Group Insurance. Product Disclosure Statement. pr tect. Depend on our people to. your people

Transcription

1 Group Insurance Product Disclosure Statement pr tect Depend on our people to your people This booklet contains Product Disclosure Statements for: Group Life Group Salary Continuance Issue number 9, 28 June 2014

2 Contents Insurance overview 1 Group Life Insurance Policy: a snapshot 3 Group Life Insurance Policy: the detail 4 Group Salary Continuance Policy: a snapshot 10 Group Salary Continuance Policy: the detail 12 Additional information: Group Life and 20 Group Salary Continuance Trauma definitions 28 Definitions 31 Products in these Product Disclosure Statements have been available since 20 August 2012.

3 Insurance overview Definitions in this document This document contains defined terms which have a specific meaning. Terms that have a specific meaning are shown in italics. Please ensure that you refer to the Definitions section at the back of this document for full details on the defined terms. In this Product Disclosure Statement (PDS) and any relevant policy documentation, any references to us, we, our or the Insurer mean The National Mutual Life Association of Australasia Limited (NMLA) ABN AFS Licence No The NMLA is the issuer of this PDS and financial products described in this PDS. When referring in this document to the policy, we mean: the policy the schedule the Application form and any other associated papers any special conditions, exclusions or endorsements to the policy any notices issued or received by us under the policy, and any individual applications for cover by an eligible person, as the context requires. Unless otherwise specified, you or your refers to the policy owner who is either an employer that is a company or the trustee of a complying superannuation fund. Where the policy owner is the trustee of a complying superannuation fund, the employer refers to the employer sponsor of that fund. A person insured refers to a person who is either an insured employee of an employer where the policy is employer owned, or a member of a complying superannuation fund for a trustee owned policy. Information contained in this booklet This booklet provides a summary of the important terms and conditions of the Group Insurance products available from AMP. There are sections specific to each product, as well as sections with information that apply to all products. This information will help you to decide whether these products will meet your needs, as well as assist you in comparing the types of cover available with others that you may be considering. You should read this information in conjunction with the Policy Document and Policy Schedule (issued once we provide you with a quotation), which sets out in detail the terms and conditions of the cover and features under your policy and forms the basis of the contract between you as the policy owner and us as the Insurer. Before acting on the information in this PDS, you should consider the appropriateness of this information and consult a financial adviser. About AMP s Group Insurance AMP is a specialist risk Insurer and a leader in the Australian group insurance marketplace. We have been a significant force in the life insurance industry for more than 160 years and have a proven track record in the market. We are committed to meeting our clients needs for group insurance in a challenging superannuation and life insurance marketplace. AMP s brand and reputation are acknowledged as a leader in the Australian financial services market. AMP provides group insurance cover for more than 1,200,000 Australians. In addition, in 2013 AMP paid a total of $850.4 million in individual and group insurance claims. 1 One policy covers a number of people Our policies provide cover for a group of people with a shared commonality, such as a group of employees or complying superannuation fund members, and because these people are insured under the one contract of insurance, there can only be one policy owner. These are known as Group Insurance policies. Group Insurance policies vary in this way from the more common individual insurance policy. Rather than a contract existing between each person that is covered, there is only one contract between the policy owner and us. The terms and conditions of the insurance for persons insured are defined on a group basis rather than individually and the premiums are paid collectively to us. Which Group Insurance products are described in this document? Each product offered (Group Life (GL) insurance or Group Salary Continuance (GSC)) by AMP is a separate contract of insurance. You can combine the products you buy with a range of optional benefits. The two types of products available are: Group Life GL insurance includes death only or death and total and permanent disability cover. Death cover provides a lump-sum benefit upon death or terminal illness. Total and permanent disability (TPD) cover provides a lump-sum benefit if a person insured becomes totally and permanently disabled. GL insurance is outlined in the Group Life Insurance Policy section. 1 Source: Claims Paid 2013, AMP Life Limited and The National Mutual Life Association of Australasia Limited Claims. This figure includes insurance available through superannuation products and is net of tax. 1

4 Group Salary Continuance GSC insurance provides a person insured with a replacement income benefit if they are disabled and unable to work due to sickness or injury. GSC insurance is outlined in the Group Salary Continuance Policy section. The Additional information Group Life and Group Salary Continuance section applies to both GL and GSC. The Trauma definitions section applies to GSC. The Definitions section applies to both GL and GSC. When incorrect information is given to us We rely on the information provided to us in order to assess whether we will provide insurance cover for a person insured. If the information provided is not correct, in some circumstances we may be legally entitled not to pay the benefit. We may also be legally entitled not to pay the benefit if you have not complied with your duty of disclosure. The duty of disclosure is set out in the Application form you complete for a group insurance policy with us, in the forms completed when each person insured applies for cover, and in this PDS. The duty of disclosure applies not only to you in respect of your completion of the Application form for cover but also to any application for cover by each person insured as well as to any increase in the benefit of a person insured. Your duty of disclosure Before you enter into any contract of insurance with an Insurer, you have a duty to disclose to the Insurer every matter that you know, or a reasonable person in the circumstances could be expected to know, is relevant to the Insurer s decision whether to accept the risk and, if so, on what terms. You have the same duty to disclose those matters to the Insurer before they extend, vary or reinstate a contract of life insurance. However, your duty of disclosure does not require disclosure of a matter: that diminishes the risk to be undertaken by the Insurer that is of common knowledge that the Insurer knows or, in the ordinary course of its business, ought to know, or where the Insurer has waived disclosure. The duty of disclosure continues until you are informed that your application for insurance is accepted or declined. Non-disclosure If you fail to comply with your duty of disclosure or make a misstatement of relevant information and the Insurer would not have entered into the contract if the failure had not occurred, the Insurer may avoid the contract within three years of entering into it. If your non-disclosure or misstatement is fraudulent, the Insurer may avoid the contract at any time. If the Insurer is entitled to avoid a contract of life insurance the Insurer may, within three years of entering into it, elect by written notice not to avoid it but to reduce the sum you have been insured for in accordance with a formula that takes into account the premium that would have been payable if you had disclosed all relevant information to the Insurer. For cover other than death cover: the Insurer can elect to reduce the sum insured according to the formula referred to above at any time not just within the first three years of entering into the contract, or if the Insurer has not avoided the contract or varied the sum insured, it can vary the contract in a way that places the Insurer in the same position it would have been if the nondisclosure or misrepresentation had not occurred. Treatment of policies in exercising our rights In exercising its rights the Insurer has to treat some policies as comprising two or more separate contracts of life insurance and elect whether to apply their rights to each of them separately. A policy must be treated as if it comprises two or more contracts of life insurance if any of the following apply: it includes two or more different groups of provisions, there are two or more lives insured, or underwritten cover together with cover which is not underwritten, or is underwritten on different terms, applying to a life insured. 2

5 Group Life Insurance Policy: a snapshot This section forms part of the PDS for GL and should be considered in conjunction with the Additional information Group Life and Group Salary Continuance section and the Definitions section. GL pays a lump-sum benefit in the event of death, terminal illness or TPD, which can be used for any purpose including: paying off the mortgage or any other debts that may affect a person insured s family s financial future paying for funeral costs paying for child care or home help providing a reserve to use as income should the family income stop paying for disability-related costs including rehabilitation, or paying for changes to the person insured s and/or dependant s lifestyle, for example, to refit their home. Group Life insurance benefits and options The table below provides a summary of the cover available: Benefit Benefit description Superannuation Non-superannuation Death benefit Provides a benefit payment in the event of death. Terminal illness benefit Extended cover Interim cover Guaranteed renewable contract 24 hour worldwide cover We will make an advance payment of the death benefit if a person insured is terminally ill and has less than 12 months to live. Provides cover where a person insured leaves employment with the employer and ceases to be eligible for cover under the policy. Provides limited cover where a person insured or an eligible person who has not yet been accepted for cover is being underwritten. Provided the premiums are paid and the terms and conditions of the policy are met, we guarantee to renew the policy each year. Cover for a person insured is provided 24 hours a day depending on the circumstances of overseas travel. The following options are available through GL at an additional cost: Optional benefit Benefit description Superannuation Non-superannuation TPD benefit Life events cover Continuation option Provides a benefit if a person insured becomes totally and permanently disabled. Allows persons insured to increase their benefit without underwriting when any of the following events take place: marriage, divorce, birth or adoption of a child, taking out a mortgage on a primary residence, increasing a mortgage on a primary residence for renovations/ extension or a child turning 12. Allows persons insured who leave employment and cease to be eligible for cover under your Group Insurance policy to continue their cover under an individual insurance plan. 3

6 Group Life Insurance Policy: the detail The policy GL pays a lump-sum benefit if a person insured dies or is diagnosed with a terminal illness and has 12 months or less to live. TPD is also available as an optional benefit. GL insurance policies can provide benefits through a complying superannuation fund (superannuation policy) where a superannuation trustee owns the policy or a non superannuation policy (ordinary policy) where an employer (or like entity) owns the policy. Premiums for non-superannuation policies are paid into our No. 1 Statutory Fund. Premiums for superannuation policies are paid into our No. 4 Statutory Fund. The policy has no cash surrender value and neither you, nor a person insured, have access to ownership or any rights over the assets of the applicable statutory fund. Who can become a person insured? A person can become a person insured if they satisfy the eligibility criteria for cover under the policy, which you set (and we agreed), and the person is: a full-time permanent employee, or a contractor. The person must also be: aged 15 years or more, but less than age 70 for death cover and age 65 for TPD cover, on the day they were first eligible for cover, and an Australian resident. Cover will be granted in one of three ways: 1. The automatic acceptance terms. 2. The transfer terms, or 3. The underwriting terms. For further information on automatic acceptance terms, transfer terms and underwriting terms, please refer to the Additional information Group Life and Group Salary Continuance section of this PDS. Availability of cover Death benefits Entry age Maximum expiry age Maximum benefit amount Minimum number of persons insured per policy Minimum annual premium 15th to 70th birthday 80th birthday Unlimited (i) 10 $5,000 pa (ii) (i) Subject to automatic acceptance and underwriting terms. (ii) Exclusive of commission. Death benefit Death cover provides a lump-sum benefit in the event that a person insured dies. Terminal illness benefit If a person insured is diagnosed as terminally ill, we will make an advanced payment of the death benefit. The terminal illness benefit is an advance payment of the death benefit. The amount of the benefit we pay is what would have been applied when the person insured was first diagnosed as terminally ill. Extended cover If a person insured is no longer eligible for cover because they have left their employer and: the person insured did not cease work with the employer for reasons of injury or sickness, and we are not paying you, or you are not entitled to a benefit under the policy for the person insured, then we will automatically extend the person insured s existing cover free of charge. This is referred to as extended cover. Extended cover stops on the earlier of: 60 days after cover would have otherwise stopped the date the person insured attains the cover expiry age the date the person insured commences employment with a new employer the date the person insured makes a fraudulent claim, or the date a personal insurance plan issued by us under a continuation option (as described on page 8) commences in respect of the person insured. 4

7 In addition to the above, the following also applies to superannuation policies: in the case of the person insured directing the employer to remit all or part of their employer superannuation contributions to a superannuation fund other than the fund through which cover is provided under the policy, extended cover will cease on the date the first contribution has been remitted to the person insured s fund of choice (unless all premiums are fully funded by the employer and paid in addition to SG contributions). Interim cover If underwriting terms apply to an eligible person or a person insured because: automatic acceptance terms do not apply cover exceeds the automatic acceptance limit or the further underwriting limit, or they had applied for voluntary insurance or a voluntary increase to their cover, then we will provide them with interim cover in the event of accidental death. Interim cover starts from the date we receive the written application, in the form approved by us, for all, or the relevant part of the cover that is subject to underwriting terms in respect of the person insured or eligible person. The amount of the benefit provided under interim cover is equal to the amount of the benefit that is applied for, up to a maximum amount of $1.5 million. Interim cover automatically ends as soon as one of the following happens: we accept or limit the application for the benefit which is subject to underwriting terms 20 business days after we decline the application for the benefit which is subject to underwriting terms you, the person insured or eligible person withdraw the application for the benefit which is subject to underwriting terms 60 days pass from the date interim cover commenced, or cover stops due to any of the events listed in When cover for a person insured stops. In all other ways, the conditions of the policy apply to interim cover including the continued payment of the premium. Worldwide cover Cover for a person insured is available 24 hours a day, anywhere in the world, subject to the conditions outlined under Cover during overseas employment and travel. Optional benefits The following benefits may be applied for at an additional cost: TPD benefit Death cover continuation option, and TPD cover continuation option. Total and permanent disability benefit Availability of cover TPD benefits Entry age Maximum expiry age Age 80 Maximum benefit amount 15th to 65th birthday $5 million (i) (i) A maximum benefit amount of $3 million may be paid when a person insured satisfies part (a) Unlikely to work as per the TPD definition. When the benefit is greater than $3 million, the amount in excess of $3 million may only be paid when the person insured satisfies parts (b) Specific Loss or (c) Future Care, of the TPD definition. The TPD sum insured may be reduced from the 60th to 70th birthdays. See the conditions outlined under Reduction of TPD benefits for more details. From the person insured s 65th birthday, the maximum TPD benefit is $3 million. From the person insured s 70th birthday, the maximum TPD benefit is $250,000, and it will only be paid when the person insured satisfies parts (b) or (c) of the TPD definition. If a person insured meets the definition of TPD as outlined below, we will pay a TPD benefit. The person insured is TPD if they are: a. unlikely to work ( any occupation or own occupation ) b. suffers a specific loss, or c. requires future care. Part (a) of the TPD definition is only available to persons insured who are permanently employed and who work at least 15 hours per week, and contractors in specific circumstances. For a contractor to be eligible for part (a) of the TPD definition, they must have worked an average of 15 hours or more per week over a period of three consecutive months up to the date they became totally and permanently disabled. If a contractor has worked for a period of less than three consecutive months, the contractor will still be eligible for TPD cover provided they worked an average of 15 hours or more per week from the date the contract with the employer commenced to the date they became totally and permanently disabled. a. Unlikely to work is dependent upon which version of the TPD definition applies under the policy and means: If an any occupation version applies: When all of the following apply to the person insured: an injury or sickness stops the person insured working in any business, occupation or regular duties continuously for the TPD waiting period, and as at the conclusion of the TPD waiting period, after considering all evidence which we believe is necessary to reach our view, in our opinion the person insured is unlikely ever to be able to work in any business, occupation or regular duties, whether paid or unpaid, for which they are reasonably qualified by education, training or experience. 5

8 or For the purpose of this part of the definition, it is immaterial whether the person insured can perform the business, occupation or regular duties on a full time, part-time or casual basis even if they worked on a full-time basis immediately prior to the cessation of work. If an own occupation version applies: When all of the following apply to the person insured: an injury or sickness stops the person insured working in their own occupation continuously for the TPD waiting period, and as at the conclusion of the TPD waiting period, after considering all evidence which we believe is necessary to reach our view, in our opinion the person insured is unlikely ever to be able to work in their own occupation. Own occupation means the occupation or regular duties in which the person insured has spent the most amount of time engaged in with the employer during the 12 months prior to the last day at work. For the purpose of this part of the definition, it is immaterial whether the person insured can perform their occupation or regular duties on a full-time, part-time or casual basis even if they worked on a full-time basis immediately prior to the cessation of work. b. suffers a specific loss or T he person insured has suffered an injury or sickness which first became apparent while they were a person insured and as a result of the injury or sickness has suffered the total loss of (or total loss of the use of): both hands or feet one hand and one foot the sight of both eyes, or one hand or one foot and the sight in one eye in circumstances where the loss will never be regained. c. requires future care When all the following apply to the person insured: 1. The person insured suffers an injury or sickness which first occurs while they are a person insured, and 2. Because of that injury or sickness, in our opinion, the person insured is permanently unable to perform at least two of the five activities of daily living listed below, without assistance from another person: bathing/showering dressing/undressing eating/drinking using the toilet to maintain personal hygiene, or getting in and out of bed, a chair, a wheelchair or moving from place to place by walking, a wheelchair or with a walking aid. Day one total and permanent disablement benefit If the person insured has been diagnosed by a medical practitioner as suffering from one of the listed medical conditions below, we will waive the TPD waiting period when assessing a claim made under part (a) Unlikely to work, as per the TPD definition. The medical conditions are: Alzheimer s disease and other dementias Cardiomyopathy Diplegia Hemiplegia Lung disease Major head injury Motor neurone disease Multiple sclerosis Muscular dystrophy Paraplegia Parkinson s disease Permanent blindness Permanent deafness Permanent loss of speech Primary pulmonary hypertension Quadriplegia Severe rheumatoid arthritis Tetraplegia. Life events cover The option to increase death and/or TPD cover is available as an optional feature as part of the GL policy. When a person insured can increase their benefit The person insured can increase their benefit if they: get married get divorced have a child (including through adoption) take out a mortgage on the initial purchase of a primary residence increase an existing mortgage on their primary residence for renovations/extension (increase for renovations/ extension must be for at least $50,000), or have a child and the child turns 12. The application for an increase, including all required evidence, must be received by the policy owner in the required format, as agreed by us and the policy owner, within 60 days of the event occurring. Alternative application periods may apply as agreed by us. 6

9 The required evidence is set out in the table below: Event Marriage Divorce Birth or adoption of a child Taking out a mortgage on the initial purchase of a primary residence Increasing existing mortgage on primary residence for renovations/ extension Child turns 12 Evidence (i) Certified copy of marriage certificate Certified copy of divorce certificate/decree absolute Certified copy of child s birth certificate or adoption certificate with name of the person insured appearing as mother/father Letter from lender showing the identity of the lender and confirming: a. the amount of the loan to purchase the person insured s principal place of residence, and b. the loan has been drawndown (not just approved), and a statutory declaration declaring that the mortgaged property is the person insured s principal place of residence. Letter from lender showing the identity of the lender and confirming: a. the amount of the increase in the loan to extend or renovate the principal place of residence of the person insured, and b. the loan has been drawndown (not just approved), and a statutory declaration declaring that the mortgaged property is the person insured s principal place of residence and that the increase is for renovations/extension. Certified copy of child s birth certificate or adoption certificate with name of the person insured appearing as mother/father. (i) Evidence must be certified as a true copy of the original by an authorised person, including one the following: Justice of the Peace Commissioner of Declarations Lawyer Notary Doctor CPA or Chartered Accountant Bank Manager. It is the policy owner s responsibility to retain the above evidence and to supply any evidence requested by us during the life of the policy or upon claim of a benefit. We will decline to pay the part of the benefit relating to increases under life events cover for which unsatisfactory evidence is provided. Conditions of acceptance of an increase To be eligible to apply for a benefit increase the person insured must be under the age of 65 on the date of the event. When a person insured increases their benefit because they have increased their mortgage for renovations/an extension, for the first six months from the date the benefit was increased, only cover for accidental death and accidental total and permanent disability will be provided on the amount of the increase. Persons insured may increase their benefit up to a maximum of three times under this option. It is the policy owner s responsibility to ensure the person insured has not increased their benefit more than three times under the life events cover option. If a person insured increases their benefit more than three times under the life events cover option, we will decline to pay the part of the benefit which relates to more than three increases, even if we have been receiving premiums. We will refund all premiums received in relation to the declined part of the benefit. Where a person insured increases their benefit by a fixed dollar amount, the amount of their TPD benefit will reduce as described under the section Reduction of TPD benefits. The policy owner or person insured must not have made or be eligible to make a claim for TPD, total disability or terminal illness on any policy held with us. Persons insured may only apply for a benefit increase as the result of one event in a 12 month period. We will not pay the part of the benefit which was obtained under this option if, within 13 months from the date the additional benefit commenced: the person insured s death, accidental death, terminal illness, TPD or accidental total and permanent disablement was caused by suicide or attempted suicide, or the person insured s sickness or injury was caused by the person insured on purpose. Amount of benefit increases The maximum amount of each increase is contained in the additional options section of the policy schedule. The total amount of benefit increases under this option is limited to $450,000 over the lifetime of each person insured. Effective date of increase The increase applies from the day a completed application together with required evidence is received by the policy owner. Application of automatic acceptance limits and further underwriting limits Persons insured under the automatic acceptance limit. Persons insured under the automatic acceptance limit can exercise the option to increase cover. The automatic acceptance limit will continue to apply. Persons insured whose increase will increase their benefit over the automatic acceptance limit. Persons insured may increase their benefit over the automatic acceptance limit without underwriting. Any further increases are subject to underwriting, unless they are again for a life event. Persons insured restricted to the automatic acceptance limit due to non-receipt of health evidence. Persons insured limited to the automatic acceptance limit due to non-receipt of medical evidence previously requested for underwriting, are eligible for the life events increase. Increases may be applied without underwriting. Any further increases will be subject to underwriting unless they are again for a life event. 7

10 Persons insured limited to the automatic acceptance limit due to previous underwriting. Persons insured who have been restricted to the automatic acceptance limit because of health evidence previously provided for underwriting, are not eligible for life events increases. Persons insured who have had loadings or exclusions applied to their benefits, may increase their benefits but the same loadings and exclusions will apply to the increase in benefits. Persons insured with further underwriting limits. Where the further underwriting limit is higher than the existing benefit plus the life events increase, the person insured may increase their benefits and the existing further underwriting limit will continue to apply. Where the further underwriting limit is lower than the existing benefit plus the life events increase, the person insured may increase their benefits for the full amount of the life events increase without underwriting. Any further increases will be subject to underwriting unless they are again for a life event. Persons insured who have had loadings or exclusions applied to their benefits, may increase their benefits. However, the same loadings and exclusions will apply to the increase in benefits. Death cover continuation option The option to continue death cover under an Individual Insurance plan is available as an optional feature of the GL policy. It is available to persons insured aged less than 65 who have ceased employment with the employer. The following conditions apply for continuation options: the person insured must apply for an Individual Insurance plan with us within 60 days of the date cover ceases under the GL insurance policy (had extended cover not applied) the person insured has stopped working for the employer, and the amount of the cover applied for is not more than the amount of the benefit which applied to the person insured under the GL policy immediately before cover stopped. As part of the application process, we will ask questions and seek disclosure from the person insured for any information we consider relevant which does not relate to medical information in regard to the person insured, and based on our assessment, we may refuse the application. We may offer insurance on any terms acceptable to us, including equivalent special terms or premium loadings equivalent to those that applied under the GL policy. A continuation option will not apply: if the person insured has stopped working for the employer in any business, occupation or regular duties because of injury or sickness if we are paying, or the person insured is entitled to or becomes entitled to, a benefit under the GL policy if the person insured is aged 65 or greater if the person insured has previously taken out similar insurance with us under a continuation option if the person insured s premium amount under the Individual Insurance plan applied for is less than the minimum premium we set for the purpose of this option from time to time to the amount of the benefit under the GL policy for the person insured that is more than the maximum amount we set for the purpose of the continuation option from time to time, or if we have given written notice to you that this option is to cease operating. TPD cover continuation option In addition to the conditions for the death cover continuation option, the following also applies to exercising a TPD continuation option: the person insured must be aged 55 or less, and must be at work at the time of applying for the Individual Insurance plan and permanently employed to work at least 25 hours per week. Additional information Renewal guaranteed We will guarantee to renew the policy annually, subject to: the minimum number of persons insured and the minimum premium, that we advise from time to time, being met any premium due being paid to us in accordance with the policy terms and conditions, and you abiding by the terms and conditions of the policy. Limitations The GL policy may contain certain exclusions or limitations. As each policy is catered to the needs of different groups, you should carefully check your policy schedule and policy document to see if any exclusions or limitations apply. Exclusion for war We will not pay a benefit if the person insured s death, accidental death, terminal illness or TPD was caused by an act of war while the person insured was overseas for the purposes of their employment. Exclusions for voluntary cover We will not pay a benefit or part of a benefit if, within 13 months from the date the person insured s voluntary insurance cover, or increase to the person insured s amount of voluntary insurance, commenced: the person insured s death, accidental death, terminal illness or TPD was caused by suicide or attempted suicide, or the person insured s sickness or injury was caused by the person insured on purpose. 8

11 Reduction of TPD benefits Where the benefit formula for TPD reduces the amount of the TPD benefit to nil by the cover expiry age for a person insured, there will be no additional reduction in the amount of the benefit or change in the definition of the TPD benefit. Where the benefit formula for TPD does not reduce the amount of the TPD benefit to nil by the cover expiry age for a person insured, the following conditions will apply: the amount of the TPD benefit assessable under parts (a), (b) or (c) of the TPD definition will reduce from the person insured s 60th birthday. This reduction will be 1/120th of the amount of the TPD benefit assessable under parts (a), (b) or (c) of the TPD definition times the number of completed and partial months since the person insured s 60th birthday, each month until nil at the person insured s 70th birthday, and where the cover expiry age is greater than age 70, the reduction process will cease on the person insured s 69th birthday. If TPD tapering does not apply, the amount of the TPD benefit assessable under parts (b) or (c) only of the TPD definition will be increased by the amount of reduction nominated in the previous paragraph. Where TPD cover for a person insured under the policy commences after the person insured s 60th birthday, the amount of the reduction will be consistent with that which would have applied had the person insured been covered since the start of the TPD benefit reduction process. We may apply a reduction for a period longer or shorter than 10 years or ceasing prior to age 70 if requested by you and agreed to by us. If we do this we will notify you in writing of the terms of any such agreement. In such cases, the rate of TPD benefit reduction shall be adjusted proportionately, but shall not be less than that which would have applied had the standard conditions been applied. Where underwriting terms apply to the TPD benefit for a person insured and the amount of benefit has been restricted to a fixed dollar amount (as notified by us in writing), any reduction in the benefit is applied to the lesser of this restricted fixed dollar amount or the amount of benefit calculated by the benefit formula for the person insured. When cover for a person insured stops Cover for a person insured will stop as soon as one of the following happens: the person insured attains the cover expiry age the person insured ceases to be a contractor the date any benefit becomes payable for the person insured under the GL policy the person insured no longer meets the eligibility criteria you do not pay the premium for the person insured when due when the person insured is on unpaid leave as described under Unpaid leave or employed/travels overseas as described under Cover during overseas employment and travel for longer than the period of time that we have agreed to provide cover the person insured makes a fraudulent claim the date the policy is terminated, or when the policy ends. In addition to the above, the following also applies under superannuation policies: in the case of the person insured directing the employer to remit all or part of their employer superannuation contributions to a superannuation fund other than the fund through which cover is provided under the policy, cover will cease on the date the first contribution has been remitted to the person insured s fund of choice (unless all premiums are fully funded by the employer and paid in addition to SG contributions). In some circumstances extended cover may apply. The policy owner can end the policy The policy owner can end the policy by giving us one month s written notice on their company letterhead, or we can agree on an earlier time in writing. We can end the policy We can end the policy, or cover in respect of a person insured, by giving you one month s written notice, as soon as any of the following happens: the annual premium falls below the minimum annual premium the number of persons insured falls below the minimum number of persons insured we are not provided, within 30 days of us advising you in writing, with all of the information we need to verify cover for a person insured and premiums paid or payable you do not pay the relevant premium or any adjustment premiums within 45 days of the due date less than 75% of eligible persons are covered under the policy, or you do not provide any other information we require to operate the policy effectively. You must inform the persons insured of the notice to terminate as soon as possible, but in any event within 10 working days of receipt of our written notice to you. 9

12 Group Salary Continuance Policy: a snapshot This section forms part of the PDS for GSC and should be considered in conjunction with the Additional information Group Life and Group Salary Continuance section, the Trauma definitions section and the Definitions section. GSC provides persons insured with a replacement income stream of up to a maximum of 75% of $480,000 pa of income (as defined under the policy) plus an employer superannuation contribution benefit (if applicable), if they are unable to work due to sickness or injury. GSC is designed to help pay for day-to-day living expenses such as food, utility bills, rent or home maintenance costs, mortgage or other debt repayments, while a person insured is not earning an income due to sickness or injury. GSC benefits and options The table below provides a summary of the cover available: Benefit Benefit description Superannuation Non-superannuation Total disability benefit Partial disability benefit Extended cover Provides a benefit if the person insured is unable to work due to sickness or injury. Pays a benefit if the person insured can only work in a reduced capacity due to sickness or injury after 14 consecutive days of total disablement. Provides cover where a person insured leaves employment with the employer and ceases to be eligible for cover under the policy. Death benefit Pays a lump-sum benefit upon death. Recurrent disability benefit Interim cover Guaranteed renewable contract 24 hour worldwide cover Employer superannuation contribution benefit We will continue to pay a benefit where a person insured returns to work and there is a recurrence of the disability. Provides a benefit while a person insured or an eligible person is being underwritten. Provided the premiums are paid and the terms and conditions of the policy are met, we guarantee to renew the policy each year. Cover for a person insured is provided 24 hours a day depending on the circumstances of overseas travel. Provides a benefit to cover the cost of employer superannuation contributions payable in respect of a person insured for whom we are paying you a monthly benefit. No 10

13 The GSC policy also provides the following options at an additional cost: Benefit Benefit description Superannuation Non-superannuation Continuation option Escalation benefit Nursing care benefit Family carer benefit Trauma benefit Allows persons insured who leave employment and cease to be eligible for cover under your Group Insurance policy to continue their cover under a personal Income Protection plan. The monthly benefit amount will increase each year by the lower of the annual percentage increase in the CPI or the policy escalation percentage (5% or 7.5%). Provides a benefit where a daily amount is paid for up to the length of the waiting period, subject to a maximum of 90 days, to help with nursing expenses where the person insured requires the continuous full-time care of a registered nurse. Provides a benefit if a person insured s family member stops earning all of their own income because the family member stops working in order to care for the person insured who is totally disabled. Provides a benefit if a person insured suffers a specific sickness or injury, after cover first commences for the person insured, for the period set out in the respective tables, or the benefit period, whichever is the lesser, and no waiting period will apply. No No No 11

14 Group Salary Continuance Policy: the detail The policy GSC provides a total disability benefit if a person insured meets the definition of totally disabled and is unable to work due to sickness or injury after the waiting period. It also provides a partial disability benefit if a person insured meets the definition of partial disablement and has a reduced capacity to work due to sickness or injury after the waiting period. Available under the policy is a range of waiting periods and benefit periods that enable you to tailor your costs and the cover provided under the policy. GSC policies can either be related to a superannuation product (superannuation policy), where a superannuation trustee owns the policy or a non-superannuation policy (ordinary policy) where an employer (or like entity) owns the policy. Premiums for non-superannuation policies are paid into our No. 1 Statutory Fund. Premiums for superannuation policies are paid into our No. 4 Statutory Fund. The policy has no cash surrender value and neither you, nor a person insured, have access to ownership or any rights over the assets of the applicable statutory fund. Who can become a person insured? A person can become a person insured if they satisfy the eligibility criteria for cover under the policy, which you set (and we agreed), and the person is: a full-time permanent employee, or a contractor. To be eligible for a benefit a contractor must have worked an average of 15 hours or more per week over a period of three consecutive months up to the date they became totally disabled, partially disabled or suffered a listed specific sickness or specific injury, if applicable. If a contractor has worked for a period of less than three consecutive months, the contractor will still be eligible for a benefit, provided they worked an average of 15 hours or more per week from the date the contract with the employer commenced to the date they became totally disabled, partially disabled or suffered a listed specific sickness or specific injury. The person must also be: aged 15 years or more, but less than age 65, on the day they were first eligible for cover, and an Australian resident. Cover will be granted in one of three ways: 1. The automatic acceptance terms. 2. The transfer terms, or 3. The underwriting terms. For further information on automatic acceptance terms, transfer terms and underwriting terms, please refer to the Additional information Group Life and Group Salary Continuance section of this PDS. Availability of cover Entry age Maximum expiry age Minimum number of persons insured per policy Minimum annual premium (excluding stamp duty) Maximum sum insured 75% of $480,000 pa income. Cover up to $50,000 per month is available in some circumstances. (i) Exclusive of stamp duty and commission. Total disability benefit 15th to 65th birthday 65th birthday 10 $10,000 pa (i) $30,000 per month If we assess a person insured as totally disabled, we will pay the total disability benefit from the end of the waiting period. Totally disabled means: i. If the policy includes the any occupation version the following applies: A person insured is totally disabled if, because of an injury or sickness: a. For the first two years of a claim they are: not capable of doing the important duties of their regular occupation not working in any occupation (whether paid or unpaid), and under medical care. b. After the first two years of a claim, because of the same injury or sickness, is: not capable of performing any occupation (whether paid or unpaid) for which they are reasonably suited by education, training or experience not working in any occupation (whether paid or unpaid), and under medical care. 12

15 ii. If the policy includes the own occupation version, the following applies: A person insured is totally disabled if, because of an injury or sickness, they are: not capable of doing the important duties of their regular occupation not working in any occupation (whether paid or unpaid), and under medical care. If a person insured is totally disabled, we will pay you a benefit. We will pay at the end of each month until the earliest of the events described under When benefits for a person insured stops. We don t start paying as soon as the person insured is disabled. You have to wait until the end of the waiting period. The waiting period starts when a medical practitioner, after examining the person insured for the relevant sickness or injury, certifies that they are totally disabled. We do not pay a benefit for total disability for any period of time during the waiting period. The benefit period begins from the end of the waiting period. The amount of the total disability benefit The total disability benefit is paid to you at the end of each month in which you are entitled to be paid. For part of a month, we pay you 1/30th of the monthly benefit for each day you are entitled to be paid the total disability benefit under the policy. The amount of the benefit will be: the monthly benefit, plus the employer superannuation contribution benefit (if any), less any offset. Partial disability benefit If, after at least 14 consecutive days of total disability (even if during the waiting period), the person insured s health improves, but they are partially disabled, after the waiting period, we will pay a reduced benefit. Payments however will not commence until after the waiting period. The amount we pay is worked out by applying the formula: A B A x C less offset Where: A equals the person insured s income at the benefit calculation date. B is the person insured s actual disability salary (from any source) during the month in which they are partially disabled. If this amount is a loss, then B will equal zero. C is the benefit amount which would otherwise be payable on total disablement, as may be varied in accordance with the policy provisions. Maximum benefits and other information The benefit will be subject to the maximum benefit and any underwriting terms, if applicable. Where the maximum benefit amount is greater than $30,000 per month, after a person insured has received a benefit for two years, the maximum benefit amount will be reduced to $30,000 per month for the remainder of the benefit period for that claim. In the event that we are by law required to pay any tax, duty or impost in connection with the benefit payable to you, we will deduct the amount concerned from the benefit and pay it to the proper authority. The meaning of total disablement depends on which definition of total disability the person insured has under the policy. The definition of total disablement may vary in respect of each particular category of persons insured. Extended cover Extended cover is only available to non-superannuation policies. If a person insured is no longer eligible for cover because they have left their employer and: the person insured did not cease work with the employer for reasons of injury or sickness, and we are not paying you, or you are not entitled to a benefit under the policy for the person insured, then we will automatically provide, free of charge, cover to the person insured for total disability, partial disability or a listed specific sickness or specific injury, if applicable, that is solely caused by accidental injury. This is referred to as extended cover. Extended cover stops on the earlier of: 60 days after cover would have otherwise stopped the date the person insured attains the cover expiry age the date the person insured commences employment with a new employer the date the person insured makes a fraudulent claim, or the date a personal Income Protection plan issued by us under a continuation option commences in respect of the person insured. Death benefit If a person insured dies before the cover expiry age and we are paying you a benefit as at the date of death for that person insured because they are totally disabled, or if we have been paying a Trauma benefit for at least 30 days as a result of a listed specific sickness or specific injury, then subject to the terms of the policy we will pay you a lump-sum amount equal to three months benefit for total disability. 13

16 Recurrent disablement benefit If, following a payment for a disability claim for a person insured, they return to their usual pre-disability duties and work hours and a recurrence of total or partial disability for the same or related cause occurs within six months of the last period of disablement, we will treat this as a continuation of the earlier claim and will pay until the balance of the remaining benefit period (if any). The waiting period will not apply again in this instance. However, if the person insured returns to their usual pre disability duties and work hours for at least six months, and is not in receipt of and/or not entitled to claim income support benefits from any source, we will treat this as a separate claim and the waiting period and benefit period will start again. Interim accidental injury cover If underwriting terms apply to an eligible person or a person insured because: automatic acceptance terms do not apply the benefit exceeds the automatic acceptance limit or the further underwriting limit, or they have applied for voluntary insurance or a voluntary increase to their insurance, then we will provide them with interim cover for total disability caused by accidental injury which lasts for at least the length of the waiting period. Interim cover starts from the date we receive the written application, in the form approved by us, for all, or the relevant part of, the benefit which is subject to underwriting terms, in respect of the person insured or eligible person. The amount of benefit provided is the amount of benefit applied for, up to a maximum amount of $10,000 per month. The maximum benefit period under interim accidental injury cover for a person insured or eligible person is two years. Interim accidental injury cover automatically ends as soon as one of the following happens: we accept or limit the application for the benefit which is subject to underwriting terms 20 business days after we decline the application for the benefit which is subject to underwriting terms you, the person insured or the eligible person withdraws the application for the benefit which is subject to underwriting terms 60 days pass from the date interim accidental injury cover commenced, or cover stops due to any of the events listed in When cover for a person insured stops occurring. In all other ways, the conditions of the policy apply to interim accidental injury cover, including the continued payment of premiums. Worldwide cover Cover for a person insured is available 24 hours a day, anywhere in the world, subject to the conditions outlined under Cover during overseas employment and travel. Employer superannuation contributions benefit If elected by you as a feature of the policy, the employer superannuation contributions benefit will be paid in the event of total disability, partial disability or a listed specific sickness or specific injury, if applicable. It is paid in addition to the monthly benefit, subject to the maximum sum insured. This benefit is to cover the cost of employer superannuation contributions payable in respect of the person insured. Upon receipt of a benefit you must ensure that the part of the benefit which comprises the employer superannuation contributions benefit, if any, is paid by you, for the person insured, to a complying superannuation fund under the Superannuation Industry (Supervision) Act 1993, as amended. The employer superannuation contributions benefit will stop on the date that the earlier of the following occurs: the person insured s employment with their employer ceases, or when they are no longer a member of a complying superannuation fund under the Superannuation Industry (Supervision) Act 1993, as amended. Maximum monthly benefit The maximum monthly benefit we will pay including the employer superannuation contribution benefit is $30,000. In some circumstances, we will agree to higher amounts of up to $50,000. Optional benefits You can elect further protection, at an additional cost, through the options listed below. Some of these optional extras are not available to superannuation policies. The options are: Cover to age 70 benefit Escalation benefit Continuation option Nursing care benefit Family carer benefit Trauma benefit. 14