Mortgage Secure. Product Disclosure Statement and policy wording (PDS) Effective 20 October 2014

Transcription

1 Mortgage Secure Product Disclosure Statement and policy wording (PDS) Effective 20 October 2014 Issued by: Westpac Life Insurance Services Limited ABN AFS Licence No (Westpac Life) a

2 Issuer/Insurer: Westpac Life Insurance Services Limited ABN AFS No (Westpac Life) Distributor: Westpac Banking Corporation ABN (the Bank) This Product Disclosure Statement and policy wording (PDS) contains information about the Mortgage Secure insurance policy. It will help you to decide whether this policy is right for you. Contact details for Westpac Life: Phone: , 8am to 6.30pm (Sydney time) Monday to Friday Fax: (02) Address: Westpac Life Insurance Services Ltd, GPO Box 524, Sydney NSW 2001 Visit: (search Mortgage Secure ) Important Information: Please ensure you carefully read this PDS and understand the extent of cover before signing the application form. This product is issued by Westpac Life and distributed by the Bank. Neither the Bank, nor any other member of the Westpac Group (other than Westpac Life), is responsible for the insurance or the payment of claims. A premium is payable if you decide to take out this insurance. Insurance is optional: This insurance is optional and is not a condition of the Westpac Loan. Conditions, limits and exclusions on cover apply, and are explained in this PDS. Neither the Bank nor any other member of the Westpac Group (other than Westpac Life) guarantees the insurance. Changes to the PDS: The information in this PDS is current at the date of preparation and may change. If the change is considered materially adverse, we will issue a supplementary or replacement PDS. Otherwise, we may provide updates on our website at (search for Mortgage Secure ). On request, we will send you a copy of any updated information free of charge. General Advice: In preparing this PDS we did not take into account your personal objectives, financial situation or needs. You should consider this document fully and carefully before making your insurance decision, having regard to your own personal circumstances. Your Duty to be Truthful: It s important to be truthful in your dealings with us. Before we issue a policy, we use the information that you provide to decide whether to insure you and, if so, on what terms. If you make a misrepresentation to us before we issue your policy, we may be able to: reduce the Sum Insured or vary the policy to reflect the terms that would have applied if you had been truthful; or cancel the policy or treat the policy as never having existed. Some words have particular meanings: In this PDS, words that have a particular meaning use Capitalised First Letters. When we say you or your in this PDS, we mean each person who is named as an Insured Person in the application for this insurance and who we agree to insure we, us and our means Westpac Life. b

3 Contents Mortgage Secure 2 Table of benefits Living Benefit...3 Who can apply? 4 Joint Policy 4 How to apply 5 Three easy steps...5 No health checks required...5 Pre-existing Condition...5 Premiums 6 What happens if your premium is not paid?... 6 How is the premium calculated?... 6 Policy fee...6 When does the cover begin and end? 7 Making changes to your cover 8 Making a claim 8 Some situations are not covered (exclusions)... 9 How will we pay the benefit?... 9 Other information 13 Cancelling your policy...13 Privacy...13 Remuneration...14 Tax implications...15 No cash value...15 Where we put your money...15 Relevant Law...15 Currency...15 Enquiries and complaints 16 Definitions 17 Medical conditions covered under the Living Benefit

4 Mortgage Secure Mortgage Secure is designed to provide: a lump sum benefit if you die or suffer a Terminal Illness; and a lump sum benefit if you suffer a specified medical trauma condition or event (optional). See below for the definition of Terminal Illness. This is a summary of cover only. The cover provided is set out in this PDS, and the Policy Schedule, which you will receive if your application is accepted. When you apply for Mortgage Secure, the Living Benefit is optional so you can either select: and Living Benefit; or only. Table of benefits You can select a up to the amount of your approved Westpac Loan, subject to a minimum of $30,000 and a maximum of $750,000. If you are first diagnosed with a Terminal Illness or die during the period of insurance, we will pay the Death Benefit Sum Insured shown in your Policy Schedule. Example 1: Your policy has a Sum Insured of $300,000. If you are diagnosed with a Terminal Illness, we pay $300,000.* Example 2: Your policy has a Sum Insured of $400,000. If you die, we pay $400,000. For the purposes of this cover, Terminal Illness means you have been diagnosed as having a life expectancy of less than 12 months, as confirmed by a registered Medical Practitioner approved by us. We will only pay the (including Terminal Illness) once for either Insured Person under the policy. *Note: all examples provided in this PDS are illustrative only. 2

5 Living Benefit In addition to your, you have the option of selecting the Living Benefit. You can choose between three (3) levels of cover by selecting a Living Benefit equal to: 10% of the ; or 25% of the ; or 50% of the. As the is subject to a minimum of $30,000 and a maximum of $750,000, the Living Benefit Sum Insured is subject to a minimum of $3,000 and a maximum of $375,000. The Living Benefit Sum Insured is payable during the period of insurance if you suffer one of the following medical trauma conditions or events (defined on pages 18 19): Cancer; Coronary Artery Bypass Surgery; Heart Attack; Loss of Independent Existence; Open Heart Surgery; Paralysis; or Stroke. We will only pay the Living Benefit once for each Insured Person. The will be reduced by the amount of the Living Benefit paid. Example 1: Your policy has a Sum Insured of $400,000 and you select a Living Benefit equal to 50% of the. You therefore have a Living Benefit Sum Insured of $200,000. You suffer a Stroke for the first time. We pay $200,000 and the Sum Insured is reduced to $200,000. Example 2: Your policy has a Sum Insured of $500,000 and you select a Living Benefit equal to 10% of the. You therefore have a Living Benefit with a Sum Insured of $50,000. You suffer a Heart Attack for the first time. We pay $50,000 and your reduces to $450,000. 3

6 Who can apply? You can apply for Mortgage Secure if you are: aged from 18 to 59 years; and applying for, or have, a Westpac Loan for a residential or investment property home in Australia. Joint Policy When there are two (2) borrowers on a Westpac Loan, you can choose to cover one (1) borrower or both borrowers. Where there are two (2) borrowers listed as Insured Persons, this is referred to as a Joint Policy. Both borrowers must be listed as mortgagees on the Westpac Loan. Each Insured Person can choose the same level of cover, however the Sum Insured for the must be the lesser of $750,000 or the amount of the approved Westpac Loan. Example 1: You and your partner apply for a Westpac Loan for $300,000. You may both select a of $300,000 and a Living Benefit of $150,000 (50% of the ). Alternatively, each Insured Person can select a different Sum Insured amount for the, as in the example below. Example 2: You and your partner apply for a Westpac Loan for $300,000. You select a of $300,000 and a Living Benefit of $150,000. Your partner selects a of $200,000 and a Living Benefit of $100,000 (i.e. both you & your partner selected a Living Benefit which is 50% of the ). Where there are two (2) Insured Persons, one (1) is payable under the policy. To read about the way the benefits are paid, see the section How will we pay the benefit on pages All correspondence for a Joint Policy will be sent to the address of the first Insured Person listed on the application (or an alternative address if you have notified us otherwise). 4

7 How to apply Three easy steps 1. When you are organising your Westpac Loan, please talk to your Home Finance Manager about your insurance cover options with Mortgage Secure. 2. It only takes a few minutes for your Home Finance Manager to set-up your Mortgage Secure application. You don t need to undergo any medical checks or complete any health declarations. Your application form will be submitted for processing after your Westpac Loan is formally approved. Please ensure you read this PDS before signing the Mortgage Secure application form. 3. Your Mortgage Secure policy will go into force when we accept a completed application form and your Westpac Loan has Drawn Down. No health checks required Once your application form is accepted and your Westpac Loan is Drawn Down, you are approved for the benefits in your application form without the need to undergo any medical exams or complete any health declarations. Pre-existing Condition Your policy applies an exclusion for any Pre-existing Condition that existed in the five (5) years prior to, or at the time we accepted, your application. Pre-existing Condition is defined as any Injury, Sickness or Illness, or Symptom that you: were aware of, or a reasonable person in your position should have been aware of; or should have sought advice or treatment (conventional or alternative) from a medical practitioner or other health professional for (in circumstances where a reasonable person in your position would have sought advice or treatment); or had a medical consultation for or were prescribed medication or therapy for. You are not covered for any Pre-existing Condition that directly or indirectly results in a claim, unless you were unaware of, and a reasonable person in the circumstances could not be expected to have been aware of the Injury, Sickness or Illness, or Symptom at the time of application. 5

8 Premiums Premiums are payable once your cover has commenced. Premiums for Mortgage Secure are charged monthly and payment can be made by bank account or credit card debit acceptable to us. In addition to the premium, we may recover other charges that we incur for direct debit payments that you make. What happens if your premium is not paid? If you do not pay your premium by the due date, we may cancel your policy by giving you 30 days written notice of cancellation. How is the premium calculated? The amount of premium depends on a number of factors including your age, gender, smoking status, type of cover, Sum Insured and number of applicants. The premium includes stamp duty. Whilst premium rates generally increase with age, any other changes that you make to the policy such as increasing cover, will also vary the premiums. Your initial monthly premium will be shown on the Policy Schedule. Premiums are calculated yearly on your policy Review Date. Each year you will receive a policy renewal notice confirming the monthly premiums that apply for the next 12 months. We may increase your fees, or premium rates for all Mortgage Secure policies in the same risk category, as determined by us. We will give you 30 days written notice of any premium or fee increase. For a Joint Policy, each Insured Person will receive a 5% discount on premiums for the life of the policy. Policy fee A monthly policy fee applies on Mortgage Secure. This is currently $7.50 for single policies and $14.25 for Joint Policies. Please note, your premium and policy fee is charged as one amount. 6

9 When does the cover begin and end? Your Mortgage Secure cover will commence from the date when both: your Westpac Loan has Drawn Down; and we have accepted your application. The commencement date of your policy will be shown in the Policy Schedule. If you apply for Mortgage Secure and your Westpac Loan is not Drawn Down within 90 days from the date we receive your Mortgage Secure application, the policy will not commence. If you still wish to have cover, you will need to re-apply. A Living Benefit for an Insured Person ends on the earliest of the following: the date we pay the Living Benefit; the date we pay the ; the date you ask us to cancel either the Living Benefit or the. A for an Insured Person ends on the earliest of the following: the date we pay the ; the date you ask us to cancel the. All benefits for an Insured Person end on the earliest of the following: the date we pay a in respect of any Insured Person; the Review Date immediately after the Insured Person turns 65 years of age; the date you ask us to cancel all benefits for the Insured Person; the date the Westpac Loan is closed. A Joint Policy if you ask us to cancel a benefit (or benefits), the benefit (or benefits) end only when both Insured Persons have asked us to cancel the benefit (or benefits). The policy ends on the earliest of the following: the date all benefits end (including because the Westpac Loan is closed); where there is only one Insured Person the date the is paid; where there are two Insured Persons (Joint Policy) the date one is paid in respect of one Insured Person or equally split between two Insured Persons; where there is only one Insured Person the Review Date immediately after the Insured Person turns 65 years of age; where there are two Insured Persons (Joint Policy) the Review Date immediately after the youngest surviving Insured Person turns 65 years of age; where there is only one Insured Person the date you ask us to cancel the policy; where there are two Insured Persons (Joint Policy) the date both Insured Persons ask us to cancel the policy; where you do not pay your premiums by the due date - the date we cancel your policy. When the policy ends we will write to you to confirm this. 7

10 Making changes to your cover You can apply to increase or decrease your at any time by notifying us in writing. Our postal address is Westpac Life Insurance Services, GPO Box 524, Sydney NSW You can increase the on your Mortgage Secure policy up to the lesser of $750,000 or your Westpac Loan balance at the time of your application to increase. The Living Benefit will also be adjusted based on the level of cover selected. An exclusion applies to the increased Sum Insured for any Pre-existing Condition that existed in the five (5) years prior to or at the time we accepted your application to increase the Sum Insured. Any existing Pre-existing Condition exclusions that applied to your original cover will continue to apply. For a Joint Policy, both Insured Persons need to request changes to their Mortgage Secure policy in a manner acceptable to us. Once we accept your application to change cover in writing, the change will take effect on the next premium due date. Making a claim To make a claim, call us on , 8am to 6.30pm (Sydney time), Monday to Friday, and ask for a claim form. Then complete the form and return together with, and not limited to, the following documents (at your cost): claim proof of age, identity and death; Terminal Illness claim a report from a Medical Practitioner acceptable to us confirming that you first suffered, or were first diagnosed with, a Terminal Illness (see the definition on page 18) during the period of insurance; Living Benefit claim a report from a Medical Practitioner acceptable to us with medical evidence confirming that you first suffered, or were first diagnosed with, a covered medical trauma condition or event during the period of insurance. We may require you to provide further information or documentation about the claim (at your cost). We may require reports from treating doctors and hospitals and we may require you to have a medical examination. We will pay for any additional reports and examinations that we require. To assess a claim we may need to disclose information about your claim to the Medical Practitioner. It s a condition of making a claim that you agree to the necessary collection and disclosure of your personal information, including health and medical information. We aim to assess all claims in a timely manner. However, we rely on you to provide the information required within six (6) months or as soon as reasonably possible after the occurrence of the event giving rise to a claim. 8

11 Some situations are not covered (exclusions) We will not pay for any Mortgage Secure claim: All Benefits which is directly or indirectly related to the Insured Person s use of alcohol, non-prescribed drugs or drugs taken in excess of prescribed amounts; or for any Pre-existing Condition (see the definition on page 17); which is due to suicide or attempted suicide in the first 13 months of the date cover commenced, or cover recommenced after the policy lapsed, or cover increased but only in respect of the amount of the increase; Living Benefit that is due to a medical condition or event caused directly or indirectly by any Injury which was self-inflicted or deliberately caused by the Insured Person (whether sane or insane at the time); or for Cancer, Coronary Artery Bypass Surgery, Heart Attack, Open Heart Surgery or Stroke which occurs within three (3) months of the date cover commenced, or cover recommenced after the policy lapsed, or cover increased but only in respect of the amount of the increase. How will we pay the benefit? We will pay all s and Living Benefits directly into your Westpac Loan account (which reduces the balance of your Westpac Loan). Example 1: You have a Sum Insured of $300,000. At the time of your death the outstanding balance of your Westpac Loan is still $300,000. We pay $300,000 to your Westpac Loan and the policy ends. where the Sum Insured exceeds the Westpac Loan balance Where you are the only Insured Person, if the Sum Insured exceeds the Westpac Loan balance, we will pay the remaining Sum Insured: to you in the case of Terminal Illness; or to your estate if you die. Example 2: You have a Sum Insured of $500,000. At the time you are diagnosed as being Terminally Ill, the outstanding balance of your Westpac Loan has reduced to $300,000. We pay $300,000 into your Westpac Loan, the remaining $200,000 to you and the policy ends. If you have a Joint Policy, and the Sum Insured exceeds the Westpac Loan balance, we will pay the remaining Sum Insured: to you in the case of Terminal Illness; to the surviving Insured Person if you die. 9

12 where the Sum Insured exceeds the Westpac Loan balance (continued) Example 3: You and your partner have a Sum Insured of $600,000 on a Joint Policy. At the time of your death the outstanding balance of your Westpac Loan has reduced to $400,000. We pay $400,000 to your Westpac Loan and the remaining $200,000 to the surviving Insured Person. No further benefits can be claimed by the surviving Insured Person and the policy ends. If you have a Joint Policy, both Insured Persons die as a result of the same accident and each Insured Person has the same Sum Insured, only one is payable. We will pay the into the Westpac Loan account and equal proportions of any remaining Sum Insured into each Insured Person s estate. Example 4: You and your partner have a Westpac Loan with an outstanding balance of $200,000 and you each have a Sum Insured of $400,000. You both die in the same car accident. A total benefit of $400,000 is payable on the policy. We will pay $200,000 into the Westpac Loan. The remaining $200,000 will be paid in equal proportions into each of you and your partner s individual estates and the policy ends. If you have a Joint Policy and both Insured Persons die as a result of the same accident, and each Insured Person has a different Sum Insured, the higher of the two Sum Insured is payable. If the higher Sum Insured exceeds the Westpac Loan balance, the remaining monies will be paid in equal proportions into each Insured Person s estate. Example 5: You and your partner have a Westpac Loan with an outstanding balance of $200,000. You have a Sum Insured of $400,000. Your partner has a Sum Insured of $200,000. You both die in the same car accident. A total benefit of $400,000 is payable on the policy. We will pay $200,000 into the Westpac Loan. The remaining $200,000 will be paid in equal proprtions into each of you and your partner s individual estates and the policy ends. When the is paid, all benefits for the Insured Person under the policy, including the Living Benefit (where selected), cease. Living Benefit The Living Benefit Sum Insured will be firstly paid to your Westpac Loan and any remaining benefit will be paid to you. When a Living Benefit is paid, the Sum Insured for the Insured Person is reduced by the amount of the Living Benefit. The Living Benefit ends for that Insured Person and the premium reduces accordingly. 10

13 Living Benefit where the Sum Insured is less than the Westpac Loan balance When the Living Benefit is less than the Westpac Loan balance, the Living Benefit is paid into the Westpac Loan account and the is reduced by the amount of the Living Benefit. Example 6: Your policy has a Sum Insured of $600,000 and you select a Living Benefit equal to 50% of the. You therefore have a Living Benefit Sum Insured of $300,000. You suffer a Stroke for the first time. At the time of your Stroke diagnosis, the outstanding balance on your Westpac Loan is $500,000. We pay $300,000 into your Westpac Loan and the Sum Insured is reduced to $300,000. No further Living Benefit is payable under your policy. Living Benefit where the Sum Insured exceeds the Westpac Loan balance When the Living Benefit is greater than the Westpac Loan balance, the Living Benefit is first paid into the Westpac Loan account and then any remaining monies paid to you. As there is now no remaining Westpac Loan balance, the policy ends. Example 7: Your policy has a Sum Insured of $400,000 and you select a Living Benefit equal to 50% of the. You therefore have a Living Benefit Sum Insured of $200,000. You suffer a Heart Attack for the first time. At the time of your Heart Attack diagnosis, the outstanding balance on your Westpac Loan is $100,000. We pay $100,000 into your Westpac Loan and the remaining $100,000 to you. As there is no remaining Westpac Loan balance, the policy ends. Provided a Westpac Loan balance remains, Insured Persons on a Joint Policy can claim one (1) Living Benefit each and the policy will continue to provide a reduced after the Living Benefit is paid out. 11

14 How will we pay the benefit? Policy type (single / joint) Loan & benefit description Event Loan balance How is benefit paid Insurance cover after event Example 1. Single Policy You select a = $300k You pass away Loan balance = $300k Pay $300k to loan account Policy ends when the Death Benefit is paid Example 2. Single Policy You select a = $500k You are diagnosed as Terminally Ill Loan balance = $300k Pay $300k to loan account Pay remaining $200k to you Policy ends when the Death Benefit is paid Example 3. Joint Policy You & your partner select a = $600k You pass away Loan balance = $400k Pay $400k to loan account Pay remaining $200k to your surviving partner One is payable so the policy ends Example 4. Example 5. Joint Policy Joint Policy You & your partner select a = $400k You select a = $400k Your partner select a = $200k You both die in an accident together You both die in an accident together Loan balance = $200k Loan balance = $200k Pay $200k to loan account Pay remaining $200k split equally to you & your partner s estates Total of $400k is paid Pay $200k to loan account Pay remaining $200k split equally to you & your partner s estates Total of $400k is paid (i.e. higher Sum Insured amount) One is payable so the policy ends One is payable so the policy ends Example 6. Single Policy You select a = $600k & Living Benefit = $300k You suffer a Stroke for the first time Loan balance = $500k Pay $300k to your loan account reduces to $300k When a Living Benefit is paid, it reduces the No further Living Benefit is payable under the policy Example 7. Single Policy You select a = $400k & Living Benefit = $200k You suffer a Heart Attack for the first time Loan balance = $100k Pay $100k to your loan account Pay remaining $100k to you As there is no remaining balance on the Westpac Loan, the policy ends 12

15 Other information Cancelling your policy During the cooling-off period After you receive your Policy Schedule, you have 14 days from the date cover commences, to check that the policy meets your needs. This is known as the cooling-off period. If you are not satisfied within the cooling-off period, you can cancel the policy by calling us on , 8am to 6.30pm (Sydney time), Monday to Friday, or writing to us at Westpac Life Insurance Services Limited, GPO Box 524, Sydney NSW Any premium paid will be refunded in full, less any stamp duty. Your cooling-off right does not apply if you have made a claim. After the cooling-off period You may cancel the policy at any time by notifying us in writing. We will refund up to two (2) months premium if your Mortgage Secure policy is replaced with a Protection Plans insurance policy from Westpac Life. What happens if my loan doesn t proceed? If your Westpac Loan application is not Drawn Down within 90 days from the date we receive your Mortgage Secure application, your Mortgage Secure policy will not commence. When your Westpac Loan is closed If the Westpac Loan is closed, this policy ends. We will write to you to confirm this. See the section When does the cover begin and end? on page 7. Privacy Why we collect your personal information We collect personal information from you to process your application, provide you with your product or service, calculate your premium, assess any claims made by you and manage your product or service. We may also use your information to comply with legislative or regulatory requirements in any jurisdiction, prevent fraud, crime or other activity that may cause harm in relation to our products or services, and help us run our business. We may also use your information to tell you about products or services we think may interest you. If you do not provide all the information we request, we may need to reject your application or claim, or we may no longer be able to provide a product or service to you. 13

16 Disclosing your personal information We may disclose your personal information to other members of the Westpac Group* and its reinsurers, anyone we engage to do something on our behalf such as a service provider, and other organisations that assist us with our business. We may disclose your personal information to an entity which is located outside Australia. Details of the countries where the overseas recipients are likely to be located are in the Westpac Privacy Policy. As a provider of financial services, we have obligations to disclose some personal information to government agencies and regulators in Australia, and in some cases offshore. We are not able to ensure that foreign government agencies or regulators will comply with Australian privacy laws, although they may have their own privacy laws. By using our products or services, you consent to these disclosures. Other important information We are authorised to collect personal information from you by certain laws. Details of these laws are in the Westpac Privacy Policy. The Westpac Privacy Policy is available at (search for Privacy ) or by calling It covers: how you can access the personal information we hold about you and ask for it to be corrected; how you may complain about a breach of the Australian Privacy Principles, or a registered privacy code and how we will deal with your complaint; how we collect, hold, use and disclose your personal information in more detail. The Westpac Privacy Policy will be updated from time to time. Where you have provided information about another individual, you must make them aware of that fact and the contents of this Privacy Statement. We will use your personal information to contact you or send you information about other products and services offered by the Westpac Group* or its preferred suppliers. If you do not wish to receive marketing communications from us please call us on or visit any of our branches. Remuneration Westpac Banking Corporation and its agents may receive up to 20% of premiums from us for providing information and support in the sale of Mortgage Secure. Westpac Banking Corporation may pay referrers or aggregators (such as mortgage brokers) remuneration of up to 20% of premiums for providing information and support in the sale of Mortgage Secure. The remuneration payable is paid by us out of the premium we receive and is not an additional cost to you. When a representative of Westpac Banking Corporation provides information on Mortgage Secure and you decide to apply for the insurance, he or she may benefit indirectly because these applications play a part in their overall performance. Good overall performance on their part can qualify them for bonus payments. Any such bonus payments are not an additional cost to you. *The Westpac Group means Westpac Banking Corporation and its related corporate bodies. 14

17 Tax implications Generally, premiums for Mortgage Secure insurance are not tax deductible, nor are any benefits taxable. This is a general statement only and is based on present tax laws and our interpretation of those laws. Your individual situation may differ and you should seek professional advice. No cash value This is not a savings plan. This product does not allow you to share in any profit or surplus and your policy does not have a surrender or cash value. Where we put your money We pay your premiums into a statutory fund called the Westpac Life Insurance Services Limited Statutory Fund Number 1, and benefits under your policy are paid out from that fund. The Life Insurance Act 1995 contains rules designed to protect the money in the fund. Relevant Law This policy is governed by the laws of Australia. Currency All dollar ($) amounts referred to are in Australian currency. Claims and premiums are payable in Australian dollars. 15

18 Enquiries and complaints We are always striving to provide our customers with the best possible service, so we will do our best to resolve any complaint that you have quickly and fairly. If you have a complaint about anything related to this Mortgage Secure policy, here s what you should do. Step 1 We ask that you first contact one of our Customer Relations Consultants on between 8am to 6.30pm (Sydney time), Monday to Friday, to discuss your complaint. If our Customer Relations Consultant is unable to resolve the matter, they will refer it to a Senior Officer or Manager. The Senior Officer or Manager will acknowledge your complaint within two (2) business days and try to resolve your complaint within 15 business days. However, if we consider that further information, assessment or investigation of the complaint is required, we will agree reasonable alternative timeframes with you. Step 2 If you are still not satisfied after the Senior Officer or Manager has investigated the issue, you may ask for us to refer the dispute to our Internal Dispute Resolution Officer. The Internal Dispute Resolution Officer s contact details are: Internal Dispute Resolution Officer Westpac Life Insurance Limited GPO Box 524 Sydney NSW 2001 Phone The Internal Dispute Resolution Officer will provide you with a response within 15 business days. With both Steps 1 and 2, we will do our best to resolve your complaint quickly and fairly. However, in cases where further information, assessment or investigation is required, we will agree reasonable alternative timeframes with you. Step 3 If 45 days have passed since you first told us about your complaint and you haven t heard back from us, or if you are not satisfied with the decision made, or we cannot otherwise reach an agreement, you can refer your dispute to the Financial Ombudsman Service. This is a free independent dispute resolution service for customers who have a general insurance dispute. The Financial Ombudsman Service s contact details are: Financial Ombudsman Service Address GPO Box 3, Melbourne VIC 3001 Phone Fax (03) info@fos.org.au Website 16

19 Definitions To help you with reading this PDS and Policy Schedule, here are the definitions for the terms we have used. Accident a single event that results in an Injury that is unexpected. This does not include an event that results from a Sickness or Illness. the Death benefit is explained on page 2. Drawn Down (or Draw Down) your Westpac Loan is Drawn Down on the date on which funds are first released from your Westpac Loan to fund the purchase of your residential or investment property home. Injury physical damage to the body sustained as a result of an external traumatic occurrence. Insured Person(s) is the person (or persons) whose life is insured under this policy and is the person who has the rights and control to apply to change, cancel or extend this policy. (For a Joint Policy, both Insured Persons need to request the change, cancellation or extension of the policy in a manner acceptable to us.) Joint Policy a policy where two (2) individuals who are listed as borrowers on a Westpac Loan, are also Insured Persons on a Mortgage Secure policy (or policies). Living Benefit the Living benefit is explained on page 3. Medical Practitioner a person qualified and registered to practice medicine (other than you or members of your immediate family). PDS the Product Disclosure Statement and policy wording. Policy Schedule the document that we issue to you entitled Certificate of Cover, which provides details of your cover. Pre-existing Condition any Pre-existing Condition that existed in the five (5) years prior to, or at the time we accept your application. A Pre-existing Condition is any Injury, Sickness or Illness, or Symptom, that you: were aware of, or a reasonable person in your position should have been aware of; or should have sought advice or treatment (conventional or alternative) from a medical practitioner or other health professional for (in circumstances where a reasonable person in your position would have sought advice or treatment); or had a medical consultation for or were prescribed medication or therapy for. You are not covered for any Pre-existing Condition that directly or indirectly results in a claim, unless you were unaware of, and a reasonable person in the circumstances could not be expected to have been aware of the Injury, Sickness or Illness, or Symptom, at the time of application. Review Date is the anniversary each year of the policy s commencement date. Sickness or Illness a medical condition that is an abnormal condition of an organism that impairs bodily functions, associated with specific Symptoms and signs. It may be caused by external factors or by internal dysfunctions. A Sickness or Illness is taken to have first become apparent when: a doctor first gave the Insured Person advice, care or treatment for the Sickness or Illness; or the Insured Person first had Symptoms of the Sickness or Illness for which a reasonable person in the same circumstances would have sought advice, care or treatment from a doctor. Sum Insured the amount that has been agreed to be covered, as shown in the Policy Schedule, under this policy. 17

20 Symptom is a departure from normal function or feeling which is noticed by the Insured Person, indicating the potential presence of Sickness or Illness or other abnormality. The Symptom is taken to have existed when first noticed by the Insured Person. Terminal Illness you have a Terminal Illness if you have been diagnosed as having a life expectancy of less than 12 months, as confirmed by a registered Medical Practitioner approved by us. Westpac Life, we, us and our refers to Westpac Life Insurance Services Limited ABN Westpac Loan means residential or investment property home loan for which you have applied with Westpac Banking Corporation. you and your each person who is named as an Insured Person in the application for this insurance and who we agree to insure. Medical conditions covered under the Living Benefit If you have selected the optional Living Benefit, you will be covered for the following medical trauma conditions or events: Cancer means a malignant tumour pathologically confirmed and characterised by the uncontrolled spread of malignant cells and the invasion of normal tissue. Also included are Hodgkin s disease, lymphoma, colorectal cancer (from Dukes stage A) and leukaemia. The following are specifically excluded: a) all skin cancers except: metastatic squamous cell carcinomas; and melanomas of 1.0 millimetre or more Breslow thickness, or Clark Level 3 or more depth of invasion, or with evidence of ulceration; b) all tumours which are histologically described as microcarcinoma, pre-malignant or showing the malignant changes of carcinoma in situ, including cervical dysplasia rated as CIN 1, 2 or 3; Carcinoma in situ of the breast is not excluded if it results directly in: the removal of the entire breast. This procedure must be performed specifically to arrest the spread of malignancy and be considered the appropriate and necessary treatment; or breast conserving surgery and adjuvant therapy (such as radiotherapy and/or chemotherapy). The surgery and treatment must be undertaken specifically to arrest the spread of malignancy, and be considered the appropriate and necessary treatment as confirmed by an appropriate specialist doctor acceptable to us. Chemotherapy means the use of drugs as prescribed by an appropriate specialist doctor specifically designed to kill or destroy cancer cells; c) chronic lymphocytic leukaemia (less than RAI stage 1); and d) prostatic tumours which are histologically described as TNM classification T1 (including T1a,T1b and T1c), or characterised by Gleason Score of less than 6, or are of another equivalent or lesser classification. Prostate cancer is covered if it results directly in total prostatectomy. This procedure must be performed specifically to arrest the spread of malignancy and be considered the appropriate and necessary treatment. Coronary Artery Bypass Surgery means the use of bypass graft(s) to one or more coronary arteries for treatment of coronary artery disease. The surgery must be the most appropriate treatment for the disease. All non-surgical procedures such as angioplasty, laser or other intra-arterial techniques are excluded. 18

21 Heart Attack means death of heart muscle caused by inadequate blood supply, evidenced by typical rise and/ or fall of cardiac biomarker blood tests with at least one of the following: a) acute cardiac symptoms and signs consistent with a heart attack, b) new serial electrocardiograph changes associated with myocardial infarction, or c) imaging evidence of new loss of viable myocardium or new regional wall motion abnormality. If the above tests are inconclusive or superseded by technological advances, we will consider other appropriate and medically recognised tests in support of a diagnosis. Events which meet the above criteria which are diagnosed as lesser acute coronary syndromes, including unstable angina, angina pectoris, myocite necrosis classified as microinfarction, and acute coronary insufficiency are excluded as part of this definition. An elective percutaneous procedure for coronary artery disease, which is the sole cause of a rise in cardiac biomarkers, is also specifically excluded under this definition. Loss of Independent Existence means as a result of Injury, Sickness or Illness, the Insured Person: a) has a permanent and irreversible inability to perform, without assistance, any two (2) of the Activities of Daily Living (see below); or b) suffers cognitive impairment that requires permanent and constant supervision, which must be established and the diagnosis reaffirmed after a continuous period of at least six (6) months of such impairment. Activities of Daily Living means a) Bathing the ability to shower or bathe. b) Dressing the ability to put on or take off clothing. c) Toileting the ability to use a toilet,including getting on or off. d) Mobility the ability to get in and out of bed and a chair. e) Continence the ability to control bladder and bowel function. f) Feeding the ability to get food from a plate into the mouth. Open Heart Surgery means open chest surgery for the surgical treatment of a cardiac defect, cardiac aneurysm or cardiac tumour. Paralysis means the total and permanent loss of use, through Injury, Sickness or Illness, of: a) both legs (paraplegia); b) both arms and legs (quadriplegia); c) one side of the body (hemiplegia); or d) both sides of the body (diplegia). Stroke means any cerebrovascular accident (CVA) or incident resulting in neurological deficit. The stroke must be: a) confirmed by a consultant neurologist; and b) evidenced by neuro-imaging (e.g. CT, MRI or similar scanning technique). Cerebral events with reversible neurological deficits, migraine, hypoxic events, trauma, and neurovascular disease affecting the eye or vestibular functions are excluded. 19

22 Contact details Customer Relations Centre Phone am to 6.30pm (Sydney time) Monday to Friday Postal Address Westpac Life Insurance Services Limited GPO Box 524, Sydney NSW 2001 Fax (02) Visit westpac.com.au (search for Mortgage Secure ) Issued by: Westpac Life Insurance Services Limited ABN AFS Licence No (Westpac Life) Level 20, Westpac Place, 275 Kent Street, Sydney NSW 2000 MPB006 (10/14)