At a glance Lump Sum Protection Protecting your future to make the most out of life. INFORMATION FOR ADVISERS P R O T E C T I O N F I R S T
Why Protection? With Protectionfirst you have peace of mind knowing that you and your family will be financially secure and protected in the event of any unforeseen situations occurring during your lifetime. Our Life and Recovery Money policies pay a lump sum benefit to you or your loved ones. If you are unable to work because of injury or illness, our Income Protection policies can pay you a percentage of your regular income. About MLC Founded as a life insurance business for miners during the gold rush of 1887, MLC has become one of Australia s iconic brands. As the wealth management division of the National Australia Bank we provide investment, super, insurance and private wealth solutions to over 1.5 million people. We re also proud to have been voted Australia s Life Insurance Company of the year in 2009 for the fourth time in six years * and Australia s number one major financial advice group ** for the past two years running. Looking after our customers interests and delivering value in the communities in which we operate has always been at the heart of what we do. We are proud to be one of the most stable and innovative life insurance, investments and superannuation companies in Australia, and together with your financial adviser, we are passionate about providing you with financial prosperity and security. * Australian and New Zealand Institute of Insurance ** CoreData, awarded to MLC/Garvan financial planning network 2
Protection Life Protection for the people you love most Life is short. Too short. So you want to make sure you protect the people that matter most while you can. With Protection Life, not only are your loved ones protected in the unforeseen event you lose your life, but you can also be covered if you suffer from a terminal illness. Protection Life provides a lump sum if you: lose your life, or become terminally ill, or become totally and permanently disabled (optional at additional cost) Benefits of life insurance with Protectionfirst receive an advanced benefit payment if you become terminally ill 1 take care of your family financially if you lose your life enjoy automatic annual increases in your cover in line with inflation 2 enjoy automatic renewal of your policy until it expires (providing you continue to pay premiums) increase your cover when significant events happen e.g. marriage (known as Future Insurability ) 3 freeze your premiums after your 30th birthday (known as the Economiser Option ) 4 we ll automatically upgrade your policy if the policy improves (known as Upgrade Guarantee ) subject to there being no change in relevant premium rates option to hold your policy with superannuation, which may allow the premium to be tax deductible receive up to $10,000 as an advance payment to meet your funeral costs be automatically protected whilst we consider your application (known as Interim Cover ) receive up to $2,000 towards preparation of a financial plan (know as Financial Planning Benefit ) Extra benefits for extra protection For an additional cost you can choose these options: 1. receive a lump sum if you become totally and permanently disabled (known as Disability Benefit or TPD ) 2. waive your premiums if you become retrenched or totally disabled (known as Waiver of Premium ) 3. insure yourself for an additional amount should you lose your life as a result of an accident (known as Accident Death Benefit ) 4. increase death and/or disability cover yearly to reflect your revised business value (known as Business Protection Option ) 5. re-purchase insurance for loss of life after a TPD claim (known as Disability Buy Back ) 6. protect up to five children or grandchildren under age 16 by insuring each of them for up to a maximum of $200,000 if they become critically ill or lose their life 5 (known as Child Critical Illness Benefit ) 7. extend your cover and receive an additional benefit should you be unable to perform daily living activities (known as Activities of Daily Living ) 1 As defined in the policy terms and conditions. 2 Minimum CPI is 5% p.a. 3 Conditions apply. 4 Fixing the premium will result in a reduction to your level of cover. 5 The child must be at least two years old. 3
Protection Life (continued) How much cover can you apply for? Insurance for loss of life (including terminal illness): There are no limits to death cover. Insurance if you become totally and permanently disabled (optional at additional cost): Apply for up to $5,000,000 1 What if? A case study Richard, aged 39, is a self employed IT consultant earning $84,000 per annum. Charlotte, aged 35, is not employed as she has stopped working to raise their three children aged 8, 6 and 3. Their home has a mortgage of $410,000 and they have just put a deposit on a holiday house in Noosa to spend their Christmas holidays in each year. If Richard were to die, an appropriate amount of life insurance would cover such things as debt repayment in full on both properties, every day living expenses for Charlotte and the children, childcare expenses if Charlotte were to go back to work, as well as the cost of the children s ongoing education. something happened to Charlotte? Richard is not the only person who needs cover. In the event of Charlotte s death or disablement, it s unlikely that Richard could stop work without sacrificing some or all of his current income. He may potentially have to look after the children himself or pay for additional childcare expenses. Sufficient protection for Charlotte is vital for the continual management of the family household in the event of her death or disablement. But what would happen if Richard becomes totally and permanently disabled? If Richard had a serious accident and was paralysed, or became severely handicapped, Total and Permanent Disability (TPD) cover would allow Charlotte to meet some of the costs of providing Richard with the medical attention he needed. It would also allow Charlotte and Richard to make the necessary modifications to their home to make life easier for Richard. Richard suffers a Critical Illness? If Richard had a heart attack and had to undergo bypass surgery and was unable to return to work for seven months, Critical Illness cover can help meet the medical expenses and Richard s foregone income. Richard dies? If Richard were to die without adequate life insurance, most likely Charlotte would not be financially secure. She would need to return to work to continue mortgage repayments, pay for the children s education and finance everyday living expenses. The right level of protection will ensure Charlotte and the children are financially secure and have adequate funds to continue life as they know it. If Richard dies in an accident and he has purchased the Accident Death Benefit option with his Protectionfirst Life policy, his estate could receive an additional $1,000,000. The above information is prepared by MLC Limited ABN 90 000 000 402 AFSL 230694. The information is general in nature and does not take into account your particular objectives, financial situation or needs. The facts in this case study are fictional. Any similarity of this case study to your personal financial situation is coincidental. It is recommended that you seek professional advice before acting on any information contained within this document. 1 For any TPD amount above $3 million, the Activities of Daily Living definition will apply. 4
Protection Recovery Money Protect everyone who is important to you With Protection Recovery Money not only are you insured for up to 37 illnesses ranging from cancer to major burns but you re also covered for loss of life. You even have the option to upgrade your cover for disability. You can relax knowing that should the worst happen to you, you re covered. Protection Recovery Money provides a lump sum if you: become critically ill, or become terminally ill, # or lose your life, # or become totally and permanently disabled (optional at additional cost) # Under the associated Protection Life policy. Benefits of Recovery Money receive automatic, no questions asked $10,000 cover for your dependant child 1 in the event they suffer a defined Critical Illness or lose their life (known as Child Support Benefit ) receive up to $10,000 as an advance payment to meet your funeral costs receive an advance death benefit payment if you become terminally ill 2 enjoy automatic annual increases in your cover in line with inflation 3 enjoy automatic renewal of your policy until it expires (providing you continue to pay premiums) increase your cover when significant events happen e.g. marriage (known as Future Insurability ) 4 also increase your Critical Illness cover when a significant event such as the above occurs (known as Future Insurability Critical Illness ) freeze your premiums after your 30th birthday (known as the Economiser Option ) 5 we ll automatically upgrade your policy if the policy improves (known as Upgrade Guarantee ) subject to there being no change in relevant premium rates be automatically protected whilst we consider your application (known as Interim Cover ) receive up to $2,000 towards preparation of a financial plan (known as Financial Planning Benefit ) Extra benefits for extra protection For an additional cost you can choose these options: 1. waive your premiums if you become retrenched or become totally disabled (known as Waiver of Premium ) 2. peace of mind with the ability to reinstate 100% of your Critical Illness cover after a Critical Illness claim (known as Critical Illness Reinstatement ) 3. insure yourself for an additional amount should you lose your life as a result of an accident (known as Accident Death Benefit ) 4. protect up to five children or grandchildren under age 16 by insuring each of them for up to a maximum of $200,000 if they become critically ill or lose their life 6 (known as Child Critical Illness Benefit ) 5. severe illness if you are under age 70 and insured for over $100,000 for Critical Illness, we will make an advance one-off partial payment if you are diagnosed with a certain illness or suffer certain injuries e.g. Severe Osteoporosis (known as Severe Illness Benefit ) 6. protection against occupationally acquired Hepatitis B and C is available for all occupations up to $500,000 1 Conditions apply or available only where Critical Illness cover is $100,000 or greater. 2 Terminal illness is when you are diagnosed as likely to lose your life within 12 months. 3 Minimum CPI is 5% p.a. 4 Conditions apply. 5 Fixing the premium will result in a reduction to your level of cover. 6 The child must be at least two years old. 5
Protection Recovery Money (continued) 7. increase death and/or disability and/or Critical Illness cover yearly to reflect your revised business value (known as Business Protection Option ) 8. extend your cover and receive an additional benefit should you be unable to perform daily living activities (known as Activities of Daily Living ) How much cover can you apply for? Insurance if you become critically ill: Apply for up to $2,000,000. Insurance for loss of life (including terminal illness): There are no limits to death cover. Insurance if you become totally and permanently disabled (optional at additional cost): Apply for up to $5,000,000. 1 What Makes Protec tionfir st Stand Out? Protectionfirst took care of us when we needed them most When Peter had open heart surgery it was also devastating for his wife Emma, but not as devastating as it could have been because after he had been paid his Critical Illness benefit he could still buy back his Protectionfirst cover. Insurance is important Even though I m better now, I m still open to other risks, said Peter. When something like this happens to you, you realise the importance of insurance even more. The above information is prepared by MLC Limited ABN 90 000 000 402 AFSL 230694. The information is general in nature and does not take into account your particular objectives, financial situation or needs. The facts in this case study are fictional. Any similarity of this case study to your personal financial situation is coincidental. It is recommended that you seek professional advice before acting on any information contained within this document. Be prepared Emma wholeheartedly agreed. We added the Buy Back Option when we signed up for Peter s policy. After payment of the Critical Illness benefit, our financial adviser gave us a call and asked if we wanted Peter s policy for loss of his life. We couldn t believe it. We can still benefit from having insurance. 1 For any TPD amount above $3 million, the Activities of Daily Living definition will apply. 6
Protection Flexible Recovery Money Protect yourself and the people in your life There are always a few bumps in life. Often when we least expect it. With Protection Flexible Recovery Money in conjunction with Life cover, not only are you insured for up to 37 illnesses ranging from cancer to heart attacks but you re also covered for loss of life. You even have the option to pay some of your premiums using your super contributions to save tax. You can t get more flexible than that! Protection Flexible Recovery Money provides a lump sum if you: become critically ill, or become terminally ill, # or lose your life, # or become totally and permanently disabled (optional at additional cost) # Under the associated Protection Life policy. Benefits of Flexible Recovery Money receive automatic, no questions asked $10,000 cover for your dependant child 1 in the event they suffer a defined Critical Illness or lose their life (known as Child Support Benefit ) receive up to $10,000 as an advance payment to meet your funeral costs 2 receive an advanced death benefit payment if you become terminally ill 2,3 enjoy automatic annual increases in your cover in line with inflation 4 enjoy automatic renewal of your policy until it expires (providing you continue to pay premiums) increase your cover when significant events happen e.g. marriage (known as Future Insurability ) 2,5 freeze your premiums after your 30th birthday (known as the Economiser Option ) 6 we ll automatically upgrade your policy if the policy improves (known as Upgrade Guarantee ) subject to there being no change in relevant premium rates hold your Critical Illness cover outside of your super, with your life and TPD cover within super under the associated Protectionfirst Life Protection policy be automatically protected whilst we consider your application (known Interim Cover ) receive up to $2,000 towards preparation of a financial plan (known as Financial Planning Benefit ) Extra benefits for extra protection For an additional cost you can choose these options: 1. protection against occupationally acquired Hepatitis B and C is available for all occupations up to $500,000 2. waive your premiums if you become retrenched or become totally disabled (known as Waiver of Premium ) 3. protect up to five children or grandchildren under age 16 by insuring each of them for up to a maximum of $200,000 if they become critically ill or lose their life 1 (known as Child Critical Illness Benefit ) 1 The child must be at least two years old. Conditions apply or available only where Critical Illness cover is $100,000 or greater. 2 Under the associated Protection Life policy 3 Terminal illness is when you are likely to lose your life within 12 months. 4 Minimum CPI is 5% p.a. 5 Conditions apply. 6 Fixing the premium will result in a reduction to your level of cover. 7
Protection Flexible Recovery Money (continued) 4. increase death and/or disability and/or Critical Illness cover yearly to reflect your revised business value (known as Business Protection Option ) 5. re-purchase insurance for loss of life (known as Disability Buy Back or Critical Illness Buy Back ) or 100% of your Critical Illness insurance (known as Critical Illness Reinstatement ) after a claim 6. severe illness if you are under age 70 and insured for over $100,000 for Critical Illness, we will make a one-off partial payment if you are diagnosed with a certain illness or suffer certain injuries eg. Severe Rheumatoid Arthritis (known as Severe Illness Benefit ) 7. extend your care and receive an additional benefit should you be unable to perform daily living activities (known as Activities of Daily Living ) How much cover can you apply for? Insurance if you become critically ill: Apply for up to $2,000,000. Insurance for loss of life (including terminal illness) 1 : There are no limits to death cover. Insurance if you become totally and permanently disabled (optional at additional cost): Apply for up to $5,000,000. 2 TIP: This policy can only be held in conjunction with an approved Protection Life policy. What makes Protectionfirst stand out? You can insure up to five children or grandchildren for a defined Critical Illness. This is known as the Child Critical Illness Benefit. 1 Under the associated Protection Life policy. 2 For any TPD amount above $3 million, the Activities of Daily living definition will apply. 8
Protection Stand Alone Recovery Money Protection for whatever is around the corner Protection Stand Alone Recovery Money provides a lump sum if you: become critically ill, or become totally and permanently disabled Sometimes we all need peace of mind. Protection Stand Alone Recovery Money is an extra level of insurance that can cover you for up to 37 illnesses ranging from cancer to heart attacks. You can even insure yourself for total and permanent disability. Benefits of Stand Alone Recovery Money pays a lump sum of $5,000 if you lose your life (known as Death Benefit ) receive up to $2,000 towards preparation of a financial plan (known as Financial Planning Benefit ) receive automatic, no questions asked $10,000 cover for your dependant child 1 in the event they suffer a defined Critical Illness or lose their life (known as Child Support Benefit ) enjoy automatic annual increases in your cover in line with inflation 2 enjoy automatic renewal of your policy until it expires (providing you continue to pay premiums) increase your Critical Illness cover when significant events happen, e.g. marriage (known as Future Insurability Critical Illness ) 3 freeze your premiums after your 30th birthday (known as the Economiser Option ) 4 we ll automatically upgrade your policy if the policy improves (known as Upgrade Guarantee ) subject to there being no change in relevant premium rates be automatically protected whilst we consider your application (known as Interim Cover ) Extra benefits for extra protection For an additional cost you can choose these options: 1. re-purchase 100% of your Critical Illness insurance (known as Critical Illness Reinstatement ) 2. protect up to five children or grandchildren under age 16 by insuring each of them for up to a maximum of $200,000 if they become critically ill or lose their life 5 (known as Child Critical Illness Benefit ) 3. protection if you become totally and permanently disabled (known as Disability Benefit ) 4. severe illness if you are under age 70 and insured for over $100,000 for Critical Illness, we will make a one-off partial payment if you are diagnosed with a certain illness or suffer certain injuries eg. Severe Rheumatoid Arthritis (known as Severe Illness Benefit ) 5. increase disability and/or or Critical Illness cover (if you have a business) yearly to reflect your revised business value (known as Business Protection Option ) 6. waive your premiums if you become retrenched or become totally disabled (known as Waiver of Premium ) 7. protection against occupationally acquired Hepatitis B and C available for all occupations up to $500,000 1 Conditions apply or available only where Critical Illness cover is $100,000 or greater. 2 Minimum CPI is 5% p.a. 3 Conditions apply. 4 Fixing the premium will result in a reduction to your level of cover. 5 The child must be at least two years old. 9
Protection Stand Alone Recovery Money (continued) How much cover can you apply for? Insurance if you become critically ill: Apply for up to $2,000,000. Insurance if you become totally and permanently disabled (optional at additional cost): Apply for up to $3,000,000. 10
To find out more, talk to your financial adviser. Disclaimer: This document is issued by MLC Limited ABN 90 000 000 402 AFSL 230694. The information in this document is general in nature and does not take into account your particular objectives, financial situation or needs. Before making a decision to acquire or dispose of a financial service product you should consider the relevant Product Disclosure Statement (PDS) and consider whether it is appropriate for your particular objectives, financial situation or needs. Applications to obtain insurance under Protectionfirst must be made by completing the application form attached to the Protectionfirst PDS which is available from your financial adviser or from mlc.com.au The above information is current as at the date of publication. While every attempt has been made to ensure the accuracy and reliability of the information, it is not guaranteed in any way. Issue date: October 2010 MLC_AV774U_1010 MLC Limited ABN 90 000 000 402 AFSL 230694 GPO Box 2567W Melbourne VIC 3001 Client Services 1300 428 482 Fax 03 9820 1534 mlc.com.au NULIS Nominees (Australia) Limited ABN 80 008 515 633 AFSL 236465 MLCS Superannuation Trust ABN 31 919 182 354 11
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