Insurance Guide - Insurance Guide - 1 April 2020 - LUCRF Super
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Insurance Guide Insurance Guide 1 April 2020 1300 130 780 mypartner@lucrf.com.au lucrf.com.au PO Box 211 North Melbourne VIC 3051
The information in this document forms part of the relevant Super Member Guide – Product Disclosure Statement (PDS) and the Pension Member Guide (PDS), dated 1 April 2020. Issued for the Labour Union Co-operative Retirement Fund (LUCRF Super) USI LUC0001AU (Super) and USI LUC5140AU (Pension) ABN 26 382 680 883 by the Trustee of the Fund, L.U.C.R.F Pty Ltd ABN 18 005 502 090 AFSL 258481. You should read the information in this document and the relevant Super Member Guide – Product Disclosure Statement (PDS) or the Pension Member Guide (PDS) before making a decision to invest. All documents are available at lucrf.com.au or by calling 1300 130 780. The information in this document is general only and does not take into account your personal financial situation, objectives or needs. It is essential that you read the PDS and consider obtaining financial advice tailored to your own circumstances before making a decision about the Fund. The Trustee holds Australian Financial Services Licence No. 258481 which authorises it to provide personal financial advice. This Insurance Guide, along with the PDS, the Super Member Guide – Additional Information, Fees and Costs booklet and Investments Guide, does not take the place of the Trust Deed, which is a legal document governing the operation of the Fund. The Trust Deed is binding on the Trustee, all contributing employers and all members of the Fund. A copy of the Trust Deed and Rules is available at lucrf.com.au. Information contained in this document and the PDS is current at the date of preparation. Insurance cover is provided by OnePath Life Limited ABN 33 009 657 176 | AFSL 238 341 (“OnePath”) and subject to the terms and conditions of the insurance policies issued to the Trustee of LUCRF Super by OnePath (“the Policies”). This Insurance Guide provides a summary of the key terms and conditions of the Policies. Where information is summarised other than in the Policies themselves, it does not represent a complete description of the terms on which insurance cover is provided. The Policies represent the concluded agreements between OnePath and the Trustee and in the event of an inconsistency with this guide, the terms of the Policies prevail. Changes and updates Where advance notice is not required or is otherwise impossible, information on changes will be provided as soon as practicable following the change. The most up-to-date copy of this document is available by contacting LUCRF Super on 1300 130 780, visiting lucrf.com.au, or writing to us at PO Box 211, North Melbourne VIC 3051. Contact us 1300 130 780 lucrf.com.au 2 | Insurance Guide | 1 April 2020
Our flexible insurance can provide you and your loved ones with greater financial security in the event of your death, terminal illness or a disabling injury or illness. What’s inside Your insurance options at a glance 4 Death & TPD and Death Only 6 Income Protection 13 Frequently asked questions 17 – How much insurance cover do you need? 18 – What forms do you need to complete? 19 – Can we match or transfer insurance? 21 – How do you make a claim? 22 The fine print 24 – Death & TPD and Death Only 25 – Income Protection 37 Insurance Election Form Income Protection Form OnePath Life Privacy Statement Insurance Guide | 1 April 2020 | 3
Your insurance options at a glance We offer flexible and affordable cover to give you peace of mind. Type of insurance Death & Total Death Terminal Income and Permanent Only Illness Protection (IP) Disablement (TPD) What payment (also Lump sum Lump sum Lump sum Income (a monthly known as a ‘benefit’) payment for up to is provided? two or five years) When is a benefit If you become totally When you pass away If you suffer an illness If you’re unable to provided? and permanently disabled or injury that’s likely to work through illness, or when you pass away result in your death within injury or accident 12 months Who receives You, or your Your dependants, You You the benefit? dependants, beneficiaries beneficiaries or or estate/legal personal estate/LPR representative (LPR) when you pass away Is automatic Yes* Yes* Yes* No*^ cover provided? Age cover can start 14 14 14 14 Age cover ends 70 70 70 65 Is there a waiting Yes for TPD – No No Yes – a choice of period before a claim at least 91 days 30, 60 or 90 days can be made? Can you make changes Yes Yes Yes Yes to your cover? Can you nominate Yes Yes Yes Yes beneficiaries? * Automatic default cover is only provided to members aged 25 years and over with an account balance greater than $6,000 (subject to eligibility). However, you may make an election to receive default cover within 90 days of joining (subject to eligibility). See pages 6 and 7 for details. ^ Default Income Protection insurance is available to permanent employees of Woolworths NSW. See page 42 for details. 4 | Insurance Guide | 1 April 2020
Will your insurance be automatically Putting Members’ Interests First (PMIF) cancelled? For existing members, if your super account balance was less The Federal Government has introduced two new pieces of than $6,000 on 1 April 2020 and had never been $6,000 or more legislation known as the Protecting Your Super package and the since 1 November 2019, any insurance cover you have with that Putting Members’ Interests First reforms. These changes may have account will be cancelled on 1 April 2020. an impact on your insurance with your super fund. How do you know if your insurance will be automatically Protecting Your Super (PYS) cancelled due to a low account balance? From 1 July 2019, if you have a super account that hasn’t If you’re an existing member, you would’ve received a letter or received an amount (such as a contribution or rollover) for email from us outlining the PMIF reforms, if you’re at risk of losing 16 continuous months, any insurance cover you have with your insurance, and what you can do to keep your cover. that account will be cancelled. Can you elect to keep your insurance? How do you know if your insurance will be automatically cancelled due to inactivity? Yes! You can let us know that you’d like to opt in to keep your insurance. Simply complete the Insurance Opt-in Form at We’ll contact you after each period of 9, 12 and 15 months lucrf.com.au and return it to us. Your opt-in request will apply where no contribution has been received into your account, for as long as your account is open, or until you choose to before we have to cancel your insurance (if the 16-month period cancel your insurance. is reached). Have more questions? Call us on 1300 130 780 or email mypartner@lucrf.com.au. We’re here to help. Duty of disclosure We have an ongoing duty of disclosure to our insurer whereby we must tell them anything that we know, or could reasonably be expected to know, that may affect the insurer’s decision to provide insurance to our members. In order for us to comply with the duty of disclosure, we require you to tell us and the insurer anything you know, or could reasonably be expected to know, that may affect the insurer’s decision to insure you and on what terms. If you do not tell the insurer something If you do not tell us or the insurer anything you are required to, and the insurer would not have provided the insurance or entered into the same contract with us if you had told the insurer, the insurer may avoid the contract within three years of entering into it. If the insurer chooses not to avoid the contract or reduce the amount of insurance provided, the insurer may, at any time, vary the contract in a way that places the insurer in the same position it would have been in if you had told us and the insurer everything you should have. If the failure to tell the insurer is fraudulent, the insurer may refuse to pay a claim and may treat the contract as if it never existed. Handy tip Working out how much and what type of insurance you need can be challenging. To help you decide, complete the table on page 18. Alternatively, use our online insurance calculator to help tailor your cover according to your personal circumstances. Visit lucrf.com.au/how-much-do-you-need. Insurance Guide | 1 April 2020 | 5
Death & TPD and Death Only Protecting you and your loved ones. Elect to receive default cover when you join us Our Death & TPD cover provides a payment (also known as a If you’re not eligible for automatic default cover and you: benefit) to you if you become totally and permanently disabled • are working (as defined by our insurer), or to your dependants, nominated beneficiaries or your estate/LPR when you pass away. • have an employer who pays SG contributions into your LUCRF Super account, and You have three options: • are under 25 or have an account balance less than $6,000, 1. Accept our automatic default cover (if you’re eligible to you may elect (within 90 days of the date of your welcome letter) receive it). to receive the default* cover as outlined on page 7 in ‘Default 2. Elect to receive default cover when you join us (if you’re cover explained’. Simply answer a few questions in the Insurance eligible to receive it). Election Form and, if our insurer is satisfied with your responses, you’ll be provided with default cover. 3. Choose your own cover. The following default* insurance is available: Choose your own cover • 2 units of Light Blue Fixed Premium Death & TPD cover You can apply for a maximum of $5 million Death cover, and (if you’re between 14 and 64), or $3 million TPD cover. To apply, complete an Insurance Election • 2 units of Light Blue Fixed Premium Death & Restricted Form available at lucrf.com.au or by calling 1300 130 780. TPD cover (if you’re between 65 and 69). You’ll also need to complete a OnePath Personal Statement if you’re applying for more than $1.1 million of cover. Automatic default cover You can also increase, reduce, convert or cancel your cover at You’ll automatically receive default cover on your account from any time. See page 26 for more. the first day you’re 25 years or older and your account balance is greater than $6,000, if: • you’re working • your account has received a Superannuation Guarantee (SG) contribution from your employer • your account has had no previous insurance cover, and • you haven’t told us that you elect not to have insurance cover on your account (i.e. you ‘opt out’ of insurance cover). You can let us know if you don’t want to accept this default cover. However, you must tell us within 60 days of the date the cover commenced for it to be removed without having any insurance premiums deducted from your account. Please read the ‘Opting out from receiving automatic default cover’ section on page 7. Due to the PMIF reforms (see page 5), we’re unable to provide automatic default cover to new members who are under the age of 25 and/or have an account balance less than $6,000. However, you may still be able to elect to receive default cover (as outlined under ‘Elect to receive default cover when you join us’). * Subject to additional eligibility criteria – see page 25. Issue of default cover (automatic or elected) is only available once per account. Any future LUCRF Super accounts you hold may also be eligible for default cover. You’re only eligible for insurance cover on one LUCRF Super account at a time. 6 | Insurance Guide | 1 April 2020
Death & TPD and Death Only Default cover explained 2 units of Light Blue Fixed Premium Death & TPD cover (or Restricted TPD cover) Each unit represents This is the default work This means your If you’re between 65 a dollar value of cover category. There are insurance is set at and 69, you must meet that’s dependent on three work categories a fixed cost per TPD Definition 2, 3, 4 or your age. under which you can be unit of cover. 5 (on pages 31-32) to See page 29. insured. See page 8. See page 9. receive a benefit. When does default cover start? Insurance offer for new members Automatic default cover starts on whichever is the later of: If you’re eligible for automatic default cover or have elected • the date you commenced work with your employer to receive default cover, you can increase your default cover • the first date of the period for which the first super (automatic or elected) up to our automatic acceptance levels. contribution is paid by your employer into your This means that you may be able to get more cover without LUCRF Super account, or having to provide any medical evidence. • the first date you’re aged 25 years or over and your LUCRF Simply answer some questions in the Insurance Election Form Super account is $6,000 or more. and, if our insurer is satisfied with your responses, you can increase your 2 units of Death & TPD default cover to either: Elected default cover starts from the date your application is accepted (provided that your application is accepted by • a maximum of 8 units of Death & TPD cover LUCRF Super within 90 days of the date of your welcome letter). OR • a maximum of 8 units of Death Only cover. Opting out of receiving automatic Note: If you choose to change to Death Only cover, your TPD default cover insurance will stop from the date your application is accepted. If you decide you don’t want to have any default cover You can apply to elect for default cover AND increase your automatically applied to your account, you can tell us that you’d cover above the default cover level on the same form. like to ‘opt-out’. This means that if you are or you become eligible for automatic default cover, it won’t be applied to your account. This doesn’t mean you can’t apply for cover in the future, and you can change your opt-out election at any time. However, you’ll need to provide evidence of your health and medical history to the insurer who will decide whether or not to provide you with any cover, including whether to place exclusions on your cover. Can you make changes to your default cover? Yes! You can increase, reduce, convert or cancel your cover at any time, subject to terms and conditions. See page 26. IMPORTANT For details about our Death & TPD and Death Only cover, including the ins and outs of default cover, eligibility and restrictions, turn to page 25. Insurance Guide | 1 April 2020 | 7
Death & TPD and Death Only Work categories Because different jobs have different risks, there are three work categories Light Blue (default) under which you can be insured. You: Light Blue is the default category • are a skilled or unskilled worker applied to you unless you tell us • perform light manual work otherwise. • are involved in non-hazardous industries and/or tasks. Your work category is determined at the time you apply for insurance and lasts White Collar for as long as you’re with us (even if you change jobs), or until you apply for You: additional cover. • are in a professional, administrative, clerical, secretarial, or similar desk-bound (sedentary) role • do not perform any manual tasks • work at least 80% of the time in an office environment. Professional You: • currently earn an annual salary package (including Superannuation Guarantee contributions) of $150,000 or more • work at least 80% of the time in an office environment and you’re: • a professional white-collar worker with a university degree qualification relevant to the field of your main occupation or • an executive or senior managerial white-collar worker and not self-employed. IMPORTANT Got a new job? If your work category changes while you have insurance with us, it’s important you let us know so that you’re correctly covered for the work you do and you’re not paying more (or less) than you should be. We won’t change your work category unless you complete the Change of Work Category Insurance Form (available at lucrf.com.au). We’ll then confirm your new category in writing. Any changes to your work category will be effective from the date your application is accepted. 8 | Insurance Guide | 1 April 2020
Death & TPD and Death Only Fixed Premium vs Fixed Amount cover We offer two types of Death & TPD or Death Only cover – Cost per week per 2 units of Light Blue Fixed Premium and Fixed Amount. What’s the difference? Fixed Premium cover (default) Fixed Premium Current age Death & TPD Death Only Our Fixed Premium cover is designed to make sure that your super balance isn’t used to pay for excess cover you may 14-24 $1.28 $0.64 not need when you’re younger or older. Likewise, we want to 25-29 $2.14 $1.07 make sure you’re suitably covered at each stage of your life – particularly when you’re likely to need the most. 30-34 $2.98 $1.49 You pay a fixed cost for every unit of cover you have according 35-64 $3.78 $1.89 to your age. A unit represents a dollar value of insurance which varies depending on your age and the type of work you do. 65-69* $2.55 $1.28 The table on this page outlines the current cost per week for every two units of Light Blue Fixed Premium (the default) cover. *TPD cover is restricted to TPD Definition 2, 3, 4 or 5 once you’re See page 29 for a full table of costs and cover amounts. 65 and over on the event date (see ‘TPD definitions’ on pages 31 and 32 for more information). Fixed Premium cover – case study 1 Dan Age: 22 Occupation: Storeperson (Light Blue work category) Dan hasn’t changed his level of cover from the default. He receives $54,000 (2 units) of Light Blue Death & TPD cover for which he pays $1.28 per week. His premium will stay at $1.28 for the next two years as his cover amount increases slightly. When Dan turns 25, he’ll start paying $2.14 for 2 units (which will give him $80,000 of cover). For now, as a 22-year-old, Dan doesn’t have a mortgage, school fees or hefty medical bills to consider. His current priorities are very different to those of an older member. Insurance Guide | 1 April 2020 | 9
Death & TPD and Death Only Fixed Premium cover – case study 2 Kelly Age: 40 Occupation: Sales representative (Light Blue work category) Because Kelly’s at an age where she has more financial responsibilities – a young family, a mortgage – she knows she needs to plan for a time when her circumstances may quickly change. Kelly currently receives $94,000 (2 units) of Light Blue Death & TPD cover for which she pays $3.78 per week. Her premium will stay at $3.78 until she turns 65, but her cover amount will decrease slightly each year to reflect her changing priorities. Handy tip Planning is key! While we try to determine your possible long-term needs at your current age, we can’t accurately predict your individual circumstances. This is where you can start to take control of your future. Our online insurance calculator can help tailor your insurance cover according to your personal circumstances – now, and in the future. You’ll find it at lucrf.com.au/how-much-do-you-need. 10 | Insurance Guide | 1 April 2020
Death & TPD and Death Only Fixed Amount With Fixed Amount cover, you pay a cost for every $1,000 of cover you have. The cost of your insurance will change as you grow older, but the total amount you’re insured for will stay the same. See page 30 for a full table of costs and cover amounts. Fixed Amount cover – case study Anna Age: 36 Occupation: Payroll manager (White Collar work category) Anna wants to lock in a fixed amount of Death & TPD cover so that her family can pay off the mortgage and have some money for the children’s education in the event of her death, terminal illness or becoming totally and permanently disabled. Based on Anna’s current age and work category, a unit (or $1,000) of cover will cost $0.89 per year. Anna selects 500 units so that she’s covered for $500,000 (500 units x $1,000 per unit). Her premium will be $445 per year ($0.89 x 500 units), or $8.56 per week. This will be deducted from her super account on a quarterly basis. Insurance Guide | 1 April 2020 | 11
Death & TPD and Death Only Experiencing a big life change? Opening up a LUCRF Retirement or We know that things don’t always stay the same. If you’re Disability Pension account? going through a major change – such as having a baby, buying Your Death Only or Death & TPD insurance can carry over to a house or getting married or divorced – you can apply to your LUCRF Retirement or Disability Pension when you close increase your cover without having to provide any medical your super account, and will continue until you turn 70 (restricted evidence. See page 26. TPD cover applies from ages 65-69). Once you start your LUCRF Retirement or Disability Pension, you cannot change Don’t have an employer who pays super the amount of cover you have. However, you can choose to into your account? cancel the cover at any time. Call us for more information on insurance and your pension. If you join us when you don’t have an employer contributing to your super account (for example, as the spouse of a member Please note that the Protecting Your Super (PYS) package (see or because you’re self-employed), you won’t be given any page 5) applies to all accounts with insurance. If you choose default cover. to carry over your insurance from your super account to your retirement or disability pension, you’ll automatically be electing You can still apply for insurance, however. Simply complete an to keep your cover under PYS. Please call us on 1300 130 780 Insurance Election Form and a OnePath Personal Statement, if you have any questions. available on our website or by calling us. Insurance matching or transferring What about pre-existing conditions? If you have Death & TPD or Death Only insurance with another If you’ve suffered a previous health condition, an exclusion may super fund (other than a self-managed super fund), you can be applied to your cover. This means you’ll still be able to get apply to have your existing level of insurance matched or cover, but you won’t be able to claim a future benefit for this transferred by us (subject to eligibility). See page 21. condition. See page 25 for more. Making a claim The choice is yours All claims must be made in writing and sent to us with Want more control over your insurance? You have the appropriate supporting documents. We’ll then assess your flexibility to choose and/or increase, reduce, convert or cancel claim along with our insurer and let you know of the outcome. your cover at any time, subject to terms and conditions. See See page 22 for information on how to make a claim. page 26. Are you a jockey? See page 34 to find out if you’re eligible to receive default Death & TPD cover. 12 | Insurance Guide | 1 April 2020
Income Protection Giving you temporary financial support if you have to stop working due to illness, injury or accident. Also known as salary continuance cover, Income Protection (IP) Are you eligible? cover pays a monthly income to help support you and your family for a choice of up to two or five years. You can apply for IP insurance through us if you meet all of the following criteria: How much cover can you apply for? • You’re between 14 and 64 (cover stops at 65). You can apply for cover of up to 85% of your pre-illness/injury • You’re an Australian citizen or an Australian permanent resident as defined in the Migration Act (Cth). salary. The first 75% is paid as income in arrears and anything over 75% is paid into your super account. The maximum monthly • You hold a LUCRF Super account. benefit payable is $30,000. You’ll need to send us satisfactory You must also be: evidence of your income when you make a claim. Please note that acceptance of your application is up to our insurer. • a full-time or permanent employee working at least 15 hours per week How much does it cost? OR The cost of IP cover depends on your age, gender, work • a contractor working at least 15 hours per week and category and the waiting and benefit periods you choose. on a fixed-term contract of at least one year See pages 39 and 40 for full tables of costs. OR • a casual employee working at least 30 hours per week (averaged over the previous six-month period). For Handy tip information about eligibility for casual employees, see page 37. Not sure how to calculate the weekly cost of IP insurance? Please note that jockeys are ineligible to receive IP cover. Follow these simple steps: 1. Work out how much cover per week you’d like to have. 2. Select a waiting period and your work category. Refer to Are you a Woolworths NSW employee? the tables later in this section to see the weekly cost for $100 of cover. See page 42 to find out if you’re eligible for default IP cover. Insurance Guide | 1 April 2020 | 13
Income Protection Income Protection cover – case study Matt Age: 24 Occupation: Storeman (Heavy Blue work category) Current weekly income: $588.24 Preferred waiting period: 90 days Preferred level of IP cover: 85% of weekly income* which is $500 per week ($588.24 x 85% =$500) Cost per $100 weekly benefit: $0.169 per week Total cost for $500 weekly benefit: $0.85 per week ($0.169 x 5). This will be deducted from Matt’s super account each quarter. *Paid as 75% salary and 10% super. 14 | Insurance Guide | 1 April 2020
Income Protection What’s a benefit period? How do waiting periods work? A benefit period is the maximum length of time during which an IP insurance has a waiting period from the time you become ill or IP benefit is paid. You can choose a benefit period of either two injured and cannot work, to the time you’re able to make a claim. or five years regardless of whether you’re a permanent or a casual This helps keep the cost of insurance low, given that people employee. This means you’ll receive a monthly income in suffer from illnesses and injuries quite regularly, but not seriously arrears for your selected benefit period. enough to be unable to work for an extended period of time and need to make an insurance claim. We offer a choice of three different waiting periods: 30 days, 60 days or 90 days. You choose the waiting period that’s best for you. The longer the waiting period, the less expensive the cover will be. See page 37 for more. Work categories There are four work categories under which you can be insured for Income Protection. Heavy Blue You: • are a skilled or semi-skilled manual worker or heavy-machine operator This category isn’t • aren’t exposed to high-risk accidents or health hazards available for Death & TPD • aren’t engaged in high-risk occupations. or Death Only insurance. This category also covers Light Blue supervisors of Heavy Blue You: workers or fully qualified • are a skilled or unskilled worker tradespeople (details of • perform light manual work qualifications must be • are involved in non-hazardous industries and/or tasks. provided). White Collar You: • are in a professional, administrative, clerical, secretarial, This definition is the or similar desk-bound (sedentary) role same for Death & TPD and • don’t perform any manual tasks Death Only insurance. • work at least 80% of the time in an office environment. Professional You: • currently earn an annual salary package (including This definition is the Superannuation Guarantee contributions) of $150,000 or more same for Death & TPD and • work at least 80% of the time in an office environment Death Only insurance. and you’re: • a professional white-collar worker with a university degree qualification relevant to the field of your main occupation, or • an executive or senior managerial white-collar worker and not self-employed. Insurance Guide | 1 April 2020 | 15
Income Protection How to apply for IP cover Do you have an employer making Superannuation Guarantee contributions into your LUCRF Super account? Complete an Income Protection Form. If you answer ‘YES’ to any of the health questions in the form, you’ll also need to complete a OnePath Personal Statement and send both forms to: LUCRF Super PO Box 211 North Melbourne VIC 3051 Don’t have an employer contributing to your LUCRF Super account? You’ll need to complete an Income Protection Form and a OnePath Personal Statement and send both forms to us for assessment. Insurance matching or transferring If you have Income Protection insurance with another super fund (other than a self-managed super fund), you can apply to have us match or transfer the amount of this cover (subject to eligibility) up to a maximum of $6,000 per month. See page 21. Making a claim Insurance offer for new members All claims must be made in writing and sent to us with appropriate If you have an employer who pays Superannuation Guarantee supporting documents. Before any claim is approved, it must contributions into your super account, you can obtain, within first be assessed and accepted by our insurer. See page 22 for 90 days from the date of your welcome letter, up to $700 per week information on how to make a claim. of IP cover with a two-year benefit period*. This means that as long as you satisfactorily answer a set of screening questions in the application form, you don’t have to provide any medical IMPORTANT evidence to obtain or increase your cover. To read about IP cover in more detail, including terms and If you want to increase your cover to more than $700 per week conditions, see page 37. (or up to $700 per week and the 90-day period has ended) you’ll need to complete an Income Protection Form. If you’d like to apply for a five-year benefit period, you’ll need to complete an Income Protection Form and a OnePath Personal Statement available on our website or by calling us. *The insurance offer for new members is only available once per account. Any future LUCRF Super accounts you hold may also be eligible for cover issued under an offer for new members. You’re only eligible for insurance cover on one LUCRF Super account at a time. 16 | Insurance Guide | 1 April 2020
Frequently asked questions How much insurance cover 18 do you need? What forms do you need 19 to complete? Can we match or transfer insurance? 21 How do you make a claim? 22 Insurance Guide | 1 April 2020 | 17
How much insurance cover do you need? The tables below can help you calculate the level of insurance you might need. We believe they strike the right balance between the cover you need and the cover you can afford. Our online insurance calculator can also help you tailor your cover according to your personal circumstances. Visit lucrf.com.au/how-much-do-you-need. Death & TPD or Death Only insurance Step Item Description Example You Annual expense to How much money do you spend each year? A $70,000 be covered (This includes all bills and other living expenses). Subtract any other sources This could include a spouse’s income, interest/rental income B $15,000 of income or dividends from shares. C Net annual income required A minus B $55,000 This is equal to C divided by 0.07 (this assumes Cover required to provide ($55,000/0.07%) D any insurance payment would be invested in a ‘balanced’ net annual income = $785,714 investment option, such as our MySuper Balanced option). How much existing debt would you like to pay off? (This could E Add debt to be covered $120,000 include home loans, personal loans and credit cards). Add funeral and legal These are one-off costs associated with finalising your estate F $20,000 expenses (generally around $20,000). Total cover required to G provide net income and to D plus E plus F $925,714 cover expenses Subtract any other Add up any other investments (this could include super H $200,000 assets/investments accounts or an investment property). I Total cover required G minus H $725,714 Income Protection insurance Step Item Description Example You A Gross weekly salary How much salary do you receive before tax every week? $700 ($700 x 0.85%) B 85% of A What is 85% of your gross salary? = $595 How long could you wait before payments commenced? The waiting period (Note: The longer the waiting period, the cheaper the C (choice of 30, 60 60 days premium. You may be able to use up any paid leave from your or 90 days) employer during the waiting period). The benefit period Over what length of time would you like to receive IP benefits? D 2 years (choice of 2 or 5 years) (Note: The shorter the benefit period, the cheaper the premium). Units are provided in $100 lots and cannot exceed 85% of Units of cover your salary. Any cover in excess of 75% of your salary, up to a E 6 available and cost maximum of 10%, is paid into your super ($595 [from B] would be rounded up to 6 units). 18 | Insurance Guide | 1 April 2020
What forms do you need to complete? What insurance are you applying for (if you have an employer contributing to your super account)? Fixed Premium cover Elect Default Insurance Form, or Insurance Election Form or Jockeys Insurance Election Default insurance (when joining) Form (if you’re a licensed jockey) 2 units of Light Blue Death & TPD Note: If you don’t choose any insurance upon joining, this cover is automatically applied to your account provided you meet the eligibility requirements to receive automatic cover. Insurance offer for new members (see p.6) Within automatic acceptance levels Insurance Election Form or Jockeys Insurance Election Form (new members) and 90 days of joining: Note: No medical evidence is required unless total cover exceeds $1.1 million, in which case you’ll need 8 units of Death & TPD to complete a OnePath Personal Statement. You’ll also need to complete a OnePath Personal Statement OR if you answer ‘yes’ to any health questions on the application or insurance election forms. 8 units of Death Only Cover above automatic acceptance levels Insurance Election Form or Jockeys Insurance Election Form or up to $1.1 million (and after 90 days Note: If you answer ‘yes’ to any health questions on this form, you’ll also need to complete a OnePath of joining) Personal Statement. Cover above $1.1 million Insurance Election Form or Jockeys Insurance Election Form and OnePath Personal Statement Fixed Amount cover Insurance Election Form or Jockeys Insurance Election Form Up to $1.1 million Note: If you answer ‘yes’ to any health questions on this form, you’ll also need to complete a OnePath Personal Statement. Over $1.1 million Insurance Election Form or Jockeys Insurance Election Form and OnePath Personal Statement Income Protection insurance Income Protection Form and OnePath Personal Statement Note: Woolworths NSW employees need to complete the Elect Default Insurance or Insurance Election Up to $30,000 per month Form to apply for default Death & TPD and Income Protection cover. They only need to complete the Income Protection Form and OnePath Personal Statement if they want to increase their IP cover above the default level (see page 42 for details). Insurance Guide | 1 April 2020 | 19
What forms do you need to complete? Do you want to make a change to your existing cover? Convert your cover Fixed Premium to Fixed Amount (you must Insurance Conversion Form be under 60 and at work to be eligible) Note: Your cover will be rounded up to the next $1,000 upon conversion. Insurance Conversion Form Fixed Amount to Fixed Premium Note: Your cover will be rounded up to the next whole unit. If you answer ‘yes’ to any health questions on this form, you’ll also need to complete a OnePath Personal Statement. Make other changes Change your work category Change of Work Category Insurance Form Increase cover due a significant life event Life Events Form to Increase Death & TPD cover Change your waiting or benefit period Change of Income Protection Insurance Waiting and/or Benefit Period Form Match/transfer your insurance Insurance Matching/Transfer Form with another fund Opt-in to keep cover Insurance Opt-in Form Opt-out of receiving automatic Death Opt-out of Automatic Default Insurance Form & TPD cover Apply to recommence cover cancelled Application Form to Recommence Insurance Cancelled Under PYS under PYS Apply to recommence cover cancelled Application Form to Recommence Insurance Cancelled Under PMIF under PMIF (available until 31 May 2020) Personal Plan members (if you don’t have a contributing employer) You’re required to have sufficient funds in your account balance to pay your premiums before any insurance cover is provided and/or altered. You must also complete the forms below: • Insurance Election Form • OnePath Personal Statement. 20 | Insurance Guide | 1 April 2020
Can we match or transfer insurance? Yes! To apply for us to match or transfer the amount of your existing Death & TPD or Death Only insurance and/or the amount of your existing Income Protection insurance held with another fund, follow the steps below. Complete an Insurance Matching/Transfer Form. You must answer all of the screening questions in Step 1. the form to the satisfaction of the insurer. Attach a copy of your most recent statement detailing the type and level of cover you have with the other Step 2. fund. If your cover has changed since this statement was issued, you’ll need to provide evidence of the new type and level of cover. Attach a copy of any special acceptance terms that were agreed upon with your other fund (e.g. any Step 3. restrictions, exclusions or limitations) if applicable. What type of cover are you IMPORTANT applying to match or transfer? Do not cancel your existing insurance arrangements Death & TPD or Death Only until you’ve received confirmation in writing that we’ve accepted your application. Further terms and conditions You can only apply for the matching or transferring of cover apply. Contact us for more information. if you’re under 61. If you do not cancel your previous cover within 30 days of We’ll only match or transfer cover up to $1 million. Any amount when your matched or transferred cover starts with us, then, over this needs to be assessed by our insurer. If your application in the event of a claim, our insurer will reduce any benefit is accepted, your new insurance cover will be subject to our payable under this policy by the amount of any benefit paid terms and conditions. These may differ from your existing or payable under your previous policy. policy (or policies), so please take care to read our terms and conditions before you cancel any other policies. We’ll provide you with a sufficient number of Fixed Premium units to ensure that the amount of insurance provided, as a minimum, matches the cover held with your other super fund. Income Protection You can only apply for the matching or transferring of IP cover if you’re under 61 and you haven’t made, or you’re not entitled to make, a claim in relation to your cover held with the other fund. If accepted by us, this cover will replace any existing IP cover you may have with us. We’ll only match or transfer cover where it’s not subject to a premium loading. If there are any medical or lifestyle exclusions attached to the cover, these may continue to apply to your new cover. A maximum benefit period of two or five years will apply to the matched or transferred cover. The maximum amount of cover you can have matched or transferred is $1,400 per week (before tax), subject to total IP cover being less than $1,600 per week (before tax). The waiting period for cover with the other fund must be 90 days or less. Insurance Guide | 1 April 2020 | 21
How do you make a claim? Making an insurance claim is easier than you might think. Simply follow the steps below and remember that we’re always here to help you. Contact us first. One of our dedicated member service representatives will explain what happens when you Step 1. make a claim and then send you the necessary forms and paperwork. They’ll work with you to ensure that your claim is processed as smoothly as possible. Complete our forms and lodge your claim. After speaking with us, you’ll need to complete and send in Step 2. the forms provided to you and supply all requested information (which may include medical reports and employment records) in order for your claim to be further assessed. Many of our forms can be received and/or submitted electronically or in paper form. When you return everything to us, please attach all the documents requested in the claims pack we’ll send you. What happens next? Handy tip Once we receive your application, we’ll check to make sure you’re eligible to make a claim. We’ll then forward all your We’ve put together an in-depth step-by-step guide to documents and information to our insurer who will assess your making an insurance claim, available at lucrf.com.au. claim and make a decision. We also have dedicated staff who can help you make your claim, or answer any questions you may have about your insurance – call us on 1300 130 780. 22 | Insurance Guide | 1 April 2020
How do you make a claim? Making a Death & TPD or Death Only claim What if your claim is denied? All claims for the payment of an insured benefit must be made in To be eligible to receive a claim, you must satisfy the terms and writing with appropriate supporting documentation. Claims are conditions of the policy. If your claim is not successful, you’ll jointly assessed by us and our insurer and approved or declined receive a letter explaining the reason why it was denied. If you in accordance with the terms and conditions of the insurance don’t agree with the decision, we’ll facilitate a review process. policy document and the LUCRF Super Trust Deed. This will include an independent review by our claims review committee to ensure a fair decision is made. Making an Income Protection claim If you’d like to lodge an objection to our decision and request Before any claim is approved, it must first be assessed and a review by the claims review committee, you must follow accepted by our insurer. In order for your claim to be accepted, these steps: you must, solely as a result of an injury or illness, be: • medically certified as being incapable of performing one or Lodge your objection in writing and more duties of your usual occupation necessary to produce Step 1. include the reasons for your objection income and any additional information in • following the advice of a medical practitioner support of your claim. • not engaged in any occupation. Send your written objection to: If you’re unemployed or working less than 15 hours per week Step 2. The Complaints Officer (or less than 20 hours per week for casual employees), you’re PO Box 211 not eligible to make a claim for any injury or illness that occurs NORTH MELBOURNE VIC 3051 during that time. However, you’re still eligible to make a claim for those injuries or illnesses that occurred during the time you were employed for more than 15 hours per week if permanently Your written objection must be received by us within 28 days of employed, or at least 20 hours per week for casual employees. you receiving the letter denying your claim. You may be entitled to a partial disability benefit if you were totally disabled for at least 7 out of the first 12 consecutive days of the waiting period, then totally or partially disabled for the remainder of the waiting period and: • you return to work in your usual occupation or another occupation and you’re no longer capable of performing all the duties of your usual occupation, or • you work in a reduced capacity or reduced hours and your monthly income is less than your pre-disability monthly income or salary solely as a result of your injury or illness. What happens to your premiums while you’re making a claim? Once you’ve submitted a claim form, your premiums will continue to be deducted from your account until your claim is approved. This will ensure that you’re covered for all other events during this period, even if your claim is denied. Please note: Words that appear in italics throughout this section have special meanings that are explained on pages 32 and 33 (for defined terms relevant to TPD cover) and page 41 (for defined terms relevant to IP cover). Insurance Guide | 1 April 2020 | 23
The fine print Death & TPD and Death Only 25 Income Protection 37 Please note: Words that appear in italics throughout this section have special meanings that are explained on pages 32 and 33 (for defined terms relevant to TPD cover) and page 41 (for defined terms relevant to IP cover). 24 | Insurance Guide | 1 April 2020
Death & TPD and Death Only All the extra bits we need to tell you about our Death & TPD and Death Only cover. Default cover Restrictions for automatic default cover New events cover will apply from your cover start date for at Eligibility least 12 consecutive months, and will be converted to full Our offer of default insurance cover (automatic or elected) cover when you have been at work for 30 consecutive days applies to any member who: immediately prior to the expiry of the 12-month period. If you’re • is between 14 and 69 not at work for 30 consecutive days immediately prior to the expiry of the 12-month period, new events cover will continue until • is an Australian citizen, permanent resident or the holder of a valid visa, or is temporarily residing outside of Australia you’ve been at work for 30 consecutive days. (for up to three years) Please refer to pages 32 and 33 for definitions of at work, new • has an employer contributing to their LUCRF Super account. events, new events cover and pre-existing conditions. Issue of default cover (elected or automatic) is only available once per account. Any future LUCRF Super accounts you hold Medical and lifestyle exclusions may also be eligible for default cover. When you’re assessed on your current health and you’ve suffered a previous health condition, an exclusion may be applied Please note that Death & TPD and Death Only insurance cover whereby you won’t be able to claim a future benefit for this isn’t offered to people aged 70 or over, or to those who don’t condition. While this underwriting will consider your full medical meet the residency requirements. history, some conditions may be disregarded from the decision You’re ineligible to receive our default insurance cover if you’ve where a full recovery has been made and a relapse of further previously elected not to have default insurance cover, reached consequence is unlikely. age 70, or you’re a Claiming Terminal Illness Member. If you’re However, where the insurer does see a high risk, an exclusion will a Claiming TPD Member, you’re only eligible to receive default apply. An exclusion allows you to attain insurance cover that will Death Only cover. Please refer to page 32 for definitions of give you financial protection in the event of an illness or injury, Claiming TPD Member and Claiming Terminal Illness Member. other than for any occurrence of an event associated with the Restrictions for elected default cover exclusion listed. We’ll inform you if an exclusion is to apply, and New events cover will apply from your cover start date until we’ll need your acceptance of the new terms before your cover you’ve been at work for 60 consecutive days. can commence. If you don’t agree with the exclusion, call us to request that the insurer reviews their decision. If you don’t meet some of the eligibility conditions relating to default cover, the default cover you receive may be restricted to only covering you for new events and not also for pre-existing conditions. Insurance Guide | 1 April 2020 | 25
Death & TPD and Death Only Choosing insurance outside the Life events cover default cover Within 90 days of a specified life event occurring, you may When applying for Death & TPD or Death Only insurance, you qualify for some additional cover without having to provide can choose either Fixed Premium or Fixed Amount cover. If you any medical evidence. have Death & TPD insurance or Death Only insurance, it must Life events include the birth or adoption of a child, a dependent be either Fixed Premium or Fixed Amount. You cannot have a child starting secondary school, taking out a new mortgage (or combination of both. increasing an existing mortgage by at least $100,000) on your Where you have both Death & TPD and an additional amount of principal place of residence, completing an undergraduate Death Only insurance, one part can be Fixed Premium and the degree, completing an apprenticeship, death of a spouse, and other part can be Fixed Amount. You can apply for a maximum getting married or divorced. of $5 million Death cover and $3 million TPD cover. You’ll need to complete a Life Events Form to Increase Death & TPD cover and submit it within 90 days of the life event Changing or cancelling your cover happening. A maximum of three applications for additional You can increase, reduce, convert or cancel your cover at any cover can be made, and only one application can be made in time, subject to terms and conditions. You can cancel the TPD any 12-month period. part of your Death & TPD cover, or your entire Death & TPD You won’t be eligible for this additional cover if you’ve already cover. You cannot cancel the Death cover component only while made or you’re entitled to make a claim under your existing retaining the TPD cover. To make any changes to your Death & cover with us (or cover for a similar benefit you hold outside TPD cover, including changing your work category, complete of LUCRF Super). the Insurance Election Form. To cancel your insurance cover, you must send a signed When does voluntary cover start? instruction to us at the address below. Your cancellation will Voluntary cover starts once we’ve assessed and accepted your become effective from the date your request is received or a date application. While we’re assessing your application, interim in the future that you specify in writing. Send your cancellation accidental cover applies. This means that you may be covered request to: for the amounts you’ve applied for (subject to the maximum LUCRF Super limit of $2 million) should you suffer an accident. PO Box 211 The following situations are not considered accidents, and North Melbourne VIC 3051 any claims arising from them while your application is being assessed won’t be covered: • where one or more of the following was a contributing cause of injury or death: – illness – disease – allergy – any gradual onset of a physical or mental infirmity • where the injury or death was the result of an intentional act or omission of the insured member • where the insured member was injured or died as a result of an activity in respect of which they assumed the risk or courted disaster, irrespective of whether they intended injury or death. 26 | Insurance Guide | 1 April 2020
Death & TPD and Death Only When does cover stop? Recommencement of insurance cover after 16 months of inactivity Your insurance cover will stop: If your insurance cover is cancelled because your account has • if your membership ceases been inactive for a continuous period of 16 months, you can • if you write to us to cancel your cover (which will be cancelled apply to recommence it by: from the date your request is received) 1. completing the Application Form to Recommence Insurance • on the last day of the month where there’s not enough money Cover Cancelled due to the Protecting Your Super Package, in your account to cover the premium payment for you during available at lucrf.com.au, and sending it to us, and that month 2. having a contribution paid into your account (not required for • on the date the insurer approves a terminal illness benefit for pension accounts). an amount equal to your Death cover Both these steps must be done within 60 days from the date • when you reach the benefit expiry age (70 years for Death & your insurance cover was cancelled by the requirements of the TPD insurance) Protecting Your Super package. • for TPD, on the date the insurer approves your TPD claim Your application for recommencement will be sent to our insurer • for Death, on the date of death* for approval. If your cover is cancelled due to the Protecting Your • if no formal notification is received of ‘employer-approved’ Super package on or after 1 July 2019, the insurer will require you leave (as defined by the insurer) in excess of 24 months to declare that you are currently at work. • if you’re not an Australian resident: For insurance cover that was cancelled on or after 1 July 2019, – 31 days after the date you no longer hold a visa if you are not at work at the time the application was sent to us, – 90 days after you depart Australia (where you continue to you will only be covered for new events until you are at work permanently reside in Australia), or for 30 consecutive days. – 31 days after you depart Australia (where you no longer New events means you’ll only be covered for an insured event permanently reside in Australia) that arose on or after the day the cover commences. • if you commence active service with the armed forces of any country, or, if you’re a member of the Defence Force Reserve, If your cover recommences, it will recommence at the later of: the date you become the subject of a call-out order • the date your application is submitted to us, or • if your account is inactive for a continuous period of • the date a contribution is paid into your account. 16 months (inactive as defined under superannuation There may also be a gap in cover between the date your cover legislation) and where you haven’t told us you’d like your was cancelled and the date it recommenced. You won’t be insurance to continue. See the next section if your insurance insured for any events during this period. has stopped under this condition and you’d like to have it recommence. Your account must also have a sufficient balance to pay the *If the Death sum insured is greater than the TPD sum insured and a TPD insurance premium next due. benefit is paid, the difference between the TPD sum insured and the Any exclusions or restrictions that applied to your insurance Death sum insured will continue as Death Only cover. cover immediately prior to cancellation will continue to apply from the date your cover is recommenced. Should you wish to recommence cover cancelled due to the Protecting Your Super package after 60 days, you may make an application. After 60 days, any cover provided is subject to the insurer’s written acceptance. Insurance Guide | 1 April 2020 | 27
Death & TPD and Death Only Recommencement of insurance cover cancelled Maintaining your cover under the Putting Members’ Interests First (PMIF) There are times when a change in your life may affect your reforms on 1 April 2020 insurance cover. We’ve outlined here what happens to your For existing members, if your insurance cover is cancelled insurance if some of these changes apply to you. on 1 April 2020 because your account balance was below $6,000 between 1 November 2019 and 1 April 2020, you can Parental and other ‘employer-approved’ leave apply to recommence it by completing the Application Form Your insurance cover continues for up to 24 months while you’re to Recommence Insurance Cover Cancelled due to the Putting on parental or other leave (paid or unpaid) as long as your Member’s Interests First Reforms, available at lucrf.com.au, employer approves your leave. Before your leave begins, your and sending it to us. We must accept your application employer should record the start date of your leave and the date before 31 May 2020. it’s expected to end. If your application is valid, your cover will recommence on the If you’re taking more than 24 months’ leave, you must let us know date the application is accepted by LUCRF Super if you have as we’ll need to apply to our insurer for your cover to continue enough funds in your account to cover the cost of the insurance. before the end of this 24-month period. The final decision rests From the date your cover is recommenced, you’ll only be covered with the insurer. for new events until you are at work for 30 consecutive days. Overseas cover New events means you’ll only be covered for an insured event that arose on or after the day the cover commences. If you’re an insured member and an Australian Resident and you’re away from Australia for any reason, you’ll receive There may also be a gap in cover between the date your cover worldwide, 24-hour cover. This cover will continue until it ends was cancelled and the date it recommenced. You won’t be for any reason under ‘When does cover stop?’ on page 27. insured for any events during this period. If you’re not an Australian Resident but you hold a visa and Your account must also have a sufficient balance to pay the you’re outside of Australia, your cover will continue for up to insurance premium next due. three consecutive months, as long as you continue to hold a visa Any exclusions or restrictions that applied to your insurance and haven’t permanently left Australia. The three-month period cover immediately prior to 1 April 2020 will continue to apply from begins on the date you first leave Australia. the date your cover is recommenced. Continuation option Should you wish to recommence cover cancelled due to the If your cover stops because you’re no longer a member, you PMIF reforms after 31 May 2020, you may make an application. can apply for an individual Death Only insurance policy with our After 31 May 2020, any cover provided is subject to the insurer’s insurer. You must make this application and pay the first premium written acceptance. within 60 days of your membership ending. There may be restrictions on this policy, which can only be for a level of cover up to the amount you already had. Other eligibility criteria also apply. Contact us if you’d like to apply for an individual insurance policy upon leaving us. Please allow enough time to obtain the application forms, a quotation and to arrange payment of your new premium. War exclusion In the event of war, our insurer may increase premiums, or exclude payment of an insurance claim if the reason for the claim is war-related. 28 | Insurance Guide | 1 April 2020
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