15 units of TPD = $390, if you need more than 10 units of Death cover and 20 units of TPD cover, then you can only apply for 1 additional unit of TPD cover for each unit of Death cover. This means you can t choose to have an equal dollar value of Death and TPD cover if you want more than 10 units of Death cover and 20 units of TPD cover. Applying to change your cover when you join When completing your Join Cbus Sole Trader Super form you can apply to change your occupation category from Manual to the Non-Manual or Professional occupation category. If you re eligible, the Non-Manual and Professional categories provide a higher level of cover than you would have under the Manual category. Read Occupation categories for Death and TPD cover on page 7 for more information. Applying to change your cover after you join You can apply to increase your Death and TPD cover at any time by completing an Application to increase insurance cover. Increases to cover depend on approval by our Insurer. Limits on Death and TPD cover There s a limit (maximum cover level) on the amount of Death and TPD cover you can apply for under Cbus Sole Trader Super: for ages 15 to 69, you can apply for up to $5 million Death cover and $2 million TPD cover. Note: The maximum of $2 million for TPD cover applies to all cover you hold with any super fund or insurance policy, not just cover you have with us. the dollar value of your TPD cover can t be more than the dollar value of your Death cover. if you re a Non-Manual or Professional member, the amount of TPD cover you can have is limited to seven times your Annual Taxable Income. The Insurer may not approve your application if the number of units you choose provides TPD cover that s more than that amount. Example At age 40, if you wanted to apply for 15 units of Death cover, the maximum number of TPD units you could apply for would be 25 as shown in the table below: Death cover 8 units = $416, units = $520, units = $572, units = $624, units = $676, units = $728, units = $780,000 TPD Cover 8 units x 2 = 16 units ($416,000) 10 units x 2 = 20 units ($520,000) 20 units + 1 = 21 units ($546,000) 20 units + 2 = 22 units ($572,000) 20 units + 3 = 23 units ($598,000) 20 units + 4 = 24 units ($624,000) 20 units + 5 = 25 units ($650,000) You can have equal Death and TPD cover up to 10 units of Death and 20 units of TPD. You can only apply for 1 additional unit of TPD cover for each unit of Death cover above 10. How much will extra Death and TPD cover cost? The cost of cover depends on the number of units you choose, the type of cover and your occupation category. Type of cover Weekly cost per unit Manual Non-Manual Professional Death and TPD $3.58 $3.58 $3.58 Death Only $1.33 $1.55 $1.55 Additional TPD* $2.25 Not Available Not Available * Only Manual members can apply for more TPD units of cover than Death units of cover, subject to the limitations outlined above. 12 Insurance handbook for Sole Traders

13 How the Insurer decides if you can increase your Death/TPD cover The Insurer may ask you for more health information or to have medical tests to help them assess your application. Your increased cover depends on the Insurer accepting your application. If they accept it, we ll let you know in writing what date your increased cover starts and the occupation category you re covered under. The Insurer will only consider your application if: you re age 15 or over and under age 70, and you re not currently applying for, not entitled to, or haven t been paid a TPD or terminal illness benefit from any super fund or life insurance policy, and you complete all sections of the Application to increase insurance cover and supply any other information the Insurer asks for, and we receive your application no later than 31 days after you ve completed, signed and dated the form, and if you re a Professional member, your Annual Taxable Income was more than $100,000 in the last financial year. Your duty of disclosure It s important to answer all questions truthfully and correctly to the best of your knowledge when applying to increase your insurance cover. You need to read the Your duty of disclosure on the Application to increase insurance cover, so that you re aware of what can happen in the event of non-disclosure. The Insurer can refuse to pay a claim if you didn t tell them about any issues you currently have, or have had in the past, that are relevant to your application. How to apply for more Death and TPD cover Complete an Application to increase insurance cover at (or call us for a copy on ) and make sure you: answer all insurance eligibility questions, give information about your current and past health if the Insurer asks for it, and submit your completed application so we receive it within 31 days of you signing and dating the form. If you re accepted for an increase in cover, it will start from the date the Insurer accepts your cover, provided that you have a minimum account balance of $250 within 31 days of the date the application is accepted. Insurance handbook for Sole Traders 13

14 6 Changing or increasing your Death and TPD cover (continued) How to transfer Death and/or TPD cover from your previous super funds If you have Death only or Death and TPD cover with another super fund or life insurance policy, you may be able to transfer it to Cbus Sole Trader Super. Am I eligible? To be eligible to transfer your existing cover: complete all sections of the Application to transfer existing insurance cover. We must receive your completed application within 31 days of you signing and dating the form, and attach a copy of your most recent statement from your previous super fund or life insurance company to prove your cover and the amount you re insured for, and the cover you want to transfer must not have any loadings. If it does, you won t be eligible to transfer cover to Cbus Sole Trader Super, and if the cover you want to transfer has any conditions, exclusions or restrictions, this may be transferred subject to acceptance by the Insurer, and if the cover is under your previous super fund, you must transfer your entire account balance from that fund to Cbus Sole Trader Super, and you must confirm that your cover in your previous fund or life insurance policy will be cancelled when your cover starts with us. You won t be able to claim a benefit from us if you don t cancel your old cover, and you must agree not to and must not take up any continuation option or request reinstatement of the cover under your previous fund or life insurance policy, and the maximum of each Death and TPD cover you can transfer is $1 million, and your total cover must not be more than the maximum cover levels under the Cbus Insurance Policy (see Limits on Death and TPD cover on page 12 for details), and you must confirm you re in Active Employment. If you re not in Active Employment, you can t transfer your cover to Cbus Sole Trader Super, and you re not currently applying for, not entitled to, or haven t been paid a TPD or terminal illness benefit from any super fund or life insurance policy, and you must confirm you don t have, or never have had, any disease, Illness or Injury, or any other conditions (other than colds, flu or mild asthma) which: - have required more than a total of 2 weeks off work during the last 12 months, or - have happened more than twice in the last 2 years and/or are currently causing you symptoms or needing treatment. What happens next? If the Insurer accepts your application, your cover under your previous super fund or life insurance policy will be matched by us, and rounded up to the next whole unit of cover. This is on top of any cover you may already have under Cbus Sole Trader Super. From the date your Application to transfer existing insurance cover is accepted, your cover and all terms and conditions will be based on the Cbus Insurance Policy, and not the basis of cover that applied under your previous super fund or life insurance policy. Important Note: Cover transfers depend on the answers you give on your application form. So it s important you don t cancel your cover with your previous super fund or insurance policy until we confirm your Application to transfer existing cover has been accepted. How to apply to transfer your cover Complete an Application to transfer existing insurance cover at or call us on for a copy, making sure you: answer all insurance eligibility questions, and attach a copy of your most recent statement from your previous super fund or life insurance company. We must receive your completed form within 31 days of you signing and dating it. 14 Insurance handbook for Sole Traders

15 Example changing from Manual to Non-Manual How to change your Death and TPD occupation category after you ve joined If you feel the occupation category you re currently covered under is no longer right for you, you can apply to change this by completing an Application to change occupation category. Changing occupation categories from: Manual to Non-Manual Manual to Professional Non-Manual to Professional For the above scenarios, the dollar value of your cover at the time of applying will be matched and rounded up (if necessary) to the next whole unit of the occupation category you re changing to. If a change in occupation category results in a higher level of cover than you had previously, you must be in Active Employment on the date that cover increases. If you re not, the extra cover you receive will be for New Events Cover for Death and TPD. Cover for all events will start from the date you re in Active Employment. If you currently have 4 units of Manual cover and you re age 30 when you apply to change your category, you would get: Category Current cover under Manual How to apply to change your occupation category New cover under Non-Manual Number of Death units 4 2 Number of TPD units 4 1 Death cover $208,000 $238,800 TPD cover $104,000 $119,400 Cost per week $14.32 $5.13 To apply to change your occupation category, complete an Application to change occupation category at or call us on for a copy. 7 When does your Death and TPD cover stop? Once your insurance cover with Cbus has started, you ll stay covered until the earlier of the following dates: the date we receive your satisfactorily completed Application to decrease or cancel insurance cover requesting cancellation of your cover, you re no longer a Cbus member, you reach age 65 for TPD cover and haven t applied to continue your TPD cover to age 70 and had your application accepted, you reach age 70 for Death cover and for TPD cover if your cover has been extended beyond age 65, you join the armed forces of any country other than the Australian Defence Force Reserves, the Insurer admits a TPD or terminal illness benefit to you, you die, or there isn t enough money in your super account to cover the cost of your insurance and account administration fee. Your cover will stop on the last day of the month for which your account could still meet the cost of your insurance. Insurance handbook for Sole Traders 15

16 8 Restarting your Death and TPD cover after it s been cancelled or expired If you cancelled your cover If you cancelled your insurance cover and want to restart it you ll need to complete an Application to increase insurance cover and provide information about your health. You can download a form at or call us on for a copy. Read Applying to change your cover after you join on page 12 for more information. If your cover expired because you ran out of money If your cover stops because your account balance has fallen to $0.00, the type of contribution that Cbus next receives on your behalf could change which Cbus super plan your membership continues under. What type and when was your next contribution received If your next contribution is an Employer Superannuation Guarantee Contribution What level and type of cover will you receive you ll be transferred to Cbus Industry Super and won t be eligible to apply for IP cover. Read What happens if you start to receive Employer Contributions in Cbus Sole Trader Super on page 25 for more information. Important note: You ll be covered only for injuries and illnesses that first occur after the date your cover restarted, unless you complete an Application to increase insurance cover and it has been accepted by the Insurer. Your cover will only restart if: you re not currently applying for, not entitled to, or haven t been paid a TPD benefit from any super fund or life insurance policy. If you don t meet this condition, and you joined Cbus before 1 November 2015, you ll only be entitled to Death cover. If you don t meet this condition and you joined Cbus on or after 1 November 2015, you re not entitled to any cover with us, you re not currently applying for, not entitled to, or haven t been paid a terminal illness benefit from any super fund or life insurance policy, and you haven t previously cancelled your cover. If your next contribution is a personal contribution (e.g. contributions made by you instead of an employer) and we receive a contribution, sufficient to meet the cost of your insurance within six months of your cover stopping If your next contribution is a personal contribution (e.g. contributions made by you instead of an employer) and we receive your contribution more than 6 months after your cover stopped you ll stay in Cbus Sole Trader Super and Death and TPD cover will restart at the same type and level of cover you held before your cover stopped. If you need help to work out your minimum contribution amount, call us on Note you won t receive IP cover, read Restarting your IP cover after it s been cancelled or expired on page 24 for more information. you ll stay in Cbus Sole Trader Super and in most cases you ll only be eligible for 1 unit of cover. Note you won t receive IP cover. Read Restarting your IP cover after it s been cancelled or expired on page 24 for more information. 16 Insurance handbook for Sole Traders

17 9 About IP cover IP cover occupation categories How much cover can IP insurance give you? Before you work out how many units of IP cover you want, you need to know how much money each unit of cover is worth and may cost. Each unit of cover is worth $100 per week and the cost of each unit will depend on: your age which occupation category you get cover under which waiting period you choose which benefit period you choose, and whether you choose only or and Illness cover. The sections on the following pages will help you work out how much IP insurance is right for you and your family. Occupation categories for IP cover There are three occupation categories for IP cover, so the category that applies to your IP cover may be different from the one you have for Death and TPD cover. Your IP occupation category will depend on the answers you give about your job in your Join Cbus Sole Trader Super form. Your answers may be checked by the Insurer if you make an IP claim. Some occupations are not eligible for IP cover. These are called Excluded Occupations (see page 33). Occupation category Non-Manual Skilled Trades Manual Eligibility Perform work of a clerical, administrative, managerial or professional nature, and Perform a minimum of 80% of your work in an office environment, and Don t perform any manual (physical) work. Examples are: Bookkeeper, Tax Adviser, Insurance Broker This category applies if you confirm that you: perform manual work or spend more than 20% of your time outside of an office environment, and you hold, or you have completed at least one of the following in the field within which you are working: - An indentured, trainee or modern apprenticeship - An Australian Recognised Trade Certificate (ARTC) - An Offshore Technical Skills Record (OTSR) - A Degree Examples are: A fully qualified Carpenter, Electrician or Plumber This category applies if you don t fit into either of the above two categories. If you change jobs and believe your current IP cover occupation category is no longer right for you, you can apply to change it. Call us on for assistance. If you re working in an Excluded Occupation, you may be able to get IP cover through the Cbus Income Continuance Portfolio *. This can give you basic, good value IP cover against accident or illness. Note: because this type of IP cover is provided outside of Cbus Sole Trader Super, the insurance costs would be paid by you (not from your Cbus account directly to the Insurer). For more information call Cbus Income Continuance Portfolio on * The Insurer of this product is CGU Insurance Limited ABN AFSL Insurance handbook for Sole Traders 17

18 10 Changing or increasing your IP cover Applying to change your occupation category when you join You can apply to change your occupation category from Manual to Non-Manual or Manual to Skilled Trades when you complete your Join Cbus Sole Trader Super form. If you re eligible, changing to the Non-Manual or Skilled Trades category means you d pay lower insurance costs for the same amount of cover. Read Occupation categories for IP cover on page 17. The table below shows the amount 6 units of Default Manual only cover (on a 30-day waiting period and 2-year benefit period) will cost you per week based on your age, compared to how much 6 units of Non-Manual or Skilled Trades cover will cost. Read Default Insurance cover on page 5 for more information on receiving Default cover when you join. Weekly cost for Default only cover Occupation category Non-Manual $1.38 $1.32 $1.26 $1.44 $1.74 Skilled Trades $2.16 $2.04 $1.92 $2.16 $2.64 Manual $4.08 $3.96 $3.72 $4.32 $5.16 Occupation category Non-Manual $2.16 $2.64 $3.18 $3.66 $3.66 Skilled Trades $3.36 $4.14 $4.98 $5.82 $5.88 Manual $6.48 $7.98 $9.54 $10.92 $11.04 Remember: only cover won t pay a benefit if you can t work due to Illness. Other IP cover options Option Type of cover Change from Default only cover Change to and Illness cover See Step 1 Cover amount 6 units More or less than 6 See Step 2 units Note: the maximum amount of cover you can apply for is limited to the lesser of 85% of your Monthly Income or 46 units. Waiting period 30 days 90 days See Step 3 Benefit period 2 years 5 years See Step 4 If you want more IP cover after you join You can apply for more IP cover, or a different type of IP cover, after you join Cbus. Why might I need more or different IP cover? There s a simple way to work out if you need more cover than the 6 units of only cover you may get when you join: 1. Think about how much you earn each week right now. The Default 6 units of IP cover that you may be eligible for when you join, provides a benefit of up to $600 per week (or $31,200 per annum). This is based on a benefit of 85% of income, for weekly pre-tax earnings of $ per week or $36,706 per annum. 2. If the amount you earn each week is higher than this, you could need more than 6 units of IP cover if you want to make sure you are insured for the maximum benefit of 85% of your income. 3. You don t have to apply for more units of IP cover if you don t want to. But if you need to claim, your benefit will be limited to the amount provided by the number of units you have. This means you will be insured for a benefit which is less than 85% of your weekly earnings. 18 Insurance handbook for Sole Traders

19 Step 1: Choose which type of IP cover you need You can choose from 2 different types of IP cover: only or and Illness. Default IP cover is for only. Deciding whether only or and Illness IP is right for you comes down to three things: peace of mind, the cost of cover and which type of cover best suits you and your family. only This type of IP cover pays you a benefit only if you claim because you ve had an. It doesn t cover you for accidents you had before your application has been accepted by the Insurer, and it doesn t pay you a benefit if you can t work because you re ill. and Illness cover This type of IP cover pays you a benefit if you become ill, as well as if you have an accident, after your application for this cover is accepted. Step 2: Choose how much cover you need 1. Work out how much money you would need to replace your income if you were unable to work due to an or (where approved), Illness. 2. Check the table Maximum IP payments and find the income range which covers your annual salary. This will let you see how many units you need to cover up to 85% of your annual income. This is the highest amount you can be covered for under Cbus Sole Trader Super. Each unit of cover can pay you $100 per week. Default cover provides you with 6 units of only IP cover. 3. You do not have to apply for the number of units of IP cover shown in the table if you do not want to but if choose to have less units, you will be insured for a benefit which is less than 85% of your weekly earnings. Limits on IP cover payments If you have to make an IP claim, your Monthly Benefit will be limited to the lesser of: 85% of your Monthly Income (where 75% will be paid directly to you as an income replacement and 10% to your Cbus Sole Trader Super account) or the benefit paid by the number of units you have (where 75/85ths will be paid directly to you as an income replacement and 10/85ths will be paid to your Cbus Sole Trader Super account) or $20,000 per month. So if you apply for cover that would pay more than 85% of your income, you ll be paying for more cover than you d be eligible to get if you make an IP claim. Maximum IP payments This table shows the number of units you need to receive the maximum IP payment you could get based on your annual income: Units of cover Your annual pre-tax income Units of cover Your annual pre-tax income 1 $0.00 $6, $73,412 $79,529 2 $6,118 $12, $79,530 $85,647 3 $12,236 $18, $85,648 $91,764 4 $18,353 $24, $91,765 $97,882 5 $24,471 $30, $97,883 $104,000 6 $30,589 $36, $104,001 $110,117 7 $36,706 $42, $110,118 $116,235 8 $42,824 $48, $116,236 $122,352 9 $48,942 $55, $122,353 $128, $55,059 $61, $128,471 $134, $61,177 $67, $134,589 $140, $67,295 $73, $140,706 $146,823 Insurance handbook for Sole Traders 19

20 10 Changing or increasing your IP cover (continued) Step 2: Choose how much cover you need continued Example 2: Default cover of six units Jarrod has an annual income of $65,000. He has the Cbus Default IP cover (6 units). Each unit gives him $100 per week ($100 x 6 units x 52 weeks = $31,200). If he makes a claim, Jarrod will be paid the lesser of six units ($31,200) and 85% of his annual income = $55,250. If Jarrod claims, his insured monthly benefit will be limited to six units = $2,600 per month Example 1: Maximum cover for your annual income Robert has an annual income of $84,000. He wants the highest benefit possible so he chooses to be covered for 14 units. Each unit insures him for $100 per week or $72,800 per annum ($100 x 14 units x 52 weeks = $72,800). This gives him an insured amount closest to 85% of his income (85% x $84,000 = $71,400). Robert applies for the extra number of units over the Default to make 14 units. If he claims a benefit, Robert will be paid the lesser of 14 units ($72,800) and 85% of his salary ($71,400) while he s disabled. If Robert claims and his annual income is still $84,000, his insured monthly benefit will be 85% of his income = $5,950 per month (85% of $84,000 divided by 12 months) How Robert s benefit will be paid $700 will be paid to Robert s super account each month as a contribution (10/85ths x $5,950) $5,250 less Pay-as-you-go (PAYG) withholding tax will be paid directly to Robert each month to replace his lost earnings (75/85ths x $5,950) ($100 per week x 6 units x 52 weeks divided by 12) How Jarrod s benefit will be paid $ will be paid to Jarrod s super account each month as a contribution (10/85ths x $2,600) $2, less Pay-as-you-go (PAYG) withholding tax will be paid directly to Jarrod each month to replace his lost earnings (75/85ths of $2,600) If your annual income is more than $146,823 Use the formula below to calculate the number of IP units you need. Annual income x = Number of units you need* Make sure you round the number of units up to the nearest whole number. Example John s before tax income is $155,000. $155,000 times (x) 0.85 divided by ( ) 52 divided by ( ) 100 = 25.3 units This means that John would need 26 units of IP insurance to cover 85% of his annual income. * Note: the total number of units is limited to 46, based on the maximum income for IP insurance of $281,411 p.a. 20 Insurance handbook for Sole Traders