FLEXI-LINKING CAN HELP YOU BALANCE EFFECTIVE INSURANCE SOLUTIONS AND PROVIDE MORE AFFORDABLE OPTIONS.

Transcription

1 FLEXI-LINKING CAN HELP YOU BALANCE EFFECTIVE INSURANCE SOLUTIONS AND PROVIDE MORE AFFORDABLE OPTIONS.

2 MORE AFFORDABLE SOLUTIONS FOR YOUR CLIENTS Flexi-linking gives you more options to bundle insurance inside and outside super across two separate policies. And these new bundling options can result in savings on premiums and policy fees. It means customers have the ability to have primary life cover inside super, with linked Trauma and/or Total & Permanent Disability (TPD) riders that sit outside super. Customers can save money because rider premiums are cheaper than standalone premiums, plus clients can pick and choose what elements of their protection are covered by super funds or are paid directly. How flexi-linking works With fl exi-linking there is a primary policy that sits inside super and a fl exi-linked policy that sits outside super. The primary policy can be Life Care through Total Care Plan Super (TCPS), or Total Care Plan (TCP) when owned by a SMSF. The life insured must be the same across primary and fl exi-linked rider, plus riders can be added for family members. The fl exi-link part of the policy is essentially an ordinary policy that sits outside super. Policy inside super Policy outside super Life Cover TPD Cover Trauma Cover TPD Cover and Trauma Cover Life Care and Trauma Cover TPD Cover The TPD and/or Trauma sums insured cannot be higher than the primary Life Cover they are linked to. By linking these policies, clients can save on both the premiums and policy fees. Plus, only one quote in CALQ is necessary. CALQ sneak preview Flexi-linking options Who can use flexi-linking? Option to select TCPS or SMSF Flexi-linking allows you to tailor solutions for a whole range of customers including: Individuals Families SMSF members 2

3 Helping with affordability With more customers wanting to take advantage of the benefi ts of having insurance inside super, fl exi-linking helps improve cash fl ow and gives customers more options to choose what cover sits inside and outside super. So regardless of your client s fi nancial position, you ll be able to explore many cover options to suit both their protection needs and their back pocket. Just use fl exi-linking to balance cover inside and outside super depending on the customer s needs. For example, if you have a customer that has a high income, but also high expenses, they might be careful with how they spend their money. These cash cautious customers might have a hybrid of both inside and outside super and sit somewhere in the middle of the below spectrum. And here is how fl exi-linking can help! To look more closely at these scenarios and a few examples of fl exi-linking please visit comminsureflex.com.au Flexi-linking gives you: Great cover combinations to choose from Flexible options to suit individual clients needs More affordable premiums and savings on policy fees Flexibility to combine cover inside and outside super to maximise cash fl ow 3

4 THE MARSHALLS - CASE STUDY The Marshalls - Jason, Samantha and their son Harry - are looking for cost effective options for their protection needs. Jason is 34 years old and manages a holiday resort. He prefers to have life insurance inside super. Samantha (also 34 years old) is a stay at home mum for Harry who is 4 years old and off to school next year. With fl exi-linking, the Marshalls can look at cover combinations both inside and outside super. For a short time only, if your client takes out Child Cover, we will give them the fi rst year of cover for free - that s worth up to $300 per child insured. Offer available until 31 December 2013 and more information is available at comminsureflex.com.au 4

5 INSIDE Jason Total Care Plan Super Life Cover TPD Cover (Any) Income Care Super Samantha Total Care Plan Super Life Cover TPD Cover (Home maker) Flexi-linked OUTSIDE Total Care Plan Jason Trauma Flex Samantha Trauma Flex Premiums based on $1 million Life and TPD cover any occ. Male and female 35 ANB. Income protection based on MB of $5, day wait age 65 benefi t period N/S Male professional ANB 35. Per month Jason Samantha TCPS $ $82.55 TCP Trauma Flexi $37.88 $51.26 Total $ $ Jason super Jason pocket Samantha super Samantha pocket 80% 20% 62% 38% Combined Paid by super funds Paid by client 72% 28% That s a combined saving of $385 p.a. for the Marshalls when using fl exi-linking, instead of a separate standalone policy. 5

6 WHAT ELSE IS CHANGING? Flexi-linking is designed to give you even more options for your clients. But on top of that, we have made the following changes to our product, documentation and processes. Please find a summary of the changes outlined below, and more information and tools are available at comminsureflex.com.au These enhancements are effective from 18 August To fi nd out more, simply talk to your local Business Development Manager, call or visit comminsureflex.com.au Documentation changes What is changing The detail How to get a copy CommInsure Protection Combined Product Disclosure Statement and Policy (CIL70) Our new CommInsure Protection Product Disclosure Statement (PDS) is effective from 18 August The new PDS has been redesigned and combined with the Policy Documents so it s much easier for advisers and customers to use. Plus, it includes the details of our improved product features and clarifi cation of policy wording. The PDS now has an overview section which explains to customers CommInsure s insurance offerings and how to choose suitable cover without all the jargon and in simple language. We ve colour coded the different types of insurance described in the PDS for ease of understanding and access. And we have added a helpful summary of defi nitions section. You can download and order the new PDS from the CommInsure Adviser site from 9 August Just visit 6

7 What is changing The detail How to get a copy Personal Statement (BR144) Adviser Guide (CIL79) To help improve the quality and completeness of the information provided in the Personal Statement, we have changed a couple of questions and added a few new ones. The purpose is to remove ambiguity, and reduce the need to contact clients for more information improving turnaround times overall and ensuring completeness in the event of a claim. Applications on the old PDS and signed prior to 18 Aug 2013 can be accepted up until 15 Sept 2013 (i.e. 28 days after the issue of the new PDS). Applications signed from 18 Aug 2013 or received after 15 September 2013 must be completed on the new application form contained in the new PDS with an issue date of 18 August To align with the structure and plain language used in the CommInsure Protection Combined Product Disclosure Statement and Policy (CIL70), we have rewritten and restructured the Adviser Guide. This new guide has removed the ambiguity and inconsistencies, resulting in a more user-friendly document. The Adviser Guide also includes the new occupation listings (see following page). You can download and order the new Personal Statement and Application from the CommInsure Adviser site from 9 August Just visit You can download and order the new Adviser Guide from the CommInsure Adviser site from 9 August Just visit 7

8 Occupation listings changes We have undergone a review of our occupation listings to remove inconsistency and duplications. Please fi nd a summary of the changes below, and refer to our new Adviser Guide (CIL79) for more information. What is changing Occupation list now easier to use 10% rule for mining and clarifications The detail We have reviewed our occupation list to ensure greater consistency across the board. We have also made it easier to use, with occupations now sorted alphabetically by occupation as well as industry. There are now seven core industry headings, which make it easier to search for occupations in these categories: Aviation Computer Mining Medical Motor vehicle Oil and gas Television We have clarifi ed our 10% rule across the classifi cation of certain occupations, particularly those in the mining industry. For clients who work part of their job on-site and up to 10% of their time underground, we will rate them according to their standard job classifi cation and not under the specialist risk classes. For example, the below occupations that work up to 10% underground now have an adjusted rating: Diesel fi tters, plant mechanics Mechanical engineers, engineers Geologists, geoscientists and physicists Following the launch of income protection cover to those mining jobs handling explosives, we re now offering cover across a number of other similar jobs in the mining industry: Quarry workers Rock drillers Blast crew Open cut mining We have also upgraded the rating for some mining occupations where work time is more than 10% underground. The following will have the X specialist risk rating: Boiler maker Electricians Diesel fi tters, fi tters and turners Mechanics Plant mechanics Surveyors 8

9 What is changing Changes to X occupations Changes to M occupations Medical The detail All X occupations now have access to TPD Any occupation up to a $5m maximum cover limit. All X occupations have up to $10k monthly benefi t in income protection cover. All M occupations can now apply for monthly benefi ts up to $10k (some were previously capped at $6k or $7k per month). We have clarifi ed K and P rated medical occupations. K rated occupations are those involved in intricate manual work. And P rated medicos are more involved in diagnostics, research and treatment plans (simpler in manual dexterity and likely to be more desk bound). For example, Pharmacists and Chemists are now rated as P, while Anaesthetists, Orthodontists and Neurosurgeons are rated as K due to the type of work they perform. 9

10 Definitions and policy changes Definition and policy changes Definition changes The detail GIO personal events: Increases now available 30 days before or after the event or policy anniversary. Guaranteed Insurability Personal events, Business events and Business Safe Cover Option: Now available for Life Cover up to a medical loading of 50%. Child Cover Loyalty Bonus Benefit: When the child turns 18, the Loyalty Bonus within that cover will now apply to the adult policy from Day 1, if the child cover policy was in force for 5 or more years. Reduced waiting period: The ability to reduce the waiting period from two years up to 90 days, if a group income protection policy (issued by a life insurance company) is cancelled. Severe misconduct: For both TPD and Income Protection, a severe misconduct exclusion now applies. This exclusion means no claim will be paid if a client is disqualifi ed, deregistered or banned as a result of disciplinary action and prevents the insured from pursuing their occupation or profession. Geographical limits: CommInsure will continue to pay claims for up to six months when the insured is overseas. If the insured is unable to return to Australia for medical reasons, payments will continue. Loss of independent existence: Defi ned home duties have been removed from this defi nition. Domestic duties: Renamed from Defi ned Home Duties and expanded to include: driving or transporting family to and from school, sport, work or social events (where applicable) taking care of a child or family member dependants (where applicable). TPD Any or Own definition change: Where an insured has permanently retired from the workforce and is not engaged in full time domestic duties, the defi nition of TPD changes to Loss of Independent Existence. Rehabilitation Benefit: Has been expanded to include partial disability, as well as total disability. CommInsure will now pay for the cost of an approved occupational rehabilitation program to a maximum of 12 times the monthly benefi t (including any super continuance monthly benefi t) up to $30,000. To see the new defi nitions please refer to the new CommInsure Protection Combined Product Disclosure Statement and Policy (CIL ) 10

11 Definition and policy changes Policy fee change Free child cover for 1 year Replacements for flexi-linking The detail For new business, the policy fee will be $7.50 per month from 18 August For a short time only, if your client takes out Child Cover, we will give them the fi rst year of cover for free that s worth up to $300 per child insured. Offer available until 31 December 2013 and more information is available at comminsureflex.com.au When adding fl exi-linking to existing policies, or changing a standalone policy to a fl exi-rider, the following replacement rules apply: TODAY FLEXI-LINKED Ordinary Super Ordinary Super 1 Life, TPD, Trauma 2 Life, TPD, Trauma 3 Life, TPD 4 Trauma standalone Life, TPD 5 Trauma standalone Life 1 Trauma flexi-rider Life, TPD 2 Trauma and TPD flexi-rider Life 3 Trauma flexi-rider* Life, TPD 4 Trauma flexi-rider Life, TPD 5 Trauma and TPD flexi-rider* Life New Policy Retain existing policy *Underwriting required 11

12 CIL To fi nd out more, simply talk to your local Business Development Manager, call or visit comminsureflex.com.au Important information. This information has been prepared by The Colonial Mutual Life Assurance Society Limited ABN AFSL (CMLA). CommInsure is a registered business name of CMLA. Life Cover, Trauma Cover and Total & Permanent Disability Cover are components of CommInsure Protection. CommInsure Protection life insurance products are issued by CMLA and the superannuation product by Colonial Mutual Superannuation Pty Ltd ABN AFSL (CMS), the trustee of the Colonial Super Retirement Fund ABN SFN 2933/419/40 (the Fund). CMLA is responsible for the administration of the Fund and provides insurance benefi ts to the Fund as insurer. CMLA and CMS are wholly owned but non-guaranteed subsidiaries of Commonwealth Bank of Australia ABN AFSL This document is for use by advisers and Commonwealth Bank Group employees only, it is not to be issued, reproduced in whole or in part, or made available to members of the public. Advisers should refer to the relevant product disclosure statements for further clarifi cation.