Westpac Insurance. Life & Loan Insurance

Transcription

1 Westpac Insurance Life & Loan Insurance July 2013

2 Life it s rather unpredictable, isn t it? That s why our range of insurance cover is so flexible. We understand that everyone has different insurance needs for different stages of life and we can help make sure you re covered, no matter what comes your way.

3 Contents 04 A quick reference guide to your options 06 Term Cover Life Insurance 08 Optional Crisis Cover 10 Optional Income Cover 12 Optional Income Cover and Redundancy/Bankruptcy Cover 14 Card Repayment Cover Insurance 16 Flexicover Home Loan Insurance 18 Westpac Loan Cover Personal Loan Insurance 20 Westpac Bill Protection Insurance 22 Apply for Insurance 3

4 At Westpac we have a wide range of insurance all under one roof, so take a look through our options and select the ones you like the sound of. Insure your Life: Term Cover Can pay a lump sum if Optional Crisis Cover Can pay a lump sum if you suffer one of 33 specified medical conditions*. Insure your Loans: Flexicover Home Loan Insurance Could help make monthly repayments on your Westpac home loan if you can t work due to total disability, redundancy or bankruptcy, or pay a lump sum which may repay your loan if you die or are diagnosed as terminally ill. Westpac Loan Cover Could help make monthly repayments on your Westpac personal loan up to $1,500 per month if you can t work due to illness, involuntary redundancy or bankruptcy, or pay a lump sum which may repay your loan if you die. *Medical conditions must meet the specific definitions as outlined in the policy document. 4

5 Life Insurance you die or are terminally ill. Optional Income Cover Can give you regular monthly payments for up to 36 months if you can t work due to total disability from illness or injury. OR Optional Income Cover and Redundancy/ Bankruptcy Cover When you take out Income Cover you can also take out Redundancy/Bankruptcy Cover, which can give you a monthly payment for up to six months. Credit Card Repayment Cover Could help your credit card debt if you can t work due to an accident, serious illness, redundancy, bankruptcy, or if you die. Westpac Bill Protection Could help to cover your regular bills with a monthly payment up to $1,000 per month. 5

6 Term Cover Life Insurance Simplicity and flexibility we re all looking for it. Well, we ve gone ahead and created it in our Term Cover so you can have what you need to provide for your loved ones, even when you can t do it yourself. Benefits of Westpac Term Cover: Affordability: Comprehensive Life insurance that may cost less than you think Versatile: A lump sum payment could be made if you die or become terminally ill with up to 12 months to live Pays out quickly when you need it: We can provide an immediate support benefit that may pay up to $10,000 of the sum insured immediately, to help with unexpected costs upon death* Flexibility to match your needs: - easily adapt your cover as your needs change, for example when your family grows or when your home loan is repaid - choose optional extras like Crisis, Income, Redundancy or Bankruptcy cover. *As soon as we have all the necessary information from your family or the executors of your estate. For income cover, bankruptcy and redundancy claims, there is a stand down period between days, and this will determine when we make the first payment. 6

7 What will my policy cover? It s not the most pleasant thing to talk about, but with Term Cover you can provide for yourself, your estate or your loved ones should the unthinkable happen. Term Cover can provide cover if you die, or if you re diagnosed with a terminal illness that will result in death within 12 months, regardless of any treatment. What isn t covered? Term Cover will not pay a claim if the death, illness, injury or disability occurs within 13 months of the commencement date of the policy or benefit and, is a direct or indirect result of any injury or illness which is intentionally self-inflicted or caused by suicide or a suicide attempt. Handy Tip Want to know how much cover you ll need? Find our Life Insurance Calculator online at westpac.co.nz/insurance to work it out it s that easy. This brochure is intended as a general guide only and may vary at times. This information is subject to the legal page at the back of this brochure. Terms, conditions, exclusions and limits apply. For more information or a copy of the relevant policy document, visit or call us on

8 Crisis Cover: an optional extra to add to your Term Cover Did you know that 1 in 3 males and 1 in 4 females will suffer from cancer before the age of 65. Source: Cancer Society 2008 With stats like these, adding Crisis Cover to your Term Cover is something that could make great sense. Benefits of optional Crisis Cover: you can use the lump sum payment for medical treatment, rehabilitation, or to pay off your home loan you don t have to be terminally ill to make a claim. In fact, many people go on to make a full recovery you can choose how much Crisis Cover you need to a maximum of $2m you can renew your cover until age 65 years old, no matter how your health is, but Crisis Cover ends if you receive a payment as a result of your illness. When combined with Term Cover, Crisis Cover can also cover you for up to 33 serious illnesses *. Alzheimer s disease Aplastic Anaemia Blindness Cancer Cardiomyopathy Chronic Liver Disease Chronic Lung Disease Coma Coronary Artery Angioplasty triple vessel Coronary Artery By-pass surgery Creutzfeldt-Jakob Disease Dementia Encephalitis Heart Attack Kidney Failure Loss of Limbs or Eyes Loss of Speech Major Head Trauma Major Organ Transplant Medically Acquired HIV Motor Neuron Disease Muscular Dystrophy Multiple Sclerosis Occupationally Acquired HIV Open Heart Surgery and Aortic Surgery Out of Hospital Cardiac Arrest Paralysis Parkinson s Disease Pneumonectomies Pulmonary Hypertension Severe Burns Stroke Unable to Manage Daily Living Activities *Medical conditions must meet the specified medical definitions as outlined in the policy document. 8

9 How does it work? Crisis Cover is an optional addition to your Term Cover, and you specify the amount of cover you need when you apply. Your current health will be assessed, and any existing medical conditions may be excluded from your cover. If you claim for Crisis Cover and your claim is paid out, that amount is deducted from your Term Cover amount. For a specific example of this, go to the Crisis Cover page at westpac.co.nz/insurance/. There you ll also find our Life Insurance calculator, to help you work out how much Crisis Cover you ll need to cover things like your debts and other unexpected costs. What isn t covered? You will not get a payout under Crisis Cover if any of the following happens: you have a major illness diagnosed within 90 days of when your Crisis Cover starts, any increase or reinstatement of cover you cause an injury or illness to yourself intentionally or any attempted suicide your condition was caused by the use of alcohol, poisons or unprescribed drugs your condition was caused by you taking part in a war, riot or illegal acts any injury or illness to yourself caused or contributed by engaging in conduct which constitutes a criminal offence your condition was caused while serving in the armed forces your condition was known or suspected to exist when you applied for your cover your condition doesn t meet the specified definitions in the policy document. Did You Know? 90% of Crisis Claims Westpac Life paid in 2012 were for Cancer, Heart Attack or Stroke. This brochure is intended as a general guide only and may vary at times. This information is subject to the legal page at the back of this brochure. Terms, conditions, exclusions and limits apply. For more information or a copy of the relevant policy document, visit or call us on

10 Income Cover: an optional extra to add to your Term Cover Your ability to earn an income is one of your most valuable assets so it s important to protect your income as well as your life. If you can t work due to total disability from illness or injury, Income Cover could give you regular monthly payments for up to 36 months. Benefits of optional Income Cover: choose a monthly benefit between $1,000 and $4,000, up to 40% of your gross income at the time you apply (except if you re working less than 25 hours per week) the benefit payment is usually used to cover all your major expenses, such as your home loan and medical costs, but how you choose to spend it is up to you payments can start just 30 days after you become ill or disabled and are unable to work while you re receiving claim payments, you don t pay any premiums for your Term Cover (up to a maximum of $300 per month) cover can be renewed up to age 65, no matter how your health is. How does it work? In case you can t work, Income Cover could help. To apply for the Income Cover option on your Term Cover, you must be between 18 and 59 years old. You can choose from a benefit amount between $1,000 and $4,000, but the benefit amount can be no more than 40% of your gross income when you apply for the cover. Payments can be made until you re either fit to return to work, you die, or you reach the maximum benefit period of 36 months. If you re not working more than 25 hours per week at the time of your claim, any payment will be restricted to $1,000 per month. 10

11 What isn t covered? Your health will be assessed when you apply, and any existing medical conditions may be excluded from cover. The first 30 days of any claim are not covered. Income Cover won t cover any disability that arises from: intentional self inflicted injury misuse of drugs or alcohol pregnancy, childbirth or related conditions any non disclosed pre-existing condition any injury or illness caused or contributed to by committing any materially unlawful act, or being involved in any riot, insurrection or war. The Income Cover Benefit amount will be reduced by any amount you receive as accident compensation from Accident Compensation Corporation (ACC) or an alternative accident insurer. Looking for more cover? We also offer a wider range of comprehensive Disability Income Cover options, which are available through your Westpac Adviser. They re designed to protect your income if you become disabled and unable to work. Call us on for more details or to arrange an appointment. Did You Know? Over 44% of Life Insurance claims are for disability. This is when people are injured or become ill, leaving them unable to work for a period of time. Source: Westpac Life Claims for the year ended September This brochure is intended as a general guide only and may vary at times. This information is subject to the legal page at the back of this brochure. Terms, conditions, exclusions and limits apply. For more information or a copy of the relevant policy document, visit or call us on

12 Redundancy/ Bankruptcy Cover: an optional extra to add to your Term Cover If you re made involuntarily redundant or bankrupt, Redundancy/Bankruptcy Cover could pay you a monthly benefit for up to six months. Benefits of optional Redundancy/Bankruptcy Cover: the benefit is only available with Income Cover, so the benefit amounts are the same payments can start just 30 days after you are made redundant or declared bankrupt while you re receiving claim payments, you don t pay any premiums for your Term Cover (up to a maximum of $300 per month) cover can be renewed up to age 65 How does it work? To apply for the Redundancy/Bankruptcy Cover option on your Term Cover, you must be between 18 and 59 years old. You must apply for Redundancy/Bankruptcy Cover at the same time as you apply for Income Cover and the benefit amount will be the same as your Income Cover. 12

13 What isn t covered? The first 30 days of any claim are not covered No benefit will be paid if you were working less than 25 hours per week when you stopped work No claim will be paid if you are living outside or travel outside of NZ for a continuous period of 3 months or more Any redundancy or bankruptcy that you knew about at the start of the policy Any redundancy or bankruptcy that occurs or you become aware of within the first 6 months of commencement, any increase, or reinstatement of the policy For redundancy, you won t be covered if: you re not paid by salary or wages you re self-employed, on a fixed term contract or in seasonal, temporary or casual work you re a director of the business or employed by a direct member of the family For bankruptcy, you won t be covered if: you re not self-employed, or you voluntarily declare bankruptcy Handy Tip You can choose a benefit amount between $1,000 and $4,000 per month, so you can select the amount you really need. (This amount cannot exceed 40% of your gross income when you apply for the cover). This brochure is intended as a general guide only and may vary at times. This information is subject to the legal page at the back of this brochure. Terms, conditions, exclusions and limits apply. For more information or a copy of the relevant policy document, visit or call us on

14 Card Repayment Cover If you have a credit card with Westpac, Card Repayment Cover is great for those of us who like to use our credit cards regularly. Specifically designed to protect your credit card repayments should the unforeseen occur. Benefits of Card Repayment Cover - Full benefits available: If you are between the ages of 18 to 65. If you are between ages 66 to 80, cover is available for death only. - Convenience: a premium is automatically charged to your credit card each month. - Flexibility: allowing you to cancel your policy at any time. How does it work? It may pay 10% of your credit card balance off each month for up to 24 months if you re unable to work due to sickness or injury and up to six months if you are made redundant (up to a maximum of $50,000). If you are self-employed and are declared involuntarily bankrupt, Card Repayment Cover may pay up to $10,000 off your credit card balance. In the event of your death, Card Repayment Cover may pay out a lump sum to cover your credit card debt up to a maximum of $50,000. Note: Card Repayment Cover provides automatic acceptance (meaning we do not assess your health and lifestyle status) and any injury, sickness, disease or degenerative condition which existed at the policy commencement date will not be covered including any medical condition(s) you were unaware of. What does it cost? Just 79 cents for every $100 of your outstanding monthly credit card balance, at the date your statement is printed. There s no cost if your balance is zero or in credit as at this date. This is automatically charged to your credit card each month and will show on your statement. 14

15 What isn t covered? Any claim resulting from: any injury, sickness, disease or degenerative condition which existed at the commencement date intentional self-inflicted injury war or any act of war any injury, sickness or disease which first occurred within 28 days of the commencement date the taking of or use of alcohol, poison or drugs not medically prescribed any pregnancy, childbirth or abortion any travel by air other than as a fare paying passenger any injury, sickness or disease sustained outside New Zealand if you have been outside New Zealand for over six months. How to apply When you apply for a new Westpac credit card, tick the Card Repayment Cover box on your application form at the same time. If you already have a Westpac credit card, just call us on anytime between 8.30am and 8.00pm, Monday to Friday. Did You Know? Westpac credit card holders between the ages of 18 and 65 receive automatic acceptance. This brochure is intended as a general guide only and may vary at times. This information is subject to the legal page at the back of this brochure. Terms, conditions, exclusions and limits apply. For more information or a copy of the relevant policy document, visit or call us on

16 Flexicover Home Loan Insurance Managing home loan payments is a big deal for most of us, so make sure you ve got back-up. With Flexicover, if something happens and you re unable to work, your home loan payments could continue to be made or a lump sum payment will be made if you die. Benefits of Flexicover: Can help make repayments on your Westpac home loan when you can t: with monthly payments if you re unable to work due to total disability, redundancy or bankruptcy Lump sum payment: this may help repay your Westpac home loan if you die, or are diagnosed as terminally ill Only pay for the cover you need: cover and premiums adjust automatically with your loan balance not the loan limit so you never pay more than you need to. Once your loan is repaid, your Flexicover will also end Total disability benefit paid out monthly: this benefit isn t reduced by any other income sources such as ACC payments, sickness benefit or other insurance policies Set it up any time: like when you apply for a Westpac home loan, or any time after you start making repayments. 16

17 What isn t covered? Flexicover will not pay out a death benefit if you die as a result of: suicide within the first 13 months of the policy The policy won t pay out for redundancy if: it occurs, or if you became aware of it, in the first 60 days from the commencement date of the policy you are not paid by salary or wages seasonal, temporary or casual work you are a director of the business or employed by a direct member of the family. The policy does not cover any disability caused as a result of: deliberate self-inflicted injury or suicide attempt pregnancy, childbirth or abortion war, riot or civil commotion taking or use of alcohol, poison or drugs except prescribed under medical supervision. Did You Know? If you and your partner have a joint Westpac home loan, you can both apply for Flexicover. You can get a discount if you apply at the same time, and if you both die or are totally disabled at the same time, you may receive a double payment. This brochure is intended as a general guide only and may vary at times. This information is subject to the legal page at the back of this brochure. Terms, conditions, exclusions and limits apply. For more information or a copy of the relevant policy document, visit or call us on

18 Westpac Loan Cover Personal Loan Insurance Your circumstances can change, however Westpac Loan Cover may help give you financial protection. If you have a personal loan with Westpac, Westpac Loan Cover could remove some of the worry for you helping you to repay the loan in the event of an injury or illness (where you can t work), involuntary redundancy, bankruptcy or death. Benefits of Westpac Loan Cover: Peace of mind: should the unexpected happen and you lose your income, Westpac Loan Cover can help reduce some of the financial burden on you and your family from your personal loan repayments. Convenience: a simple one off payment to meet the cost of cover which can be added to your personal loan. If exercising this option, additional interest will be charged to your loan. Automatic acceptance: if you re between the ages of 18 and 59 when you apply (and your loan will end by the time you turn 61).* Ability to cancel at any time: if this occurs a pro-rata refund may be paid to you. How does it work? Westpac Loan Cover may make: a lump sum payment if you die to help repay your personal loan up to a maximum of $80,000 payments of up to $1,500 a month towards your loan repayments for any period that you re completely disabled due to injury or sickness (after the 7 day claim wait period) loan repayments of up to $1,500 a month for up to four months if you lose your income because of involuntary redundancy or bankruptcy (after the 30 day claim wait period for redundancy) *While Westpac Loan Cover provides automatic acceptance (meaning we do not assess your health and lifestyle status) any injury, sickness or disease which existed at the policy commencement date will not be covered. This includes any medical condition(s) you were unaware of. 18

19 What isn t covered? Westpac Loan Cover will not pay out if the claim results from: any injury, sickness or disease which existed at the commencement date, including any medical condition you were unaware of suicide within the first 13 months of the commencement date intentional self-inflicted injury war or any act of war any condition or event which is caused by AIDS or any AIDS related condition any injury, sickness or disease which first occurred within 28 days or redundancy within 60 days of the commencement date of the policy the taking of or use of alcohol, poison or drugs not medically prescribed any pregnancy, childbirth or abortion. Handy Tip Make it easy and apply for loan cover when you take out or restructure your personal loan. This brochure is intended as a general guide only and may vary at times. This information is subject to the legal page at the back of this brochure. Terms, conditions, exclusions and limits apply. For more information or a copy of the relevant policy document, visit or call us on

20 Westpac Bill Protection Cover If you suddenly couldn t work because of an injury, illness, redundancy or bankruptcy, our Westpac Bill Protection Cover could help to take care of your regular bills. It s a monthly benefit that s paid directly to you, so you can choose the bills you want to pay. Benefits of Westpac Bill Protection Cover: No medical questions/forms required to be accepted: some things, such as pre-existing medical conditions are not covered, but we can talk you through this Choice of three different levels of monthly cover: you can choose a cover amount of $500, $750 or $1000 per month, depending on the cost of your monthly bills Suspend your cover if you need to: for up to 12 months if you re not working. How does it work? You can take out Westpac Bill Protection Cover if you re between 18 and 64 years old, and it can cover you in the case of sudden disability, illness, redundancy or bankruptcy*. *Premiums are reviewed each year and will generally increase with age. 20

21 What isn t covered? You will not get a payout from the Westpac Bill Protection policy if the claim results from: any pre-existing health conditions or condition which you became aware of within 28 days of the policy commencement any condition or event which is caused by AIDS or any AIDS-related condition any event that you knew about or were likely to know about when you applied for your cover or redundancy that occurs within 60 days or bankruptcy that occurs within six months of the commencement date of the policy any pre-existing health conditions. Handy Hint Get discounts on your Westpac Bill Protection Cover when you and your partner apply at the same time. This brochure is intended as a general guide only and may vary at times. This information is subject to the legal page at the back of this brochure. Terms, conditions, exclusions and limits apply. For more information or a copy of the relevant policy document, visit or call us on

22 Apply for Life or Loan Insurance Ready to get your insurance sorted? Great!! You can get started with your application by: visiting any Westpac branch; or call us on any time from Monday to Friday between 8am and 8:30pm, or on Saturday between 9am and 3pm. Then you can get a quote and apply over the phone. What will it cost? How much you pay for insurance depends on things like your age, gender, health, occupation, lifestyle and whether you re a smoker. It will also vary depending on the amount and type of cover you are applying for. To get a quote, call us on or visit your local Westpac branch. It s okay if you change your mind. And in case you do, we offer a free-look period of 30 days from the date we receive your application. If you decide the cover is not for you during the free look period, just let us know by writing to Westpac Life (PO Box 27031, Wellington), and we ll refund any premiums you ve paid. This brochure is intended as a general guide only and may vary at times. This information is subject to the legal page at the back of this brochure. Terms, conditions, exclusions and limits apply. For more information or a copy of the relevant policy document, visit or call us on

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24 All types of insurance cover described in this brochure are arranged by Westpac New Zealand Limited ( Westpac ) and underwritten by Westpac Life-NZ-Limited ( Westpac Life ). Westpac Life is a wholly owned subsidiary of Westpac Financial Services Group-NZ-Limited, which in turn is a wholly owned subsidiary of Westpac Banking Corporation ABN , incorporated in Australia ( WBC). Neither Westpac nor WBC guarantees the obligations of, or any products issued by Westpac Life. Westpac may receive commission payments as a result of the arrangement of Westpac Life insurance policies. This Life and Loan Insurance brochure is intended as a general guide only, is not a recommendation or opinion in relation to the insurance products described, and the information may vary at times. You should not rely on the information in this brochure. Terms, conditions, exclusions and limits apply. The availability of insurance cover is subject to the acceptance and approval of a complete application. Any payment is subject to your claim being accepted. More detail can be found in the relevant policy document which is available at or from any Westpac branch, and you can contact us on or speak to your authorised financial adviser if you would like further information regarding the insurance products described in this brochure. Terms, conditions, exclusions and limits apply. More detail can be found in the policy document, which may be obtained from any Westpac branch free of charge. The availability of any insurance cover is subject to the acceptance and approval of a complete application. Any payment is subject to your claim being accepted. Disclosure statements under the Financial Advisers Act 2008 are available on request and free of charge from Westpac or any financial adviser. Westpac New Zealand Limited WT