personal product insurance guide - eqt · personal product insurance guide . ... to the extent that...

Prepared: 14 April 2018

The issuer and Trustee of The Executive Superannuation Fund (ABN: 60 998 717 367, RSE Registration R1001419, Unique Superannuation Identifier (USI): 60998717367001) is Equity Trustees Superannuation Limited, ABN: 50 055 641 757, RSE Licence L0001458, Australian Financial Services Licence (AFSL) No: 229757, Address: GPO Box 2307 Melbourne VIC 3001. Ph: (03) 8623 5000, Fax: (03) 8623 5200.

The Administrator of The Executive Superannuation Fund is OneVue Super Member Administration Pty Ltd, ABN: 90 094 584 755, AFSL No: 241366, Address: PO Box 67, Australia Square NSW 1215. Ph: 1300 614 644. Email address: [email protected] Plan website: www.executivesuper.com.au

PERSONAL PRODUCT INSURANCE GUIDE

mailto:[email protected]://www.executivesuper.com.au/

The Execut ive Superannuation Fund Personal Insurance Guide 2

The information in this document forms part of the Product Disclosure Statement (PDS) for members in the Personal Product of The Executive Superannuation Fund (the Fund), dated 14 April 2018.

The information provided in the PDS and this Insurance Guide (this Guide) is a summary of the benefits and terms and conditions of the Personal Product, however, the terms of the trust deed governing the Personal Product have precedence over anything in the PDS and this Insurance Guide.

To the extent that the PDS and Insurance Guide provide general advice, the advice does not take into account your individual financial situation, circumstances or needs. You should take these into account when making decisions about your benefit in this product, and consult an appropriately qualified financial adviser where required.

The Trustee does not guarantee the payment of an insured benefit or the performance of the Funds insurer.

Contents Insurance in your super ......................................................................................................................... 3

Death/Terminal Illness Benefit .............................................................................................................. 7

TPD Benefit ............................................................................................................................................ 8

Additional/Voluntary Death, TPD and Income Protection Cover ............................................................ 9

Cost of Death and TPD cover................................................................................................................ 10

Life Events Cover ................................................................................................................................. 17

Individual transfer terms ..................................................................................................................... 18

Limitations on Death and TPD cover .................................................................................................... 18

Income Protection Cover ..................................................................................................................... 19

Explanation of Terms ........................................................................................................................... 21

Cost of Income Protection cover .......................................................................................................... 22

Duty of disclosure ................................................................................................................................ 26

Insurance policy terms and conditions ..................................................................................................... 26

Further information and how to contact us ............................................................................................ 28


Insurance in your super The Death only or Death and Total and Permanent Disablement (TPD) insurance cover provided to eligible members in the Personal Product is provided under insurance arrangements with the Funds insurer (insurer or TAL). Any death cover includes cover for terminal illness.

The payment of the insured part of these benefits is, therefore, subject to the terms and conditions of the applicable insurance policy and the acceptance of any claim by the insurer. Any insured benefits can only be paid to you from the Personal Product if permitted under the trust deed and superannuation legislation (for more information about when benefits can be accessed from the Personal Product, see section 1 of the Reference Guide).

The insured benefits available, or provided, to members of the Personal Product depend on whether: they have been transferred to the Personal Product from

the Funds Employer Sponsored Product or ACE Australia Super, Meriton Staff Super or Valvoline Australia Super (other Employer Sponsored Products in the Fund) on or after 1 April 2016 and, if so, the membership category in which they were participating immediately prior to their transfer to the Personal Product;

they have been transferred to the Personal Product under a successor fund arrangement from a fund known as EquitySuper, with effect from 1 April 2016 (referred to in this Guide as the 1 April 2016 Successor Fund Transfer); or

they have joined the Personal Product as a result of completing the Application for membership Personal Product accompanying the PDS.

Former members of the Employer Sponsored Product and their associated spouses/dependants (other than former members of Sparxx Super, Atwood Oceanics Australia Super and FreshFood Super, former members of the Employer Sponsored Product that were joined to the Employer Sponsored Product as a result of the 1 April 2016 Successor Fund Transfer and any former members of the Employer Sponsored Product that are insurance only members and temporary residents who have ceased employment with their employer) Note: If you are a former member of ASC Super, the information below applies to your membership in the Personal Product, however, a separate age-based premium rate table applies to you.

Any Death and TPD insurance cover held by a former member (other than former members as shown above) of the Employer Sponsored Product of the Fund will be automatically continued upon transfer of the member (on cessation of employment or other role with their employer) to the Personal Product subject to the following: any other relevant restrictions, exclusions or premium

loadings as applicable to your insurance at the date of cessation of employment and transfer to the Personal Product;

a reduction of the TPD cover amount after age 60 (see further information below); and

cover has not ceased for some other reason (for example, you have reached the cover cessation age or you request that cover cease).

Any insurance cover will be provided within the Personal Product as fixed cover and treated as voluntary insurance cover, the cost of which will be deducted from your account balance in accordance with the age-based premium rates applicable to insurance cover provided in the Personal Product. If your former employer previously met the cost of insurance premiums associated with your account in the Employer Sponsored Product, your former employer will no longer meet the cost of any part of your insurance cover. Please refer to the age-based premium rate tables later in this Guide for more information regarding the cost of insurance cover applicable to your membership within the Personal Product.

Your insurance cover will be continued at the same level as that which applied as at the date of transfer to the Personal Product (subject to reduction in the TPD cover amount after age 60 see further information below) without having to undergo additional underwriting, until a cessation of cover event occurs.

You are able to maintain your Death only or Death and TPD cover in the Personal Product for the same or a lesser sum insured amount. You can also terminate your cover if you wish.

As such, if you would like to continue your cover for a lesser amount, or cancel it altogether, you must complete and return an Insurance Cover Cancellation or Reduction Form which is available on request from the Fund Administrator (contact details on the back page).

If you wish to take out additional voluntary Death only or Death and TPD Cover, above the level of cover that you held when you left your former employer, you can apply for extra cover (subject to maximum limits shown later in this Insurance Guide), if eligible. The full amount of any cover you apply for will be underwritten by the insurer. In order to obtain the insurance cover, evidence of health (such as a health statement and blood test) may need to be provided to the insurer for underwriting to occur.

Any additional Death or Death and TPD cover is also provided on the basis of the age-based premium scale applicable to your membership as set out in the tables later in this Guide.

You will need to ensure that you maintain a sufficient account balance in the Personal Product for the deduction of insurance premiums.

Your insurance cover will be cancelled if your member account does not hold sufficient funds to enable the deduction of relevant insurance premiums at the end of each month.

Note: If you are re-employed by your former employer, any insurance cover you held within the Personal Product may cease.

Income Protection Cover is available to you, on application to the insurer, in the Personal Product unless you are a former


member of KPMG Staff Super, KPMG Executive Super and ASC Super (referred to as plans in the Funds Employer Sponsored Product). See the Income Protection Cover section of this Guide for information about available benefits and applicable premium rates.

Former members of the Employer Sponsored Product that were joined to the Employer Sponsored Product as a result of the 1 April 2016 Successor Fund Transfer AND former members of ACE Australia Super, Meriton Staff Super or Valvoline Australia Super that were joined to these products as a result of the 1 April 2016 Successor Fund Transfer, or after 1 April 2016 Any Death and TPD insurance cover held by a former member (as stated above) will be automatically continued (on cessation of employment with their employer) upon transfer of the member to the Personal Product subject to the following conditions: any other relevant restriction, exclusions or premium

loadings as applicable to your insurance at the date of cessation of employment and transfer to the Personal Product;

cessation of Death and TPD cover at age 65, or in some cases a higher age up to age 80 (as applicable to your insurance at the date of cessation of employment and transfer to the Personal Product, and previously notified to you in your Welcome Pack on joining the Fund);

cessation of cover for some other reason (for example, you request that cover cease).

If the Death or Death and TPD cover prior to transfer to the Personal Product was Unit-based cover, then the member will continue to have Unit-based cover in the Personal Product, as described further below, subject to the above conditions. If the Death or Death and TPD cover prior to transfer to the Personal Product was formula based or fixed cover, then the member will have fixed cover in the Personal Product, subject to the above conditions (in the case of formula based cover, the fixed cover will be the amount calculated on the basis of the applicable formula as at the date of transfer to the Personal Product).

Any Income Protection (IP) cover held by a former member of the Employer Sponsored Product, ACE Australia Super, Meriton Staff Super or Valvoline Australia Super will cease (on cessation of employment) on transfer of the member to the Personal Product, unless the continuation of cover is requested within 30 days of cessation of employment (subject to payment of applicable premiums). Further information regarding IP cover is provided later in this Insurance Guide.

If your former employer previously met the cost of insurance premiums associated with your account in the Employer Sponsored Product, your former employer will no longer meet the cost of any part of your insurance cover. The cost of cover will be deducted from your account in the Personal Product. Please refer to the age-based premium rate tables later in this Guide for more information regarding the cost of insurance cover applicable to your membership within the Personal Product.

Your insurance cover will be continued at the same level (or same number of units) as that which applied as at the date of transfer to the Personal Product (subject to reduction in the TPD cover amount from age 65 see further below) without having to undergo additional underwriting, until a cessation of cover event occurs..

Unit-based Death or Death and TPD cover Any insurance cover within the Personal Product that is a continuation of Unit-based Death or Death and TPD cover depends on the number of units of cover held (if applicable to you, refer to your Welcome Pack on joining the Fund or contact the Fund Administrator for information about the number of units held). For each unit, the value of cover provided will depend on the members age.

The amount of cover provided for each unit of insurance cover is set out in the Unit-based cover table below:


Age next birthday Cover per unit ($)



15 25,000 32 22,500 49 10,000

16 25,000 33 21,250 50 10,000

17 25,000 34 20,000 51 8,750

18 25,000 35 18,750 52 8,750

19 25,000 36 18,750 53 7,500

20 25,000 37 18,750 54 7,500

21 25,000 38 18,750 55 6,250

22 25,000 39 18,750 56 6,250

23 25,000 40 18,750 57 5,000

24 25,000 41 15,625 58 5,000

25 25,000 42 13,750 59 3,750

26 25,000 43 12,500 60 3,125

27 25,000 44 11,250 61 2,500

28 25,000 45 10,000 62 1,875

29 25,000 46 10,000 63 1,250

30 25,000 47 10,000 64 625

31 23,750 48 10,000 65 313 You are able to maintain your Death only or Death and TPD cover in the Personal Product for the same or a lesser sum insured amount. You can also terminate your cover if you wish.


If you wish to take out additional voluntary Death only or Death and TPD Cover, above the level of cover that you held when you left your former employer, you can apply for extra cover (subject to the applicable maximum limits shown later in this Insurance Guide), if eligible. The full amount of any cover you apply for will be underwritten by the insurer. In order to obtain the insurance cover, evidence of health (such as a health statement and blood test) may need to be provided to the insurer for underwriting to occur.




Note: If you are re-employed by your former employer, any insurance cover you held within the Personal Product may cease. Income Protection Cover is also available to you, on application to the insurer, in the Personal Product. See the Income Protection Cover section of this Guide for information about available benefits and applicable premium rates.

Former members of Sparxx Super, Atwood Oceanics Australia Super and FreshFood Super in the Employer Sponsored Product Any Death and TPD insurance cover held by a former member of Sparxx Super, Atwood Oceanics Australia Super and FreshFood Super will not be automatically continued upon transfer of the member (on cessation of employment or role with their employer) to the Personal Product.

Should you wish to maintain your Death only or Death and TPD insurance cover after cessation of your employment with your former employer via an insurance policy outside the Fund, you can exercise a continuation option. This is an option to request cover under a separate individual policy issued directly to you by the insurer, provided you meet certain eligibility criteria.

Alternatively, you can apply to the Funds insurer for voluntary Death only, Death and TPD and/or Income Protection cover within the Personal Product through the Funds insurer and will be subject to meeting the insurers underwriting requirements. The cost of voluntary cover, as applicable to your membership of the Personal Product, is shown later in this Guide.

Former temporary residents who are former members of the Employer Sponsored Product If you were previously working in Australia as a temporary resident (e.g. on an overseas secondment) and have been transferred to the Personal Product (on cessation of employment or other role with your employer), please note that any insurance cover which was previously provided to you


ceases effective from the date that you finished working for your former employer in Australia.

It is however, important that you confirm your departure from Australia to the Fund Administrator to ensure that your cover is cancelled and that any future insurance premiums are not deducted from your member account. You should also note that superannuation benefits of former temporary residents must be paid to the ATO as unclaimed money in certain circumstances (when requested by the ATO). Please refer to section 1, Part B of the Reference Guide for more details.

Former insurance only members in the Employer Sponsored Product If you were previously an insurance only member in the Employer Sponsored Product in the Fund, any Death and TPD insurance cover which you held as an insurance only member will not continue within the Personal Product upon your termination of employment with your employer.

Insurance cover for insurance only members ceases after 30 days from the date of termination of your employment. This is due to the fact that you have no account balance within the Fund from which to deduct insurance premiums, and there is no account automatically established for you in the Personal Product on cessation of employment.

If you were an insurance only member in the Employer Sponsored Product and you would like to continue your existing insurance cover after leaving employment (provided it has not ceased for some other reason), you will need to notify the Fund Administrator and make contributions to the Personal Product at the time (and after) you cease employment which will be sufficient to cover the cost of future insurance premiums. The continuation of cover is subject to eligibility criteria and a reduction in the TPD cover amount (as explained later in this Guide). Please contact the Fund Administrator (contact details on the back page) for more information about what is required to participate in the Personal Product. Former insurance only members can also apply for additional insurance cover (including Income Protection cover) subject to satisfying the insurers underwriting requirements and payment of applicable premiums. Further information regarding IP cover is provided later in this Insurance Guide.

Members transferred directly to the Personal Product under the 1 April 2016 Successor Fund Transfer Any Death and TPD insurance cover held by a former member of the EquitySuper Personal Product that was joined to the Funds Personal Product as a result of the 1 April 2016 Successor Fund Transfer will be automatically continued (as unit-based or fixed cover) upon transfer to the Personal Product subject to the following conditions: any other relevant restrictions, exclusions or premium

loadings as applicable to your insurance at the date of the 1 April 2016 Successor Fund Transfer;

cessation of Death and TPD cover at age 65, or in some cases a higher age up to age 80 (as applicable to your insurance at the date of the 1 April 2016 Successor Fund Transfer and notified to you in your Welcome Pack on joining the Fund);

cessation of cover for some other reason (for example, you request that cover cease).

If the Death or Death and TPD cover on transfer to the Personal Product was Unit-based cover, then the member will continue to have Unit-based cover in the Personal Product, as described further below, subject to the above conditions. If the Death or Death and TPD cover on transfer to the Personal Product was fixed cover, then the member will have fixed cover in the Personal Product, subject to the above conditions.

Any Income Protection (IP) cover held by a former member of the EquitySuper Personal Product that was joined to the Funds Personal Product as a result of the 1 April 2016 Successor Fund Transfer will be automatically continued in the Personal Product subject to the terms and conditions of the relevant insurance policy (including terms relating to the cessation of cover) and any restrictions, exclusions or premium loadings applicable to the cover on transfer to the Fund. Further information regarding IP cover is provided later in this Insurance Guide.

Your insurance cover will be continued at the same level as that provided as at the date of transfer to the Personal Product (subject to reduction in the TPD cover amount from age 65 see further below) without having to undergo additional underwriting, until a cessation of cover event occurs.

Unit-based Death or Death and TPD cover Any insurance cover within the Personal Product that is a continuation of Unit-based Death or Death and TPD cover depends on the number of units of cover held (if applicable to you, refer to your Welcome Pack on joining the Fund or contact the Fund Administrator for information about the number of units held). For each unit, the value of cover provided will depend on the members age.

The amount of cover provided for each unit of insurance cover is set out in the Unit-based cover table shown previously in this Guide.

You are able to maintain your Death only or Death and TPD cover in the Personal Product for the same or a lesser sum insured amount. You can also terminate your cover if you wish.



If you wish to take out additional voluntary Death only or Death and TPD Cover, you can apply for extra cover (subject to the applicable maximum limits shown later in this Insurance Guide), if eligible. The full amount of any cover you apply for will be underwritten by the insurer. In order to obtain the insurance cover, evidence of health (such as a health statement and blood test) may need to be provided to the insurer for underwriting to occur.


You are also able to make changes to, or cancel, any Income Protection Cover you have in the Personal Product, or apply for Income Protection Cover. Refer to the Income Protection Cover section of this Guide for further information.



Other members who have joined the Personal Product after 1 April 2016 as a result of completing the Application for membership Personal Product accompanying the PDS AND any Personal Product member eligible for additional Death, Death and TPD and/or Income Protection on application to the insurer You can apply for Voluntary Death or Death and TPD insurance cover. Generally, you can apply for any amount of Death only cover, subject to a maximum of $5 million or Death and TPD cover, subject to a maximum of $3 million for each.

The full amount of any cover you apply for will be underwritten by the insurer. In order to obtain the insurance cover, evidence of health (such as a health statement and blood test) may need to be provided to the insurer for underwriting to occur.

You can also apply for Voluntary Income Protection Cover in the Personal Product.

For more information on Voluntary Death only, Death and TPD and Income Protection please refer to further information later in this Guide.


Your insurance cover will be cancelled if your member account does not hold sufficient funds to enable the deduction of relevant insurance.

Death/Terminal Illness Benefit Eligibility criteria To apply for additional or voluntary death cover in the Personal Product, the following eligibility criteria apply: the member must be an Australian resident; and the member must be less than 65 years of age (unless

the insurer permits a higher age limit).

Further information about applying for additional or voluntary cover is set out below.

When does Death/terminal illness insurance cover commence? Death/terminal illness cover in the Personal Product commences from the date an eligible member is accepted for additional or voluntary Death cover by the insurer, or the date that eligible former members (and any existing death cover at the transfer date) are transferred from Funds Employer Sponsored Product, ACE Australia Super, Meriton Staff Super or Valvoline Australia Super into the Personal Product; or 1 April 2016 in the case of eligible members joined directly to the Personal Product under the 1 April 2016 Successor Fund Transfer.

When does Death/terminal illness insurance cover cease? Any death/terminal illness cover ceases when a cessation event, specified in the applicable insurance policy occurs. In summary, death/terminal illness cover ceases on the earliest of: your 65th birthday (or in some cases a higher age up to

age 80 as previously notified to you); the date you cease to be a member of the Fund (with a

grace period of 60 days following the date of the member leaving the Fund);

your date of death; the date a terminal Illness benefit becomes payable

(unless the amount of your death cover is higher, in which case a death benefit may still be payable);

the date your signed and dated Insurance Cover Cancellation or Reduction Form is received by the Fund Administrator;

when you are on unpaid leave for a period longer than 24 months without prior approval by the insurer;

the date before you commence active service in the armed forces of any country, not including normal activities as a Reservist with the Australian Defence Force, but including operational deployment on active service with the Australian Defence Force; or

the date when premiums are unpaid.

The benefit payable after any of these cessation of cover events is therefore the same as the withdrawal benefit i.e. the full balance of your account within the Personal Product.

Amount of the Death/terminal illness benefit payable with insurance cover For members with insurance cover who are eligible to claim an insured benefit, the amount of the insured benefit (as applicable to your circumstances) is payable in the event of Death or terminal illness, in addition to the full balance of your account in the Personal Product. The amount of cover is calculated as the amount of cover (fixed or unit-based) that you hold plus the amount of any additional voluntary cover


requested (and granted by the insurer) after joining the Personal Product.

Limitations on your cover may affect the insured amount. If, for whatever reason, the level of any cover provided to a member in the Personal Product by the insurer is reduced or limited, then your benefit may also be affected. You will be advised if this occurs.

An example of how the insured amount is determined follows:

Example: In the event of a members death, assuming an account balance in the Personal Product of say $150,000 and an insured benefit of say $700,000, the lump sum benefit payable to the beneficiary would be:

Account balance: $150,000

Plus

The insured benefit: $700,000

Total death benefit received* $850,000

*Taxation may apply: See the Taxation section of the Reference Guide.

Payment of the terminal illness benefit Where you are declared terminally ill by two medical practitioners, you may be eligible to apply for a prepayment of your death benefit. The benefit will be paid to you tax free on provision of the necessary medical evidence, subject to approval by the insurer and Trustee. Terminal Illness is defined as any condition that, in the opinion of two appropriate specialist Medical Practitioners approved by the insurer and having regard to the current treatment or such other treatment as you may reasonably be expected to receive, is likely to lead to your death within 12 months from the date you are diagnosed with the condition. Please note: The Government has amended the regulations which allow people suffering a terminal condition to access their superannuation account balance early. Before 1 July 2015, people with a terminal medical condition could only access their superannuation account balance early if they could get certification from two medical specialists that they had less than 12 months to live. With effect from 1 July 2015, the Government changed this period to 24 months, meaning more terminally ill people can access their superannuation account balance early. However, your current policy does not reflect the extended certification period. If you wish to claim your superannuation account balance early, it is advisable for you to ensure that you leave a sufficient account balance to cover your insurance premiums to maintain any death cover you have. The Governments changes do not affect the conditions in insurance policies for obtaining an insured terminal illness benefit (for members insured for terminal illness). To qualify for payment of an insured terminal illness benefit you must satisfy the conditions of the insurance policy as described above, while an insured member of the Fund.

Payment of the death benefit The death benefit is a cash lump sum payable generally to your dependants or, if there are no dependants, the legal personal representative of your estate. You can make a binding or non-binding nomination of those persons whom you would prefer to receive your benefit in the event of your death (refer to section 1 of the Reference Guide for more details).

TPD Benefit Eligibility criteria To apply for additional or voluntary TPD cover in the Personal Product, the following eligibility criteria apply: the member must be an Australian resident; and the member must be less than 65 years of age, unless

the insurer permits a higher age limit.

You can only apply for TPD cover with, or if you have, death insurance cover. The TPD cover amount cannot be greater than the death cover amount.

Further information about applying for additional or voluntary cover is set out below.

When does TPD insurance cover commence? TPD cover in the Personal Product commences from the date an eligible member is accepted for additional or voluntary TPD cover by the insurer, or the date that eligible former members of the Funds Employer Sponsored Product, ACE Australia Super, Meriton Staff Super or Valvoline Australia Super (and any existing TPD cover at the date of transfer) are transferred into the Personal Product; or 1 April 2016 in the case of eligible members joined directly to the Personal Product under the 1 April 2016 Successor Fund Transfer.

When does TPD insurance cover cease? TPD cover ceases when a cessation event, specified in the applicable insurance policy occurs. In summary, TDP cover ceases on the earliest of: your 65th birthday (or in some cases a higher age up to

age 80 as previously notified to you); the date you cease to be a member of the Fund (with a

grace period of 60 days following the date of the member leaving the Fund);

your date of death or the date a terminal illness benefit becomes payable, if your TPD benefit is less than your Death/terminal illness benefit;

the date a TPD benefit becomes payable; the date your signed and dated Insurance Cover

Cancellation or Reduction Form is received by the Fund Administrator;

when you are on unpaid leave for a period longer than 24 months without prior approval by the insurer;

the date before you commence active service in the armed forces of any country, not including normal activities as a Reservist with the Australian Defence Force, but including operational deployment on active service with the Australian Defence Force; or

the date that premiums are unpaid.

The benefit payable after any of these cessation of cover events is therefore the same as the withdrawal benefit i.e. the full balance of your account within the Personal Product.

Amount of the TPD benefit payable with insurance cover For members with TPD insurance cover who are eligible to claim an insured benefit, the amount of the insured benefit (as applicable to your circumstances) is payable in the event that you are assessed to be totally and permanently disabled (or TPD), in addition to the full balance of your account in the Personal Product. The amount of the insured TPD benefit is calculated in the same way as the insured death benefit is calculated (refer to the previous page).


However, it is important to note that the amount of TPD cover for members of the Personal Product with fixed cover reduces depending on your age. For former members of KPMG Staff, KPMG Executive Super and ASC Super, once you are over age 60, the insured benefit payable on TPD reduces by 20% for each year by which your age exceeds 60, such that TPD cover reduces to zero upon your 65th birthday for insured members with TPD cover.

For members joined directly to the Personal Product under the 1 April 2016 Successor Fund Transfer with fixed cover, your TPD cover will reduce by 20% of the original sum insured for each year from age 65. At age 68, your TPD cover will remain at 20% of the original sum insured until it ceases at age 75.

(For members of the Personal Product with unit-based cover, the amount of cover is calculated in accordance with the unit-based cover table earlier in this Guide, which includes a reduction in the value of each unit from age next birthday 60 to 65).

Limitations on your cover may affect the insured amount. If, for whatever reason, the level of cover provided by the insurer is reduced or limited, then your benefit may also be affected. You will be advised if this occurs.

TPD what does this mean? The definition of TPD in relation to insured benefits within the Personal Product is based on definitions included within the Funds insurance policy.

An insured individual is deemed to be totally and permanently disabled (and will be eligible for an insured TPD benefit under the policy) if all the following conditions are met in accordance with the relevant insurance policy:

1. The insured individual is under the care of and following the advice of a medical practitioner;

2. The insured individual meets the following definition of permanent incapacity contained within the Superannuation Industry (Supervision) Regulations 1994: a member of a superannuation fund or an approved deposit fund is taken to be suffering permanent incapacity if a trustee of the fund is reasonably satisfied that the members ill-health (whether physical or mental) makes it unlikely that the member will engage in gainful employment for which the member is reasonably qualified by education, training or experience.

3. The insured individual meets any other required definition of TPD applicable to their circumstances, as set out in detail within the relevant insurance policy.

Please contact the Fund Administrator for further details, including details of the TPD definition relevant to your account.

Payment of the TPD benefit You will be eligible for an insured TPD benefit if the insurer considers that you have satisfied the conditions for such a benefit as set out in the insurance policy.

The Trustee must also be satisfied that any insured TPD benefit is payable under the Funds trust deed and superannuation legislation.

Where an insured member satisfies the TPD definition, the date of disablement is treated as having occurred on the earlier of: The date on which a period of at least 6 consecutive

months absence from work that results in TPD began; The date on which a period of at least 6 consecutive

months inability to perform the activities of daily living that results in TPD began;

The date the person suffers the loss of the sight in both eyes, or the use of both limbs, or the sight in 1 eye and the use of 1 limb; or

The date the person suffers the loss of the sight of another eye or the use of another limb, having already suffered the loss of the sight of an eye or the use of a limb.

If you would like to make a claim you need to notify us as soon as it is reasonably possible of an event that is likely to give rise to a claim. Please contact the Fund Administrator if you wish to make a claim.

Additional / Voluntary Death, TPD and Income Protection Cover Applying for Additional or Voluntary cover As noted above, eligible Personal Product members may apply, after joining the Personal Product, to take out Death cover only, Death and TPD and/or Income Protection cover (if eligible). For eligible members transferred into the Personal Product from the Employer Sponsored Product, ACE Australia Super, Meriton Staff Super or Valvoline Australia Super; or eligible members joined directly to the Personal Product under the 1 April 2016 Successor Fund Transfer, any: Voluntary Death or Death and TPD cover that is applied

for is in addition to any transferred cover retained in the Personal Product; and

Voluntary Income Protection Cover that is applied for is in addition to any transferred Income Protection cover retained in the Personal Product.

TPD cover is not available without Death cover. A members TPD cover cannot exceed their level of Death cover.

Voluntary Income Protection Cover is not available to former members of KPMG Staff Super, KPMG Executive Super and ASC Super.

To apply for cover you, or your financial adviser on your behalf (providing that you still read and sign the declaration), must complete the relevant application for insurance, which can be obtained by contacting the Fund Administrator.

You have a duty of disclosure to the insurer when you apply for cover (see the end of this Guide for further information about this).

Types of cover available on application Eligible members of the Personal Product may apply for additional or voluntary Death only cover or Death and TPD cover. Voluntary Death insurance cover for most Personal Product members is subject to a maximum of $5,000,000. Voluntary Death and TPD insurance cover for most Personal Product members is subject to a maximum of $3,000,000. Former members in ASC Super in the Employer Sponsored


Product are able to apply for unlimited Death cover, however, spouses or dependants associated with the former ASC Super members are only able to apply for Death only or Death and TPD cover up to a maximum of $1,000,000.

Income Protection Cover is available with benefit payment periods of 2 years, 5 years and benefits payable to 65 years of age. Members must also choose a waiting period that applies to when benefit payments commence. If a member has Income Protection Cover on transfer to the Personal Product from another segment of the Fund, the member can apply to vary their benefit and/or waiting period. The available waiting periods are 30, 60 or 90 days. The cost of Income Protection Cover depends on the benefit and waiting period selected. For further information, please refer to the Income Protection Cover section later in this Guide.

Evidence of health is required If you want to apply for insurance cover while a member of the Personal Product, you will usually have to provide evidence of health to the insurer. This would initially take the form of a personal statement within which you will need to provide details of your medical history and current state of health. Depending upon the level of cover and the details within your personal statement, the insurer may request further information in order to assess your application.

The granting of cover is at the absolute discretion of the insurer, TAL. Any additional or voluntary cover does not commence until your application is approved by the insurer, however, Interim Accident Cover may apply whilst your application is awaiting underwriting, subject to the conditions of the relevant insurance policy. Please contact the Fund Administrator for further information (contact details on the back page).

Additional or voluntary cover may be accepted on a restricted basis. This means: You may not be granted the full amount of cover sought; The cover may have certain restrictions or exclusions

(e.g. no coverage in relation to back injuries etc. if you have had a previous back injury); and

The rates charged for your insurance may have an additional loading on them. This means that the premium charged will be higher than that shown in the tables further below. The loading is added because the insurer considers you a higher risk in accordance with their underwriting criteria.

If, for whatever reason, the level of cover provided by the insurer is reduced or limited, then your benefit may also be affected. You will be advised if this occurs.

Note: Additional cover may also be obtained without undergoing the insurers full underwriting process if a member is eligible for Life Events cover or cover under Individual Transfer Terms (see the information about Life Events cover and Individual Transfer Terms later in this Guide). Terms and conditions apply.

How and when to apply Eligible members can apply for insurance cover when they join the Personal Product or at any time after they join the Personal Product. Information about the premium rates applicable to additional or voluntary cover is set out below. If you would like to know more (including how much any insurance cover would cost you), please contact the Fund Administrator (contact details on the back page).

Interim Accident Cover While your insurance cover is being underwritten (in relation to the type of cover that is being underwritten) you will be provided with Interim Accident Cover (IAC) on the following basis: IAC will apply for up to 120 days of your duly completed

Personal Statement being received by the insurer; the insurer may pay IAC up to a maximum of $1 million

for Death and TPD, in the case of underwritten Death only or Death and TPD cover;

The insurer may pay IAC, in the case of underwritten Income Protection Cover, up to a maximum of $15,000 per month; and

IAC will also cease when your cover is accepted or declined or would otherwise have ceased under the terms of the applicable insurance policy.

IAC commences from the date your completed Personal Statement is received by the insurer. Further conditions and limits apply under the insurance policy. For further details, please contact the Fund Administrator.

Cost of Death and TPD cover How much does insurance cover cost? Premium rates for Death and TPD insurance cover are shown in the tables over the following pages, depending on the nature of your membership of the Personal Product. These are subject to any premium loadings imposed by the insurer on any cover retained in the Personal Product on transfer from another segment of the Fund; or under the 1 April 2016 Successor Fund Transfer and, in relation to additional or voluntary insurance cover applied for on or after joining the Personal Product, are advised to you during the application process. Premiums will be calculated annually in advance based upon your age next birthday at 1 July each year and the amount of your insurance cover.

Premiums for any insurance cover will be deducted from your account in the Personal Product on a monthly basis in arrears, or on a pro-rata basis upon exit from the Fund, and paid to the insurer, TAL. Adjustments may be made for changes in the level or type of cover that occur during a year. Any insurance cover in the Personal Product will cease if you do not have a sufficient account balance to meet the cost of monthly insurance premiums. Insurance cover can be cancelled or reduced at any time by providing a signed and dated Insurance Cover Cancellation or Reduction Form to the Fund Administrator confirming your instructions.

Important Note: The insurance premium rates shown in this Guide are guaranteed to 30 September 2019 and are subject to change thereafter.


Former eligible members of the Employer Sponsored Product and their associated spouses/dependants of the KPMG Executive and KPMG Staff Plan The below table outlines the annual dollar cost of any insurance cover (including Life Events Cover described further below) held while a member of the Personal Product.

Note: The rates below include an insurance administration fee of 5%, paid to the Fund Administrator for administering the insurance benefits. The rates are the standard rates the cost of any insurance cover may vary depending on any assessment loadings applied by the insurer relating to the health of the insured.

Age Next Birthday

(ANB)

Male Death only

Female Death only

Male Death &

TPD

Female Death &

TPD

Age Next Birthday

(ANB)

Male Death only

Female Death only

Male Death &

TPD

Female Death &

TPD

16 0.30 0.15 0.40 0.24 44 0.80 0.59 1.59 1.47

17 0.30 0.15 0.40 0.24 45 0.88 0.64 1.73 1.62

18 0.30 0.15 0.40 0.24 46 0.98 0.68 1.92 1.75

19 0.30 0.15 0.40 0.24 47 1.07 0.76 2.09 1.95

20 0.28 0.15 0.38 0.24 48 1.17 0.84 2.27 2.18

21 0.28 0.15 0.38 0.24 49 1.25 0.97 2.47 2.49

22 0.28 0.15 0.38 0.24 50 1.38 1.07 2.75 2.81

23 0.30 0.15 0.40 0.24 51 1.46 1.22 2.98 3.16

24 0.30 0.15 0.40 0.24 52 1.59 1.38 3.30 3.54

25 0.32 0.15 0.41 0.24 53 1.72 1.50 3.60 3.89

26 0.34 0.15 0.43 0.24 54 1.86 1.63 3.96 4.21

27 0.34 0.19 0.45 0.28 55 2.04 1.75 4.35 4.55

28 0.34 0.19 0.46 0.28 56 2.24 1.88 4.84 4.91

29 0.34 0.20 0.48 0.32 57 2.49 2.04 5.46 5.37

30 0.34 0.22 0.48 0.35 58 2.81 2.23 6.26 5.93

31 0.34 0.22 0.53 0.37 59 3.20 2.45 7.22 6.65

32 0.36 0.22 0.56 0.42 60 3.65 2.74 8.39 7.56

33 0.36 0.24 0.58 0.46 61 4.14 3.09 9.68 8.76

34 0.39 0.25 0.63 0.53 62 4.66 3.51 11.13 10.25

35 0.42 0.28 0.69 0.62 63 5.18 3.99 12.65 12.11

36 0.45 0.30 0.76 0.67 64 5.80 4.56 14.37 14.28

37 0.47 0.34 0.81 0.77 65 6.50 5.18 16.34 16.77

38 0.51 0.36 0.88 0.84 66 7.38 5.89 N/A N/A

39 0.56 0.39 0.99 0.96 67 8.49 6.71 N/A N/A

40 0.59 0.42 1.09 1.04 68 9.87 7.57 N/A N/A

41 0.62 0.46 1.21 1.14 69 11.50 8.53 N/A N/A

42 0.68 0.50 1.33 1.24 70 13.30 9.52 N/A N/A

43 0.74 0.56 1.46 1.38

Premiums for any additional insurance cover will be deducted from your account in the Personal Product monthly in arrears, or upon a pro-rata basis upon exit from the Fund, and paid to the insurer, TAL.

Example: The voluntary insurance premium applicable to a male who will be 46 years old at their next birthday with Voluntary Death and TPD insurance cover of $500,000 would be calculated as follows:

$500,000 1,000 x $1.92 = $960.00 per annum


Former eligible members of ASC Super transferred to the Personal Product and associated spouses or other dependants that apply for membership of the Personal Product The below table outlines the annual dollar cost of any insurance cover (including Life Events Cover described further below) held while a member of the Personal Product by former members of ASC Super and spouses or other dependants associated with the membership of ASC Super.

Premiums for any cover will be deducted from your account in the Personal Product monthly in arrears, or on a pro-rata basis upon exit from the Fund, and paid to the insurer, TAL.

Note: The rates are the standard rates the cost of any insurance cover may vary depending on any assessment loadings applied by the insurer relating to the health of the insured.

The annual rates are per each $1,000 Sum Insured. Age Next Birthday

(ANB)

Male Death only

Female Death only

Male TPD Female TPD ANB Male Death only

Female Death only

Male TPD Female TPD

16 $0.62 $0.36 $0.02 $0.01 44 $0.99 $0.70 $0.77 $0.83 17 $0.71 $0.36 $0.02 $0.01 45 $1.12 $0.76 $0.87 $0.95 18 $0.76 $0.33 $0.04 $0.02 46 $1.21 $0.84 $1.03 $1.07 19 $0.81 $0.32 $0.07 $0.02 47 $1.32 $0.94 $1.16 $1.19 20 $0.83 $0.30 $0.07 $0.02 48 $1.44 $0.99 $1.32 $1.35 21 $0.83 $0.29 $0.08 $0.00 49 $1.58 $1.11 $1.51 $1.50 22 $0.81 $0.27 $0.10 $0.04 50 $1.68 $1.18 $1.71 $1.71 23 $0.77 $0.26 $0.12 $0.04 51 $1.82 $1.29 $1.94 $1.92 24 $0.74 $0.26 $0.12 $0.02 52 $1.98 $1.36 $2.19 $2.20 25 $0.70 $0.24 $0.14 $0.03 53 $2.15 $1.49 $2.44 $2.44 26 $0.66 $0.23 $0.12 $0.05 54 $2.32 $1.62 $2.77 $2.77 27 $0.62 $0.21 $0.12 $0.07 55 $2.52 $1.72 $3.09 $3.10 28 $0.58 $0.21 $0.14 $0.07 56 $2.72 $1.86 $3.43 $3.49 29 $0.55 $0.20 $0.15 $0.09 57 $2.92 $1.96 $3.84 $3.94 30 $0.51 $0.20 $0.17 $0.11 58 $3.19 $2.11 $4.28 $4.42 31 $0.50 $0.22 $0.16 $0.11 59 $3.46 $2.25 $4.73 $4.91 32 $0.50 $0.22 $0.16 $0.15 60 $3.76 $2.39 $5.24 $5.41 33 $0.50 $0.24 $0.17 $0.17 61 $4.08 $2.57 $5.81 $5.86 34 $0.50 $0.27 $0.19 $0.19 62 $4.47 $2.72 $6.39 $6.38 35 $0.51 $0.28 $0.23 $0.26 63 $4.89 $2.90 $7.01 $6.87 36 $0.52 $0.30 $0.25 $0.28 64 $5.35 $3.07 $7.72 $7.38 37 $0.55 $0.33 $0.27 $0.33 65 $5.85 $3.27 $8.48 $7.85 38 $0.61 $0.37 $0.33 $0.37 66 $7.08 $3.96 $0.00 $0.00 39 $0.65 $0.41 $0.37 $0.43 67 $8.57 $4.79 $0.00 $0.00 40 $0.72 $0.47 $0.43 $0.47 68 $10.37 $5.80 $0.00 $0.00 41 $0.78 $0.52 $0.50 $0.57 69 $12.55 $7.02 $0.00 $0.00 42 $0.84 $0.56 $0.57 $0.65 70 $15.19 $8.49 $0.00 $0.00 43 $0.93 $0.64 $0.65 $0.73

Note: You can only apply for TPD cover with, or if you have, death insurance cover. Your Death and TPD premium is the sum of the Death and TPD premiums shown in the table above based on your sex and age next birthday.

Example: The insurance premium applicable to a male who will be 46 years old at their next birthday with Death and TPD insurance cover of $500,000 would be calculated as follows:

$500,000 1,000 x ($1.21 + $1.03) = $1,120.00 per annum

Important Notes:

The insurance premium rates shown in this Guide are guaranteed to 30 September 2018 and are subject to change thereafter.


Former eligible members of the Employer Sponsored Product, ACE Australia Super, Meriton Staff Super or Valvoline Australia Super that were joined to these products in the Fund as a result of the 1 April 2016 Successor Fund Transfer AND eligible members transferred directly to the Personal Product under the 1 April 2016 Successor Fund Transfer. The tables below outline the annual dollar cost of fixed cover and unitised cover (including Life Events Cover described further below) held while a member of the Personal Product, by the above members.

Note: The below rates include an insurance administration fee of 10% of the premium amount, paid to the Fund Administrator for administering the insurance benefits. The rates are the standard rates the cost of any insurance cover may vary depending on any assessment loadings applied by the insurer relating to the health or occupation of the insured. Occupation loadings/discount factors are shown below.


Fixed insurance cover The annual rates are per $1,000 Sum Insured.

Age Next

Birthday (ANB)

Death Only Death & TPD ANB

Death Only Death & TPD

Male Female Male Female Male Female Male Female

16 1.02 0.55 1.05 0.41 46 1.64 1.17 2.89 2.43 17 1.17 0.55 1.05 0.41 47 1.79 1.27 3.25 2.68 18 1.27 0.55 1.05 0.41 48 1.97 1.40 3.61 2.96 19 1.33 0.55 1.09 0.43 49 2.13 1.52 4.09 3.31 20 1.38 0.52 1.14 0.43 50 2.33 1.63 4.58 3.72 21 1.38 0.46 1.20 0.43 51 2.56 1.76 5.18 4.17 22 1.33 0.45 1.22 0.43 52 2.79 1.93 5.87 4.63 23 1.27 0.43 1.24 0.41 53 3.04 2.09 6.69 5.14 24 1.22 0.37 1.22 0.41 54 3.28 2.22 7.58 5.73 25 1.14 0.35 1.22 0.37 55 3.59 2.39 8.55 6.33 26 1.08 0.33 1.20 0.37 56 3.89 2.56 9.50 6.95 27 1.02 0.30 1.17 0.41 57 4.22 2.73 10.58 7.65 28 0.92 0.30 1.14 0.43 58 4.61 2.93 11.80 8.42 29 0.87 0.28 1.12 0.45 59 4.98 3.14 13.22 9.21 30 0.83 0.28 1.09 0.50 60 5.43 3.33 14.89 10.15 31 0.78 0.28 1.09 0.50 61 5.90 3.54 16.86 11.21 32 0.75 0.30 1.09 0.55 62 6.48 3.80 19.13 12.40 33 0.73 0.30 1.09 0.57 63 7.04 4.03 21.66 13.82 34 0.70 0.33 1.12 0.63 64 7.71 4.28 24.51 15.49 35 0.70 0.37 1.17 0.73 65 8.42 4.58 27.71 17.36 36 0.73 0.41 1.22 0.79 66 8.97 4.82 31.15 19.53 37 0.78 0.45 1.30 0.87 67 9.58 5.09 35.10 21.98 38 0.83 0.52 1.38 1.02 68 10.21 5.32 39.57 24.77 39 0.89 0.55 1.46 1.14 69 10.85 5.58 44.63 27.94 40 0.95 0.63 1.60 1.30 70 11.47 5.85 50.29 31.58 41 1.02 0.70 1.76 1.46 71 13.77 7.02 58.41 36.60 42 1.14 0.79 1.93 1.67 72 16.53 8.42 67.88 42.43 43 1.24 0.87 2.13 1.84 73 19.84 10.12 78.89 49.24 44 1.38 0.95 2.35 2.04 74 23.82 12.13 91.71 57.11 45 1.52 1.08 2.63 2.22 75 28.57 14.54 106.65 66.29


Fixed insurance cover --- Occupational Loading/Discount Factors

The following Occupational Loading/Discount Factors apply to the fixed premium rates in the table immediately above (premium rates are multiplied by these rates).

Occupation rating Death only Death and TPD Professional 0.90 0.90

White Collar 1.00 1.00

Light Blue 1.00 1.25

Heavy Blue (Skilled) 1.25 1.60

Heavy Blue (Unskilled) 1.50 2.00

Example: The insurance premium applicable to a male, Heavy Blue (Skilled) and 46 years old at their next birthday with fixed Death and TPD insurance cover of $500,000 would be calculated as follows:

$500,000 1,000 x ($2.89 x 1.60) = $2,312 per annum

Unit-based cover The rates are calculated weekly, per unit of Death only or Death and TPD cover held.

Type of cover Premium (per unit per week)

Death only $0.22

Death and TPD $0.45

Unit-based cover --- Occupational Loading/Discount Factors

The following Occupational Loading/Discount Factors apply to the unit-based premium rates in the table immediately above (premium rates are multiplied by these rates).

Occupation rating Death only Death and TPD Professional 0.90 0.90





Example: The insurance premium applicable to a White Collar member with 12 units of Death and TPD insurance cover would be calculated as follows:

12 units x $0.45 x 1.00 x 52 = $280.80 per annum

Occupational definitions

Professional Those occupations that require tertiary qualifications, i.e. a university degree, or registration by a government body or professional institute (you must be currently engaged in an occupation for which these qualifications apply). The insurer will also consider well-established executives and senior managerial white-collar workers with incomes in excess of $80,000 p.a. who have been in their industry for at least 5 years.

White Collar Clerical, administration and managerial occupations involving office and travel duties only with no manual work. Sales representative not involved in any deliveries.

Light Blue Supervisors of blue-collar workers performing no manual work but doing occasional site visits (less than 10% of time). Certain qualified tradespeople, e.g. electricians, bakers, builders, etc. and certain skilled technical workers such as shop assistants.

Heavy Blue (Skilled) Tradespeople and those involved in heavier manual duties (e.g. sheet metal workers, mechanics, etc.).

Heavy Blue (Unskilled) Heavy manual occupations (e.g. stonemasons, bulldozer/bobcat operator, bricklayers, etc.).


The following rates apply to:

Former members of Sparxx Super, Atwood Oceanics Australia Super and FreshFood Super in the Employer Sponsored Product; AND Eligible members who have joined the Personal Product as a result of completing the Application for membership Personal Product accompanying the PDS; AND Eligible former members of the Employer Sponsored Product that are insurance only members; AND Eligible members in respect of cover under Individual Transfer Terms The below table outlines the annual dollar cost of any insurance cover (including Life Events Cover described further below) acquired by the above members on application to the insurer after joining the Personal Product.

Note: The below rates include an insurance administration fee of 10% of the premium amount, paid to the Fund Administrator for administering the insurance benefits. The rates are the standard rates the cost of any insurance cover may vary depending on any assessment loadings applied by the insurer relating to the health or occupation of the insured. Occupation loadings/discount factors are shown below.


Fixed insurance cover The annual rates are per $1,000 Sum Insured.

Age Next Birthday

(ANB)

Death Only Death & TPD ANB

Death Only Death & TPD

Male Female Male Female Male Female Male Female 16 1.02 0.55 1.05 0.41 46 1.64 1.17 2.89 2.43 17 1.17 0.55 1.05 0.41 47 1.79 1.27 3.25 2.68 18 1.27 0.55 1.05 0.41 48 1.97 1.40 3.61 2.96 19 1.33 0.55 1.09 0.43 49 2.13 1.52 4.09 3.31 20 1.38 0.52 1.14 0.43 50 2.33 1.63 4.58 3.72 21 1.38 0.46 1.20 0.43 51 2.56 1.76 5.18 4.17 22 1.33 0.45 1.22 0.43 52 2.79 1.93 5.87 4.63 23 1.27 0.43 1.24 0.41 53 3.04 2.09 6.69 5.14 24 1.22 0.37 1.22 0.41 54 3.28 2.22 7.58 5.73 25 1.14 0.35 1.22 0.37 55 3.59 2.39 8.55 6.33 26 1.08 0.33 1.20 0.37 56 3.89 2.56 9.50 6.95 27 1.02 0.30 1.17 0.41 57 4.22 2.73 10.58 7.65 28 0.92 0.30 1.14 0.43 58 4.61 2.93 11.80 8.42 29 0.87 0.28 1.12 0.45 59 4.98 3.14 13.22 9.21 30 0.83 0.28 1.09 0.50 60 5.43 3.33 14.89 10.15 31 0.78 0.28 1.09 0.50 61 5.90 3.54 16.86 11.21 32 0.75 0.30 1.09 0.55 62 6.48 3.80 19.13 12.40 33 0.73 0.30 1.09 0.57 63 7.04 4.03 21.66 13.82 34 0.70 0.33 1.12 0.63 64 7.71 4.28 24.51 15.49 35 0.70 0.37 1.17 0.73 65 8.42 4.58 27.71 17.36 36 0.73 0.41 1.22 0.79 66 8.97 4.82 31.15 19.53 37 0.78 0.45 1.30 0.87 67 9.58 5.09 35.10 21.98 38 0.83 0.52 1.38 1.02 68 10.21 5.32 39.57 24.77 39 0.89 0.55 1.46 1.14 69 10.85 5.58 44.63 27.94 40 0.95 0.63 1.60 1.30 70 11.47 5.85 50.29 31.58 41 1.02 0.70 1.76 1.46 71 13.77 7.02 58.41 36.60 42 1.14 0.79 1.93 1.67 72 16.53 8.42 67.88 42.43 43 1.24 0.87 2.13 1.84 73 19.84 10.12 78.89 49.24 44 1.38 0.95 2.35 2.04 74 23.82 12.13 91.71 57.11 45 1.52 1.08 2.63 2.22 75 28.57 14.54 106.65 66.29


Fixed insurance cover --- Occupational Loading/Discount Factors

The following Occupational Loading/Discount Factors apply to the fixed premium rates in the table immediately above (premium rates are multiplied by these rates).

Occupation rating Death only Death and TPD

Professional 0.90 0.90





Example: The insurance premium applicable to a male, Heavy Blue (Skilled) and 46 years old at their next birthday with fixed Death and TPD insurance cover of $500,000 would be calculated as follows:

$500,000 1,000 x ($2.89 x 1.60) = $2,312 per annum

Occupational definitions

Professional Those occupations that require tertiary qualifications, i.e. a university degree, or registration by a government body or professional institute (you must be currently engaged in an occupation for which these qualifications apply). The insurer will also consider well-established executives and senior managerial white-collar workers with incomes in excess of $80,000 p.a. who have been in their industry for at least 5 years.

White Collar Clerical, administration and managerial occupations involving office and travel duties only with no manual work. Sales representative not involved in any deliveries.

Light Blue Supervisors of blue-collar workers performing no manual work but doing occasional site visits (less than 10% of time). Certain qualified tradespeople, e.g. electricians, bakers, builders, etc. and certain skilled technical workers such as shop assistants.

Heavy Blue (Skilled) Tradespeople and those involved in heavier manual duties (e.g. sheet metal workers, mechanics, etc.).

Heavy Blue (Unskilled) Heavy manual occupations (e.g. stonemasons, bulldozer/bobcat operator, bricklayers, etc.).


Life Events Cover Insured members of the Personal Product with Death or Death and TPD cover may, before their 60th birthday, have the ability to apply to increase their Death or Death and TPD insurance cover upon the occurrence of a significant life event without undergoing a full health assessment.

The insurer may provide this additional cover to a member who already has insurance cover in the Personal Product where one of the following significant life events occurs:

a) The marriage of the insured member;

b) Birth of the insured members child;

c) Adoption of a child by the insured member; or

d) The insured member takes out a new mortgage to purchase or construct their primary residence (sole or joint).

To apply for additional cover upon the occurrence of a significant life event, the insured member needs to submit certified copies of documentation identified in the table below corresponding to the applicable life event:

Life event Evidence required

Birth of a child/ren Birth Certificate

Adoption of a child/ren

Order effecting an adoption; or An entry in a public official record of the adoption of a child

Marriage Australian marriage certificate or an equivalent overseas marriage recognised in Australia

New mortgage for purchase or construction of primary residence

All of the following: 1. Mortgage statement/official statement from the lender stating:

Name of Borrower; Date & amount of drawdown; Address of security

2. One of the following: a) Stamped front page of the contract of sale stating:

Name of purchaser; Date of settlement; and Purchase price;

b) Receipt from State Revenue Office that the Transfer of Land has been stamped; c) Land title search after the transaction has been completed, showing that the member is the

new owner of the property; d) Letter from the members solicitor, real estate agent or bank that the transaction has been

completed; e) Other satisfactory evidence that the stamp duty on the property has been paid by the member;

or f) Statutory declaration from applicant declaring primary residence.

The following conditions apply to the amount of Life Events Cover applied for: The minimum amount of Life Events Cover which can be applied for is $25,000; The maximum amount of Life Events Cover which can be applied for by an insured member is the lesser of 25% of their existing

insurance cover and $200,000 provided this does not cause the total of any existing insurance cover and Life Events Cover applied for to exceed the maximum insured benefits (described earlier under Applying for Additional or Voluntary cover); and

An application for Life Events Cover can only be made by an insured member once in any 12 month period.

Life Events Cover ceases on the earliest of: For former members of KPMG Staff Super, KPMG Executive Super and ASC Super, your 70th birthday for death cover and age

65 for TPD cover. For all other members, your 75th birthday for both Death only and Death and TPD; the date you cease to be a member of the Fund (with a grace period of 60 days following the date you cease to be a member of

the Fund); your date of death; the date a terminal Illness benefit becomes payable; the date a TPD benefit is paid (or the date the final Death/terminal illness benefit is paid if your TPD benefit is less than your

Death/terminal illness benefit); when you are on unpaid leave for a period longer than 24 months without prior approval by the insurer; the date before you commence active service in the armed forces of any country, not including normal activities as a Reservist with

the Australian Defence Force, but including operational deployment on active service with the Australian Defence Force; the date your signed and dated Insurance Cover Cancellation or Reduction Form is received by the Fund Administrator; or the date when premiums are unpaid.

Life Events Cover is subject to similar terms and conditions (including restrictions and exclusions) as other insurance cover provided in the Personal Product. In particular, the definitions relating to the assessment of TPD, and the grace period on ceasing membership of the Fund are the same.


How much does Life Events Cover cost? Premiums (excluding stamp duty and insurance administration fees, where applicable) for Life Events Cover are based on the same premium rates as for Death or Death and TPD insurance cover available to Personal Product members and are shown in the premium rate tables earlier in this Guide. These are subject to any loadings imposed by the insurer and advised to you during the application process. Premiums will be calculated based upon your age next birthday at 1 July each year and the amount of your Life Events Cover.

You are responsible for payment of these premiums, by way of deduction from your account balance.

Individual transfer terms You may apply to transfer insurance cover you hold under a policy (Death, Death and TPD or Income Protection) outside the Fund (either in another superannuation fund or a policy that you hold personally) into the Fund, subject to terms and conditions of the Funds insurer.

The maximum amount of cover that you can apply to transfer is as follows: a) $1,000,000 for Death Cover; b) For Death and TPD Cover, the lesser of:

i. $1,000,000; and ii. the maximum benefit allowed under in the Fund ($5

million) less your Death and TPD cover under the Fund;

c) For Income Protection Cover, the lesser of: i. $10,000 per month; and ii. If you hold Income Protection within the Fund, the

maximum benefit allowed ($30,000) less the amount of your Income Protection Cover under the Fund.

Terms and conditions (including eligibility criteria) apply. Any external insurance cover you transfer into the Fund will be subject to the payment of insurance premiums in accordance with the Income Protection rates tables and Voluntary Additional Cover rates table (for Death only and Death and TPD) shown elsewhere in this Guide. If you wish to take advantage of this option or need further details, please contact the Fund Administrator.

Limitations on Death and TPD cover Exclusions applicable to any Death and TPD insurance cover (including Life Events Cover) held in the Personal Product Under the Funds insurance policies, exclusions apply, which means that insured benefits are not payable in certain circumstances. In summary, benefits will not be payable in respect of any Death/terminal illness or TPD insurance cover provided to Personal Product members if the Death/terminal illness or TPD is caused directly or indirectly by a self-inflicted act of the insured member within 13 months of the following: The date of acceptance of the cover; The date that cover was reinstated, in respect of the

reinstated amount; or

The date that cover increased, in respect of the increased amount.

If the cover has ceased for any time before the 13 consecutive months has expired and cover is reinstated, the 13 month period will be based on the sum of those complete months when the cover was being provided.

If the insurer has applied any additional exclusions as part of the underwriting process and acceptance of your application for cover (including voluntary cover transferred to the Personal Product), insured benefits may not be payable under the additional exclusions.

Impact on insurance cover of extended periods of overseas residence/travel for Australian citizens and permanent residents Please note that Death and TPD insurance cover within the Personal Product may be affected if you travel, study or work overseas for periods greater than three months and relevant notification is not provided to the Personal Product and the insurer.

Subject to any other terms and conditions relating to the continuation of insurance cover, continuity of insurance cover can generally be provided for periods of up to five years for persons travelling or residing overseas, subject to the following conditions:

1. You continue to be an Australian National or a permanent resident of Australia;

2. You continue to be a member of the Personal Product and premiums continue to be deducted from your account; and

3. Prior notification of overseas residence / employment / study has been provided to the Fund Administrator and the insurer.

To ensure continuity of cover whilst overseas, the following information is generally required to be provided to the insurer, who will then make an independent assessment as to whether approval for cover during this period will be given: Confirmation of whether you intend to continue to be an

Australian National or permanent resident for the duration of your overseas residence / travel;

Commencement date of overseas residence / travel; Confirmation of whether you will be returning to reside in

Australia and your expected return date from overseas residence / travel;

Location of overseas residence / travel (including city and country);

Nature of employment (if applicable) (e.g. temporary secondment / permanent employment / contract); and

Job title / description (if applicable).

Please note that, in some cases, certain exclusions to continued insurance cover during periods of overseas travel or residence may apply in respect of countries or destinations for which a travel advisory warning has been issued by the Australian Government as documented on the Department of Foreign Affairs and Trade (DFAT) website.

Unpaid leave and secondments overseas In general you will be covered for insurance benefits during periods of unpaid leave of up to 24 months, but you must advise the Fund Administrator, so that the insurer can confirm that cover will be granted during such leave.

If you are being seconded overseas, you must also advise the Fund Administrator, so that the insurer can confirm if cover will


be continued, which is dependent upon the duration, location and the nature of the work to be performed.

Generally, cover will be provided for up to three years of an overseas secondment provided cover does not cease for some other reason.

If the Fund Administrator has received information from you, you will be advised if your insurance cover is affected while you are seconded overseas or on leave.

Former Temporary residents Former temporary residents transferred to the Personal Product from the Employer Sponsored Product are not eligible for insurance cover in the Personal Product after they cease working in Australia.

As the Fund Administrator is not specifically notified of the departure from Australia of any temporary residents, it is important that a temporary resident confirms their departure from Australia to ensure that any insurance cover they may have had in the Employer Sponsored Product is cancelled and that future insurance premiums are not deducted from their member account.

Grace period for Death and TPD cover when leaving the Fund In the event of you leaving the Fund and ceasing your insurance cover (other than as a result of TPD), you will continue to be covered for Death and TPD insurance benefits, for 60 days from the date of termination of your cover.

Income Protection Cover (currently, former members of KPMG Staff Super, KPMG Executive Super and ASC Super including associated spouses / dependants are not eligible for this cover) Eligibility for Income Protection Cover To be eligible for Income Protection Cover you must be: a former member of the Employer Sponsored Product

with the exception of members in KPMG Staff Super, KPMG Executive Super and ASC Super. Former members of the Funds Employer Sponsored Product (other than those formerly participating in KPMG Staff Super, KPMG Executive Super and ASC Super) can apply to the insurer for Income Protection Cover;

a member that has joined the Personal Product as a result of completing the Application for membership Personal Product accompanying the PDS (except for spouses and dependants associated with the membership of KPMG Staff, KPMG Executive and ASC Super). These members can apply directly to the insurer for Income Protection Cover;

Former members of the Employer Sponsored Product that were joined to the Employer Sponsored Product as a result of the 1 April 2016 Successor Fund Transfer;

Members transferred directly to the Personal Product under the 1 April 2016 Successor Fund Transfer. Any Income Protection Cover held by the member will be automatically continued upon transfer to the Personal Product effective 1 April 2016, provided the member remains eligible for cover and the cover has not ceased for some other reason. These members can also apply for voluntary Income Protection Cover if they do not have such cover, or vary their existing Income Protection Cover). The amount (and type, including Waiting Period and Benefit Period) of Income Protection cover provided on transfer to the Personal Product is shown, if applicable, in your Welcome Pack on joining the Fund.

To be eligible for Voluntary Income Protection cover, on application to the insurer, after joining the Personal Product, you must be: an Australian Resident; and employed on a full time, or permanent part-time basis to

work for at least 15 hours a week.

Casual or contract employees will be assessed for eligibility on a case-by-case basis, and will need to be working at least 15 hours a week with their current employer.

If you are a former member of the Employer Sponsored Product, any Income Protection cover held by you will not continue automatically on transfer to the Personal Product (upon ceasing employment with your employer). You will need to advise the Fund Administrator of your intention to continue your cover, within 30 days of the cessation of your employment. However, you should note that Income Protection in the Personal Product will be subject to a different set of premium rates, as outlined later in the guide. If your former employer previously met the cost of insurance premiums associated with your account in the Employer Sponsored Product, your former employer will no longer meet the cost of any part of your insurance cover. You will need to ensure that you maintain a sufficient account balance in the Personal Product for the deduction of insurance premiums.


Summary of insured benefit features of the cover

Income Protection Cover has the following features

Total Disability Benefit

Up to 75% of Earned Income plus (where applicable) up to 10% of Earned Income allowable for superannuation contributions (subject to a maximum of $30,000 per month)

Benefit period 2 years, 5 years, or to age 65*

Waiting period 30, 60 or 90 days

Cover ceasing age 65 Benefit escalation when on claim

5% or CPI whichever is the lesser

*Note: If your occupational type is Heavy Manual (Unskilled) your Benefit Period may only be 2 years or 5 years only; the Benefit Period option of to age 65 is not available (refer to the Occupational Definitions in this Guide).


What are your benefits from Income Protection Cover? If you have Income Protection cover, income protection benefits are payable in monthly instalments in arrears commencing from the day following the agreed Waiting Period. The Waiting Period is the period, commencing on the first day of Total Disability, during which no benefit is payable; this period may be 30, 60 or 90 days. Benefits will continue to be paid whilst you are Totally Disabled or Partially Disabled up to a maximum of the applicable Benefit Period.

Total Disability benefit If you become Totally Disabled as defined, then you may receive your insured benefit up to the maximum amount of benefit, subject to any Benefit Offset.

The maximum monthly benefit you can be assessed for is the lesser of: a) 75% of the Earned Income plus up to 10% of Earned

Income as Superannuation Contribution Benefit (where applicable under Voluntary Income Protection Cover); and

b) $30,000.

Partial Disability benefit If you become Partially Disabled, you may be entitled to a Partial Disability benefit subject to any Benefit Offsets. A Partial Disability benefit begins to accrue: from the day after you are no longer Totally Disabled, or after the end of the Waiting Period if during the Waiting

Period you have been Totally Disabled for at least 7 out of 12 consecutive days and Partially Disabled for the remainder of the Waiting Period;

whichever occurs later.

Superannuation Contribution Benefit If you have selected an option to receive a Superannuation Contribution Benefit as part of Voluntary Income Protection Cover, the insurer will pay up to 10% of your Earned Income to your account in the Fund. For the purpose of calculating Earned Income, your employers mandated superannuation contributions are not included.

Additional death benefit If you die while a disability income benefit is being paid to you, the insurer will pay to your account in the Fund an additional sum equal to one quarter of the annual Income Protection benefit.

Recurrent disablement benefit If within 6 months of the date payments ceased for Total or Partial Disability, you again become Totally Disabled or Partially Disabled due to the same or related Illness or Injury: the Waiting Period will be waived and the claim will be

regarded as a continuation of the previous claim; and your monthly benefit will recommence to be paid for the

remainder of the Benefit Period (subject to the terms and conditions of the applicable insurance policy).

Rehabilitation benefit If in the insurers opinion, your potential to return to gainful employment will benefit from a program of rehabilitation, the insurer will pay the cost provided that before the program is undertaken, the insurer and your medical practitioner approve in writing.

Benefit escalation if you have been receiving an Income Protection benefit for 12 months, your benefit will increase by the lesser of: a) the increase in the CPI for that period, or b) 5%.

Important Note: An insured amount (benefit) will only become payable to you if the event or circumstance giving rise to the benefit occurs while you remain insured in the Fund and the insurer accepts a claim in respect of your cover under the terms and conditions of the relevant insurance policy. Refer to the explanation of terms, restrictions, limitations or exclusions summarised later in this Guide.

How to apply? To apply for Voluntary Income Protection Cover you, or your financial adviser on your behalf (providing that you still read and sign the declaration), must complete the relevant application for insurance, which can be obtained by contacting the Fund Administrator. Please note that your application must be assessed by and accepted by the insurer before you can be covered for the requested level of cover.

Underwriting is the process undertaken by the insurer to assess your insurance risk, as opposed to the level of risk that might apply based on your occupation alone. This process will require you to complete a Personal Statement or other forms as required, and to provide such additional medical evidence that the insurer may request. You are subject to a duty of disclosure to the insurer when applying for cover (refer to the information at the end of this Guide for further information about this).

Cover may be subject to a premium loading, exclusions or in certain cases, it may be declined; that is, not accepted by the insurer.

Note: Income Protection Cover may also be obtained without undergoing the insurers full underwriting process if a member is eligible for cover under Individual Transfer Terms (see the Individual Transfer Terms earlier in this Guide).

Interim Accident Cover While your insurance cover is being underwritten, Interim Accident Cover may apply. Refer to information about Interim Accident Cover earlier in this Guide for further details.

How to make a claim If you would like to make a claim you need to notify us as soon as it is reasonably possible of an event that is likely to give rise to a claim. Please contact the Fund Administrator if you wish to make a claim.

Employment Overseas Cover and Worldwide Cover Any Income Protection Cover you have continues irrespective of whether you are overseas for work or not, subject to payment of premiums and Cessation of Cover events described further below. The insurer may require you to return to Australia at your own cost for assessment of any claim. If you have Income Protection Cover and suffer Total Disability or Partial Disability while residing or travelling overseas, payment of any benefit will cease after six months from the date benefit payments commenced, unless otherwise agreed by the insurer and advised by the Fund in writing.


Cover whilst on Leave Without Pay (LWOP) Provided cover does not cease as a result of a Cessation of Cover event described further below, whilst on employer approved LWOP and premiums continue to be paid:

Any Income Protection Cover continues for the first 12 months of leave without pay (your prior LWOP employment status would be used to determine Total Disability or Partial Disability), after which cover ceases. For cover to continue beyond 12 months, the insurers prior written approval will be required.

Exclusions No benefit is payable to you under Income Protection Cover if your claim has resulted from any of the following: an intentional self-inflicted Injury or attempt at suicide; uncomplicated pregnancy or childbirth; war or acts of war whether declared or not; service in the armed forces of any national or

international organisation, including active service and training exercises within national or international armed reserve units; or

any other specific event or cause agreed between you and the insurer, as part of the insurers acceptance of underwritten cover.

Cover may also be subject to additional conditions or exclusions, as notified to you by the insurer in respect of the insurers acceptance of underwritten cover.

Cessation of cover Income Protection Cover shall cease to apply on the earliest of: the date the group insurance policy taken out by the

Trustee terminates; or the date your membership with the Fund ceases; or the date you no longer work at least 15 hours per week

(except where you are under Cover Whilst on Leave Without Pay provisions); or

where you are on employer approved leave without pay, 12 months from commencement of the leave; or

the date the Fund accepts from you an Insurance Cover Cancellation or Reduction Form; or

30 days after the end of the month in which your account balance is no longer sufficient to pay insurance premiums; or

your attainment of age 65; or your death; or the end of a Benefit Period if you receive Income

Protection payments right to the end of that Benefit Period and you cease employment thereafter. You will retain Income Protection Cover should you return to work.

Explanation of Terms General Terms

Accident

An unforeseen violent, external and visible event that occurs accidentally during the period of cover.

Benefit Offsets

The amount of Income Protection Cover benefit will be reduced by all amounts paid or payable from all of the following: workers compensation payments; payments under statutory compensation, pension, social

security or similar schemes; income benefits from policies of insurance and

superannuation trustees; and employer funded sick leave entitlements and other

income payments.

Benefit Period

The nominated period that a benefit begins to accrue under the relevant insurance policy for Income Protection Cover and excludes the Waiting Period. The Benefit Period can be either 2 years, 5 years or to age 65 (except for some occupations) which is selected at the time of application in the case of underwritten Income Protection Cover, or as specified in your Welcome Pack in the case of automatic Income Protection Cover (if applicable).

Earned Income

For Income Protection Cover, means one of the following, subject to the terms of the applicable insurance policy: a) is your annual wage or salary last agreed be

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