ANZ Chief Investment Office. Leo Mauceri Insurance Research Manager. William Burkitt Global Head of Investment Product & Research

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1 Owner: ANZ Chief Investment Office Version: 1 Date: January 2014 Next Review Date: January 2015 Author: Released By: Leo Mauceri Insurance Research Manager William Burkitt Global Head of Investment Product & Research Owner: ANZ Chief Investment Office Version: 1 Date: June 2014 Next Review Date: June 2015 Author: Released By: Leo Mauceri Insurance Research Manager William Burkitt Global Head of Investment Product & Research Page 1 of 6

2 .. Zurich Wealth Protection i. Product Description Since 2009, Zurich has focused on the positioning of products to service the professional and small business markets. At higher sums insured, Zurich is particularly competitive in pricing for Term and TPD products in the ages of 45 to 60. In addition, for professional lives above 45, Zurich s Income Replacement range is recognised for providing top quality features and definitions, whilst being premium competitive at higher sums insured. Zurich is well regarded by the market in respect of price position for Term and TPD and for the quality of the core definitions within Income Replacement, in particular the Loss of Income definition. APL Rating: Approved preferred partner Client needs: Cover all debts Reducing working hours Covering medical bills Paying for holiday Funding business buyout Business cash flow Category: Retail stand-alone life insurance Platform Availability: netwealth Onevue HUB24 ii. Client Profile Occupation: This product offers favourable terms for clients in the following occupation categories: White Collar Professionals Families Medical Professionals Small Business Owners Age: This product is market leading for clients in the following age demographic: 45 to 60 yrs Sum insured: This product is competitively priced at the following sum insured level: Lump sum over $500k+ Income Protection $7,500+ monthly benefit Limitations: This product does not offer: Accidental Death Cover Only Page 2 of 6

3 iii. Product Suitability The following section comments on some of the key benefits and features of the product in key market segments. This assessment is from a product suitability perspective, providing a tool to link wealth protection outcomes with policyholder needs. When recommending the product to clients, consider the following benefits and features. Market Benefits and features Women Flexible Cover Benefit: The life insured can reduce their monthly benefit by up to 75% if their monthly income reduces while pregnant, after a child is born or after a child is adopted. The Spouse Cover option under Income Replacement provides a monthly benefit to the non-working spouse or if they work up to 26 hours per week should they be unable to carry out their duties due to injury or illness. Medical professionals Three-tiered Income Protection Total Disability Definition (duties, hours and loss of income) Needlestick cover option available across all policies with a lump benefit of up to $1 million if the life insured contracts HIV or Hepatitis B or C during the course of their normal occupation. Hepatitis B or C will be included as one of 42 Extended Trauma Events (March 2014) Age 70 benefit period available. Twice monthly claim benefits Tailored Super Structuring which includes TPD Superlink & Income Super Offsets: Workers compensation and other similar benefits are not offset against claim payments (provided the amount does not exceed of pre-disability income). Guaranteed Future Insurability built in (Premier). Up to $5 million Own Occupation TPD available. Business discounts available for practices with multiple covers Paralysis Booster Benefit in built to trauma (doubles the benefit payable in the event of paralysis.) Page 3 of 6

4 Tradespeople All Death Cover contracts include an Accidental Injury Benefit which can pay 25% up to 500k or of the Death benefit (up to $2M) depending on the extent of permanent loss to the life insured. TPD Own Occupation available to skilled tradespeople. Three-tiered Income Protection Total Disability Definition (duties, hours and loss of income) Living Activities TPD Option (lump sum payment on the life insured s inability to perform at least two activities of daily living, cognitive impairment or specific loss. Day one partial for all eligible occupations (to blue collar skilled). Small business Business Expenses cover is offered as an option to Income Replacement. The total sum counts towards the large sum insured discounts available. Day One Partial Benefits Business Packaging Discounts for business owners and also includes multi policy discounts. Three-tier Income Protection Total Disability Definition providing for 10 Hours, 1 Duty & Loss of income. Flexible Tailored Super Structuring available. Severe Disability Option available ( If, while we are paying you an income benefit or Specified injury benefit, you have been continuously unable to perform at least two activities of daily living for more than three months of your disability, we will increase your benefit by one third while this condition continues. Definition of income: We only consider personal exertion income for self-employed people business income or delayed income that comes in during a claim does not offset benefit payments. Page 4 of 6

5 iv. Product Range Find below a brief overview of the insurer s product range. Advisers should fully understand all relevant offerings of the product (including the benefits and features stated in this document). Feature Death TPD Trauma IP Offered under super Yes Yes No Yes Min entry age Age 10 Age 19 Age 18 Age 19 Max entry age Age 69 Age 59 Age 59 Age 59 Expiry age or 99* 75 or 99* Up to age 70^ Offered stand alone Yes Yes Yes Yes Maximum sum insured No max $5,000,000 $2m $40,000 Terminal illness benefit Yes No Yes No Waiting periods N/A 3 months N/A# 2 wks to 2 yrs Benefit payment period Lump su Lump sum Lump sum 1,2,5 yrs or to 55, 60, 65 or 70 1 *If Linked or Attached to Life Cover ^ Dependent on Occupation Class. # some conditions have a 90 day wait after policy commencement 1 A occupations only v. Unique service proposition Zurich s aim is to deliver a fast and efficient service that is industry best practice in communication of new business matters. Our service standards are set out in the table below. These internal service standards, combined with our on-line application have enabled us to improve our end-to-end turnaround times year on year in getting business on the books. Metric Service Standard Achieved in 2013 Application receipt notification 90% on day of receipt Initial client contact to organise interview on Tele-Underwriting cases Within 24 hours of receipt on of days over the month Keying new submission / raising administration requirements Within 24 hours of receipt on 85% of days over the month Initial underwriting assessment (includes increases in cover) Within 24 hours of receipt on 85% of days over the month 97% Further underwriting assessment (includes increases in cover) Within 48 hours on receipt of new information on 85% of days over the month 97% Placing accepted business in-force Same day (3pm cut-off) as accepted by underwriting on 85% of days over the month Suspense follow-ups with adviser at 3 week 3 week 2 week intervals of cases Policy completion to Dealer Group payment of cases completed up to the day of the commission run (weekly) Page 5 of 6

6 vi. Conflicts Insurance Bonus Payment Program RI Advice has offered advisers the opportunity to participate in an Insurance Bonus Payment Program. The program is optional and is designed to reward adviser behaviour regarding the implementation and retention of quality insurance advice. Participation in this program may raise conflict of interest concerns. To manage this risk, SoA disclosure wording has been inserted into XPLAN advice documentation templates and disclosure wording issued to all advisers who are non XPLAN users. Premiums: Please refer to the Illustrator tool for a quote. LifeXpress Zurich s quoting software, LifeXpress, provides various quoting options for new business. Some of the tools and features included in our Adviser Portal (Adviser Assist) include: Marketing Collateral e.g. Marketing Kit for medical professionals, small business owners. Up to 30 year premium projections. Full commission disclosure. XPLAN Datafeed registration Available online LifeXpress is available via the Internet and desktop download. If you have any questions or wish to discuss the Fund further, please contact a member of the ANZ CIO Research team, or via research@onepath.com.au This material is current as at June 2014 and should not be reproduced without ANZ CIO s prior express consent. Although we consider the sources of this material reliable and we have prepared it with care and in good faith, no warranty is given and no liability is accepted by Australia and New Zealand Banking Group Limited ABN (ANZ) or any related entity of ANZ for any statement or opinion or any error or omission. Page 6 of 6