Tasplan Super Insurance Booklet
Tasplan Super Insurance Booklet
2 TASPLAN | INSURANCE BOOKLET CONTENTS About this document This booklet forms part of the Tasplan Super Product Disclosure Statement dated January 2015. It contains important information about Insurance Cover through Tasplan Super. The Insurance Policy contains the full terms and conditions and copies of the policy are available upon request. A reference to the PDS means the Tasplan Super PDS and this booklet collectively. Any reference throughout this booklet to ‘the Trustee’, ‘we’ or ‘us’ means Tasplan Limited ABN 13 009 563 062 RSE: L0000680.
Fund’ or ‘Tasplan’ means the superannuation fund known as Tasplan Super (RSE: R1000924). Any reference to ‘financial advisor’ means a licensed or appropriately authorised, financial advisor Obtaining up-to-date information The information contained in this booklet is up-to-date at the time of preparation. However, some of the information can change from time to time. We will update the booklet when we become aware of any material adverse change to the information contained in this booklet, or a material omission from the booklet. Updated information is available free of charge from tasplan.com.au/pds or by calling us on 1800 005 166.
Disclaimer The information in this booklet is general information only and does not take into account any person’s individual financial objectives, financial situation or needs. We recommend that you speak to a financial advisor if you need any specific advice. The rights of members are ultimately governed by the Trust Deed governing Tasplan and any underlying insurance policies securing death and disablement benefits. Whilst the Trustee has taken all due care in preparation of this booklet, it reserves its right to correct any errors and omissions. If there is any inconsistency between the Trust Deed or insurance policy and this booklet, the Trust Deed and insurance policy (as applicable) will prevail.
Contact Details Head Office: Level 8, 1 Franklin Wharf Hobart TAS 7000 Postal Address: GPO Box 1547 Hobart TAS 7001 Telephone: 1800 005 166 Email: email@example.com Website: tasplan.com.au Issuer: Tasplan Ltd RSE Licensee L0000680 AFS Licence No. 235391 ABN: 13 009 563 062 (Trustee) Fund Registration Details: ABN: 14 602 032 302 (Tasplan Super) RSE No. R1000924 SFN: 123481940 SPIN: TPN0100AU MySuper Unique Identifier: 14602032302734 Covercommencement, terminationandreinstatement Applyingforcover . 16 Whenwillcovercommence . 16 Whencoverends . 16 Reinstatementofcover . 17 Limitationsandexclusions LimitedCover .
18 Exclusions . 18 Importantinformation Frequentlyaskedquestions . 19 Abouttheinsurer . 20 Dutyofdisclosure . 20 PrivacyCollectionStatement . 20 Complainthandlingprocedures . 22 Insurancetermsexplained Keydefinitions . 23 Scheduleofmedical conditiondefinitions . 27 Howmuchinsuranceisenough . 28 AboutTasplanSuperinsurance Typesofcoveroffered . 3 CoveronjoiningTasplan . 4 Occupationrating . 4 DeathandTotal &PermanentDisablement Whatdoesitcover . 5 BasicCover . 5 FixedCover . 6 AdditionalCover . 6 Whatdoesitcost . 7 ChangingyourDeath orTPDCover . 7 IncomeProtection Whatdoesitcover . 9 Monthlybenefit .
10 Waitingandbenefitperiods . 11 Additionalbenefits . 11 Whatdoesitcost . 12 Changingyour IncomeProtectionCover . 14 Insurancetransfers Eligibilitycriteria . 15 Howtotransferyourcover . 15
3 FIND OUT MORE > Customer Service 1800 005 166 Most people insure their car, home and contents, but forget their most valuable assets - their life and their ability to earn an income. Insurance cover is an essential part of any financial plan because it protects you and your family in the event of your unexpected death or disablement. This booklet outlines your insurance options with Tasplan and explains the conditions, limitations and exclusions which may apply. Tasplan’s insurance is provided by CommInsure (the insurer). Please refer to section 7 for more information about the insurer.
You may be eligible for some cover without health checks on joining Tasplan, or you can apply for extra cover at any time by completing an application form which is available at the back of this booklet.
If you experience certain life events you may be able to increase your cover without detailed checks. You may also be able to transfer existing cover into Tasplan. Tasplan can provide you with free general advice on insurance within super. If you need more specific or personalised advice, we can refer you to a financial advisor in your area who can help with any aspect of your Tasplan account.
If you have any questions, please contact Tasplan’s Client Services Team on 1800 005 166 or firstname.lastname@example.org. How much cover do you need? Try our calculator which is available at tasplan.com.au/calculators Cost-effectiveprotection Tasplan insurance is an affordable way to protect you and your family. Some benefits of Tasplan insurance include:
Tasplan negotiates with insurers for discounted group rates which means that you generally pay less than you would if you personally applied for cover.
The insurance premiums are paid out of your Tasplan account rather than from your pocket.
Your premiums are solely to cover the cost of your insurance cover.
These are paid in full to the insurer (i.e. Tasplan does not take a cut) and no commissions are paid to Tasplan from the insurer, nor are any commissions paid to advisors.
You can apply to increase*, reduce or cancel your insurance at any time to suit your needs. *Please note health information will usually need to accompany your application.
About Tasplan Super Insurance Types of cover offered Tasplan offers competitive Death Only, Death and Total & Permanent Disablement (TPD) and Income Protection Cover. Death What is it? Death Only insurance cover can provide dependants with a lump sum benefit of up to $5 million if you die or become terminally ill while covered under the Fund’s policy. Who may be eligible for cover? Members of Tasplan aged 15 or older and less than 70. Why do I need it? In the event of your death:
You want to relieve your family of debt.
You want to secure your family’s financial future. Total and Permanent Disablement (TPD) What is it? Total and Permanent Disablement (TPD) insurance cover provides you with a lump sum benefit of up to $2 million paid in the event of your TPD.
Who may be eligible for cover? Members of Tasplan aged 15 or older and less than 65. Why do I need it? In the event of your total and permanent disablement:
You want to secure your family’s financial future.
You want to cover the increased medical expenses associated with your sickness or injury without exhausting your retirement savings.
You want sufficient money to be able to modify your home or car and buy any medical equipment needed to cope with your disability. 1
4 TASPLAN | INSURANCE BOOKLET 1 About Tasplan Super Insurance Income Protection What is it? A replacement income when you are unable to work at full capacity or at all, due to sickness or injury. It can replace up to 85% of your monthly employment or net business income if you can’t work due to sickness or injury (up to $20,000 or $25,000 per month depending on the benefit period). Up to 75% will be paid directly to you and 10% will be contributed to your account with Tasplan. Who may be eligible for cover? Members of Tasplan aged 15 or older and less than 65 who at the time of application reside in Australia.
Why do I need it? In the event you cannot work because of sickness or injury:
To help protect the income you earn and the lifestyle you live especially if you have a family.
So you don’t need to rely on just your savings, your family, or the public health system in the event of sickness or accident. Cover on joining Tasplan DeathandTPD If you meet certain eligibility criteria, you may automatically be provided with Basic Cover for Death and TPD. You may also be able to apply for some Fixed Cover without detailed health checks within 90 days of joining Tasplan.
If you are not eligible for Basic Cover on joining Tasplan, or you just wish to increase your cover, you can apply for Additional Cover.
Please refer to section 2 for more information on Death and TPD Cover. IncomeProtection Income Protection is not automatically provided when you join Tasplan. The type and amount of this cover you can apply for depends on your circumstances and requirements. You can find out more about Income Protection Cover in section 3. Occupation rating The type of work you do will determine your occupation rating. Generally, the riskier your job, the more you pay for insurance.
Tasplan’s three occupational ratings are: General -
all members not otherwise classified as a White Collar or Professional member. White Collar -
duties must be limited to professional, managerial, administrative, clerical, secretarial or similar ‘white collar’ tasks which do not involve manual work, and are undertaken entirely within an office environment (noting that travel from one workplace to another does not prevent you from meeting this definition). Professional - is a White Collar member; and - earns over $80,000 p.a. from their profession; and - either: - - has a tertiary qualification; - -
is a member of a professional institute or registered by a Government body; or - - is employed in a senior managerial role.
If you don’t advise us what work you do, your occupation rating will be General.
You can advise us of your occupation rating on joining Tasplan, or by completing an Occupational Rating form which is available at tasplan.com.au/forms. If you change jobs or duties and your occupation rating changes, it is your responsibility to advise Tasplan so that your premium and cover can be adjusted accordingly. Uncertain about your occupation rating? Please document your employment activities and email a request to email@example.com for an official review.
5 FIND OUT MORE > Customer Service 1800 005 166 What does it cover? You can choose between:
Death & TPD Cover Offers protection for death, Terminal Illness and permanent disablement.
Death Only Cover Offers protection for death and Terminal Illness only.
While Death & TPD offers broader protection than Death Only Cover, it does come at an additional cost. Tasplan’s Death & TPD cover provides the following protection: Death Death insurance cover provides your dependants, nominated beneficiaries or your estate with a benefit if you die while covered by Tasplan insurance. TerminalIllness If you are diagnosed with a Terminal Illness that is likely to result in your death within 12 months, you may be eligible to receive your death benefit sooner. This is included with any Death insurance cover at no additional cost.
TPD TPD Cover provides a lump sum benefit in the event that you become Totally and Permanently Disabled, are unlikely to return to work as a result of a sickness or injury, and you meet the TPD definition relevant to your circumstances under the policy. HigherDeathCover If your Death Only Cover is higher than your Death & TPD Cover and you receive a TPD benefit, you can choose to keep your remaining Death Only Cover in force by keeping your account open and continuing to pay the premiums associated with this cover. InterimAccident If you apply for cover, or apply for an increase in cover that requires acceptance by the insurer, you will receive Accidental Death or Accidental Death & TPD Cover while your application is being considered.
More information on what’s covered Please refer to section 8 for important information about these types of cover. Basic Cover If your employer starts making Super Guarantee contributions into Tasplan on your behalf (i.e. you have a ‘participating employer’), you may automatically be provided with Basic Cover up to your age-based Automatic Acceptance Limit (AAL). Otherwise, you will need to submit an application and provide health evidence which is acceptable to the insurer. If you are eligible for Basic Cover but:
are 65 years of age or more; or
if you have had a TPD claim admitted, or are eligible to receive a TPD benefit, from Tasplan, another super fund or life insurance policy; you will only be eligible for Death Only Cover.
You will not be eligible for Death & TPD Basic Cover. If your first employer contribution is received by Tasplan within 120 days of you commencing employment with your employer, you will be provided with Basic Cover on the date you commenced employment, provided your employer was a participating employer at that date, otherwise on such later date that they become a participating employer. If you are unsure if your employer is a participating employer of Tasplan, you should check with us. If your first employer contribution is received by Tasplan more than 120 days after you commenced employment with your employer, then your Basic Cover will be Limited Cover.
Your Basic Cover start date will be 120 days prior to the date your first employer contribution is received by Tasplan. Limited Cover will continue until such time as the underwriting requirements of the insurer have been met and it has provided written agreement that full cover will apply. If you are not in active employment on the date you commence employment, any Basic Cover provided will be Limited Cover until you return to active employment for two consecutive months, after which time you will receive full cover. Please refer to section 8 for the definition of active employment.
Please refer to section 6 for more information on limitations and exclusions that may affect your cover. 2 Deathand Total& Permanent Disablement
6 TASPLAN | INSURANCE BOOKLET Table1–BasicCoveramounts Age Next Birthday Amount Age Next Birthday Amount 16 – 20 $33,600 56 $25,743 21 – 23 $67,200 57 $22,773 24 – 47 $100,800 58 $19,803 48 $84,159 59 $16,833 49 $76,239 60 $13,860 50 $68,316 61 $11,880 51 $60,396 62 $9,900 52 $52,476 63 $7,722 53 $44,553 64 $6,138 54 $36,633 65 – 70 $5,001* 55 $28,713 *Death Only Cover applies from age 65 Please note that your amount of Basic Cover will change over time depending on your age in line with the table above.
However, your Basic Cover premiums will generally remain the same each year unless we advise otherwise. Please refer to ‘What does it cost’ for more information.
Fixed Cover ExtracoveronjoiningTasplanwithout detailedhealthchecks. If you are eligible for Basic Cover, you can apply to increase your Death & TPD or Death Only Cover up to the age-based limits in Table 2, without needing to provide detailed health information. You will need to submit a completed Short Form Underwriting form within 90 days of the date shown on your Welcome Letter which you will receive shortly after joining Tasplan. This form is available at tasplan. com.au/forms. If the insurer is satisfied with your answers to the questions on this form, you will be provided with Fixed Cover.
If further information is required, you may need to complete a full application in order to receive Additional Cover.
Unlike Basic Cover, this Fixed Cover amount will not automatically reduce each year. Your premiums will therefore increase each year in accordance with your age and any indexation that applies to your cover. Please refer to the ‘What does it cost’ section for more information. Table2–FixedCoverlimits Age Next Birthday Occupation Rating Professional White Collar General 16-47 $182,000 $172,000 $91,000 48 $152,000 $144,000 $76,000 49 $138,000 $130,000 $69,000 50 $123,000 $117,000 $62,000 51 $109,000 $103,000 $55,000 52 $95,000 $90,000 $48,000 53 $81,000 $76,000 $41,000 54 $66,000 $63,000 $33,000 55 $52,000 $49,000 $26,000 56 $47,000 $44,000 $24,000 57 $41,000 $39,000 $21,000 58 $36,000 $34,000 $18,000 59 $31,000 $29,000 $16,000 60 $25,000 $24,000 $13,000 61 $22,000 $21,000 $11,000 62 $18,000 $17,000 $9,000 63 $14,000 $14,000 $7,000 64 $12,000 $11,000 $6,000 65-70* $9,000 $9,000 $5,000 *Death Only Cover applies from age 65 Additional Cover Additional Cover can also be applied for as Death Only or Death & TPD Cover.
You can apply for Additional Cover by submitting a completed Application for Insurance Cover with Personal Statement which is provided at the back of this booklet. Your application must be accepted by the insurer for cover to apply. Additional Cover amounts will remain fixed, however the premiums will increase each year depending on your age and any indexation that applies. Please refer to ‘What does it cost’ for more information. Remember to nominate your beneficiaries Make sure that your death benefits are paid in accordance with your wishes on your death. For more information on how to nominate a beneficiary and your nomination options please contact Tasplan.
7 FIND OUT MORE > Customer Service 1800 005 166 What does it cost? The cost of your cover depends on your age, the type of cover you hold and your occupation rating. Basic Cover amounts change over time, which means that the premiums generally don’t change from year to year unless there is an increase in your cover or when you turn 65 and no longer have TPD Cover. Where cover is a fixed amount, it doesn’t reduce as you get older, as it does with Basic Cover, and will only increase if indexation applies. The premiums increase each year in accordance with your age and the amount of cover you have at that time.
Please note that premium loadings may apply to any Additional Cover. These would be advised to you in a letter regarding acceptance of the cover. The costs for Basic Cover and Fixed Cover/Additional Cover are outlined in Tables 3 and 4. Table3–BasicCovercosts Age Next Birthday Weekly Premiums Professional White Collar General Death Only Death & TPD Death Only Death & TPD Death Only Death & TPD 16 – 20 $0.59 $1.24 $0.67 $1.42 $0.84 $1.77 21 – 23 $1.18 $2.48 $1.34 $2.84 $1.68 $3.54 24 – 65 $1.77 $3.72 $2.01 $4.26 $2.52 $5.31 66 – 70* $1.77 N/A $2.01 N/A $2.52 N/A *Death Only Cover applies from age 65 Table4–FixedCoverandAdditional Covercosts Age Next Birthday Annual premiums per $1,000 of Cover Professional White Collar General Death Only Death & TPD Death Only Death & TPD Death Only Death & TPD 16 – 47 $0.62 $1.53 $0.66 $1.64 $1.21 $3.07 48 $0.74 $1.84 $0.80 $1.96 $1.47 $3.67 49 $0.82 $2.03 $0.87 $2.15 $1.62 $4.06 50 $0.91 $2.27 $0.96 $2.40 $1.80 $4.53 51 $1.00 $2.55 $1.10 $2.71 $2.03 $5.10 52 $1.17 $2.95 $1.24 $3.12 $2.34 $5.87 53 $1.38 $3.47 $1.47 $3.67 $2.74 $6.91 54 $1.66 $4.22 $1.75 $4.43 $3.34 $8.39 55 $2.16 $5.38 $2.26 $5.69 $4.27 $10.74 56 $2.38 $5.99 $2.52 $6.36 $4.75 $11.97 57 $2.68 $6.78 $2.85 $7.17 $5.38 $13.53 58 $3.08 $7.79 $3.26 $8.23 $6.17 $15.55 59 $3.65 $9.15 $3.84 $9.68 $7.25 $18.32 60 $4.42 $11.09 $4.68 $11.77 $8.79 $22.21 61 $5.14 $12.98 $5.44 $13.70 $10.28 $25.92 62 $6.17 $14.42 $6.52 $15.27 $12.31 $28.79 63 $7.90 $15.81 $8.37 $16.76 $15.80 $31.62 64 $9.96 $16.56 $10.52 $17.53 $19.87 $33.11 65 $12.20 $16.23 $12.93 $17.20 $24.40 $32.45 66 – 70* $12.20 $0.00 $12.93 $0.00 $24.40 $0.00 *Death Only Cover applies from age 65 Changing your Death or TPD Cover We understand that your needs may change over time, so we’ve made it easy for you to change your cover to suit your needs.
There are a number of ways you may apply to increase your Death Only or Death & TPD Cover. You can also request that your cover be reduced or cancelled. Coverindexation When you apply for Fixed Cover and/or Additional Cover, you can request for that cover to be indexed annually on your insurance application form. If accepted, this cover will increase by 5% on 1 July each year. Increasingcover You may be eligible to increase your cover up to your age-based limit shortly after joining Tasplan without needing to complete a full application. Please see Fixed Cover for more information.
8 TASPLAN | INSURANCE BOOKLET If eligible, you will need to submit a Short Form Underwriting form, completed to the insurer’s satisfaction, within 90 days of the date shown on your Welcome Letter which you will receive soon after joining Tasplan.
This form is available at tasplan.com. au/forms. You can apply to increase your cover at any time using the Application for Insurance Cover with Personal Statement contained at the back of this booklet. Additional copies of this form are available at tasplan. com.au/forms.
The maximum amounts of cover are: Type of cover Maximum cover Death $5 million TPD $2 million If you apply to increase your cover, you will be provided with Interim Accident Cover for up to 120 days for the same type of cover for which you are applying for, while your application is being considered by the insurer. The amount of Interim Accident Cover will be the lesser of the amount of cover you have applied for and $1,000,000 less the amount of any insured cover you currently have with Tasplan. Please refer to section 8 for more information on Interim Accident Cover. Any increase in your insurance cover is subject to written acceptance by the insurer, or Tasplan if that responsibility has been delegated by the insurer.
Acceptance of cover may sometimes be offered subject to exclusions, premium loadings or special conditions.
Increasesduetolife-changingevents If your personal or financial situation changes as a result of a major life event taking place, you can apply to increase your cover without needing to complete a full insurance application or provide detailed health information. We call this the ‘life events option’. If you already have cover with Tasplan, you can apply to increase that cover within 120 days of the following ‘life events’:
the birth or adoption of your child
your child’s first day of primary or secondary school
the death of your spouse
you take out a mortgage to initially purchase your primary residence* *This does not include refinancing existing mortgages or mortgages relating to an investment property.
Please note that you can only increase your existing types of cover under the life events option. You can’t apply for cover that you do not already hold. For example, if you have opted out of TPD Cover previously and hold Death Only Cover, you will only be able to increase your Death Only Cover under the life events option.
The maximum amount of Additional Cover you can apply for under the life events option is the lesser of:
the current amount of cover that you hold with Tasplan; and
$150,000. Any increases in cover will be subject to the same individual conditions, restrictions, exclusions and premium loadings, if any, applying to your existing Tasplan insurance cover. You can exercise the life events option a maximum of 4 times since becoming a member of Tasplan, and only once within any 12 month period. To be eligible to increase your cover under the life events option, you must:
submit a Life events cover option form completed to the insurer’s satisfaction;
submit your application within 120 days of the life event occurring;
provide proof satisfactory to the insurer that the life event has taken place, and the date that it took place; and
not have had an application for cover or an increase in cover, declined by the insurer.
You can apply for an increase in cover under the life events option by completing the Life events cover option form which is available at tasplan.com.au/forms. Reducingorcancellingcover You can reduce or cancel your cover at any time. You can do this by completing an Application to reduce or opt out of cover form. This form is available at tasplan.com.au/forms or by calling 1800 005 166. If you are under age 25 at the time of cancelling your cover, your Basic Cover will be reinstated on your 25th birthday (conditions apply). Please refer to section 5 for more information.
If you elect to reduce your Basic Cover, please note that the premiums applicable to this cover will change to the standard Additional Cover annual costs per $1,000 of cover as outlined in Table 3.
There are no costs associated with cancelling or reducing your insurance cover.
9 FIND OUT MORE > Customer Service 1800 005 166 What does it cover? If your application is accepted by the insurer, a disability benefit is paid if you become either Totally Disabled or Partially Disabled as defined under Tasplan’s insurance policy. This generally means that you are unable to work in your own occupation, either at all or at full capacity, due to sickness or injury, and that you are under the regular care of a medical practitioner. One month after the end of your chosen waiting period, you will receive disability benefits on a monthly basis if and while you are considered by the insurer to be Totally or Partially Disabled up to the end of the benefit period, subject to the conditions of the policy.
More information on what’s covered Please refer to section 8 for important information including the insurer’s definitions for Totally Disabled and Partially Disabled Whatincomecanyouinsure? When applying for Income Protection Cover, you must advise your current gross annual income. The income you can insure (your pre-disability income) depends on whether you are employed or selfemployed, Your pre-disability income is the monthly value of the annual remuneration you earned (using the following definitions) immediately before becoming disabled. Employed Pre-disability income for permanent employees includes income specified in your contract of employment.
It includes overtime, bonuses and shift allowances (all averaged over the last 3 years) as well as any packaged elements not received directly as taxable earnings (e.g. salary sacrificed super contributions). If you are not employed on a permanent basis, your pre-disability income will be your total monthly value of remuneration (including overtime, bonuses and shift allowances) from all of your regular occupations over the 12 months immediately prior to becoming disabled.
Your pre-disability income excludes director’s fees, compulsory employer super entitlements (Super Guarantee), investment income and profit distribution. Self-employed If you are self-employed, your pre-disability income is the total monthly amount earned by your business over the financial year as a direct result of your personal exertion (i.e. the business earnings that would stop if you could not work due to sickness or injury) or activities through your regular occupations, less your share of the business expenses (but before the deduction of income tax) for that business (or relevant proportion for part of a financial year).
You can apply to insure up to 75% of your current gross annual income. You also have the option to request an additional 10% to be paid as a superannuation contribution payment. Alternatively, you can nominate some other monthly benefit amount of cover which cannot be higher than 85% of your gross annual income advised. If your application is accepted by the insurer, you will be advised a monthly benefit amount of cover. A maximum monthly benefit of $25,000 per month applies to the Short Term benefit period, and $20,000 per month if you choose the Long Term benefit period. You do not need to insure your full current gross income if you don’t feel that it is necessary.
You can choose to insure a monthly benefit amount of cover less than this if you do not need this much to meet your living expenses.
Optionalsupercontributioncover If you chose to insure an amount of cover which is more than 75% of your gross annual income, any percentage above 75% will be payable as a super contribution into your Tasplan Super account. Examples: Income Protection for a $57,000 gross annual salary Example1–75%insuredcover Cover amount (75%) $42,750 Monthly benefit
maximumcover(75%)plus 10%supercontribution Cover amount (75%) $42,750 Plus 10% super contribution $5,700 Total cover amount $48,450 Monthly benefit
$4,037* *Rounded down to the nearest dollar. 3 Income Protection
10 TASPLAN | INSURANCE BOOKLET Monthly benefit Please note that your disability benefit (the amount that you actually receive if you make a successful claim for Income Protection benefits), may vary from your monthly benefit amount of cover and the amount of pre-disability income earned (defined under ‘What income can you insure?’).
The amount that you will receive will depend on whether you are Totally or Partially Disabled, and whether you are receiving any disability income. TotalDisabilitymonthlybenefit If you are Totally Disabled, the amount of your disability benefit will be your monthly benefit (including the optional super contribution if selected and taking into account your pre-disability income) reduced by any disability income you receive.
PartialDisabilitymonthlybenefit If you are Partially Disabled and are earning less than your pre-disability income as a result of your disability, the amount of your disability benefit will be your monthly benefit reduced by any disability income. If you elected to receive the optional super contribution benefit, this will also be reduced by any disability super received. Disability super is any payments you are entitled to and continue to receive from, or on behalf of, your employer, during a period of disability or rehabilitation.
Your partial monthly benefit will be reduced by the amount calculated using the following formula: current income x monthly benefit pre-disability income* for each month you are continuously Partially Disabled, where current income is the income earned during the month.
Or indexed pre-disability income Example–
PartialDisability monthlybenefit Pre-disability income: $4,000 per month Monthly benefit: $3,000 per month Current income: $2,000 per month Calculation: $2,000 x $3,000 = $1,500 $4,000 Partial Disability monthly benefit: $1,500 Disabilityincome Your Total or Partial Disability monthly benefit received will be reduced by any disability income you receive from other sources as a direct result of your sickness or injury.
Disability income is the sum of: a)
any income (other than benefits received under this Policy), or commutation of an income, paid or payable as a result of your sickness or injury, including sick leave payments, any amounts payable under legislation such as workers’ compensation or motor accident compensation; and any benefits payable under other Income Protection policies; and b)
any social security benefits paid or payable; and c)
any income earned by you from personal exertion while disabled; and d)
any income which, in the insurer’s opinion, you could reasonably be expected to earn in your occupation while disabled excluding any income actually earned from your employer; and e)
any annual or long service leave you receive while you are disabled; for a month during which a disability benefit is payable under this policy.
Any income described in paragraphs a), b) or c) above which is in the form of a lump sum or is exchanged for a lump sum has a monthly equivalent of 1/60th of the lump sum over a period of 60 months. Example–
TotalDisabilitymonthly benefitwithdisabilityincome Monthly benefit: $4,000 per month Worker’s compensation: $1,000 per month (Disability income) Calculation: $4,000 - $1,000 = $3,000 Total Disability monthly benefit: $3,000
11 FIND OUT MORE > Customer Service 1800 005 166 Waiting and benefit periods Your chosen waiting period and benefit period will affect when you can start receiving benefits, how long you can receive benefits for, as well as how much you pay for your Income Protection Cover.
Benefitperiod The benefit period is how long you can receive payments for if you qualify for an Income Protection claim. Tasplan provides two benefit period options:
Short Term Provides benefit payments if you are Totally Disabled or Partially Disabled for a maximum period of 2 years. Payments will cease after 2 years, when you are no longer Totally or Partially Disabled, you turn 65, or you die, whichever occurs first.
Long Term Provides benefit payments until you are no longer Totally or Partially Disabled, you turn 65, or you die, whichever occurs first.
Please note that the terms ‘Short’ and ‘Long’ relate to the difference in the maximum benefit period offered under each of these types of cover rather than the duration of the cover itself. You will remain covered while you continue to be eligible for, and pay the associated premiums for, your Income Protection Cover. While the Short Term benefit period is generally cheaper, you should make sure that you have sufficient savings to look after yourself once the benefit period finishes.
Waitingperiod The waiting period is the period of time you have to be Totally or Partially Disabled before you can qualify for Income Protection benefits.
You must be Totally Disabled for 14 out of 19 consecutive days of the waiting period to qualify for a disability benefit. Tasplan offers the following waiting period options:
90 days The waiting period starts from the day when you first consult a medical practitioner and they certify that you are disabled. You do not receive a benefit payment during the waiting period, and you continue to pay premiums during this time. Your Income Protection premiums will be waived during any period in which a disability benefit is being paid.
If the sickness or injury which causes your disability is directly related to normal pregnancy or childbirth, the waiting period will not start any earlier than the last day of the qualifying period. The qualifying period is the three month period which immediately follows your pregnancy, and during which you are Totally Disabled or Partially Disabled from the relevant sickness or injury. The longer the waiting period, the lower your premiums – but you should make sure you have sufficient leave entitlements and/or savings to cover your costs during the waiting period you select.
Additional benefits Indexationofmonthlybenefits If you are receiving a disability benefit payment and your benefit period is greater than 2 years, your monthly disability benefit will be increased by the percentage increase in the consumer price index at the end of each consecutive 12 month period for which the benefits are payable, up to a maximum of 5%.
InterimAccidentCover If you apply for Income Protection Cover, or apply for an increase in your cover, you will receive Interim Accident Cover while your application is being considered for up to 120 days.
The amount of the benefit the insurer will pay for Income Protection Interim Accident Cover will be the lesser of: (a) the sum of the following: (i) the insured percentage times pre-disability income less the amount of any monthly benefit or partial monthly benefit payable; and (ii) 10% times pre-disability income less the amount of any super monthly benefit payable; (b) the total amount of cover applied for, expressed as a monthly figure reduced by the amount of any cover you have in force; and (c) $15,000 per month reduced by the amount of any cover you have in force.
Interim Accident Cover is limited to a benefit period of 2 years.
If you have existing Income Protection cover with Tasplan, your waiting period will be the same as your current cover, otherwise a 90 day waiting period will apply to this cover. For more information on Interim Accident Cover, please refer to section 8.
12 TASPLAN | INSURANCE BOOKLET Rehabilitationexpensebenefit The insurer will pay the expenses of a rehabilitation program provided:
It is not an excluded rehabilitation program under the policy;
a medical practitioner certifies that program is necessary for your rehabilitation;
the expenses are approved by the insurer in writing before they are incurred;
the expenses are incurred directly assist to you in returning to work in a gainful occupation or to undertake a vocational retraining program because of your disability;
it pays the costs directly to the provider of the applicable service; and
the maximum amount of such expenses will be paid for any one disability is the lesser of: - the expenses; and -
6 times your monthly benefit;
less any amounts that can be claimed from other sources for the expenses.
An excluded rehabilitation program is any program providing hospital treatment or general treatment within the meaning of the Private Health Insurance Act 2007 (Cth) or any other program which might cause this policy to cease to be exempt from any legislation in connection with health insurance, including the Private Health Insurance Act 2007 (Cth) or any succeeding legislation in connection with health insurance. RecurrentIncomeProtectionbenefit If you become disabled again from the same or a related cause within 6 months of you last receiving a disability benefit, you will not have to repeat the waiting period.
This will be treated as a continuation of the original claim, and both periods of disability will be added together determine when the benefit period ends. What does it cost? The cost of your cover depends on your age, occupation rating, monthly benefit, waiting period and benefit period. The cost of cover generally increases each year as you get older. If the insurer considers you a higher health risk when you apply for cover, you may need to pay a higher premium rate than normal (known as a ‘premium loading’). This loading may need to be charged in order to cover the additional risk. Any premium loadings will be advised to you in a letter regarding acceptance of cover.
The costs for Short Term and Long Term Cover are outlined in Tables 5 and 6. Table5–ShortTermCovercosts Annual premium rates per $100 of monthly benefit Age Next Birthday Professional White Collar General 30 day* 60 day* 90 day* 30 day* 60 day* 90 day* 30 day* 60 day* 90 day* 16 – 30 $2.83 $2.27 $1.13 $3.96 $2.83 $1.70 $6.22 $4.52 $2.27 31 – 35 $3.39 $2.27 $1.13 $4.52 $3.39 $1.70 $7.35 $5.66 $2.83 36 – 40 $4.52 $3.39 $1.70 $6.22 $4.52 $2.27 $9.62 $6.79 $3.39 41 – 45 $5.66 $4.52 $2.27 $8.49 $6.22 $2.83 $13.01 $9.62 $5.09 46 – 50 $8.49 $6.79 $3.39 $12.44 $9.62 $5.09 $19.23 $15.27 $7.35 51 – 55 $12.44 $10.18 $5.09 $17.54 $14.71 $7.35 $27.72 $23.19 $11.32 56 – 60 $20.36 $17.54 $8.49 $28.28 $24.32 $12.44 $44.68 $38.46 $19.23 61 – 65 $24.89 $20.74 $10.18 $35.07 $29.41 $14.71 $54.86 $45.82 $23.19 *Waiting period
13 FIND OUT MORE > Customer Service 1800 005 166 Table6–LongTermCovercosts Annual premium rates per $100 of monthly benefit Age Next Birthday Professional White Collar General 30 day* 60 day* 90 day* 30 day* 60 day* 90 day* 30 day* 60 day* 90 day* 16 – 20 $7.46 $5.97 $3.57 $8.28 $6.63 $3.96 $15.57 $12.46 $7.44 21 $7.46 $5.97 $3.57 $8.28 $6.63 $3.96 $15.57 $12.46 $7.44 22 $7.54 $6.04 $3.53 $8.38 $6.70 $3.92 $15.75 $12.60 $7.37 23 $7.62 $6.10 $3.52 $8.47 $6.79 $3.91 $15.91 $12.74 $7.36 24 $7.72 $6.17 $3.52 $8.59 $6.86 $3.91 $16.12 $12.89 $7.36 25 $7.84 $6.27 $3.53 $8.70 $6.96 $3.93 $16.36 $13.08 $7.38 26 $7.96 $6.36 $3.54 $8.83 $7.07 $3.95 $16.61 $13.29 $7.41 27 $8.20 $6.55 $3.67 $9.11 $7.28 $4.09 $17.11 $13.68 $7.67 28 $8.52 $6.82 $3.80 $9.46 $7.57 $4.23 $17.79 $14.22 $7.93 29 $8.94 $7.15 $3.96 $9.93 $7.95 $4.39 $18.67 $14.93 $8.25 30 $9.45 $7.56 $4.11 $10.49 $8.40 $4.56 $19.73 $15.78 $8.56 31 $10.06 $8.04 $4.28 $11.18 $8.93 $4.76 $20.99 $16.79 $8.93 32 $10.76 $8.62 $4.48 $11.96 $9.57 $4.98 $22.47 $17.98 $9.35 33 $11.58 $9.27 $4.73 $12.86 $10.31 $5.25 $24.16 $19.36 $9.85 34 $12.50 $10.01 $5.01 $13.89 $11.11 $5.56 $26.10 $20.88 $10.45 35 $13.54 $10.83 $5.34 $15.05 $12.03 $5.93 $28.27 $22.61 $11.14 36 $14.70 $11.75 $5.76 $16.33 $13.05 $6.40 $30.68 $24.53 $12.01 37 $15.97 $12.77 $6.23 $17.73 $14.19 $6.93 $33.33 $26.66 $13.01 38 $17.35 $13.89 $6.80 $19.28 $15.44 $7.56 $36.24 $29.00 $14.20 39 $18.87 $15.10 $7.46 $20.96 $16.77 $8.29 $39.40 $31.51 $15.58 40 $20.51 $16.41 $8.24 $22.79 $18.23 $9.16 $42.82 $34.25 $17.20 41 $22.28 $17.81 $9.14 $24.75 $19.79 $10.16 $46.49 $37.18 $19.08 42 $24.13 $19.31 $10.17 $26.81 $21.45 $11.30 $50.37 $40.31 $21.22 43 $26.11 $20.90 $11.34 $29.02 $23.22 $12.61 $54.53 $43.62 $23.67 44 $28.21 $22.56 $12.66 $31.35 $25.07 $14.07 $58.89 $47.10 $26.44 45 $30.40 $24.31 $14.14 $33.78 $27.01 $15.71 $63.46 $50.76 $29.51 46 $32.67 $26.14 $15.78 $36.30 $29.04 $17.53 $68.22 $54.56 $32.94 47 $35.01 $28.02 $17.56 $38.90 $31.13 $19.50 $73.09 $58.49 $36.65 48 $37.44 $29.95 $19.47 $41.59 $33.28 $21.64 $78.16 $62.51 $40.65 49 $39.89 $31.91 $21.54 $44.32 $35.46 $23.93 $83.27 $66.62 $44.96 50 $42.38 $33.91 $23.72 $47.09 $37.68 $26.35 $88.48 $70.80 $49.52 51 $44.32 $35.46 $25.64 $49.25 $39.40 $28.49 $92.53 $74.03 $53.52 52 $46.22 $36.98 $27.57 $51.36 $41.08 $30.63 $96.50 $77.19 $57.55 53 $48.05 $38.45 $29.48 $53.40 $42.72 $32.76 $100.32 $80.26 $61.56 54 $49.83 $39.86 $31.35 $55.36 $44.29 $34.84 $104.02 $83.22 $65.45 55 $51.71 $41.35 $33.13 $57.45 $45.95 $36.81 $107.94 $86.34 $69.16 56 $53.94 $43.16 $34.36 $59.93 $47.97 $38.18 $112.62 $90.11 $71.73 57 $56.00 $44.80 $35.33 $62.22 $49.78 $39.25 $116.91 $93.53 $73.76 58 $57.74 $46.20 $35.96 $64.16 $51.33 $39.96 $120.55 $96.44 $75.07 59 $59.05 $47.24 $36.13 $65.61 $52.50 $40.14 $123.27 $98.63 $75.42 60 $59.73 $47.77 $35.71 $66.36 $53.08 $39.67 $124.68 $99.74 $74.56 61 $59.46 $47.58 $32.82 $66.06 $52.87 $36.47 $124.13 $99.33 $68.52 62 $57.82 $46.27 $30.61 $64.25 $51.40 $34.02 $120.70 $96.57 $63.90 63 $53.98 $43.19 $27.24 $59.98 $47.99 $30.27 $112.70 $90.17 $56.88 64 $45.82 $36.65 $21.40 $50.92 $40.73 $23.78 $95.66 $76.51 $44.68 65 $25.32 $20.25 $7.97 $28.13 $22.50 $8.86 $52.86 $42.29 $16.63 *Waiting period
14 TASPLAN | INSURANCE BOOKLET Changing your Income Protection Cover Coverindexation You can elect to have your Income Protection Cover indexed annually at the time of applying for or transferring your Income Protection Cover to Tasplan. This means that your insured monthly benefit amount of cover increases by 5% in July each year. This can be useful if you expect your income to increase over time as your cover progressively increases without needing to complete an application for assessment each time you receive a pay rise. Please note the amount of disability benefits payable if you are eligible to claim on this policy will be determined as described earlier in this section.
Please note that choosing to index your cover will affect your premiums. As indexation increases your amount of cover, this will increase your premiums. Increasingcover You can apply to increase your Income Protection cover at any time using the Application for Insurance Cover with Personal Statement contained at the back of this booklet. Additional copies of this form are available at tasplan.com.au/forms.
The maximum monthly benefits are: Benefit period Maximum monthly benefit Short Term $25,000 per month Long Term $20,000 per month Reducingorcancellingcover You can reduce or cancel your cover at any time. You can do this by completing an Application to reduce or opt out of cover form. This form is available at tasplan.com.au/forms or by calling 1800 005 166. There are no costs associated with cancelling or reducing your insurance cover.
15 FIND OUT MORE > Customer Service 1800 005 166 Doyouhaveinsurancecoverelsewhere? You may be able to transfer your current Death, TPD or Income Protection Cover from another super fund, or in the case of Income Protection, from an employer sponsored group Income Protection policy, into your Tasplan Super account.
By transferring your cover, you can consolidate your cover when you consolidate your super accounts, without needing to provide detailed health information or complete a full insurance application. If your request to transfer your existing cover into Tasplan is successful, your new cover will have premiums applied at Tasplan’s current rates as outlined in this Booklet. Any individual conditions, exclusions, restrictions or premium loadings that apply to the transferred cover will continue to apply following the transfer.
DeathOnlyorDeath&TPDCover Any Death Only or Death & TPD Cover transferred into your Tasplan account will be applied in addition to your existing Tasplan cover. Please note that your Death Only or Death & TPD Cover cannot exceed $1.5 million following a transfer of cover. As such, your transferred cover may be scaled back to ensure that the total of your transferred cover plus your existing Tasplan cover does not exceed this limit. IncomeProtection Transferred Income Protection Cover will be applied in addition to any existing Income Protection Cover held within your Tasplan account. The monthly benefit will be subject to a maximum of 85% of your insurable income.
Please note that your total monthly benefit amount cannot exceed $10,000 per month following a transfer of cover. As such, your transferred cover may be scaled back to ensure that your cover does not exceed this limit. If the benefit period under your current policy is not available with Tasplan, you will be provided with cover for the next shortest benefit period that is available. For example, if your current policy has a 5 year benefit payment period, the Short Term benefit period will be applied to the transferred cover.
If the waiting period under your current policy is not available under Tasplan’s insurance policy, you will be provided with the next longest waiting period.
For example, if your current policy has a 65 day waiting period, a 90 day waiting period will be applied to the transferred cover. Please contact our Client Services Team to confirm how your transferred Income Protection Cover will be treated. Eligibility criteria To be eligible to transfer your insurance cover into Tasplan, you must:
complete an Insurance Transfer form to the insurer’s satisfaction;
be under 55 years of age at the date of transfer;
be actively employed immediately before the date of the transfer;
transfer your total account balance with your other super fund into Tasplan;
not be terminally ill with a life expectancy of less than 12 months;
not have been paid, eligible to be paid, or lodged a claim for permanent incapacity or TPD benefits from Tasplan, another fund, workers’ compensation or an insurance policy;
provide an up-to-date statement which as evidence of the cover to be transferred within 45 days of the date it was issued by your other super fund; and
have sufficient money in your account to pay the premium for the transferred cover, otherwise the cover will not be considered to have started, your application will not be considered to have been proceeded with and the insurer’s acceptance will be void.
How to transfer your cover To apply to transfer your insurance, please complete an Insurance Transfer form which is contained at the back of this booklet. Additional forms are available at tasplan.com.au/forms. You will also need to provide an up-to date statement or declaration from your other super fund that is less than 45 days old which includes details of:
the amount and type/s of cover you hold;
any exclusions, special conditions or loadings that apply; and
benefit and waiting periods applicable (Income Protection Cover only).
Transferred cover will start the date your total account balance from your former fund is received by Tasplan.
If your total account balance is not received, the transferred cover will be considered not to have started, and any paid premiums in respect of that cover will be refunded. Consolidating your super accounts? Check if you have insurance with your other fund before consolidating your accounts, as your cover will be cancelled when your account is closed. If you want to transfer your insurance cover, you should do this before you rollover your account balance.
4 Insurance transfers
16 TASPLAN | INSURANCE BOOKLET Applying for cover Type of cover How to Apply Basic Cover Automatically provided to eligible members with a participating employer. Fixed Cover Eligible members need to submit a completed Short Form Underwriting form within 90 days of the date shown on their Tasplan Welcome Letter. This is sent out shortly after the account is established. Additional Cover Eligible members must submit a completed Application for Insurance Cover with Personal Statement at any time. A copy is available at the back of this booklet.
Income Protection Cover Forms are available at tasplan.com.au/forms or by calling 1800 005 166. Please note that your application for cover will be assessed by the insurer, who will decide to accept or decline your application based on the information you provide. You may be asked to provide additional information or undertake a medical assessment to support your application if necessary. If your application is accepted, the insurer may choose to apply conditions, exclusions or premium loadings to your cover. If applicable, these will be outlined in a letter regarding acceptance of cover.
If you disagree with the insurer’s decision, you can either cancel your cover, or you can lodge a complaint.
Please refer to section 7 for more information. When will cover commence BasicCover If you have been automatically provided with Basic Cover, your cover will become activated when a contribution has been allocated to your account. Your cover will start on the later of:
the date that your employer became a ‘participating employer’ of Tasplan;
the date you commenced employment with your employer; or
the beginning of the period for which your first employer contribution is received.
If your employer contribution is received more than 120 days after you started working for your contributing employer, your cover will start no more than 120 days prior to the date that your first employer contribution is received. Othertypesofcover Fixed Cover, Additional Cover and Income Protection Cover will commence on the date that the insurer accepts your application for cover. You will receive written confirmation of the application’s acceptance and the cover commencement date. Cover may be declined in some circumstances. You will be advised in writing if this is the case.
Conditions, exclusions, limitations or premium loadings may apply to your cover acceptance.
If applicable, these will be provided to you in a letter regarding acceptance of cover. If there are insufficient funds in your account to pay the premiums for any Fixed Cover within 90 days of its acceptance, that cover will be considered never to have started. When cover ends Your cover will end on the earliest of:
the date a TPD benefit becomes payable for you under the Tasplan policy, except for any excess Death Cover above the Death & TPD Cover amount (please refer to Higher Death Cover below);
the date a Terminal Illness benefit becomes payable for you under the Tasplan policy;
reaching cover expiry age (65 for TPD and Income Protection, 70 for Death Cover);
ceasing to be a Tasplan member;
the date Tasplan receives a written request from you to cancel your cover;
the end of the month in which there are insufficient funds in your account to pay your premiums due, except in respect of any Fixed Cover for which you have been accepted within the last 90 days;
the date that you join any armed forces, other than the Australian Armed Forces Reserve; and
the date that the policy with the insurer terminates and is not replaced by another policy.
5 Cover commencement, terminationand reinstatement