Telstra Super Corporate Plus Insurance Guide

Transcription

1 03/ 1 JULY 2015 INSURANCE GUIDE Telstra Super Corporate Plus Insurance Guide Freedom to live your future, your way

2 Contents Telstra Super Corporate Plus insurance cover Types of insurance cover available Automatic base death and TPD cover Flexible insurance options with Telstra Super Life Events cover Transfer your insurance to Telstra Super Determining how much insurance you may need Changing your insurance cover Insurance premiums Top-up death and TPD cover (voluntary) Interim accident cover Income protection cover About this Guide The cover described in this Guide is insured by TAL Life Limited (TAL) ABN , AFSL The following insurance information is intended as a guide only. For all terms and conditions please contact us on to obtain a copy of the relevant Policy document. Glossary To help keep this Guide as simple as possible for you, we have included explanations of some insurance terms in our glossary on pages 19 and 20. These words are in bold print when they appear throughout this Guide.

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

4 03/ TELSTRA SUPER CORPORATE PLUS INSURANCE GUIDE 01/ Telstra Super Corporate Plus insurance cover Telstra Super recognises the importance of adequate levels of insurance. We re committed to providing our members with comprehensive, affordable and convenient cover. Types of insurance cover available Telstra Super offers you the following types of insurance cover. The options around these levels of cover are explained in this Guide. Death and Total & Permanent Disablement (TPD) cover Death and TPD insurance cover means that you, your dependant/s and/or your legal personal representative could receive a lump sum insurance payment, paid in addition to the balance of your super account in the event of your death or total and permanent disablement. Terminal illness benefit In the unfortunate circumstance you are diagnosed with a terminal illness and have a life expectancy of less than 12 months, you can apply to be paid a terminal illness benefit. This is the early payment of your death benefit (refer to page 14 for full details). Income protection cover (permanent full-time and part-time employees) Income protection insurance provides you with a replacement income while you re temporarily unable to continue performing the regular duties of your occupation. The replacement income is up to 75% of your salary excluding super, with an additional 10% of your salary excluding super to be paid to your superannuation account. You can receive payments for either two years (default benefit period) or five years, after your chosen waiting period, provided you continue to meet the definition of total disablement or partial disablement in the Policy. * Not applicable to former defined benefit members. See page 4 for further information. Age next birthday as at last 1 July. Automatic base death and TPD cover permanent full-time and part-time employees* Members aged 60 and under If you are aged 60 or under, your automatic^ base level of death and TPD insurance is calculated as: multiple of salary x your salary for insurance purposes = Base level of death and TPD cover Use Table 1 on page 3 to determine the applicable multiple of salary to calculate your base cover. Automatic^ base cover is capped at $2 million for death and TPD. Any members eligible for and seeking base cover above this amount will need to be assessed by our insurer, TAL. Annual premiums are calculated per $1,000 sum insured using the rates in Table 1. You can also use our handy online 'Insurance premium and cover' calculator to estimate the cost of base cover. Refer to the Insurance premiums section on page 13 for further information. ^ Subject to the At Work requirement and other eligibility criteria, conditions and exclusions contained in the Policy. The At Work test applies to: new employees of a Telstra-associated employer current employees who are members of their employer s previous default super fund and their employer has decided to pay future SG contributions to Telstra Super for its current employees. You are ineligible for automatic insurance cover and must complete the Insurance Application Telstra Super Corporate Plus form to apply for death, TPD and income protection cover if one of the following applies: you are an employee of a Telstra-associated company employing less than 10 staff you were not a member of your employer s previous default super fund your employer has decided not to make future SG contributions for its current employees to Telstra Super. All employees are ineligible for automatic insurance cover if they are suffering symptoms of ill health or disability to the extent that they are TPD, have previously received a TPD payment or have been diagnosed with a terminal illness. Other provisions apply. New employees will be required to join Telstra Super within 120 days of commencing their employment, to be eligible for automatic cover, otherwise all cover is subject to application and acceptance. Page 2

5 Table 1: Death and TPD rates annual cost per $1,000 sum insured Age next birthday* Base death and TPD cover (permanent full-time and part-time employees) Multiple of salary Unisex Unisex former defined benefit members Base death cover only Top-up death cover Top-up death & TPD cover Unisex Males Females Males Females n/a n/a 67 Refer to Table 2 to determine n/a n/a 68 the base level death and n/a n/a 69 TPD cover you will receive n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Occupational loadings for class Occupation Death only Death & TPD White collar Light blue Medium blue Heavy blue * As at last 1 July. The multiple for former Austar employees who became a Telstra Super member on 1 July 2015 is equal to 1.0 salary to age 65. The difference between the multiple listed and 1.0 will be paid by Foxtel until 30 June After this date, the additional amount of cover will be converted to top-up cover and premiums will be deducted from members accounts for this additional cover. Please also note that these members are ineligible for automatic insurance cover if they are suffering symptoms of ill health or disability to the extent they are Totally and Permanently Disabled (TPD), have previously received a TPD payment or have been diagnosed with a terminal illness. Other provisions apply. Page 3

6 Members aged 61 65* If your age next birthday is between 61 and 65 years, you will automatically receive age-based base death and TPD cover for the low cost of $2.26 per week. Use Table 2 on page 5 to determine the amount of base level death and TPD cover applicable for your age. Automatic base death cover - members aged 66-75* Existing default death cover will automatically continue at a low cost of $1.18 per week from the age of 66 to 75. Premiums For many permanent full-time and part-time Telstra Super Corporate Plus members, your base level of death and TPD cover is currently paid for by your employer, as an employee benefit^. Insurance premiums paid directly by your employer count towards your pre-tax contribution cap. For more information on contribution caps, see the Telstra Super Corporate Plus Product Disclosure Statement or visit our website. Automatic base death and TPD cover - casual employees Members aged 65 and under* As a casual employee you automatically receive an age-based level of death and Total & Permanent Disablement (TPD) cover for the low cost of $2.27 per week. Automatic cover means you do not need to complete any forms or undergo any health checks to receive this cover. Your base level of cover is determined by your age next birthday*. Table 2 on page 5 shows the amount of age-based death and TPD cover you automatically receive. Premiums are deducted from your account quarterly in arrears or when you leave Telstra Super Corporate Plus. Members aged 66-75* Existing default death cover will automatically continue at a low cost of $1.18 per week from the age of 66 to 75. Automatic base death and TPD cover - former defined benefit members # Former defined benefit members employed on a full-time or part-time basis, receive your previous level of death and TPD or death cover in Telstra Page 4 Super Corporate Plus split between base cover and top-up cover, to the same total value, without the need for assessment by TAL. Base cover premiums are subject to a loading of 23%. For members aged 60* or under and employed on a permanent full-time or part-time basis, premiums are paid for by your employer, please refer to column 4 in Table 1 on page 3. Members aged 61 to 65* will automatically receive age-based death and TPD cover for $2.78 per week and existing default death cover will continue at a cost of $1.45 per week from age 66 to 75. Premiums are paid by your employer. Former defined benefit members employed by Telstra or Sensis who transfer into casual employment receive age-based death and TPD cover for $2.79 per week with premiums deducted from your account at the end of each quarter. Top up cover premiums do not incur a loading and will be deducted from your account at the end of each quarter. Example How premiums are calculated permanent full-time and part-time employees Adam is a permanent full-time white collar employee of Telstra and will be aged 43 next birthday. He has a salary for insurance purposes of $50,000 and currently has his base level of death and TPD insurance, which totals $140,000, paid for by his employer. Adam would like to increase his total cover to $500,000 death and TPD, meaning he will need to apply for an additional $360,000 of cover ($500,000 $140,000 base level death and TPD cover). To calculate the annual premiums for the additional $360,000 of death and TPD top-up cover, Adam uses the premium rates in Table 1 on page 3 and the calculation below. Age next birthday 43 Age based multiple to calculate base cover 2.8 Sum insured for base death and TPD cover 2.8 x $50,000 = $140,000 Elected top-up cover $360,000 Top-up premium per $1,000 insured $1.69 Top-up premium = $360,000 1,000 x $1.69 = $ pa Case study TPD cover helps a family recover Less than a year after taking out his additional death and TPD cover, Adam was injured in an accident which resulted in his total and permanent disablement. Adam s wife, Janet, was working part-time and daughter Emma was about to start school. * Age next birthday as at last 1 July. Subject to the At Work requirement and other eligibility criteria, conditions and exclusions contained in the Policy. New employees will be required to join Telstra Super within 120 days of commencing their employment, to be eligible for automatic cover, otherwise all cover is subject to application and acceptance. Not applicable to former defined benefit members or Telstra 2014 Super Offer members. The TPD cover of $500,000 that Adam had through Telstra Super Corporate Plus helped repay the family s home loan and covered the cost of Emma s education. In addition, it gave the family access to funds while they helped Adam during his initial recovery and transition period, before Janet returned to full-time work. ^ Except for employees of Sensis (new employees from 1 July 2014), 1300 Australia, Multi Channel Networks, DCA Direct Health and Chief Entertainment where premiums will be deducted from your account quarterly in arrears or when you leave Telstra Super Corporate Plus. Not applicable to former defined benefit members employed by Telstra or Sensis who transfer into casual employment. # Not applicable to former defined benefit members. For more information on applicable insurance cover refer to the 'Important notice for Telstra Super Division 2 members considering the Telstra 2014 Super Offer' available at

7 Table 2: Age-based death and TPD cover (casual employees and members aged 61 and over) Age next birthday* Death cover TPD cover , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,415 96, ,686 90, ,484 84, ,696 78, ,898 73, ,134 68, ,511 61, ,524 56, ,109 52, ,413 48, ,718 44, ,204 41, ,868 37, ,533 34, ,376 31, ,095 29, ,335 25, ,451 22, ,980 19, ,000 18, ,585 16, ,760 14, ,964 13, ,244 13, ,794 12, ,254 12, , , , , , , , , , ,676 0 Example How premiums are calculated casual employees Naomi is a casual Telstra employee and will be turning 35 next birthday. When she joined Telstra Super Corporate Plus she received age-based base death and TPD cover providing an insured benefit of $134,681. For added peace of mind, Naomi would like to apply for an extra $500,000 of top-up death and TPD cover. To work out how much this would cost her, Naomi refers to Table 1 on page 3 and uses the following information: Age next birthday 35 Top-up death and TPD amount $500,000 Base death & TPD premium Top-up death & TPD premium = $2.27 x 52 (weeks per year) = $ = Elected amount of cover 1,000 x top-up death and TPD premium rate = $500,000 1,000 x $0.55 = $275 for the year Total premium payable = Base death & TPD premium + Top-up death and TPD premium = $ $275 = $ for the year. Naomi receives a total insured benefit of $634,681 for death and TPD at a premium of $ per year. The multiple for former Austar employees who became a Telstra Super member on 1 July 2015 is equal to 1.0 salary to age 65. The difference between the multiple listed and 1.0 will be paid by Foxtel until 30 June After this date, the additional amount of cover will be converted to top-up cover and premiums will be deducted from members accounts for this additional cover. Please also note that these members are ineligible for automatic insurance cover if they are suffering symptoms of ill health or disability to the extent they are Totally and Permanently Disabled (TPD), have previously received a TPD payment or have been diagnosed with a terminal illness. Other provisions apply. * As at last 1 July. Page 5

8 Handy hints To check your current level of insurance cover log in to SuperOnline and click on My Insurance. Alternatively, you can call us. To view, nominate or update your beneficiary details log in to SuperOnline and nominate your beneficiaries online or download a Nomination of Beneficiaries form from our website. To estimate your insurance cover and how much it will cost, use our 'Insurance premium and cover calculator' in the Tools & Forms section on our website. Top-up death and TPD cover (voluntary) Any insurance in addition to your base level of cover is referred to as top-up cover. You can apply for any amount of top-up death cover and up to $5 million total TPD cover. Your death cover must be equal to or higher than your TPD cover. Existing members wishing to apply for top-up cover will need to complete a Change of Insurance form and Personal Statement (providing evidence of occupation, health and lifestyle) which will be assessed by TAL. New members can apply for topup cover within the first 120 days of joining by completing an Update your Insurance form, with no Personal Statement required. The Update your Insurance form is sent in your Welcome Kit and is also available upon request by calling us. Refer to the Changing your insurance cover section on page 12 for details. Annual top-up premium rates are based on each $1,000 sum insured and are shown in Table 1 on page 3. The examples on page 4 and 5 show how to calculate annual premiums for top-up cover. Refer to the Insurance premiums section on page 13 for further information. Interim accident cover If you apply for additional insurance cover, you will receive interim accident cover for the period of time whilst your application is being assessed (known as the interim accident cover period). If you have an accident during the interim accident cover period which results in your death or TPD or total disablement, you will be covered for the applied amount (up to the maximum interim accident benefit of $1.5 million for death or TPD and $15,000 per month for income protection, subject to a 2 year benefit*) for the period starting from the date we receive your completed application and finishing when: 1. your application is withdrawn, accepted or rejected 2. the Policy is terminated 3. TAL cancels your interim accident cover 4. you reach cover cessation age, which is 65 for TPD, 75 for death cover, and the date you turn 65 for income protection 5. the date any existing cover under the Policy ceases or days has passed whichever is earliest. Income protection cover permanent full-time and part-time employees Income protection insurance covers you in the event that you are temporarily unable to continue performing the regular duties of your occupation. It provides you with an income of up to 75% of your salary excluding super, with an additional 10% of your salary excluding super to be paid to your superannuation account. Payments are made for the duration of the applicable benefit period, distributed monthly in arrears after your chosen waiting period, provided you continue to meet the definition of total disablement or partial disablement as contained in the Policy. You do not have to be permanently unable to work to receive income protection payments, and you may be eligible for payments while you are waiting for your TPD claim to be assessed. Telstra Super Corporate Plus members who are employed full-time, part-time or on a fixed contract basis, aged 64 years or under and working 15 hours or more per week automatically* receive income protection cover upon joining without the need to provide evidence of occupation, health and lifestyle. Automatic* cover is capped at $20,000 per month ($240,000 total annual income protection cover). Any benefits above this amount will need to be assessed by TAL. Transferring Telstra Super Division 5 and Sensis Super Plus Defined Benefit members with existing income protection cover will have that cover automatically transferred to Telstra Super Corporate Plus. Please note, income protection benefit calculations differ in Telstra Super Corporate Plus as outlined above. Income protection premiums are payable by you and will be deducted from your account at the end of each quarter. * Subject to the At Work requirement and other eligibility criteria, conditions and exclusions contained in the Policy. Not available to Telstra 2014 Super Offer members or members transferring from Telstra Super Division 2. New employees will be required to join Telstra Super within 120 days of commencing their employment, to be eligible for automatic cover, otherwise all cover is subject to application and acceptance. Income protection cover is subject to a maximum monthly benefit of $50,000 for a two year benefit period and a monthly benefit of $30,000 for a five year benefit period. Page 6

9 Automatic income protection cover is not available to Telstra 2014 Super Offer members or members transferring from Telstra Super Division 2, however members can apply for cover and be assessed by TAL. Please call us for details on how you can apply for additional income protection. Depending on your level of income protection cover requiring assessment, TAL has different medical requirements. The initial requirements are outlined in Table 5 on page 12. The default benefit period for income protection cover is two years with a 90 day waiting period. To tailor your income protection cover to suit your needs, you can apply to increase the benefit period to five years and/or change the waiting period to 30, 60 or 120 days. Refer to Table 3 on page 8 for annual premium rates applicable to the various benefit and waiting periods^. If you hold income protection cover with multiple insurance providers you have the option to postpone the Telstra Super waiting period when claiming an income protection benefit. This allows you to receive an income protection benefit from another insurance provider first, and defer Telstra Super benefits until these payments are complete. To apply to change your waiting period and/or benefit period, please Members employed in a heavy blue occupation are unable to increase their benefit period to five years. ^ For employees of Foxtel, your employer pays your income protection premiums for the default level of cover. complete a Change of Insurance form and Personal Statement form available from our website or by calling us. Upon receipt of the application Telstra Super will forward it to TAL with any supporting documentation, for assessment. You will then be advised in writing of the acceptance or decline of the application. If you were not automatically granted income protection cover because you did not join within the required period, or were previously declined cover, you can apply for income protection by completing a Change of Insurance form and a Personal Statement. We will advise you if further tests or medical reports are required. Handy hints Many of the insurance forms referred to in this Guide are available on our website at or by calling us on Alternatively, log in to SuperOnline to access a form pre-populated with your personal details. Case study How income protection helped Jack get back on his feet Jack is a Telstra Super Corporate Plus member. He is 26 years old, a permanent full-time white collar employee and has a salary excluding super of $42,000. As part of his Telstra Super membership, Jack has automatic income protection cover. Jack loves the outdoors and regularly goes rock climbing. However, one weekend while climbing, Jack falls and seriously injures his back. After an initial hospital stay of two months, Jack s doctor informs him he will need four months of in-hospital rehabilitation and a further nine months at home recuperating, before he can safely resume work. Jack immediately submits an income protection claim. His benefit is calculated as follows: Annual income protection benefit = Salary excluding super x 75% = $42,000 x 75% = $31,500 Monthly income protection benefit = $31, = $2,625 per month Annual superannuation contribution = Salary excluding super x 10% = $42,000 x 10% = $4,200 Monthly superannuation contribution = $4, = $350 per month After the 90 day waiting period, Jack is advised that his claim has been accepted and he receives $2,625 per month (before tax) from his income protection insurance, plus an additional $350 paid into his superannuation account. This covers Jack s living expenses, allowing him to focus on his recovery. Page 7

10 Table 3: Income premium rates annual cost per $1,000 sum insured* Benefit period 2 Years 5 Years Waiting period 30 days 60 days 90 days 120 days 30 days 60 days 90 days 120 days ANB Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female Occupational loadings Occupation Income Protection White collar 1.00 Light blue 1.40 Medium blue 2.50 Heavy blue 2.50 *Stamp duty is payable in addition to the above rates. As at last 1 July. 2 years benefit period and 90 days waiting period cover is the default cover. Page 8

11 02/ Flexible insurance options with Telstra Super Life Events cover - keeping pace with life s significant changes When significant events occur in your life such as getting married, buying a home or welcoming a new child to the family, it s an opportune time to consider if your insurance cover still meets your increased financial obligations. With Telstra Super s Life Events cover you can apply* to increase your death or death and TPD cover upon the occurrence of a specified Life Event, without providing any medical evidence. To take advantage of Life Events cover, apply within 90 days (excluding the day on which the Life Event occurred) of any of the following specified events: Birth of a child/ren Adoption of a child/ren Marriage Commencement of a recognised relationship Divorce^ Cessation of a recognised relationship # Effecting a new mortgage for the purchase or construction of a primary residence or investment property in Australia (either alone or jointly with another person) Financing renovation/ improvement to a primary residence or investment property in Australia (minimum cost $30,000)** Death of a spouse Child starting primary or secondary school Buying a business with a business loan greater than $100,000^^ 30th, 35th, 40th and 45th birthdays.## You also have a second opportunity to apply for Life Events cover within 90 days of the end of the financial year, for a life event that occurred during that financial year. * You must be a current member of Telstra Super Corporate Plus, aged under 65. After the acceptance of a Life Event application, you cannot submit another Life Event application (whether for the same type of Life Event or not) until 12 months have elapsed from the date of commencement of the additional cover. You may obtain Life Events cover up to three times during your membership. 90 days after the earlier of: date of the order effecting adoption; and the date of entry in a public official record of the adoption of a child. 90 days after the effective date of the registration of a: significant relationship for which deeds of relationship have been registered under the Relationship Act 2003 (Tas); registered domestic relationship within the meaning of the Relationships Act 2008 (Vic); civil partnership under the Civil Partnerships Act 2008 (ACT); registered relationship within the meaning of the Relationships Register Act 2010 (NSW); or any other similar state based registration scheme. ^ 90 days after the date of the decree absolute. # 90 days after the effective date of the revocation of: significant relationship for which deeds of relationship have been registered under the Relationships Act 2003 (Tas); registered domestic relationship within the meaning of the Relationships Act 2008 (Vic); civil partnership under the Civil Partnerships Act 2008 (ACT); registered relationship within the meaning of the Relationships Register Act 2010 (NSW); or any other similar state based registration scheme. 90 days after the date of settlement. ** 90 days after written confirmation of receipt of financing. 90 days after the date of death. 90 days after the child starts primary or secondary school (as applicable). ^^ 90 days after receipt of confirmation of financing. ## 90 days after relevant birthdays. Insurance cover provided through Life Events will be subject to the top-up premium rates set out in Table 1 on page 3. The following table shows the amount by which you can apply to increase your existing death or death and TPD cover. The total amount of cover you have after you have been granted Life Events cover must be within the maximum cover limits (unlimited for death cover and $5 million for TPD cover). Existing sum insured (including base & top-up) Maximum additional insurance (top-up) Up to $100,000 $25,000 $100,001 up to $200,000 $200,001 up to $300,000 $300,001 up to $400,000 $400,001 up to $500,000 $75,000 $100,000 $125,000 $150,000 Over $500,000 $250,000 Applying for Life Events cover To apply for additional death or death and TPD insurance cover simply complete and submit a Life Event Application form along with the required certified supporting documentation. You can obtain Life Events cover up to three times during your membership. Upon completion of assessment you will be advised in writing of the acceptance or decline of the application. A Life Event application will generally be accepted where the member satisfies the eligibility criteria and the member is able to provide satisfactory documentation supporting the occurrence of the Life Event. Page 9

12 The Life Events cover will commence on the date the cover is accepted in writing. It may be subject to the same exclusions and other special conditions which apply to your existing cover. No claim will be payable on the additional cover if the death or disablement is due to intentional selfinflicted injury in the first 13 months. For further information on increasing your insurance cover due to a specified Life Event, please call us. Case study Extra security for an expanding family David is a Telstra Super Corporate Plus member. He is 30 years old with a salary for insurance purposes of $120,000. As part of his Telstra Super membership he currently has $456,000 of death and TPD cover. David and his partner Julia have two young children and are delighted to find out they are expecting a third child. David and Julia review their insurance cover and decide that, in light of their expanding family, they would like to increase David s insurance cover. Within 90 days of new baby, Chloe, being born David submits a successful Life Events Application for $150,000 giving the family total cover of $606,000. Transfer your insurance to Telstra Super If you currently have death or death and TPD insurance with another super fund or life insurance company, you can apply to transfer that cover to Telstra Super. By consolidating your insurance with Telstra Super you can take advantage of our competitive bulk insurance rates, potentially saving on premiums, while simplifying your insurance arrangements. To take advantage of this great feature, simply complete the Insurance Transfer Application form available from our website or by calling us. If your application is successful, you will be provided with the equivalent amount of top-up cover in Telstra Super as provided by your previous superannuation fund or insurer (the annual top-up rates in Table 1 on page 3 apply). Any transferred death and/or death and TPD cover will apply in addition to any existing cover you currently hold with Telstra Super. A cap of $2,000,000 on all transfers applies. It is important that you do not cancel your existing cover with your current superannuation fund or insurer until you have received written confirmation from us that your Insurance Transfer Application has been accepted. Case study Saving on insurance with Telstra Super Sarah is a current Telstra Super Corporate Plus member. She is 39 years old, a permanent full-time employee and earns $90,000 per year. As part of her Telstra Super membership, Sarah has $306,000 of automatic base level death and TPD cover for which her employer, Telstra, pays the premiums. Sarah also has $250,000 death cover with another insurer which costs her $20 per month. Sarah decides to see how much her additional death insurance would cost if she transferred it to Telstra Super. She refers to Table 1 on page 3 and uses the following calculation to determine her premiums: Sarah s age next birthday = 40 Death insurance amount to be transferred = $250,000 Annual top-up death premium per $1,000 insured = $0.49 Top-up death premium payable = $250,000/1000 x $0.49 = $122.50/year or $10.21 per month. Sarah applies to transfer her death cover to Telstra Super and her application is accepted. By transferring her insurance to Telstra Super, Sarah saves $9.79 per month or $ per year. In addition, Sarah enjoys simplified financial arrangements with her insurance premiums conveniently deducted from her Telstra Super account at the end of each quarter. Page 10

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

14 04/ Changing your insurance cover You can apply to make changes to your insurance cover at any time by completing a Change of Insurance form. Use this form to apply to increase your cover or to cancel your existing cover. Any cancellations of cover received within 30 days of you joining Telstra Super Corporate Plus will not incur premiums. Handy hints It is important to note that if you cancel any insurance, including any automatic cover, and wish to reapply at a later date, evidence of your occupation, health and lifestyle will need to be provided to TAL for assessment. TAL may place an exclusion or premium loading on cover or may decline cover as a result of their assessment. Table 4: Initial requirements death and TPD cover applications Under age 55 Age 55 and over Member s total sum insured death and TPD Up to $1,500,000 $1,500,001 up to $2,000,000 $2,000,001 up to $3,000,000 Over $3,000,000 Up to $1,000,000 $1,000,001 up to $2,000,000 $2,000,001 up to $3,000,000 Over $3,000,000 Initial requirements Personal Statement Personal Statement and blood tests Personal Statement, blood tests and abbreviated medical examination by paramedical or own doctor Will be referred to underwriter Personal Statement Personal Statement and blood tests Personal Statement, blood tests and abbreviated medical examination by paramedical or own doctor Will be referred to underwriter To apply for additional cover: 1. New Telstra Super members can apply for additional cover within the first 120 days of joining Telstra Super, by completing the Update your Insurance form provided in your Welcome Kit, or by calling us. Existing members need to complete the Change of Insurance form and Personal Statement available on our website or by calling us. 2. Post the completed forms to: Telstra Super Insured Benefits Group PO Box MELBOURNE VIC 8001 Table 5: Initial requirements for income protection cover applications (permanent full-time and part-time employees) Age 16 to 65 Monthly benefit Initial requirements Up to $12,000 Personal Statement $12,001 up to $20,000 Personal Statement and blood tests $20,001 up to $25,000 Personal Statement, blood tests and full medical examination by paramedical or own doctor Over $25,000 Will be referred to underwriter When we receive your application, it is forwarded to TAL for assessment. Depending on the level of cover you apply for, TAL may request different medical requirements to assess your application. Tables 4 and 5 outline the initial requirements. We will advise you when any of these medical tests or examinations are required. Once all the information is supplied to TAL and they have assessed your application, Telstra Super will advise you of the outcome. TAL may accept cover, place exclusions on cover, charge higher premiums or decline your application. If within 14 days of the commencement of cover you advise in writing that you wish to cancel the cover, you can request a refund of any premium you may have paid. Evidence of health and lifestyle and claim information is treated in the strictest confidence at Telstra Super and is not made available to your employer or any other party without your authority, unless obliged by law. Page 12

15 05/ Insurance premiums As outlined in the Telstra Super Corporate Plus PDS, insurance premiums, where applicable, will be deducted from your Telstra Super Corporate Plus account at the end of each quarter, if you leave the fund or transfer your super to another Telstra Super product. Premiums for income protection cover obtained through a super arrangement are generally not tax deductible, however premiums are paid directly from your super account monies, which are concessionally taxed at 15% for annual incomes under $300,000 and 30% for annual incomes above $300,000. Table 1 on page 3 outlines the annual top-up premium rates per $1,000 sum insured, applicable to your level of cover. These top-up premium rates are applicable to white collar employees and additional occupational and health loadings may apply depending on your occupation and health status. See Table 6. Members given a premium loading or exclusion at the conclusion of the assessment process will be given an opportunity to cancel their application, should they wish not to proceed. Table 6: Occupational loadings Occupation Death cover TPD Income protection White collar Light blue Medium blue Heavy blue Page 13

16 06/ When are insurance payments made? Death benefit Your base level of cover and any top-up insurance means your dependants or legal personal representative(s) (as applicable) could receive a lump sum insurance payment paid in addition to the balance of your super account, in the event of your death. An anti-detriment payment may also be payable. See page 12 of the Additional Information About Your Super Guide for more information. Terminal illness benefit You will qualify for a Terminal illness benefit if you suffer from an illness which: two medical practitioners (one of whom is a specialist) believe will lead to your death within 12 months of the date of written certification, despite reasonable medical treatment; and TAL is satisfied, on medical or other evidence, will lead to your death within 12 months of the date of the certification, despite reasonable medical treatment. The amount of the benefit that is paid is the insured death cover amount (up to $5 million) and your account balance. TPD benefit To obtain an insurance payment for TPD you must have TPD cover and: satisfy the relevant requirements of the Telstra Super Trust Deed and TAL Policy document; and either have ceased work with your employer (and been off work for at least three months*) if the Unable to Work TPD definition applies; or satisfy one of 19 specified medical conditions (see pages 17 and 18) in which case there is no waiting period to receive your benefit (referred to as the Day 1 TPD definition). or be unable to perform certain Activities of Daily Working without the physical assistance of another person if the Activities of Daily Working TPD definition applies. Page 14 The applicable TPD definition you must satisfy will depend upon your working hours. Generally, the Unable to Work TPD definition or the Day 1 TPD definition applies if you were working for a minimum of 15 hours per week on average for the six months prior to the date of disablement (or such shorter period where applicable). Activities of Daily Working TPD definition applies if you were working for less than 15 hours per week on average for the six months prior to the date of disablement (or such shorter period where applicable). Income protection permanent full-time and part-time employees When are payments made? To obtain monthly payments for income protection, you must have income protection cover and: have been working a minimum of 15 hours or more per week averaged over the six consecutive months prior to your date of disablement, or if you have been working for less than six months, the period since your cover commenced; and have been unable to work for your employer (and off work) for the applicable waiting period; and satisfy the TAL Policy definition of total disablement for that month. You may be eligible to receive partial disablement payments if: you are totally disabled for no less than seven of the first 12 consecutive days of the applicable waiting period; and you are either partially or totally disabled for the rest of the applicable waiting period, and you are earning less than 80% of the income you earned prior to becoming disabled; and you decide to return to work on a reduced capacity resulting in a reduction in your income, and you are under the ongoing care of a registered Medical Practitioner. If eligible, income protection payments are paid: from the end of the applicable waiting period after the day you last worked for your employer monthly in arrears for a period of two or five years (as applicable) providing you continue to meet the definition of total disablement or partial disablement. Up to 75% of your salary (excluding super) is paid directly to you, and 10% is paid to your Telstra Super Corporate Plus account. Income protection payments will be reduced by the amount of any other payments you receive or are entitled to receive during a payment period (such as sick leave payments or workers compensation payments). Social security benefits and motor accident compensation are not offset against insurance benefits. Where a member is receiving income protection payments over a five year benefit period without a break, payments are indexed annually by 5% or by the CPI increase (for the 12 months ending 30 September in each year), whichever is lesser. Under current legislation your income protection payments are treated as income and will be taxable. Premiums are waived by TAL while you are receiving income protection payments. When do payments stop? Your income protection payments cease upon occurrence of one of the following conditions (whichever occurs first): you have received payments for the total benefit period you cease to satisfy the definition of total disablement or partial disablement (as applicable) you reach age 65, or you die. Income protection payments are subject to the continued approval of your eligibility by TAL and the Trustee. * The three months may be waived in some circumstances. Any period in which a benefit was payable but is calculated to be zero does not amount to an interruption to an entitlement to a disability benefit.

17 07/ Overseas or on leave? 08/ Leaving your employer 09/ Need more information about insurance cover? Subject to satisfying the relevant Policy conditions, worldwide cover is provided 24 hours a day, 7 days a week for insured members who are overseas, as well as members who are on leave. Income protection cover (if applicable) continues for two years for members who are on unpaid leave. When leaving your employer, any outstanding insurance premiums are deducted from your account. If you cease employment and cease to be a member your death and TPD insurance cover will continue for 60 days. When we receive notification that you are leaving your employer, your account balance will be transferred into our portable, flexible product Telstra Super Personal Plus. Upon the date of transfer into Telstra Super Personal Plus, the level of your death and TPD insurance cover held under your Telstra Super Corporate Plus account will be retained under your new Telstra Super Personal Plus arrangement, however new premium rates will apply. Existing Telstra Super Corporate Plus income protection cover will also automatically* be transferred to Telstra Super Personal Plus. For the cover to be retained you will need to provide a Superannuation Guarantee (SG) contribution from your new employer, along with details of your new salary and occupation within 120 days of you leaving your previous employer. Details of these requirements are outlined in the Telstra Super Personal Plus welcome letter. Where cover is cancelled due to non-receipt of salary or occupation information or SG contribution within 120 days of leaving the former employer, any premiums paid for the 120 days will be refunded. Members will need to re-apply for cover after the 120 day period if they wish to obtain income protection cover. Refer to the Telstra Super Personal Plus Product Disclosure Statement and the Telstra Super Personal Plus Insurance Guide for more information. Call us on from 8.00am to 5.30pm (Melbourne time), Monday to Friday. Visit Find out everything about your current insurance arrangement on our website. * Subject to the 'At work' requirements and other eligibility criteria and exclusions contained in the Policy. Page 15

18 Your insurance needs are covered with Telstra Super Comprehensive We offer death, TPD and income protection insurance. You also have the option to apply to transfer any external death or death and TPD insurance you may have, or to apply for extra cover when significant changes occur in your life. Our insurance cover is provided 24 hours a day, 365 days a year whether at work or play, offering genuine peace of mind. Affordable We ve negotiated bulk insurance rates to cover 100,000 members, potentially saving you hundreds of dollars per year in premium payments compared to insuring yourself individually. Convenient Having your insurance and super with the one provider simplifies your financial arrangements, with premiums conveniently deducted from your super account at the end of each quarter. Page 16

19 10/ Definitions of medical conditions The following words or expressions used in the Day 1 TPD definition have the meanings set out below. blindness The permanent loss of sight in both eyes, whether aided or unaided, due to sickness or accident to the extent that visual acuity is 6/60 or less in both eyes or to the extent that the visual field is reduced to 20 degrees or less of arc, as certified by an ophthalmologist. cardiomyopathy Condition of impaired ventricular function of variable aetiology (often not determined) resulting in significant physical impairment, i.e. Class 3 on the New York Heart Association classification of cardiac impairment. chronic lung disease Permanent end stage respiratory failure with FEV1 test results of consistently less than one litre, requiring continuous permanent oxygen therapy. dementia and Alzheimer s disease Clinical diagnosis of dementia (including Alzheimer s disease) as confirmed by a consultant neurologist, psycho-geriatrician, psychiatrist or geriatrician. The diagnosis must confirm permanent irreversible failure of brain function resulting in significant cognitive impairment for which no other recognisable cause has been identified. Significant cognitive impairment means a deterioration in the person s Mini- Mental State Examination scores to 24 or less and deterioration would continue but for any effective treatment. Dementia related to alcohol, drug abuse or AIDS is excluded. diplegia The total loss of function of both sides of the body due to sickness or accident where such loss of function is permanent. hemiplegia The total loss of function of one side of the body due to sickness or accident, where such loss of function is permanent. loss of hearing Complete and irrecoverable loss of hearing, both natural and assisted, from both ears as a result of sickness or accident, as certified by a specialist we consider appropriate. loss of speech The total and irrecoverable loss of the ability to produce intelligible speech as a result of permanent damage to the larynx or its nerve supply or the speech centres of the brain. The loss must be certified by an appropriate medical specialist. major head trauma Injury to the head resulting in neurological deficit causing either: a permanent loss of at least 25% whole person function (as defined in the American Medical Association publication Guides to the Evaluation of Permanent Impairment 4th Edition or an equivalent guide to the evaluation of impairment approved by TAL); or the permanent and irreversible inability to perform without the assistance of another person any one of the following activities of daily living: dressing the ability to put on and take off clothing toileting the ability to use the toilet, including getting on and off mobility the ability to get in and out of bed and a chair feeding the ability to get food from a plate into the mouth continence the ability to control bowel and bladder function as certified by a consultant neurologist. Page 17

20 motor neurone disease Motor neurone disease diagnosed by a consultant neurologist. multiple sclerosis The unequivocal diagnosis of multiple sclerosis as confirmed by a consultant neurologist and characterised by demyelination in the brain and/or spinal cord evidenced by Magnetic Resonance Imaging or other investigations acceptable to us. There must have been more than one episode of well-defined neurological deficit with persisting neurological abnormalities. muscular dystrophy The unequivocal diagnosis of muscular dystrophy by a consultant neurologist. paraplegia The permanent loss of use of both legs or both arms, resulting from spinal cord sickness or accident. Parkinson s disease The unequivocal diagnosis of Parkinson s disease by a consultant neurologist where the consultant neurologist confirms that the condition: is the established cause of two or more of the following: muscular rigidity resting tremor bradykinesia; and has caused significant progressive physical impairment, likely to continue progressing but for any treatment benefit. The person must be following the advice and treatment of a specialist neurologist. primary pulmonary hypertension Primary Pulmonary Hypertension associated with right ventricular enlargement established by cardiac catheterisation resulting in significant permanent physical impairment to the degree of at least Class 3 of the New York Heart Association classification of cardiac impairment. quadriplegia The permanent loss of use of both arms and both legs resulting from spinal cord sickness or accident. severe burns Tissue injury caused by thermal, electrical or chemical agents causing third degree burns to 20% or more of the body surface area as measured by the 'rule of 9' of the Lund and Browder Body Surface chart. severe rheumatoid arthritis The unequivocal diagnosis of severe rheumatoid arthritis by a Rheumatologist. The diagnosis must be supported by, and evidence, all of the following criteria: at least a six week history of severe rheumatoid arthritis which involves three or more of the following joint areas: proximal interphalangeal joints in the hands metacarpophalangeal joints in the hands metatarsophalangeal joints in the foot, wrist, elbow, knee or ankle. simultaneous bilateral and symmetrical joint soft tissue swelling or fluid (not bony overgrowth alone) typical rheumatoid joint deformity and at least two of the following criteria: morning stiffness rheumatoid nodules erosions seen on X-ray imaging the presence of either a positive rheumatoid factor or the serological markers consistent with the diagnosis of severe rheumatoid arthritis. Degenerative osteoarthritis and all other arthritidies are excluded. tetraplegia The total and permanent loss of use of both arms and both legs, together with loss of head movement, due to brain sickness or accident or spinal cord sickness or accident. Page 18