SMSF Direct Life Product Disclosure Statement

Transcription

1 SMSF Direct Life Product Disclosure Statement Call: Date of issue: 30 May 2013 This Product Disclosure Statement Contains important information about SMSF Direct Life, a sub-plan of My Protection Plan. Insurer NobleOak Life Limited ABN AFSL GPO Box 4793 Sydney NSW 2001 Trustee NobleLink Financial Services Pty Ltd ABN AFSL GPO Box 4793 Sydney NSW 2001

2 NobleOak Life Limited ABN is the Insurer (Australian Financial Services Licence Number ). NobleOak has been delivering insurance and investment solutions to Australians, as a friendly society, for over 135 years. We pride ourselves on providing simple, competitive insurance products, supported by a prompt and personalised claims service. SMSF Direct Life is a sub-plan of NobleOak's successful My Protection Plan (the Plan). This PDS sets out the Life and TPD components of the Plan in accordance with the approved rules of NobleOak Life Limited's Risk Fund No.1 through a wholesale master insurance policy issued to the Trustee. The Trustee is Noblelink Financial Services Limited ABN and AFSL NobleOak Life Ltd reinsures with Hannover Re of Australasia, a subsidiary of the Hannover Re Group worldwide. Hannover Re Group is one of the largest life reinsurers in the world. The life insurance business of Hannover has been operating in the Australian market since 1958 and, as at 31 December 2012, had total in force premium in excess of $800 million. Hannover s financial strength is visible in Standard & Poor s rating of AA- (very strong). Applicants who are accepted for the SMSF Direct Life Plan are covered under the master policy. Following acceptance, clients will be provided with a Welcome Letter detailing acceptance terms including special terms for their plan. The person whose life is insured through the plan under the master policy is known as the life Insured. The client is the owner of the plan to whom benefits are paid. Clients do not hold an individual contract of insurance with the Insurer and may request to view a copy of the Trust Deed and the master insurance policy held by NobleLink at any time. For SMSF Direct Life a client is the trustee of a regulated Australian superannuation fund or another person where ownership is subsequently transferred and the new owner of the Plan is confirmed in writing by NobleOak. In this PDS you / your means the life insured and/or client as the context requires. This Product Disclosure Statement (PDS) contains important information you should know about SMSF Direct Life, including the benefits, risks, limitations, costs and exclusions. The information provided in this document is of a general nature and does not take into consideration your objectives, financial situation or needs. You should consider the information having regard to your objectives, financial situation and needs. You should read this PDS and consider whether this product is right for you. The issuer of this PDS is NobleOak Life Ltd. This product is available to Australians residents only. We are Australian owned We have been protecting Australians for over 135 years We pride ourselves with paying 100% of genuine claims We are easy to deal with and all our services are based here in Australia We are ASIC and APRA regulated Our products are reinsured by a Top 3 global reinsurer with a 'very strong' S & P rating 2.

3 SMSF Direct Life - Snapshot Why might I need SMSF Direct Life? When you own something that's valuable, you insure it to protect it from damage or loss. Most people don't hesitate to insure their car, and their home and contents, for that very reason. As valuable as these assets are, nothing comes close to your most important asset you. NobleOak s SMSF Direct Life recognises how important you are to your family's financial security. It's there so that if you can no longer provide for your family, they have an alternative source of financial support to help them maintain their lifestyle. SMSF Direct Life is an affordable and flexible life insurance policy that can be adapted to suit your needs at each stage of life, helping you to ensure you have the right level of cover at any given time. Importantly, the benefits payable under SMSF Direct Life meet the requirements under the Superannuation Industry (Supervision) Act 1993 (SIS) and provide you with comprehensive, and competitive insurance cover. How does the plan work? SMSF Direct Life provides you with a simple and competitively priced life insurance plan that offers two types of cover: 1. Life Insurance Payment of the insured amount if the life insured dies or becomes terminally ill. This money can be used to pay for funeral, eliminate personal and business debts, and provide a future source of income for your family. 2. Life and Total and Permanent Disablement (TPD) Insurance Add TPD Insurance to your Life Insurance plan for an additional premium, and receive the insured amount if the life insured becomes totally and permanently disabled as a result of injury or illness. This money can be used to eliminate personal and business debts, modify your home, and pay ongoing care and medical costs. Please see page 6 for full explanation of Total and Permanent Disablement. NobleOak s SMSF Direct Life provides unmatched flexibility You can apply to increase or decrease the level of cover you have, or move your insurance out of your self managed superannuation fund (SMSF) without cancelling the plan, if your needs and circumstances change. This flexibility is unique to NobleOak and could be particularly beneficial if your health deteriorates, your SMSF members requirements change, or you no longer want to pay premiums out of SMSF funds. Enquiries, quotes and applications Call NobleOak on NobleOak on smsflife@nobleoak.com.au Address for correspondence: NobleOak Life Limited GPO Box 4793 Sydney NSW

4 Your Cover and Premiums How much cover can I apply for? You can select the right level of cover to meet your needs, up to a maximum of $15,000,000 for Life Insurance and $3,000,000 for TPD Insurance. Your level of TPD Insurance cannot exceed your Life Insurance. The most comprehensive way of calculating your life insurance needs is to first determine exactly what you want to happen in the event of your death. For example: Do you want your family to be mortgage-free? Do you have any business debts which need to be cleared? For how long do you want to provide an income to your family? How much income will they need each year? Are there private school fees that need to be paid? Your answers to these questions might form the basis of how much life insurance you need. If you are unsure, your accountant or financial adviser can help. Note: Should you require higher levels of Life or TPD Insurance, or other cover such as Salary Continuance/Income Protection, Trauma Insurance or Business Expense Insurance, please contact us. Note that not all of these other covers can be included inside super. Generally, premiums are lower when the risks are low and applicants are healthy, and premiums increase for more risky lifestyles, or older ages, when illnesses and injuries become more common. Your premium will be determined during assessment of your application for cover by our underwriters. As mentioned above, TPD Insurance may be added to Life Insurance as an optional benefit for an additional premium. How do I pay my premium? Your premium will be payable by you on a monthly or annual basis, by direct debit, credit card or BPAY. Annual premiums will receive a 5% discount. If you do not pay the premium, your insurance will lapse 60 days after the due date. To ensure your insurance remains in place, you must pay the total premium due at the premium due date. How are my premiums calculated? In addition to the level of cover you apply for, certain risk factors affect the premium you need to pay including your age, gender, smoking status, medical and/or family history, occupation and pastimes. 4.

5 What else do I need to know about my premium? Premiums are based on the amount of insurance cover. No minimum premium will apply. There is no annual policy fee. The insurance will not have a surrender or cash value at any time. Future premium rates are not guaranteed to remain the same as current rates. The Insurer reserves the right to change the premium rates for all policies in a particular category. Insurance premiums may attract state stamp duty, with any charge being included in your premium and paid by the Insurer. How are benefits paid? By purchasing an SMSF Direct Life Plan, you will become entitled to access the benefits offered by the Insurer in the event of an approved legitimate claim in respect of the life insured. Cooling off period After you take out insurance cover and receive a copy of the Acceptance Letter, you have a 21-day cooling off period to ensure your plan suits your needs. Within this period, you may cancel your insurance cover under the policy and your premium will be refunded in full. To do this, you must put your request in writing to the Insurer. Taxation Insurance premiums paid for life insurance (death cover) are generally tax deductible to the trustee of the superannuation fund. The premiums paid for TPD insurance cover are tax deductible to the trustee if the TPD benefit definition of the insurance policy is aligned to the definition of superannuation disability benefit condition of benefit release under the superannuation laws. That is, they are defined as "any occupation", as the case with NobleOak SMSF Direct Life. Further details are outlined on the Australian Taxation Office website in Taxation Ruling TR 2012/6. Death benefits paid from a superannuation fund to a dependant are generally not taxable. The Australian Taxation Office publication Understanding a death benefit paid from a super fund provides a guide to the taxation of a death benefit in various circumstances. TPD benefits paid from a superannuation fund are generally subject to concessional tax treatment. The Australian Taxation Office publication Understanding disability benefit payments provides a guide to the taxation treatment of disability benefits. Eligibility Life Insurance Minimum age at entry: 16 Maximum age at entry: 69 Termination age: 84 Maximum sum insured: $15,000,000 TPD Insurance Minimum age at entry: 16 Maximum age at entry: 64 Termination age: 74 Maximum sum insured: $3,000,000 We recommend that you seek professional taxation advice if any doubt whether you may have to pay tax on the benefit. The above tax information is a general statement only. It is based on the continuation of present taxation laws and their interpretation. Are there additional fees and charges? All fees and charges are included in the premium and there are no additional fees and charges payable by you. Future fees and charges may be reviewed and passed on. However, all members will be advised of any changes to the current fee structure. 5.

6 Your Benefits Benefits Once your application is accepted, you or your beneficiaries will be entitled to the following benefits. Any benefits payable will be paid to the client as the owner of the plan. 1. Death Benefit If you die while insured, the Insurer will pay the agreed insured amount as a lump sum, subject to acceptance of the claim. 2. Terminal Illness Benefit If you become terminally ill, the Insurer will pay the Death Benefit sum insured that applied when you first stopped work due to the terminal illness, subject to acceptance of the claim. Your Death Benefit sum insured will be reduced by the amount of any Terminal Illness Benefit paid. To be eligible for this payment: you must be diagnosed by an Australian registered medical practitioner as being terminally ill the illness must prevent you from working in a job to which you are reasonably suited by education, training or experience after consideration of medical and other evidence satisfactory to the Insurer, it is of the opinion that you are not expected to live more than 12 months, and the Australian registered medical practitioner cannot be you or a member of your family, your business partner, your employee or your employer. 3. Total and Permanent Disablement (TPD) Benefit In addition to Life Insurance, you may apply for Total and Permanent Disablement (TPD) Insurance for an additional premium. If you obtain TPD Insurance and you become totally and permanently disabled, the Insurer will pay you the agreed insured amount as a lump sum, subject to acceptance of the claim. Your Death Benefit sum insured will be reduced by the amount of any TPD Benefit paid. The life insured is considered to be totally and permanently disabled when the Insurer determines he or she has met any of the following three definitions: a) Suffered the total and irrevocable loss of the: sight of both eyes use of two limbs, or sight of one eye and use of one limb. 6.

7 b) Where the life insured is gainfully employed and working a minimum of 25 hours per week at the time of injury or illness, then as a result of that injury or illness: has not performed any work for an uninterrupted period of at least six consecutive months, solely due to the same injury or illness, and is attending a registered medical practitioner and has undergone all reasonable and usual treatment, including rehabilitation, for the injury or illness, and after consideration of all the medical evidence and such evidence as the Insurer may require, has become incapacitated to such an extent as to render him or her unlikely to ever be able to engage in his or her occupation, and any other occupation for which he or she is reasonably suited by education, training or experience. Transferring The ability to move in and out of a chair or bed without the standby assistance of another person. You will be considered able to transfer yourself even if equipment such as canes, quad canes, walkers, crutches or grab bars or other support devices, including mechanical or motorised devices, are used. TPD Benefits reduce after age 65 After age 65 the TPD insured amount is reduced each year by 10%, until the earlier of age 74 or a benefit is paid (in which case the insurance cover terminates). The reduced level of cover will be reflected in your premium. After age 65, the definition of TPD will revert to Activities of Daily Living definition. c) Where the life insured is engaged in 'domestic duties,' or is gainfully employed and working less than 25 hours per week, or is unemployed at the time of injury or illness, or is employed in a hazardous occupation, then as a result of that injury or illness, is totally and irreversibly unable to perform at least four of the five 'Activities of Daily Living' (see below). Guaranteed renewability The Insurer guarantees to renew your insurance cover each year, provided no event of termination has occurred. Your insurance cover will not be cancelled, nor will the premiums be increased, due to any change in your state of health, occupation or pastimes. 'Domestic duties' means the member is engaged in full-time unpaid domestic duties in their own residence. 'Activities of Daily Living' are: Bathing The ability to wash yourself, either in the bath or shower, or by sponge bath, without the standby assistance of another person. You will be considered to be able to bathe yourself even if the above tasks can only be performed by using equipment or adaptive devices. Dressing The ability to put on and take off all garments and medically necessary braces or artificial limbs usually worn, and to fasten and unfasten them, without the standby assistance of another person. You will be considered able to dress yourself even if the above tasks can be performed only by using modified clothing or adaptive devices such as tape fasteners or zipper pulls. Eating The ability to get nourishment into the body by any means, once it has been prepared and made available to you without the standby assistance of another person. Toileting The ability to get to and from and on and off the toilet, to maintain a reasonable level of personal hygiene, and to care for clothing without the standby assistance of another person. You will be considered able to toilet yourself even if you have had an ostomy and are able to empty it yourself, or if you use a commode, bedpan or urinal and are able to empty and clean it without the standby assistance of another person. Indexation of benefits Your sum insured will be automatically increased each annual renewal date (until the annual renewal before your 65th birthday) by a figure based on the previous year's increase in the Consumer Price Index with a minimum increase of 3% and a maximum of 5%. You may refuse each year's increase in sum insured and we will continue to automatically increase the sum insured in future years. However, once you have refused three consecutive increases, no further increases will be made. Indexation is only available until you reach the maximum cover of $1,000,000 and will not apply to any remaining benefit once a claim has been admitted or paid. Worldwide cover Once issued, insurance cover is provided for worldwide residence and travel 24 hours a day, subject to any terms and conditions that the Insurer may apply at the time of acceptance. 7.

8 Claims When will my cover commence? Your insurance will commence from the date your application for SMSF Direct Life is accepted by the Insurer and confirmed by the issue of your Welcome Letter. In some cases, the Insurer may request further information before accepting your application. When will my cover cease? The insurance for a life insured will terminate on the earlier of: the death of the life insured the date the life insured reaches age 74 (for TPD Insurance) the date the life insured reaches age 84 (for Life Insurance) the date a life insured ceases to be insured under the Plan 60 days after the premium has fallen due and remains unpaid the date the plan is terminated, or upon payment of the full sum insured in respect of the life insured. A client can also advise us if your cover is no longer required. How do I make a claim? In the event of a claim, please notify the Trustee s's Client Service Team on or in writing to GPO Box 4793, SYDNEY NSW 2001, as soon as possible. will require a certified Death Certificate (for Death claims), or medical evidence (for TPD claims), together with the completed Claim Form. This will enable us to assess the claim as quickly as possible and, if approved, pay the benefit. All claims will be paid in Australian dollars. When will a benefit not be payable? For Life Insurance, the benefit will not be payable if your death is a result of suicide occurring within 13 months following the commencement, reinstatement or increase of your insurance policy. For TPD Insurance, the benefit will not be payable where your TPD is caused by: any intentional self-injury or suicide (whether felonious or not) or any attempts, while sane or insane, occurring within 13 months following the commencement, reinstatement or increase of your insurance cover; the abuse of alcohol, illegal drugs or controlled substances (except when legally prescribed by a medical practitioner and taken or used as prescribed);or engaging or taking part in service in the armed forces of any country, other than service in the Citizen Forces within the Commonwealth of Australia. We will send you a claim form, explaining in detail our requirements and the next steps required. For example, we 8.

9 Duties and Obligations What are the risks of taking out insurance? You should consider any risks that might apply before making an application for insurance under this PDS. Some of the risks may include: The insurance you take out may not meet your needs; The level of cover, or the terms that apply, may not be sufficient to give you the protection you require or desire; You may not be able to increase your cover to the desired level because of health or other issues. Your duties and obligations Your duty of disclosure When you enter a contract of insurance, the Insurance Contracts Act 1984 requires you to disclose every matter that you know, or could reasonably be expected to know, that is relevant to the Insurer's decision whether to accept the risk and terms to insure you. These matters must be disclosed before you enter, renew, vary, reinstate or extend an insurance contract. However, this duty does not require you to disclose information: which reduces the risk to the Insurer; or which is of common knowledge; or which the Insurer knows or ought to know in the ordinary course of its business; or where the Insurer waives your duty. Non-disclosure If you fail to comply with your duty of disclosure, and the Insurer would not have entered into the contract on any terms if the failure had not occurred, the Insurer may void the contract within three years of entering into it. If your non-disclosure is fraudulent, the Insurer may void the contract from its inception at any time. The type of personal information that NobleOak may collect includes your name, date of birth, address, banking details, preferred beneficiaries, health and employment information. If you do not provide the required information we may not be able to assess your application. To help us keep your details up-to-date, please advise us of any information that appears inaccurate, especially your contact details. us at enquiry@noblegroup.com.au or write to GPO Box 4793, SYDNEY NSW 2001, to access information we hold about you, in accordance with the National Privacy Principles.. The personal information we collect from or about you may be provided to the following parties: Your own doctor or any other doctor, hospital or clinic with whom you have provided a medical authority, for the purpose of obtaining details about your medical history; To the Insurer, for the purpose of assessing your application. The Insurer may disclose this information to the Reinsurer and medical practitioners, or other professionals it appoints, to help it consider your claim; Any person the Trustee or the Insurer considers needs the information in order to process your application, assess any claim or resolve complaints; NobleOak wishing to inform you about their products and services; As required or authorised by law, or where you have given consent. Subject to some exceptions allowed by law, you can gain access to your personal information. To obtain a copy of the NobleOak Privacy Policy, please call our Client Service Line on , us at smsflife@nobleoak.com.au or write to GPO Box 4793, SYDNEY NSW Privacy NobleOak recognises the importance of protecting personal information and is bound by the relevant legislation. NobleOak collects personal information for the purposes of: managing how we provide you with any product or service; assessing and processing your application and any claims made; identifying you and protecting against fraud; and letting you know about other products or services that NobleOak may offer. 9.

10 Complaints resolution The Insurer has established procedures to deal with member enquiries and complaints. Enquiries should be made to the Client Service Line on Complaints should be made in writing to: Dispute Resolution Officer GPO Box 4793 SYDNEY NSW 2001 Financial Ombudsman Service If you believe that a complaint has not been handled to your satisfaction, you may have the right to lodge a complaint with the Financial Ombudsman Service. The FOS is an external and independent body whose role is to help financial industry clients resolve complaints they have been unable to resolve with the financial institution they are dealing with. The FOS can be contacted at: Financial Ombudsman Service GPO Box 3 MELBOURNE VIC 3001 Toll Free Number: Fax: (03) info@fos.org.au You should note that time limits may affect your ability to make a complaint to the FOS. Generally, a time limit of six years applies. 10.

11 Application: Apply for NobleOak's SMSF Direct Life cover by phoning us on: Call NobleOak on Our Australian based insurance specialists will guide you through the simple application process. Enquire about the SMSF Direct Life Product and/or obtain a quick quote by: Complete the Enquiry Form, which can be found online on: OR Send the completed form back to us either by: smsflife@nobleoak.com.au Fax: SMSF Direct Life advantage ownership flexibility, you can move your insurance out of your SMSF, increase or decrease cover without cancelling your policy, should your requirements change value and cost competitiveness, lower premiums than most life insurers comprehensive cover, up to $15M in Death cover and up to $3M in TPD all services including claims are based in Australia 11.

12 Why choose NobleOak s SMSF Direct Life Insurance? 1 2 There are a number of reasons why we believe the NobleOak SMSF Direct Life policy is so suitable for SMSFs. Value. When compared with other direct products available in the market, NobleOak s cover and rates are very attractive. We don't invest heavily in mass-marketing, which allows us to pass these savings directly back to our members and customers. Comprehensive cover. NobleOak s SMSF Direct Life Insurance provides the comprehensive cover to best protect you and your family s needs. Our product has been tailored to specifically meet superannuation requirements, including terminal illness and TPD definitions that help ensure an early release of claim proceeds Simplicity and speed. Our Life and TPD Insurance products are simple and clear, with no hidden tricks or fees. You can enquire for cover online or over-the-phone, with tele-underwriting often taking only around 20 minutes, and only needing to answer a few questions. 135 years of helping Australians. NobleOak has been delivering insurance and investment solutions to Australians as a friendly society for over 135 years, and we pride ourselves on providing comprehensive and competitive insurance products. We are an independent and Australian life insurer with no ties to the banks. Local Claims Service. Our friendly experienced claims and service agents are based here in Australia. 3 Flexibility. You can apply to increase or decrease the level of cover you have, or move your insurances out of your SMSF, if your needs and circumstances change without cancelling your policy and reapplying for cover. This ownership flexibility is unique to NobleOak and could be particularly beneficial if your health deteriorates. 7 All genuine claims paid. NobleOak is an APRA-regulated life insurer. We have paid all genuine claims in the past and will continue to do so in the future. NobleOak Life insurance policies are protected by the third-largest reinsurer in the world and we are a proud member of Abacus - Australian Mutuals, the industry body for the Australian mutual financial services sector. Product Disclosure Statement This Product Disclosure Statement Contains important information about SMSF Direct Life, a sub-plan of My Protection Plan. Issued by the Insurer NobleOak Life Limited ABN Australian Financial Services Licence Number Level 4, Suite 4.05, 89 York St, Sydney NSW 2000 GPO Box 4793, Sydney NSW 2001 Trustee: Noblelink Financial Services Limited ABN (Australian Financial Services Licence Number Level 4, Suite 4.05, 89 York St, Sydney NSW 2000 GPO Box 4793, Sydney NSW 2001 Code: SMSFPDS0513