BT Protection Plans Reserve - Reference Document - BT Insurance - LifeCENTRAL
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BT Protection Plans Reserve Reference Document EFFECTIVE DATE: 1 MAY 2020 BT Insurance
Contents
1. Welcome to BT Protection Plans Reserve 3
2. BT Reserve TPD Benefit 7
3. BT Reserve Living Benefit 9
4. BT Reserve Income protection 11
5. Medical Glossary for BT Reserve Living Benefit 13
6. Definitions for BT Reserve 15
Who’s responsible for BT Protection Plans Reserve? You can take out a BT Protection Plans Reserve Policy through
The Insurer is Westpac Life Insurance Services Limited a superannuation fund if the Insurer has a current arrangement
ABN 31 003 149 157, AFSL Number 233728 with the trustee of the superannuation fund. Trustees with
whom the Insurer currently has an arrangement to provide
The issuer for all the products described in this Reference insurance benefits for the members of the relevant
Document, except for Term Life as Superannuation (USI superannuation fund are:
81 236 903 448 001) and Income Protection as
Superannuation (USI 81 236 903 448 004), is the Insurer. – BT Funds Management Limited ABN 63 002 916 458,
For Term Life as Superannuation and Income Protection as AFSL Number 233724, RSE License Number L0001090
Superannuation (part of the Retirement Wrap ABN 39 827 542, (BTFM); and
RSE License Number L0001327), the issuer is BT Funds – CCSL Limited ABN 51 104 967 964, AFSL Number 287084,
Management Limited ABN 63 002 916 458, AFSL Number RSE License Number L0000758 (CCSL).
233724, RSE Licence Number L0001090 (BTFM).
ACML, BTPS, and CCSL have given and not withdrawn their
The trustee of Retirement Wrap is BTFM. consent to the Reference Document containing information
The arranger of Policies paid via Platform Super for the referable to them in the form and context in which the
information appears. Neither ACML, BTPS, and CCSL has
Asgard Platform, including badged arrangements, is Asgard
issued or caused the issue of the Reference Document and is
Capital Management Limited ABN 92 009 279 592, AFSL
not responsible for any statements in the Reference Document
Number 240695 (ACML). The arranger of Policies paid via
which are not referable to them.
Wrap and SuperWrap, Panorama Investments and Panorama
Super is BT Portfolio Services Ltd ABN 73 095 055 208, The information in this Reference Document does not take into
AFSL Number 233715 (BTPS). account your financial situation, objectives or needs. Before
acting on any information contained in this Reference
This Reference Document is issued by the Insurer and BTFM.
Document, you should consider whether it is appropriate to
The Insurer and BTFM take full responsibility for the whole of
your financial situation, objectives or needs.
this Reference Document. The Insurer and BTFM are wholly
owned subsidiaries of Westpac Banking Corporation You should obtain and consider the BT Protection Plans
ABN 33 007 457 141 (‘the Bank’). None of the BT Protection Product Disclosure Statement and Policy Document (BTPP
Plans, an interest in the Retirement Wrap or another Super PDS) before deciding whether to acquire or continue to hold
Fund, nor an investment in Panorama Investments or Wrap, or dispose of a BT Protection Plans Reserve (BT Reserve)
are an investment in, deposit with or other liability of the Bank. Policy. For a copy, free of charge, go to bt.com.au or call
1300 553 764 between 8am and 6:30pm, Monday to Friday
Neither the Bank nor any member of the Westpac Group
(Sydney time).
(other than the Insurer) guarantees the benefits payable in
relation to BT Protection Plans.
21. Welcome to BT Protection Plans Reserve
This document summarises the terms and conditions for BT Protection Plans Reserve
(BT Reserve). BT Reserve provides cover in excess of that available under the
BT Protection Plans Product Disclosure Statement and Policy Document (BTPP PDS)
dated 1 May 2020.
For benefits provided under BT Protection Plans, the terms and conditions as set out in the BTPP PDS are applicable. The
terms and conditions contained in this document apply to the additional cover provided under BT Reserve. Please note
that BT Reserve, whilst enabling higher amounts of cover, does have restrictions on the ability to claim that do not apply to
benefits under BT Protection Plans (as outlined in the BTPP PDS). It is important that you read this document and
understand the differences and the restrictions.
Please note that the ‘BT Protection Plans Reserve’ is an insurance product and not an investment product. Therefore, the
mention of ‘Reserve’ in its title does not refer to or imply that it holds the types of financial reserves established to fulfill
legislative and regulatory requirements for investment products.
Defined terms
In this document, you will notice the use of terms and expressions which have a particular meaning as set out below.
Term Meaning
‘We’, ‘us’, and ‘our’ The Insurer
Policy Owner The person (or entity) shown as the Policy Owner in the policy schedule or membership certificate. For
Policies held inside superannuation, the Policy Owner is the trustee of the superannuation fund.
Insured Person The person whose life is insured, or the life to be insured. The name of each Insured Person is set out in
the policy schedule or membership certificate under the heading, Insured Person.
‘You’ and ‘your’ The Insured Person for all Policies paid through a Super Fund, and for all other Policies means the
Policy Owner.
Policy For policies held inside superannuation, the cover as provided under the contract of insurance between
us and the trustee of the superannuation fund; and for all other cover, the contract of insurance with us.
As you read on, you’ll notice that some words are in italics. In this document these words have a particular meaning which can
be found in the Definitions for BT Reserve section, comprising the defined term in bold followed by the definitional wording.
As you would expect in an insurance document, you’ll also find quite a few medical terms. These are explained in the
Medical Glossary for BT Reserve.
3What cover is available under BT Reserve?
The table below sets out the cover available under BT Protection Plans (as outlined in the BTPP PDS), and illustrates the
amount covered under BT Reserve terms and conditions. Any BT Reserve TPD Benefit and/or BT Reserve Living Benefit
must be an additional benefit on a Term Life Policy, or linked to a Term Life or Term Life as Superannuation Policy through
Flexible Linking Plus. Under BT Reserve and BTPP PDS, the total of the TPD or Living Benefit sum insured cannot exceed
the total Death Benefit sum insured.
Benefit type Death Benefit TPD Benefit Living Benefit Income Protection monthly benefit
Maximum sum Unlimited $5 million $2 million $60,000 per month:
insured you can – $30,000 per month with up to age 70
apply for under benefit period; plus
BTPP PDS
– $30,000 per month with 2 year
benefit period.
Maximum sum Unlimited $15 million1 $10 million1 $60,000 per month:
insured you can – $30,000 per month with up to age 70
apply for under benefit period; plus
BT Reserve
– $30,000 per month with a 5 or 10 year
benefit period.2
BT Reserve N/A Amounts exceeding Amounts exceeding Monthly benefits exceeding $30,000 per
terms and $5 million up to a $2 million up to a month following 2 years on claim.
conditions total TPD Benefit of total Living Benefit of
applicable to: $15 million $10 million
1 Under BT Reserve and BTPP PDS, the total of the TPD or Living Benefit sum insured cannot exceed the total Death Benefit sum insured.
2 Following the expiry of the 5 or 10 year BT Reserve benefit period, the monthly benefit amount reduces to $30,000 per month for the
remainder of the benefit period applicable under the BTPP PDS.
Note: CPI increases and Future Insurability Benefit increases will not be applied to the BT Reserve TPD Benefit or BT Reserve Living Benefit, in
circumstances where the increase would result in the TPD Benefit amount or Living Benefit amount (as relevant), across all policies with the
Insurer, exceeding the above maximums.
Features of BT Reserve cover
Many of the features outlined in the BTPP PDS also apply to BT Reserve including:
– Guaranteed renewability of your cover;
– Guaranteed upgrades applied automatically;
– Worldwide cover — 24 hours a day;
– Premium Holiday;
– CPI increases;
– Multi‑Policy discount; and
– Platform Investment and Platform Super discount.
4BT Reserve modified terms and conditions
BT Reserve provides cover in excess of that available under the BTPP PDS. The following tables outline the terms and
conditions that have been modified from the BTPP PDS for BT Reserve.
TPD Benefit
BT Reserve Modified terms and conditions applying to additional cover under BT Reserve
TPD Benefit BT Reserve TPD Benefits in excess of the $5 million available under the BTPP PDS are
definitions subject to the following definitions:
– TPD Benefit amounts between $5 million and $10 million are restricted to an any
occupation TPD or general cover TPD definition.
– TPD Benefit amounts above $10 million are restricted to a general cover
TPD definition.
CPI increases No CPI increases will be admitted where the TPD Benefit amount, across all definitions
following the increase, will exceed $15 million across all policies with the Insurer.
If a CPI increase would result in the TPD Benefit amount (across all policies with the Insurer)
exceeding $15 million, CPI increases on the TPD Benefit amount under the BTPP PDS will
continue to apply, but no further CPI increases will be applied to the BT Reserve TPD Benefit.
The BT Reserve TPD Benefit amount will be adjusted, so that the total TPD Benefit does not
exceed $15 million.
Built in benefits TPD Continuation Benefit
and features Maximum benefit under continuation option increased to $3 million from $1 million.1
Future Insurability Benefit
No increases will be admitted where the TPD Benefit amount, across all definitions
following the increase, will exceed $15 million across all policies with the Insurer.
Optional When we will not pay
benefits not The following optional benefits are not available:
available
– TPD Buy Back Benefit;
– Double TPD Benefit; and
– Waiver of Life Premium Benefit.
Exclusions When we will not pay
Additional exclusions apply in the event of a claim including, but not limited to, where
the sickness or injury giving rise to the claim was caused by alcohol abuse, alcohol
dependence, drug use, mental illness or fatigue syndromes.
1 Any amounts in excess of $1 million are subject to the BT Reserve terms and conditions.
5Living Benefit
BT Reserve Modified terms and conditions applying to additional cover under BT Reserve
Expiry age For the Living Benefit payable under BT Reserve, the expiry age is reduced from the
review date on or following the Insured Person’s 75th birthday to the review date on or
following the Insured Person’s 70th birthday.
CPI increases No CPI increases will be admitted where the Living Benefit amount following the
increase will exceed $10 million across all policies with the Insurer.
If a CPI increase would result in the Living Benefit amount (across all policies with the Insurer)
exceeding $10 million, CPI increases on the Living Benefit amount under the BTPP PDS will
continue to apply, but no further CPI increases will be applied to the BT Reserve Living
Benefit. The BT Reserve Living Benefit amount will be adjusted, so that the total Living
Benefit does not exceed $10 million.
Built in benefits The following benefit is not available:
and features – Living Buy Back Benefit.
Living Benefit
The number of specified medical events is restricted, and different definitions apply.
Future Insurability Benefit
No increases will be admitted where the Living Benefit amount following the increase
will exceed $10 million across all policies with the Insurer.
Optional The following options are not available:
benefits not – Living Benefit Plus;
available
– Living Reinstatement Benefit; and
– Double Living Benefit.
Exclusions When we will not pay
Additional exclusions apply in the event of a claim, including, but not limited to, where
the specified medical event is caused by or attributed to alcohol abuse, alcohol
dependence, or drug use.
Income protection
BT Reserve Modified terms and conditions applying to additional cover under BT Reserve
Types of insured Indemnity
monthly benefit
available
Limitations and The following limitations and exclusions only apply to benefit amounts exceeding
exclusions $40,000 per month and only after we have paid a benefit for 24 months:
– Additional exclusions apply where the sickness or injury giving rise to the claim was
caused by or attributed to alcohol abuse, alcohol dependence, drug use, mental
illness or fatigue syndromes.
– Additional limitations apply if any amounts are received from any legislated
compensation schemes or Workers Compensation or payments made under
common law relating to sickness or injury.
62. BT Reserve TPD Benefit
The TPD Benefit offered under BT Reserve is available for those who wish to apply for a
TPD Benefit in excess of the $5 million maximum available under the BTPP PDS. Please
speak to your adviser to determine whether you are eligible to apply for a TPD Benefit
under BT Reserve.
2.1 How BT Reserve TPD Benefit Works 2.2 When we will pay
The terms and conditions set out in sections 9 and 10 of We will pay a TPD Benefit if the Insured Person becomes
chapter 2 of the BTPP PDS apply to the first $5 million of totally and permanently disabled while the Policy is in force.
your TPD Benefit, and any CPI increases that accumulate The definitions of total and permanent disability which apply
on this amount over the life of your Policy. to the Insured Person will be shown on the most recent
policy schedule, membership certificate or renewal summary.
The TPD Benefit covered under the BT Reserve terms and
conditions is the benefit amount in excess of the $5 million TPD Benefit TPD Benefit TPD definitions available:
TPD Benefit available under the BTPP PDS up to a maximum sum insured available in:
total TPD Benefit amount of $15 million. This additional cover is
$10 million to BT Reserve General cover TPD
provided on the basis of the following definitions:
$15 million
– For the TPD Benefit between $5 million and $10 million $5 million to BT Reserve Any occupation TPD
(at application), the benefit is provided on an any $10 million or
occupation TPD or general cover TPD definition.
General cover TPD
– For the TPD Benefit exceeding $10 million (at application),
Up to BT Protection Own occupation TPD
the benefit is provided on a general cover TPD definition. $5 million Plans or
Each TPD Benefit definition will be considered as a separate Any occupation TPD
benefit for the purposes of calculating the premium amount. or
General cover TPD
2.3 What we will pay
For total and permanent disability, the amount we will pay is the TPD Benefit shown in the most recent policy schedule,
membership certificate or renewal summary for the Insured Person as at the date of disablement.
If your TPD Benefit is made up of more than one total and permanent disability definition, the Insured Person will need to
satisfy each definition to receive the full TPD Benefit. Each definition will be considered independently and the relevant TPD
Benefit paid where the corresponding definition is satisfied. The amounts of the TPD Benefit covered by each definition will be
shown on your most recent policy schedule, membership certificate or renewal summary.
Example of the BT Reserve TPD Benefit (for illustrative purposes only)
Julian is a qualified accountant and applies for a total TPD Benefit of $13 million, with $5 million taken out as an own
occupation TPD definition under BTPP PDS, $5 million taken out as an any occupation TPD definition under BT Reserve,
and $3 million taken out as a general cover TPD definition under BT Reserve. Julian chooses not to have any CPI
increases on his Policy.
Three years later, Julian lodges a claim.
In order to receive the entirety of his TPD Benefit, he would need to satisfy the following definitions:
– the own occupation TPD definition for the first $5 million;
– the any occupation TPD definition for the second $5 million; and
– the general cover TPD definition for the remaining $3 million.
72.4 When the TPD Benefit changes 2.6 BT Reserve TPD Benefit Exclusions
From the review date on or following the Insured Person’s We will not pay a TPD Benefit offered under BT Reserve:
65th birthday, the TPD Benefit reduces to $3 million across
all Policies issued by us in relation to the Insured Person. To
– if the sickness or injury giving rise to the claim was
caused by an intentional self-inflicted act or attempted
continue the TPD Benefit under an any occupation TPD
suicide (whether sane or insane); or
definition, the Insured Person must meet the eligibility criteria
for the TPD Continuation Benefit (as per section 11 of – if the total and permanent disability is caused directly or
chapter 2 of the BTPP PDS) at each review date. indirectly by or attributed to:
If you do not qualify for a TPD Continuation Benefit (as per – alcohol abuse;
section 11 of chapter 2 of the BTPP PDS), from the review – alcohol dependence;
date on or following the Insured Person’s 65th birthday, the – drug use;
definition of total and permanent disability changes to
– mental illness; or
general cover TPD.
– fatigue syndromes.
If you qualify for the TPD Continuation Benefit, you may
continue your TPD Benefit on an any occupation TPD If we pay a TPD Benefit or Living Benefit under the BTPP
definition up until the review date on or following the Insured PDS that is directly or indirectly caused by or attributed to
Person’s 70th birthday. The amount that can be insured is alcohol abuse, alcohol dependence, drug use, mental illness
the lesser of: or fatigue syndromes, the remaining TPD Benefit with the
any occupation TPD definition offered under BT Reserve will
– five times the Insured Person’s annual earnings; and
be based on the general cover TPD definition and:
– $3 million.
– will only be paid for a sickness or injury that is not directly
If, from the review date on or following the Insured Person’s or indirectly related to the cause of the prior claim under
65th birthday, their annual earnings results in a reduced sum the BTPP PDS for which the TPD Benefit was paid; and
insured which will be less than $3 million, the difference up
to $3 million can be held under a general cover TPD – the Insured Person must satisfy the relevant TPD Benefit
definition. From the review date on or following the Insured definition independently of the cause of the disability for
Person’s 65th birthday, TPD Benefits in excess of $1 million which the prior TPD Benefit claim was paid.
will be considered under BT Reserve. In addition, we will not pay any benefit if the claim was caused
directly or indirectly by an event or condition specifically
2.5 What happens after we pay excluded in your policy schedule or membership certificate.
After we pay a BT Reserve TPD Benefit, we will reduce the
sum insured of every other benefit for the Insured Person 2.7 When the BT Reserve TPD Benefit ends
under the same Policy and every benefit under a linked Your BT Reserve TPD Benefit for an Insured Person
Flexible Linking Plus Policy, by the amount we paid. continues until the earliest of:
If the BT Reserve TPD Benefit is held under a Flexible Linking – the date the Insured Person dies;
Plus Policy, we will also reduce the sum insured of every other
benefit for the Insured Person held under the Flexible Linking – the date we pay the TPD Benefit for the Insured Person;
Plus Policy, and under the linked Term Life or Term Life as – the benefit amount for the Insured Person is reduced to
Superannuation Policy, by the amount we paid. The BTPP PDS zero because we have paid a Super Plus TPD Benefit, a
Living Benefit is reduced before the BT Reserve Living Benefit. Living Benefit or a Terminal Illness Benefit;
If we pay the entire sum insured of the TPD Benefit, the TPD – the date you write and ask us to cancel the benefit for
Benefit in respect of that Insured Person ends. the Insured Person; and
For Term Life and Term Life as Superannuation, if the Death – the date your Policy ends (as set out in section 30 of
Benefit sum insured for the Insured Person is reduced to chapter 2 of the BTPP PDS).
zero because we have paid the entire sum insured of the
TPD Benefit, then the Policy will end.
Continuing on from the example under section 2.3, if
Julian’s claim was assessed and it was determined that
he has only satisfied the own occupation TPD definition,
we would pay the $5 million TPD Benefit with the own
occupation TPD definition. Both the Death Benefit and
TPD Benefit would reduce to $8 million, with the
remaining TPD Benefit consisting of $5 million under an
any occupation TPD definition and $3 million under a
general cover TPD definition. This example is provided
for illustrative purposes only.
83. BT Reserve Living Benefit
The Living Benefit offered under BT Reserve is available for those who wish to apply for
a Living Benefit in excess of the $2 million available under the BTPP PDS. Please speak
to your adviser to determine whether you are eligible to apply for a BT Reserve Living
Benefit. This benefit is not available for Policies held inside superannuation unless Flexible
Linking Plus is selected.
3.1 How BT Reserve Living Benefit works
BT Reserve specified medical events
The terms and conditions set out in sections 13 and 14 of – Cancer (severe) with specified requirements
chapter 2 of the BTPP PDS apply to the first $2 million of – BT Reserve definition#
your Living Benefit, and any CPI increases that accumulate
on this amount over time. – Heart attack (severe) with specified requirements
– BT Reserve definition#
The Living Benefit covered under the BT Reserve terms and – Loss of independent existence – with a specified level
conditions is the benefit amount in excess of the $2 million of impairment
Living Benefit available under the BTPP PDS up to a
maximum total Living Benefit amount of $10 million. – Paralysis
– Stroke (severe) with specified impairment
We will pay the additional BT Reserve Living Benefit if: – BT Reserve definition#
– the Insured Person has a BT Reserve specified medical
event listed in the ‘BT Reserve specified medical events’
table on this page while the Policy is in force; and For the specified medical events marked # (and any treatment,
symptoms or surgery that is attributable to the specified
– a doctor approved by us providing the medical evidence
medical event including treatment that is a specified medical
to support the claim.
event in itself), the benefit for the Insured Person is only
We will only pay a Living Benefit under BT Reserve if we are payable if the BT Reserve specified medical event occurs at
satisfied that the Insured Person meets the full definition of the least 3 months after the latest of the date we receive the
relevant BT Reserve specified medical event, as defined in the completed application form and personal statement (including
Medical Glossary on pages 13 and 14 of this document. all required medical and financial information) for the Policy or
the last reinstatement of the Policy.
3.2 What we will pay If any of the above specified medical events occur within 3
The amount we will pay is the Living Benefit shown in the months of any increase to the benefit for the Insured Person
most recent policy schedule or renewal summary for the (excluding CPI and Loyalty Benefit increases), the increase
Insured Person. The BT Reserve specified medical event will not be payable. The benefit payable will be the amount
definitions for cancer (severe) with specified requirements, that would have applied if no increase had occurred.
heart attack (severe) with specified requirements and stroke
This 3 month exclusion period does not apply to the Policy
(severe) with specified impairment are different to the
if it replaces another similar policy issued by another insurer,
definitions of cancer – excluding specified early stage
or another policy issued by us, and all the following apply:
cancers, heart attack – of specified severity and stroke – of
specified severity for the Living Benefit in the BTPP PDS. The – We were specifically told about the intended replacement
BT Reserve specified medical event definitions are set out in of the other policy and we agreed to issue this Policy on
the Medical Glossary on pages 13 and 14 of this document. the basis that it replaced the other policy.
– The sum insured of the Living Benefit being issued by
Living Benefit Living Benefit is us is the same as, or less than, the existing cover
sum insured available under:
being replaced.1
$2 million to $10 million BT Reserve
– The other policy and equivalent sum insured were
Up to $2 million BT Protection Plans continuously in force for at least 3 months immediately
prior to the issue of this Policy.
– The other policy was cancelled immediately after the
issue of this Policy.
– No claim is pending or payable under the other policy.
1 Where the sum insured of the Living Benefit being issued under this Policy exceeds that of the other policy, this exclusion will apply to the
sum insured in excess of the sum insured in the other policy.
93.4 BT Reserve Living Benefit Exclusions
Example of the BT Reserve Living Benefit
(for illustrative purposes only) We will not pay you a Living Benefit under BT Reserve if:
Kirsten applied for a $7 million Living Benefit. Kirsten – the sickness, injury or surgery giving rise to the claim is
chooses not to have any CPI increases on her Policy. caused directly or indirectly by an intentional self-inflicted
Six years later, Kirsten suffers a heart attack and lodges a act or attempted suicide (whether sane or insane); or
claim. In order to receive the entirety of her Living Benefit, – if the BT Reserve specified medical event is directly or
she would need to satisfy the following definitions: indirectly caused by or attributed to:
– the heart attack – of specified severity definition in the – alcohol abuse;
BTPP PDS for the first $2 million; and – alcohol dependence; or
– the heart attack (severe) with specified requirements – drug use.
– BT Reserve definition on page 13 of this document
for the remaining $5 million. In addition, we will not pay any benefit if the claim was
caused directly or indirectly by an event or condition
Kirsten satisfied the heart attack – of specified severity covered by any exclusion in your policy schedule.
definition in the BTPP PDS, however was unsuccessful
in her claim under the heart attack (severe) with 3.5 When the BT Reserve Living Benefit ends
specified requirements – BT Reserve definition.
The Living Benefit under BT Reserve for an Insured Person
Kirsten was paid $2 million, and the remaining $5 million continues until the earliest of:
Living Benefit under BT Reserve remained in force.
– the date the Insured Person dies;
– the date we pay the Living Benefit for the Insured Person;
3.3 What happens after we pay
– the review date on or following the Insured Person’s
After we pay a Living Benefit under BT Reserve we will 70th birthday;
reduce the sum insured of every other benefit for the
Insured Person under the Policy by the amount we paid. – the benefit amount for the Insured Person is reduced to
If the Living Benefit is held under a Flexible Linking Plus zero because we have paid a TPD Benefit, a Super Plus
Policy, we will also reduce the sum insured of every other TPD Benefit or a Terminal Illness Benefit;
benefit for the Insured Person held under the Flexible
– the date you write and ask us to cancel the benefit for the
Linking Plus Policy, and under the linked Term Life or Term
Insured Person; and
Life as Superannuation Policy, by the amount we paid. The
BTPP PDS TPD Benefit is reduced before the BT Reserve – the date your Policy ends (as set out in section 30 of
TPD Benefit. If a TPD Benefit which is comprised of more chapter 2 of the BTPP PDS).
than one TPD definition is reduced as a result of a Living
Benefit claim, the own occupation TPD amount is reduced
first, followed by the any occupation TPD amount, followed
by any general cover TPD amount. If we pay the entire sum
insured of the Living Benefit, the Living Benefit in respect of
that Insured Person ends.
For Term Life and Term Life as Superannuation, if the Death
Benefit sum insured for the Insured Person is reduced to
zero because we have paid the entire sum insured of the
Living Benefit, then the Policy will end.
104. BT Reserve Income protection
Income Protection, Income Protection as Superannuation and Income Protection Plus
offered under BT Reserve is available for those who wish to apply for an insured monthly
benefit over $30,000 per month with a benefit period of up to 10 years. Please speak to
your adviser to determine whether you are eligible to apply.
4.1 How BT Reserve IP works The benefit will continue to accrue until the earliest of the:
The terms and conditions commencing in section 1 of – date the Insured Person is no longer totally disabled;
chapter 3 of the BTPP PDS apply to the insured monthly – end of your benefit period; and
benefit up to $30,000 and also to the insured monthly
benefit between $30,000 and $60,000 for the first 2 years – date your Policy ends.
of claim plus any CPI or claims escalation that accumulates
The amount of this benefit is reduced by any limitations on
over the life of the Policy.
benefits (see section 31 of chapter 3 of the BTPP PDS).
The terms and conditions for BT Reserve apply to the
insured monthly benefit between $30,000 and $60,000 Partial Disability Benefit
following 2 years of claim payments. Unless otherwise If the Insured Person is partially disabled while covered
specified in this section, all other terms outlined in sections under the Policy, we will pay a monthly Partial Disability
1 and 2 of chapter 3 of the BTPP PDS apply. Benefit after the end of your waiting period.
The monthly Partial Disability Benefit is calculated as follows:
4.2 When we will pay
We will pay a monthly benefit when the Insured Person has
The monthly Total Disability Benefit
satisfied the definition of total disability or partial disability.
x
4.3 What we will pay (Pre-disability monthly earnings – Post-disability
monthly earnings)
The benefit payable will depend on the insured monthly
Pre-disability monthly earnings
benefit and whether the Insured Person is totally disabled or
partially disabled.
The amount of this benefit is reduced by any limitations on
Total Disability Benefit benefits (see section 31 of chapter 3 of the BTPP PDS).
If the Insured Person is totally disabled while covered under
the Policy, we will pay a monthly benefit after the end of
your waiting period. The benefit accrues from the first day of
total disability after the waiting period and is payable
monthly in arrears.
$60,000
Monthly Benefit
BT Reserve
$30,000
BT Protection Plans
2 years 5 years 10 years to age 70
Benefit Period
114.4 Additional BT Reserve IP Limitations 4.6 When does BT Reserve IP end?
The limitations outlined in section 31 of chapter 3 of the Your Policy continues until the earliest of:
BTPP PDS apply to the Income Protection, Income
Protection as Superannuation and Income Protection Plus
– the date we cancel your Policy because you have not
paid your premiums or any other amounts which relate to
benefits offered under BT Reserve.
your Policy;
The following limitation also applies to the insured monthly – the date the Insured Person dies;
benefit in excess of $30,000 (plus CPI increases) after you
have been paid a Total Disability Benefit or Partial Disability
– the date we receive your written notice to end your Policy;
Benefit for 24 months: – the date we cancel or avoid the Policy as a result of an
innocent or fraudulent non‑disclosure and/or
– The Total Disability Benefit or Partial Disability Benefit may misrepresentation made by you or the Insured Person
be reduced or recovered in respect of the Insured Person prior to our acceptance of risk or during making the claim;
if any amounts are received from any legislated
compensation schemes or workers compensation
– the review date on or following the Insured Person’s 65th
birthday; and
schemes or insurance, or under common law or statutory
liability relating to sickness or injury. – for a Policy held through a Platform Investment or
Platform Super account:
4.5 BT Reserve IP Exclusions – the date your cover is cancelled because your account
balance is insufficient to meet the insurance premium
All exclusions set out in section 34 of chapter 3 of the BTPP
deduction or any amounts which relate to the
PDS apply to Income Protection, Income Protection as
Policy; and
Superannuation and Income Protection Plus benefits
offered under BT Reserve. – if the nominated Platform Investment or Platform Super
account is closed, the date the Policy is paid to
In addition, after you have been paid a Total Disability
following closure of the nominated Platform Investment
Benefit or Partial Disability Benefit for 24 months, the
or Platform Super account;
amount we will pay in any month will be reduced so that it
does not exceed $40,000 per month if the total disability or – the date your policy ends as set out in section 30 of
partial disability is directly or indirectly caused by or chapter 2 of the BTPP PDS.
attributed to:
When your Policy ends, any Policy which is linked through
– alcohol abuse; Income Linking Plus will also end.
– alcohol dependence;
No benefit will be payable once a Policy has ended.
– drug use;
– mental illness; or
– fatigue syndromes.
125. Medical Glossary for BT Reserve Living Benefit
This section explains what all of the medical terminology means and how it applies to you.
If the method for diagnosing one of the events in this Medical Heart attack (severe) with specified requirements –
Glossary for BT Reserve Living Benefit has been superseded BT Reserve definition
due to medical improvements, we will consider other Death of heart muscle caused by inadequate blood supply,
appropriate and medically recognised methods or tests that evidenced by typical rise and/or fall of cardiac biomarker
conclusively diagnose the event to at least the same severity. blood tests with at least one of the following:
Activities of daily living a. Acute cardiac symptoms and signs consistent with a
The activities of daily living are: heart attack;
b. New serial electrocardiograph changes associated with
Bathing The ability to shower or bathe.
myocardial infarction; or
Dressing The ability to put on and take off clothing.
c. Imaging evidence of new loss of viable myocardium or
The ability to use the toilet, including getting new regional wall motion abnormality.
Toileting
on or off.
If the above tests are inconclusive or superseded by
The ability to get in and out of bed and
Mobility technological advances, we will consider other appropriate
a chair.
and medically recognised tests in support of a diagnosis.
The ability to control bladder and
Continence In addition to the above being met, we require that the left
bowel function.
ventricular ejection fraction (taken six weeks or more after
The ability to get food from a plate into the event) is 40% or less.
Feeding
the mouth.
The following are specifically excluded:
Cancer (severe) with specified requirements – other acute coronary syndromes, including but not
– BT Reserve definition limited to angina pectoris;
A malignant tumour pathologically confirmed and characterised
by the uncontrolled spread of malignant cells and the invasion of – injury not related to myocardial ischemia;
normal tissue. The following malignant tumours are specifically – acute heart failure;
excluded for the BT Reserve Living Benefit:
– takotsubo cardiomyopathy; and
a. all skin cancers except metastatic squamous cell
carcinomas or melanomas of 2 millimetres or more in – any elective percutaneous procedure for coronary artery
thickness or from 1.5 millimetres up to 2 millimetres in disease, which is the sole cause of a rise in cardiac
thickness with evidence of ulceration; biomarkers.
b. all tumours of the prostate except those histologically
Loss of independent existence – with a specified level
classified as having progressed to at least clinical TNM
of impairment
classification T3N0M0;
As a result of sickness or injury, the Insured Person:
c. breast cancer except where the tumour is greater than 2cm
in size or there is lymph node involvement or metastases; a. has a permanent and irreversible inability to perform,
d. chronic lymphocytic leukaemia except where classified as without assistance, any two of the activities of daily living;
Binet stage C or Rai stages 3 or 4; or
e. Hodgkin’s disease except where classified as stage 3 b. suffers cognitive impairment that requires permanent
or higher; and constant supervision, which must be established
f. Non‑Hodgkin’s Lymphoma (NHL) except where classified and the diagnosis reaffirmed after a continuous period
as stage 2 or higher; of at least 6 months of such impairment.
g. thyroid cancers except where the cancer has extended
outside the organ of origin, invading lymph nodes or with
distant metastases;
h. testicular cancers except where the cancer has extended
outside the organ of origin, invading lymph nodes or with
distant metastases;
i. cancers of the cervix except where classified as stage 2 or
higher (according to the FIGO staging method); and
j. all tumours which are histologically described as
microcarcinoma, pre‑malignant or showing the malignant
changes of ‘carcinoma in situ’, including cervical dysplasia
rated as CIN 1, 2 or 3.
13Paralysis Stroke (severe) with specified impairment – BT Reserve
The total and permanent loss of use through sickness or definition
injury of: Any cerebrovascular accident (CVA) or incident resulting in
neurological deficit. The stroke must:
a. both legs (paraplegia);
a. be confirmed by a consultant neurologist;
b. both arms and legs (quadriplegia);
b. be evidenced by neuro‑imaging (eg CT, MRI or similar
c. one side of the body (hemiplegia); or
scanning technique); and
d. both sides of the body (diplegia).
c. result in permanent neurological deficit with persisting
clinical symptoms, and result in a score of 2 or greater
on the Modified Rankin scale, confirmed at least
3 months after the event.
The Modified Rankin scale is as follows:
0. No symptoms at all.
1. No significant disability despite symptoms, able to carry
out all usual duties and activities.
2. Slight disability, unable to carry out all previous activities,
but able to look after own affairs without assistance.
3. Moderate disability, requiring some help, but able to walk
without assistance.
4. Moderately severe disability, unable to walk without
assistance and unable to attend to own bodily needs
without assistance.
5. Severe disability, bedridden, incontinent and requiring
constant nursing care and attention.
6. Dead.
The following are specifically excluded:
– cerebral events with reversible neurological deficits,
including but not limited to transient ischemic attack;
– cerebral symptoms due to migraine;
– cerebral injury resulting from head trauma or hypoxia; and
– neurovascular disease or incident affecting the eye, optic
nerve or vestibular functions.
146. Definitions for BT Reserve
The following definitions are applicable to BT Reserve. Please note that some definitions
differ from the corresponding definition in the Definitions section of the BTPP PDS. These
definitions are marked with an asterisk (*).
Each defined term is indicated by the use of italics throughout the Reference Document.
Those italicised terms are subject to the definitional meanings set out in this section:
Definitions for BT Reserve ('this section'). Within this section, the corresponding defined
term/s are indicated in bold, and given the meaning that is supplied by the wording
which subsequently follows up until the start of the next defined term/s indicated in bold.
ACML means Asgard Capital Management Limited CPI means the percentage increase in the Consumer Price
ABN 92 009 279 592, AFSL Number 240695, RSE License Index (‘weighted average of eight capital cities combined’) as
Number L0001946. published by the Australian Bureau of Statistics or its
successor over the 12 month period ending 31 March each
Administrator means the administrator of your Platform
year. The CPI will apply for the subsequent year commencing
Investment or Platform Super account. Refer to your
1 October. If the CPI is not published, or is considered by us
Platform Investment or Platform Super offer document for
to be inappropriate, the percentage increase shall be
details of the administrator.
calculated by reference to such other index of inflation as, in
Alcohol abuse means an episodic or established pattern of our opinion, most nearly replaces it. If the CPI is negative, we
drinking that results in injury, health consequences and/or will consider it to be zero.
social problems.
Date of disablement* means:
Alcohol dependence means physiological and/or – for own occupation TPD and any occupation TPD,
psychological reliance on or addiction to alcohol, which 3 months after ceasing work due to sickness or injury; and
results from recurrent use, characterised by mental and/or
physical changes in the user that make it difficult to stop
– for general cover TPD, the date the Insured Person meets
the general cover TPD definition.
usage despite repeated alcohol related problems.
Doctor means a person who:
Any occupation TPD is a definition of total and
permanent disability. – is a registered medical practitioner in Australia or
New Zealand (or is a medical practitioner of another
Benefit period means the maximum period of time country with qualifications acceptable to us); and
measured from the end of the waiting period for which a
benefit entitlement in respect of any one sickness or injury
– is not:
may continue to accrue (subject to recurrent disability). Your – you or the Insured Person; or
benefit period is shown in your policy schedule or – a spouse, parent, child, sibling or any other relative or
membership certificate. business partner of you or the Insured Person.
BTPP PDS means the BT Protection Plans Product Disclosure Drug use means the Insured Person abusing or having
Statement and Policy Document dated 1 May 2020. abused, or being under the influence of drugs or controlled
substances, other than drugs legally and appropriately
BTFM means BT Funds Management Limited
prescribed by a doctor and used, as directed, by the
ABN 63 002 916 458, AFSL Number 233 724, RSE License
Insured Person.
Number L0001090.
Earnings means the income earned by the Insured
BTPS means BT Portfolio Services Ltd ABN 73 095 055 208,
Person’s own personal exertion before tax, but after
AFSL Number 233715 (the administrator of Wrap, SuperWrap,
deduction of any expenses incurred in earning that income.
Panorama Investments and Panorama Super).
Fatigue syndromes means any of the several related
CCSL means CCSL Limited ABN 51 104 967 964,
syndromes characterised by a constellation of disabling
AFSL Number 287084, RSE License Number L0000758.
symptoms primarily causing fatigue and myalgia, including
Commencement date means the ‘Policy Risk but not limited to chronic fatigue syndrome, myalgic
Commencement Date’ shown on your policy schedule or encephalomyelitis, post viral fatigue syndrome or
membership certificate. fibromyalgia (chronic widespread pain).
15Gainful employment and gainfully employed means: bipolar disorder, schizophrenia, post‑traumatic stress
– For employees, a person is working for salary, wages, syndrome, anxiety, somatoform disorders, nervousness,
or commission. behavioural disorders, sleeplessness, and phobias
(including the fear, whether rational or irrational, of
– For self‑employed, a person is working in a business or
harming others by practising in one’s occupation);
professional practice and as a result of their personal
exertion is generating an income from the business or – that is classified in the most recent edition of the Diagnostic
professional practice. and Statistical Manual of Mental Disorders (DSM),
published by the American Psychiatric Association (or the
General cover TPD is a definition of total and diagnostic manual then in use by the American Psychiatric
permanent disability. Association as at the date of disability); or
Important income producing duties means those duties – caused by stress, or related to substance abuse
which could reasonably be considered primarily essential to or dependency.
producing the Insured Person’s monthly income.
Monthly earnings* means:
Indemnity* means the amount of the Total Disability Benefit – If the Insured Person is not self‑employed the normal
(which is relevant to calculating the benefit payable in the monthly value of the remuneration package paid to the
event of total disability and/or partial disability), being the Insured Person by their employer, including salary,
insured monthly benefit amount stated in the most recent superannuation contributions, fees, commissions, regular
policy schedule, membership certificate or renewal overtime and regular bonus payments and packaged
summary, may be reduced if the Insured Person’s monthly fringe benefits. Remuneration package does not include
earnings have reduced since your insurance commenced. income which is not derived from the Insured Person’s
Injury means a bodily injury which is sustained by the personal exertion such as interest or dividend payments.
Insured Person after the later of: – If the Insured Person is self-employed:
– the commencement date; – the normal monthly income earned by the Insured
– for an increase in the sum insured for any benefit, the Person’s business, practice or partnership due to the
date we increase the benefit (other than a CPI or Loyalty Insured Person’s personal exertion or activities; less
Benefit increase); and – the Insured Person’s share of the expenses of the
– the date your Policy was last reinstated, but before your business, practice or partnership that were necessarily
Policy ends. incurred in producing the normal monthly income.
A bodily injury which was sustained prior to the Monthly earnings are calculated as the amount before the
commencement date or last reinstatement of your Policy, deduction of income tax.
that you or the Insured Person fully disclosed to us and we
Normal household duties means the household duties
agreed to cover is considered an injury for the purposes of
normally performed by a person who remains at home and is
this definition.
not working in a regular occupation including part time and/or
Insured monthly benefit means the amount shown in the voluntary work, for income. Normal household duties include:
most recent policy schedule, membership certificate or – Cooking and preparing meals – meaning the ability to
renewal summary. prepare meals using basic ingredients and kitchen
Insured Person means the person whose life is insured, or appliances;
the life to be insured. The name of each Insured Person is – Cleaning the house – meaning the ability to carry out the
set out in the policy schedule or membership certificate basic internal household chores using various tools such
under the heading, Insured Person. as a mop or vacuum cleaner;
Insurer means Westpac Life Insurance Services Limited – Washing and drying clothes – meaning the ability to
ABN 31 003 149 157, AFSL 233728. maintain the household’s laundry by using the washing
machine and being able to hang clothes on a washing
Limb means an arm or leg, including the whole hand or the line or clothes airer;
whole foot.
– Shopping for groceries – meaning the ability to physically
Membership certificate means the most recent document purchase general household grocery items with the use of
that we issue to you, which sets out the details of the either a shopping basket or trolley;
insurance we provide you under Term Life as – Looking after children – (if the Insured Person does this as
Superannuation or Income Protection as Superannuation. part of their everyday activities at home) meaning the ability
Mental illness means a condition (other than dementia and to care for and supervise children up to the age of 12 years
Alzheimer’s disease): old, including, the preparation of meals, bathing, dressing
and getting the child to and from school by car or walking.
– for which a doctor might ordinarily recommend treatment,
advice or counselling from a psychiatrist, psychologist, For the avoidance of doubt, an Insured Person will not be
therapist or mental health professional, or for which considered to be unable to carry out all normal household
psychotropic medications might commonly be duties if the Insured Person is able to perform any one or
prescribed, including, but not limited to, depression, more of the listed normal household duties.
16Our means the Insurer. Policy schedule means the most recent document that we
issue to you which sets out the details of the insurance we
Own occupation means the occupation that the Insured
provide you, and forms part of your contract with the Insurer.
Person was engaged in immediately prior to the event
giving rise to a claim. Post-disability monthly earnings means the Insured
Person’s monthly earnings after becoming partially disabled.
If the Insured Person was unemployed immediately prior to
the event given rise to the claim, own occupation refers to the Pre-disability monthly earnings* means the Insured
occupation they were engaged in the last time they were Person’s highest average monthly earnings in any
gainfully employed prior to the event giving rise to the claim. consecutive 12 month period in the 36 months immediately
preceding the commencement of total disability or partial
Own occupation TPD is a definition of total and
disability, increased by the CPI each review date since
permanent disability.
that date.
Panorama Investments is issued by BT Portfolio Services Regular care of a doctor means the Insured Person:
Ltd ABN 73 095 055 208, AFSL 233715 (BTPS).
– has sought advice, care, and treatment from a doctor in
Panorama Super is part of the superannuation fund known relation to the sickness or injury that you are claiming for
as Retirement Wrap ABN 39 827 542 991, RSE Registration and is continuing to do so at such times as is reasonable
Number R1001327. in the circumstances; and
Partial disability and partially disabled* means: – is following the advice, care and treatment of the doctor.
– Due to sickness or injury the Insured Person: Renewal summary means the annual renewal notice sent
to the Policy Owner.
– while working and able to perform one or more of the
important income producing duties of their usual Retirement Wrap means Retirement Wrap
occupation, is unable to perform all of them; ABN 39 827 542 991, RSE Registration Number R1001327.
– while working and able to perform all of the important Review date means the anniversary of your Policy
income producing duties of their usual occupation, is commencement date, or if you have placed your Policy in a
only able to do so in a reduced capacity; or group of Policies (ie a portfolio) with a different review date,
– is working in another occupation; and the review date of the portfolio.
– the monthly earnings of the Insured Person are less than Sickness means a sickness or disease which first becomes
the amount of their pre-disability monthly earnings; and apparent after the later of:
– the Insured Person is under the regular care of a doctor. – the commencement date;
– for an increase in the sum insured for any benefit, the
Platform Investment means an investment platform in
date we increase the benefit (other than a CPI or Loyalty
respect of which the Insurer has a current arrangement with
Benefit increase); and
the administrator to provide insurance benefits for the
investors through the platform. This definition includes Wrap – the date your Policy was last reinstated, but before your
and Panorama Investments. Investment products on the Policy ends.
Asgard Platform is excluded from this definition. For the avoidance of doubt, a sickness or disease is taken
Platform Super means a superannuation platform in to have first become apparent when:
respect of which the Insurer has a current arrangement with – a doctor first gave the Insured Person advice, care or
the trustee of the underlying superannuation fund to provide treatment or recommended that the Insured Person seek
insurance benefits for the members of the relevant advice, care or treatment for the sickness or disease; or
superannuation fund through the platform. This definition – the Insured Person first had any symptom of the sickness
includes SuperWrap, Panorama Super and the Asgard or disease for which a reasonable person in the same
platform, including badged arrangements. Retirement Wrap circumstances would have sought advice, care or
is excluded from this definition. treatment from a doctor.
Policy means: A sickness or disease which first became apparent before
– for policies held inside superannuation, the cover as the commencement date, increase in sum insured but only
provided under the contract of insurance between us and in respect of that increase, or last reinstatement of the
the trustee of the superannuation fund; and Policy that you or the Insured Person fully disclosed to us
– for all other cover, the contract of insurance with us. and we agreed to cover is considered a sickness for the
purposes of this definition.
Policy Owner means the person (or entity) shown as the
Policy Owner in the policy schedule or membership Specified medical event(s)* is a sickness or injury for
certificate. For Policies held inside superannuation, the which a Living Benefit is payable as listed in the BT Reserve
Policy Owner is the trustee of the superannuation fund. specified medical events table on page 9.
17SMSF means a self managed superannuation fund as Total and permanent disability and totally and
defined by section 17A of the Superannuation Industry permanently disabled* means:
(Supervision) Act 1993 (Cth). With limited exceptions, self a. For own occupation TPD
managed superannuation funds have less than five members,
all of which are trustees or directors of the trustee company.
– sickness or injury which has prevented the Insured
Person from working in their own occupation for at
Super Fund means a superannuation fund for which the least 3 consecutive months;
Insurer has a current arrangement with the trustee of the – the 3 month period has ended before the review date
superannuation fund to provide insurance benefits for the following the Insured Person’s 65th birthday; and
members of the relevant superannuation fund. This definition
includes Retirement Wrap and Platform Super.
– the sickness or injury is likely to prevent the Insured
Person from ever again being able to work in their own
Superannuation means a self‑managed super fund (SMSF) occupation.
or a Super Fund.
The Insured Person will also be considered to be totally
SuperWrap means SuperWrap Personal Super Plan and and permanently disabled if the Insured Person meets
SuperWrap Essentials Personal Super Plan. SuperWrap is the general cover TPD definition of total and
part of the superannuation fund known as Retirement Wrap permanent disability.
ABN 39 827 542 991, RSE Registration Number R1001327.
b. For any occupation TPD
Symptom means a departure from normal function or feeling If the Policy is held outside superannuation:
which is noticed by the Insured Person, indicating the potential
presence of sickness or abnormality. A symptom is taken to
– sickness or injury which has prevented the Insured
Person from working in their own occupation for at
have existed when first noticed by the Insured Person.
least 3 consecutive months; and
Total disability and totally disabled* means: – the 3 month period has ended before the review date
a. the Insured Person is, because of sickness or injury: on or following the Insured Person’s 65th birthday;
– unable to perform one or more of the important and either:
income producing duties of their usual occupation; – the sickness or injury makes it unlikely that the
– not working; and Insured Person will ever again be able to work in any
occupation for which they are reasonably qualified
– under the regular care of a doctor; or
because of education, training or experience; or
b. the Insured Person is, because of sickness or injury: – if the Insured Person is able to work in any
– not working for more than 10 hours per week in their occupation for which they are reasonably qualified
usual occupation, and not working in any because of education, training or experience but
other occupation; the total remuneration for this occupation is less
– unable to perform the important income producing than 25% of the Insured Person’s earnings in their
duties of their usual occupation for more than 10 hours last 12 months of work.
per week; and The Insured Person will also be considered to be totally
– under the regular care of a doctor; or and permanently disabled if the Insured Person meets
the general cover TPD definition of total and
c. the Insured Person is continuously partially disabled after
permanent disability.
the end of the waiting period, and the post-disability
monthly earnings while partially disabled are less than or If the Policy is held inside superannuation:
equal to 20% of pre-disability monthly earnings. – sickness or injury which has prevented the Insured
The above definition applies to occupation categories (as Person from working in their own occupation for at
shown in the policy schedule or membership certificate) AA, least 3 consecutive months; and
A, P, S, BB, B or C during the life of a claim and only applies – the 3 month period has ended before the review date
to occupation category E for the first 2 years of a claim, on or following the Insured Person’s 65th birthday; and
after which, the Insured Person will need to demonstrate – the sickness or injury makes it unlikely that the Insured
that they are, because of sickness or injury: Person will ever again be able to work in any
– unable to perform any occupation for which they are occupation for which they are reasonably qualified
reasonably suited by education, training or experience; because of education, training or experience.
– not working; and The Insured Person will also be considered to be totally
– under the regular care of a doctor. and permanently disabled if the Insured Person meets
the general cover TPD definition of total and
permanent disability.
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