TelstraSuper Personal Plus

Insurance Guide1 December 2019

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This Guide is issued by Telstra Super Pty Ltd ABN 86 007 422 522 AFS Licence 236709, the trustee of the Telstra Superannuation Scheme ABN 85 502 108 833 (TelstraSuper).

This Guide forms part of the TelstraSuper Personal Plus Product Disclosure Statement dated 1 December 2019 (PDS). You should read the information in this Guide before applying for or changing your insurance cover. Telstra Super Pty Ltd is referred to throughout this Guide as “the Trustee”, “our”, “we” or “us”.

Telephone 1300 033 166 Facsimile: 03 9653 6060 www.telstrasuper.com.au contact@telstrasuper.com.au

©Telstra Super Pty Ltd

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About this GuideThis Guide contains important information about the insurance cover available through TelstraSuper. The insurance cover is provided by TAL Life Limited ABN 70 050 109 450 AFS Licence 237848 (TAL).

The Guide provides a summary of the main features of the Death, Total & Permanent Disablement (TPD) and Income Protection cover and the insurance policy terms and conditions. The complete terms and conditions are set out in the TAL insurance policy (TAL Policy). All insurance cover is subject to TAL Policy. You can request a copy of the TAL Policy at no charge by calling us on 1300 033 166.

Please read this Guide carefully to ensure that you understand the terms and conditions of the TelstraSuper insurance cover before deciding whether the insurance cover is appropriate.

GlossaryTo help you understand some of the terms used in this Guide there is a glossary on pages 20 to 23.

Contents01 TelstraSuper Personal Plus insurance cover 04

02 Flexible insurance options with TelstraSuper 10

03 Determining how much insurance you may need 12

04 Changing your insurance cover 13

05 Insurance premiums 14

06 When are insurance benefits paid? 15

07 On leave or overseas? 16

08 Leaving TelstraSuper 16

09 Need more information about insurance cover? 17

10 Definitions of medical conditions 18

11 Glossary 20

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01 TelstraSuper Personal Plus insurance coverTelstraSuper recognises the importance of adequate levels of insurance and we are committed to providing our members with comprehensive, affordable and convenient cover.

Types of insurance cover availableTelstraSuper offers you the following types of insurance cover.

Death coverLosing a loved one is never easy. So leaving behind some financial security will give them some added peace of mind. Death cover is available on its own, or you can bundle it with Total & Permanent Disablement (TPD) cover.

Total and Permanent Disability coverIf you became permanently unable to work due to sickness or an accident, you could receive a lump sum payment with TPD cover. You also have the option of combining Death and TPD cover.

Terminal illness benefitIn the unfortunate circumstance you are diagnosed with a terminal illness you can apply to be paid a terminal illness benefit. You don’t have to have stopped working to qualify for this benefit. This is the early payment of your death benefit. For information about ‘Terminal illness benefit’ and ‘Access to super for members with a terminal medical condition’ refer to page 15.

Income Protection coverIncome Protection insurance provides you with a replacement income that will support your return to work, if you become unable to work due to sickness or an accident. The replacement income can be up to 75% of your salary (excluding super), with an additional 10% of your salary (excluding super) paid into your superannuation account. This allows you to cover your daily expenses while still contributing to super while you are off work.

Default* base Death & TPD cover Default cover means base Death or base Death & TPD cover determined by satisfactorily completing the relevant questions on the membership application form. This does not include existing members transferring from another TelstraSuper corporate product who had a transfer of cover to TelstraSuper Personal Plus.

Default base cover is determined by your age next birthday as at the last 1 July†. Table 1 on page 5 shows the amount of age-based Death & TPD cover eligible members can receive for a cost of $2.36 per week. Death cover is $1.23 per week on the same scale.

If you're not eligible to apply for default base Death or Death & TPD you may still apply for insurance cover by completing an Insurance Telephone Application Request available at telstrasuper.com/forms or by calling us.

You should refer to the ‘Insurance in your super’ section in the TelstraSuper Personal Plus Product Disclosure Statement for information regarding your default insurance as this depends on a number of different factors. The TelstraSuper Personal Plus PDS is available at telstrasuper.com.au/pds

Top-up Death & TPD coverYou can apply to increase your level of insurance to meet your personal needs. Annual top-up premium rates are based on each $1,000 sum insured and are shown in Table 2 on page 6. The example on page 5 shows how to calculate premiums for top-up cover. Refer to the ‘Insurance premiums’ section on page 14 for further information.

* Members with an age next birthday 76 or over are ineligible for default Death insurance cover. Members with an age next birthday 66 or over, or who have not satisfactorily completed the relevant questions in the insurance declaration section of the application for membership, are ineligible for default Death & TPD cover. New employees of Telstra-approved employers (Telstra Stores) are subject to the ‘At work’ test and other provisions contained in the Policy.

† All references to age are age next birthday as at the last 1 July.

Example

If you turned 25 years old on 1 December 2016 and today is 1 January 2017, your age next birthday as at the last 1 July is 25 years old, which means you can receive $155,194 of Death cover and $155,194 of TPD cover.

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Example How premiums are calculated

Naomi will be turning 35 next birthday. When she joined TelstraSuper Personal Plus she received age-based base Death & TPD cover providing insurance cover of $134,681. For added peace of mind, Naomi would like to apply for an extra $500,000 of top-up Death & TPD cover. To work out how much this would cost her, Naomi refers to Table 2 and uses the following information:

Age next birthday 35

Top-up Death & TPD amount $500,000

Base Death & TPD premium

= $2.36 x 52 (weeks per year)

= $122.72

Top-up Death & TPD premium

= Elected amount of cover ÷1,000 x Top-up Death & TPD premium rate = $500,000 ÷ 1,000 x $0.58 = $290 per year

Total premium payable

= Base Death & TPD premium + Top-up Death & TPD premium = $122.72 + $290 = $412.72 per year

Naomi receives total insurance cover of $634,681 for Death & TPD at a premium of $412.72 per year.

Case study TPD cover helps a family recoverLess than a year after taking out her additional Death & TPD cover, Naomi was injured in an accident which resulted in her total and permanent disablement. Naomi’s husband, James was working full-time and daughter Emma was about to start school. The TPD cover Naomi had through TelstraSuper Personal Plus helped repay the family’s home loan and covered the cost of Emma’s education. In addition, it gave the family access to funds to pay their living expenses while James helped Naomi during her initial recovery and transition period, before he returned to full-time work.

Table 1: Age-based Death & TPD cover

Age next birthday*

Death cover

TPD cover

Age next birthday*

Death cover

TPD cover

16 155,194 155,194 46 61,511 61,51117 155,194 155,194 47 56,524 56,52418 155,194 155,194 48 52,109 52,10919 155,194 155,194 49 48,413 48,41320 155,194 155,194 50 44,718 44,71821 155,194 155,194 51 41,204 41,20422 155,194 155,194 52 37,868 37,86823 155,194 155,194 53 34,533 34,53324 155,194 155,194 54 31,376 31,37625 155,194 155,194 55 29,095 29,09526 134,681 134,681 56 25,335 25,33527 134,681 134,681 57 22,451 22,45128 134,681 134,681 58 19,980 19,98029 134,681 134,681 59 18,000 18,00030 134,681 134,681 60 16,585 16,58531 134,681 134,681 61 14,760 14,76032 134,681 134,681 62 13,964 13,96433 134,681 134,681 63 13,244 13,24434 134,681 134,681 64 12,794 12,79435 134,681 134,681 65 12,254 12,25436 115,560 115,560 66 11,353 037 112,500 112,500 67 10,519 038 109,260 109,260 68 9,734 039 101,520 101,520 69 9,016 040 96,415 96,415 70 8,349 041 90,686 90,686 71 7,733 042 84,484 84,484 72 7,158 043 78,696 78,696 73 6,624 044 73,898 73,898 74 6,133 045 68,134 68,134 75 5,676 0

* As at last 1 July.

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* As at last 1 July.

Table 2: Top-up Death and TPD rates annual cost per $1,000 sum insuredAge next birthday*

Death only Death & TPD Male Female Male Female

16 0.69 0.38 0.70 0.3917 0.81 0.38 0.82 0.3918 0.88 0.36 0.94 0.3819 0.95 0.36 1.03 0.3820 0.96 0.35 1.04 0.3621 0.96 0.35 1.06 0.3622 0.95 0.31 1.07 0.3323 0.89 0.29 1.03 0.3224 0.87 0.28 1.03 0.3125 0.81 0.27 0.99 0.2926 0.79 0.23 0.95 0.2927 0.75 0.22 0.91 0.2828 0.69 0.22 0.86 0.2929 0.66 0.21 0.83 0.3130 0.60 0.21 0.81 0.3331 0.59 0.22 0.79 0.3432 0.58 0.22 0.77 0.3933 0.58 0.23 0.77 0.4334 0.58 0.28 0.79 0.5035 0.58 0.29 0.81 0.5836 0.59 0.32 0.86 0.6237 0.60 0.36 0.90 0.7438 0.67 0.40 1.03 0.8339 0.72 0.46 1.10 0.9640 0.79 0.52 1.25 1.0841 0.82 0.58 1.40 1.2442 0.90 0.61 1.57 1.3643 1.01 0.72 1.77 1.5444 1.09 0.79 1.98 1.7545 1.21 0.86 2.25 1.9546 1.31 0.95 2.52 2.1647 1.47 1.04 2.85 2.3948 1.57 1.10 3.17 2.6549 1.75 1.21 3.54 2.9250 1.87 1.30 3.93 3.2751 2.04 1.40 4.39 3.5952 2.18 1.49 4.82 4.0153 2.37 1.61 5.32 4.4254 2.56 1.75 5.89 4.9255 2.76 1.84 6.43 5.4156 2.96 1.97 7.06 6.0357 3.18 2.06 7.70 6.6658 3.45 2.18 8.45 7.3759 3.71 2.33 9.21 8.1160 4.00 2.44 10.02 8.8361 4.30 2.59 10.92 9.5562 4.65 2.72 11.86 10.3063 5.02 2.87 12.86 11.0464 5.43 3.04 13.97 11.8165 5.89 3.22 15.13 12.5766 6.35 3.4167 6.85 3.6368 7.40 3.8569 8.00 4.0870 8.63 4.3371 9.33 4.5972 10.08 4.8673 10.89 5.1574 11.76 5.4675 12.71 5.78

Handy hints• To check your current level of insurance cover visit

your online account or call us.

• To view, nominate or update your beneficiary details, visit your online account or complete a Nomination of Beneficiaries form available at telstrasuper.com.au/forms

• To estimate your insurance cover and how much it will cost, use our Insurance premium cover calculator available at telstrasuper.com.au/calculator

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Interim Accident coverIf you apply for additional insurance cover, you will receive Interim Accident cover for the period of time whilst your application is being assessed (known as the Interim Accident cover period).

If you have an accident during the Interim Accident cover period which results in your death or TPD or total disability, you will be covered for the applied amount (up to the maximum Interim Accident benefit of $1.5 million for Death or TPD and $15,000 per month for Income Protection) for the period starting from the date we receive your completed application and will end on the earliest of the following dates:

1. your application is withdrawn, accepted or rejected

2. the Policy is terminated

3. TAL cancels your Interim Accident cover

4. you reach cover cessation age, which is 65 for TPD, 75 for Death cover, and the date you turn 65 for Income Protection

5. for Interim Accident cover for TPD - the death of the applicant

6. the date any existing cover under the Policy ceases

7. 120 days has passed.

Income Protection coverIf you are under age 65 and currently employed working at least 15 hours per week, you can apply for Income Protection cover. Premiums for this cover will be deducted from your TelstraSuper Personal Plus account at the end of each quarter, when you leave the Fund or when you transfer your super to a different TelstraSuper membership category.

Income Protection covers you in the event of total disability or partial disability, meaning you are temporarily unable to continue performing the regular duties of your occupation. It provides you with an income of up to 75% of your income excluding super, with an additional 10% of your income excluding super to be paid to your super account. Payments are made for the duration of the applicable benefit period (either two or five years), distributed in arrears after your chosen waiting period (either 30, 60, 90 or 120 days), provided you continue to meet the definition of total disability or partial disability in the Policy.

You do not have to be permanently unable to work to be eligible for income protection payments and you may be eligible for payments while you are waiting for your TPD claim to be assessed.

Your level of Income Protection cover is dependent upon your income and is calculated as follows:

Income protection benefit

75% x income excluding super = Annual income protection benefit ÷ 12 = Monthly income protection benefit

Super contribution10% x income excluding super = Annual super contribution ÷ 12 = Monthly super contribution

Benefits are subject to a maximum monthly benefit of $50,000 for a two year benefit period and a monthly benefit of $30,000 for a five year benefit period. Income protection payments will be reduced by the amount of any other payments you receive for the payment period (such as sick leave payments or workers’ compensation payments). Social security benefits and motor accident compensation are not offset against benefits.

Depending on your level of Income Protection cover requiring assessment, TAL has different medical requirements. The initial requirements are outlined in Table 5 on page 14.

Your annual income protection premium is calculated as:Annual income protection benefit ÷ 1,000 x Premium rates per $1,000 sum insured = Annual income protection premium

To tailor your insurance to suit your needs you can apply for either a two or five year benefit period* and a waiting period of either 30, 60, 90 or 120 days. Refer to Table 3 on page 9 for premium rates applicable to the various benefit and waiting periods.

If you hold Income Protection cover with other insurance providers you also have the option to postpone the TelstraSuper waiting period. This allows you to receive an income protection benefit from another insurance provider first, and defer TelstraSuper benefits until these payments are complete.

You can apply to change your existing waiting period and/or benefit period at any time. See page 13 ‘Changing your insurance cover’.

* Members employed in a heavy blue occupation are unable to increase their benefit period to five years or reduce their waiting period to less than 90 days.

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Applying for Income Protection cover When applying for Income Protection cover you will need to provide evidence of your current salary in the form of a Year to Date payslip and cannot be underwritten for an amount greater than your current salary.

Should you subsequently receive an increase in salary you will need to apply to be underwritten for this increase. To increase your Income Protection cover see page 13 ‘Changing your insurance cover’.

If you claim an income protection benefit you will also be required to provide evidence of your current salary at the time of claim. For this reason it is imperative that you review your insurance arrangements on a regular basis to ensure that you have sufficient cover.

You can find out more about the cost of insurance or changing your cover on our website or by calling us.

Existing members transferring from another TelstraSuper product

TelstraSuper Corporate Plus, TelstraSuper Division 5 and Sensis Super Plus Defined Benefit members with existing Income Protection cover will have that cover automatically† transferred to TelstraSuper Personal Plus. For former Defined Benefit members, your Income Protection cover will be 75% of your income excluding super, with an additional 10% of your income excluding super to be paid to your super account (this already applies to TelstraSuper Corporate Plus members). For the cover to be applied, within 120 days of you leaving your previous employer you need to have:

• received a Superannuation Guarantee (SG) contribution from your new employer, and

• provided TelstraSuper with details of your new salary and occupation, and

• made an election to opt-in, if applicable.

Details of these requirements are outlined in the TelstraSuper Personal Plus welcome letter.

Eligible members transferring from TelstraSuper Division 2 can apply for Income Protection cover, as outlined above.

Example Calculating Income Protection* premiums and benefit payable

Jack is a TelstraSuper Personal Plus member. He is 26 years old next birthday, a white collar worker and his salary excluding super is $42,000. Jack has little savings since returning from an overseas trip. Aware that he would be in financial hardship should he be unable to earn his income, Jack decides to take out Income Protection insurance with TelstraSuper Personal Plus with a benefit period of two years and 90 day waiting period. Jack’s income protection benefit is calculated as:Annual income protection benefit= Salary excluding super x 75%= $42,000 x 75%= $31,500Monthly income protection benefit= $31,500 ÷ 12= $2,625 (before tax) per monthAnnual super contribution= Salary excluding super x 10%= $42,000 x 10%= $4,200Monthly super contribution= $4,200 ÷ 12= $350 per monthJack’s annual income protection premiums are:

Annual income protection benefit ÷ 1,000 x premium rates= ($31,500 + $4,200) ÷ 1,000 x $1.88= $67.12*

Case study How Income Protection helped Jack get back on his feet

Jack loves the outdoors and regularly goes rock climbing. However, one weekend while climbing, Jack falls and seriously injures his back. After an initial hospital stay of two months, Jack’s doctor informs him he will need four months of in-hospital rehabilitation and a further nine months at home recuperating, before he can safely resume work.

Jack immediately submits an income protection claim. After the 90 day waiting period, Jack is advised of its acceptance and receives $2,625 per month (before tax) from his Income Protection insurance plus an additional $350 paid into his super account. This covers Jack’s living expenses, allowing him to focus on his recovery.

* Stamp duty is payable in addition to the income protection premiums above and varies depending on your state of residence.

Handy hintsMany of the insurance forms referred to in this Guide are available on our website at telstrasuper.com.au/forms or by calling 1300 033 166. Alternatively, visit your online account to access a pre-populated form.

† Subject to the ‘At work’ requirements and other eligibility criteria and exclusions contained in the Policy.

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Table 3: Annual Income Protection premium rates per $1,000 sum insured*Benefit period 2 Years 5 Years

Waiting period 30 days 60 days 90 days 120 days 30 days 60 days 90 days 120 days

ANB† Male Female Male Female Male Female Male Female Male Female Male Female Male Female Male Female

16 5.05 6.72 3.21 4.00 2.30 2.65 1.96 2.31 5.84 8.51 3.74 5.11 2.69 3.42 2.31 3.0117 5.12 6.91 3.26 4.12 2.33 2.74 1.99 2.37 5.92 8.76 3.79 5.26 2.74 3.52 2.34 3.0918 5.36 7.10 3.41 4.23 2.43 2.81 2.08 2.43 6.21 9.00 3.97 5.40 2.85 3.62 2.45 3.1719 5.45 7.20 3.47 4.27 2.49 2.84 2.11 2.46 6.32 9.12 4.04 5.48 2.90 3.66 2.50 3.2120 5.46 7.32 3.47 4.36 2.49 2.88 2.11 2.51 6.32 9.29 4.04 5.56 2.90 3.72 2.50 3.2721 5.54 7.43 3.53 4.41 2.52 2.92 2.14 2.53 6.43 9.41 4.11 5.64 2.95 3.76 2.53 3.3022 5.16 7.63 3.27 4.52 2.33 3.00 1.99 2.60 6.02 9.76 3.83 5.83 2.76 3.90 2.36 3.4223 4.93 7.71 3.12 4.59 2.23 3.03 1.89 2.62 5.80 9.93 3.69 5.95 2.64 3.97 2.28 3.4824 4.71 7.72 2.97 4.59 2.11 3.03 1.81 2.63 5.60 10.02 3.55 6.00 2.54 4.00 2.18 3.5325 4.46 7.80 2.82 4.63 2.00 3.06 1.70 2.66 5.35 10.22 3.40 6.13 2.41 4.10 2.08 3.6226 4.28 7.72 2.69 4.64 1.88 3.10 1.61 2.71 5.18 10.22 3.27 6.20 2.31 4.19 2.00 3.7027 4.09 8.44 2.56 5.02 1.81 3.32 1.55 2.90 4.97 11.27 3.15 6.77 2.24 4.52 1.92 4.0128 4.07 9.01 2.56 5.30 1.81 3.47 1.55 3.04 5.01 12.15 3.17 7.23 2.26 4.79 1.94 4.2429 4.10 9.56 2.57 5.58 1.81 3.63 1.56 3.18 5.09 13.02 3.21 7.70 2.28 5.05 1.99 4.4930 4.13 10.05 2.58 5.84 1.81 3.76 1.56 3.31 5.17 13.83 3.26 8.13 2.31 5.31 2.01 4.7231 4.34 10.45 2.70 6.06 1.88 3.89 1.62 3.42 5.50 14.53 3.45 8.52 2.42 5.53 2.11 4.9332 4.45 10.74 2.77 6.23 1.91 3.98 1.65 3.52 5.72 15.09 3.56 8.83 2.50 5.74 2.17 5.1233 4.69 11.22 2.88 6.51 2.00 4.17 1.73 3.68 6.07 15.91 3.76 9.32 2.62 6.05 2.30 5.4234 5.03 11.54 3.08 6.72 2.11 4.33 1.84 3.83 6.57 16.52 4.06 9.71 2.81 6.33 2.46 5.6835 5.22 12.10 3.19 7.07 2.17 4.59 1.89 4.07 6.91 17.51 4.24 10.34 2.92 6.79 2.57 6.1036 5.62 12.69 3.42 7.47 2.33 4.88 2.04 4.35 7.50 18.63 4.61 11.08 3.16 7.32 2.79 6.5937 5.98 13.33 3.64 7.90 2.49 5.21 2.17 4.65 8.07 19.85 4.94 11.89 3.40 7.94 3.01 7.1738 6.34 14.05 3.89 8.39 2.65 5.58 2.33 4.98 8.67 21.22 5.34 12.79 3.67 8.62 3.26 7.8139 6.81 14.89 4.19 8.96 2.88 6.02 2.55 5.39 9.44 22.80 5.83 13.86 4.04 9.43 3.59 8.5640 7.29 15.98 4.52 9.70 3.15 6.57 2.79 5.90 10.23 24.81 6.38 15.20 4.46 10.45 3.98 9.5141 7.81 17.26 4.89 10.56 3.44 7.24 3.05 6.50 11.09 27.18 6.98 16.80 4.94 11.66 4.42 10.6342 8.33 18.67 5.28 11.53 3.76 7.98 3.35 7.19 12.00 29.78 7.64 18.58 5.48 13.03 4.91 11.9043 8.98 20.17 5.77 12.56 4.17 8.80 3.71 7.92 13.08 32.56 8.46 20.52 6.15 14.55 5.53 13.3044 9.58 21.98 6.25 13.83 4.59 9.79 4.10 8.84 14.16 35.91 9.29 22.86 6.85 16.37 6.18 15.0045 10.43 23.89 6.91 15.18 5.14 10.87 4.60 9.84 15.62 39.50 10.41 25.38 7.81 18.38 7.04 16.8846 11.21 25.97 7.53 16.68 5.69 12.05 5.10 10.94 17.01 43.38 11.52 28.14 8.78 20.58 7.92 18.9447 12.13 28.15 8.29 18.25 6.35 13.33 5.71 12.14 18.63 47.55 12.82 31.14 9.92 22.99 9.00 21.2048 13.31 30.65 9.25 20.05 7.21 14.79 6.48 13.49 20.69 52.28 14.48 34.53 11.38 25.72 10.33 23.7549 14.49 33.42 10.23 22.07 8.10 16.41 7.29 15.00 22.76 57.57 16.21 38.34 12.93 28.80 11.76 26.6350 15.79 36.29 11.33 24.15 9.09 18.11 8.21 16.58 25.04 63.11 18.13 42.34 14.65 32.03 13.35 29.7051 17.30 39.47 12.59 26.47 10.23 19.99 9.27 18.35 27.68 69.25 20.34 46.79 16.65 35.64 15.22 33.0952 19.03 42.81 14.04 28.90 11.53 21.98 10.46 20.22 30.73 75.72 22.88 51.49 18.93 39.47 17.33 36.7253 21.03 46.49 15.69 31.60 13.01 24.17 11.84 22.29 34.28 82.85 25.82 56.67 21.56 43.67 19.78 40.7054 23.30 50.28 17.56 34.39 14.66 26.46 13.35 24.44 38.32 90.25 29.15 62.06 24.52 48.06 22.54 44.8655 26.00 54.36 19.75 37.37 16.59 28.89 15.14 26.75 43.12 98.18 33.07 67.80 27.99 52.74 25.77 49.3056 29.02 58.71 22.18 40.54 18.74 31.48 17.14 29.21 48.48 106.63 37.43 73.92 31.84 57.69 29.36 54.0157 32.35 63.34 24.89 43.91 21.10 34.22 19.33 31.80 54.41 115.65 42.20 80.40 36.04 62.92 33.29 59.0058 36.21 68.22 27.97 47.43 23.80 37.07 21.87 34.52 61.17 125.17 47.63 87.21 40.77 68.39 37.73 64.2159 40.47 73.30 31.37 51.06 26.75 39.99 24.65 37.29 68.57 135.08 53.50 94.22 45.86 73.98 42.54 69.5460 45.38 78.78 35.24 54.95 30.11 43.09 27.82 40.26 77.01 145.67 60.11 101.66 51.58 79.88 47.91 75.1861 50.98 84.47 39.63 59.00 33.89 46.30 31.39 43.34 85.71 154.80 66.06 106.67 56.15 82.90 51.44 76.7062 57.19 90.28 44.45 63.10 37.99 49.56 35.29 46.47 83.91 141.47 64.26 97.13 54.37 75.21 49.60 69.1763 64.37 96.42 49.95 67.42 42.64 52.99 39.72 49.78 78.84 122.78 59.85 83.81 50.28 64.52 45.54 58.7664 59.38 86.46 44.53 58.43 37.07 44.52 33.07 39.71 59.38 86.46 44.53 58.43 37.07 44.52 33.07 39.7165 22.42 32.77 16.43 21.56 13.42 16.00 11.46 13.38 22.42 32.77 16.43 21.56 13.42 16.00 11.46 13.38

* Stamp duty is payable in addition to the income protection premiums above and varies depending on your state of residence.† Age next birthday as at last 1 July.

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02Flexible insurance options with TelstraSuper

Life Events cover - keeping pace with life’s significant changes When a significant event occurs in your life, such as getting married, buying a home, milestone birthdays or welcoming a new child to the family, it’s an opportune time to consider if your insurance cover is adequate for your increased financial obligations.

With TelstraSuper’s Life Events cover you can apply to increase your Death only or Death & TPD cover upon the occurrence of a specified Life Event, without providing any medical evidence.

To take advantage of Life Events cover, apply within 90 days* (excluding the day on which the Life Event occurred) of any of the following specified events:

• Birth of a child/children

• Adoption of a child/children

• Marriage

• Commencement of a ‘recognised relationship’̂

• Divorce

• Cessation of a ‘recognised relationship’̂

• Effecting a new mortgage for the purchase or construction of a primary residence or investment property in Australia (either alone or jointly with another person)

• Financing renovation/improvement to a primary residence or investment property in Australia (minimum cost $30,000)

• Death of a spouse

• Child starting primary or secondary school

• Buying a business with a business loan greater than $100,000

• 30th, 35th, 40th and 45th birthdays.

You also have a second opportunity to apply for Life Events cover between 1 July and 30 September for a Life Event that occurred in the previous financial year.

Insurance cover provided through Life Events will be subject to the annual top-up premium rates set out in Table 2 on page 6. The following table shows the amount by which you can apply to increase your existing Death only or Death & TPD cover. The total amount of cover you have after you have been granted Life Events cover must be within the maximum cover limits (unlimited for Death cover and $5 million for TPD cover).

Existing sum insured (including base & top-up)

Maximum additional insurance (top-up)

Up to $100,000 $25,000

$100,001 up to $200,000 $75,000

$200,001 up to $300,000 $100,000

$300,001 up to $400,000 $125,000

$400,001 up to $500,000 $150,000

Over $500,000 $250,000

* To find out when the 90 days commences for each Life Event, please call us on 1300 033 166.

^ A relationship is ‘recognised’ if it has been registered and meets the following conditions:

• a significant relationship for which deeds of relationship have been registered under the Relationships Act 2003 (Tas)

• a registered domestic relationship within the meaning of the Relationships Act 2008 (Vic)

• a civil partnership under the Civil Partnerships Act 2008 (ACT)

• a registered relationship within the meaning of the Relationships Register Act 2010 (NSW)

• registration under any other similar State based registration scheme.

Applying for Life Events coverTo apply for additional Death only or Death & TPD insurance cover simply complete and submit a Life Event Insurance Application form available at telstrasuper.com.au/forms along with the required certified supporting documentation. You must be under the age of 65 to apply.

Upon completion of assessment you will be advised in writing of the acceptance or decline of the application. A Life Event application will generally be accepted where the member satisfies the eligibility criteria and the member is able to provide satisfactory documentation supporting the occurrence of the Life Event.

The Life Events cover will commence on the date the cover is accepted in writing. It may be subject to the same exclusions and other special conditions which apply to your existing cover.

After the acceptance of a Life Event application, you cannot submit another Life Event application (whether for the same type of Life Event or not) until 12 months have elapsed from the date of commencement of the additional cover.

No claim will be payable on the additional cover if the death or disablement is due to intentional self-inflicted injury in the first 13 months.

For further information on increasing your insurance cover due to a specified Life Event, please call us.

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Case study Extra security for an expanding family

David is a TelstraSuper Personal Plus member. He is 30 years old. As part of his TelstraSuper membership he currently has $134,681 of age-based Death & TPD cover and $250,000 of top-up cover. David and his partner Julia have two young children and are delighted to find out they are expecting a third child.

David and Julia review their insurance cover and decide that, in light of their expanding family, they would like to increase David’s insurance cover. Within 90 days of new baby, Chloe, being born, David submits a Life Events application for $125,000. No medical reports are required enabling the busy new father to submit the application quickly and easily. David’s application is successful, giving the family total cover of $509,681.

Case study Saving on insurance with TelstraSuper

Sarah is a current TelstraSuper Personal Plus member. She is 40 years old next birthday, a white collar worker and has $96,415 of age-based Death & TPD cover as part of her membership.

Sarah also has $250,000 Death insurance with another insurer which costs her $20 per month. Sarah decides to see how much her additional Death insurance would cost if she transferred it to TelstraSuper. She refers to Table 2 on page 6 and uses the following calculation to determine her premiums:

Sarah’s age next birthday = 40

Death insurance amount to be transferred = $250,000

Annual top-up death premium per $1,000 insured = $0.52

Top-up death premium payable = $250,000/1000 x $0.52

= $130 per year or $10.83 per month.

Sarah applies to transfer her Death cover to TelstraSuper and her application is accepted. By transferring her insurance to TelstraSuper, Sarah saves $9.17 per month or $110 per year.

In addition, Sarah enjoys simplified financial arrangements, with all insurance premiums conveniently deducted from her TelstraSuper account at the end of each quarter.

Transfer your Death and TPD insurance to TelstraSuperIf you currently have Death only or Death & TPD insurance with another super fund or life insurance company, you can apply to transfer that cover to TelstraSuper. By consolidating your insurance with TelstraSuper you can take advantage of our bulk insurance rates, potentially saving on premiums, while simplifying your insurance arrangements.

To take advantage of this handy feature, simply complete the Transfer External Insurance Application form available at telstrasuper.com.au/forms or by calling us.

If your application is successful, you will be provided with the equivalent amount of top-up cover in TelstraSuper as provided by your previous super fund or insurer (the annual top-up rates in Table 2 on page 6 apply).

Any transferred Death only and/or Death & TPD cover will apply in addition to any existing cover you currently hold with TelstraSuper. A cap of $2,000,000 on all transfers applies.*

You cannot transfer Income Protection (IP) cover. However, if you don't already have IP you can apply for cover and be assessed by our insurer, TAL. To do so, complete the Insurance Telephone Application Request form available at telstrasuper.com.au/forms

It is important that you do not cancel your existing cover with your current super fund or insurer until you have received written confirmation that your insurance transfer application has been accepted.

* Certain occupations are not eligible for insurance transfers.

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1. Lifewise/NATSEM Underinsurance Report 2010

03Determining how much insurance you may needDetermining how much cover you may need is as important as having the insurance cover itself. 95% of families do not have adequate levels of insurance1. So, how do you determine an adequate level of insurance for your needs?

Essentially your level of insurance cover should be able to replace your projected income over your working life. This lump sum amount would then need to be invested to provide the required cashflow to maintain you and/or your family’s standard of living or to ensure your estate is not left in debt.

The table to the right provided by TAL illustrates your total potential lifetime earnings in today’s dollars*. While your level of insurance cover may not need to match this amount, you need to carefully consider how you would fund this loss of income.

Calculate the level of cover you require

Step 1Check your current level of cover by visiting your online account or by calling us.

Step 2To help determine the level of insurance cover you may require, refer to the following table and factor in the potential costs:

• ongoing costs to maintain your family’s lifestyle and home

• children’s education (primary, secondary and tertiary)

• existing debts (mortgage, credit cards, personal loans or car loan)

• other expenses such as hospital/medical costs, rehabilitation, home repairs or upgrades as a result of permanent disablement

• funeral expenses.

The above costs can be offset by your existing assets (including your super balance, savings and any investments) to determine the insurance cover you may require.

If you already have insurance cover and there is a difference between your current level of cover and your required level of cover, consider applying to increase your insurance cover.

Current age

Current annual income$35,000 $65,000 $85,000 $100,000 $125,000 $150,000

20-24 1,034,000 1,920,000 2,511,000 2,954,000 3,692,000 4,431,000

25-29 953,000 1,769,000 2,314,000 2,722,000 3,402,000 4,083,000

30-34 863,000 1,603,000 2,097,000 2,467,000 3,084,000 3,700,000

35-39 765,000 1,421,000 1,858,000 2,186,000 2,732,000 3,279,000

40-44 657,000 1,220,000 1,595,000 1,877,000 2,346,000 2,815,000

45-49 538,000 999,000 1,306,000 1,536,000 1,920,000 2,304,000

50-54 406,000 755,000 987,000 1,161,000 1,452,000 1,742,000

55-59 262,000 487,000 636,000 749,000 936,000 1,123,000

60-64 103,000 191,000 250,000 294,000 368,000 441,000

* Assumes interest at 5% and salary inflation at 3%.

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04Changing your insurance cover

Apply for or increase coverComplete the Insurance Telephone Application Request form to apply for or increase your cover over the phone with our insurer TAL.

You can choose to:

• apply for or increase top-up Death only or Death & TPD cover

• apply for Income Protection cover

• increase Income Protection cover

• change your existing Income Protection waiting period and/or benefit period.

The Insurance Telephone Application Request form is available at telstrasuper.com.au/forms or by calling us.

Depending on the level of cover you apply for, TAL may have different medical requirements to assess your application. Tables 4 and 5 outline the initial requirements.

You'll be advised when any medical tests or examinations are required. Once all the information is supplied to TAL and they've assessed your application, we'll advise you of the outcome.

TAL may accept cover, place exclusions on cover, charge higher premiums or decline your application. If within 14 days of the commencement of cover you advise in writing that you wish to cancel the cover, you can request a refund of any premium you may have paid.

Cancel or reduce coverYou can cancel your insurance cover anytime via your online account. To cancel or reduce your insurance cover you can email underwriting@telstrasuper.com.au or call us on 1300 033 166. Alternatively, you can complete a Cancel or Reduce Insurance form available at telstrasuper.com.au/forms

If you cancel your cover:

• you will not be able to make a claim for insurance benefits for events or conditions that arise after your cover has cancelled

• we will no longer deduct insurance premiums for the cover you have cancelled

• your ability to restart your cover may be subject to health assessment and acceptance by our insurer who may place an exclusion or premium loading on cover and you may not be able to get cover

• if you are replacing your cover with alternative cover, you should not cancel until the replacement cover is in place.

Before you cancel your insurance you may wish to discuss your decision with a TelstraSuper Financial Planning Adviser on 1300 033 166.

Any cancellations of cover received within 30 days of you joining TelstraSuper Personal Plus will not incur premiums.

Table 4: Initial requirements Death & TPD cover applications

Member’s total sum insured Death & TPD

Initial requirements

Under age 45

Up to $2,500,000 Personal statement

$2,500,001 - $3,000,000

Personal statement, blood tests, FastCheck Exam by Paramedical Service

$3,000,001 - $5,000,000 (Death only)

Personal statement, blood tests, medical exam by own GP, financial questionnaire

$3,000,001 - $5,000,000 (TPD)

Personal statement, bloodtests, medical exam byown GP, Personal MedicalAttendants Report (PMAR usual doctor, TAL arranges), financial questionnaire

Age 45

and over

Up to $1,500,000 Personal statement

$1,500,001 -$2,000,000

Personal statement, bloodtests, PMAR, FastCheck Exam by Paramedical Service

$2,000,001 -$3,000,000

Personal statement, bloodtests, PMAR (usual doctor, TAL arranges) FastCheck Exam by Paramedical Service

$3,000,001 - $5,000,000

Personal statement, bloodtests, Full Blood Count,Prostate Specific Antigen(PSA - men only), PMAR (usual doctor, TAL arranges),medical exam by own GP,financial questionnaire

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05Insurance premiumsInsurance premiums will be deducted from your TelstraSuper Personal Plus account at the end of each quarter, or if you leave the Fund or transfer your super to another TelstraSuper product. Premiums for Income Protection cover obtained through a super arrangement are not tax deductible and are paid directly out of your super account.

Your premiums will vary annually with changes to your age and income. See Table 2 on page 6 for the annual applicable top-up premium rates for Death only and Death & TPD insurance, based on every $1,000 sum insured. See Table 3 on page 9 for the applicable annual premium rates for Income Protection cover, based on every $1,000 sum insured.

Top-up and income protection premium rates are applicable to white collar employees and additional occupational and health loadings may apply depending on your occupation and health status. See Table 6 below.

Members given a premium loading or exclusion at the conclusion of the assessment process will be given an opportunity to cancel their application if they don't wish to proceed.

TelstraSuper does not receive money or other material benefits (other than claims payments for our members and related costs) from our insurer or reinsurer. The premium paid by members is directly for the cost of insurance, and avoids any conflict of interest between our members and our insurer.

If this arrangement ever changes, we will make you aware of this by updating this statement on our website, PDS and Insurance Guide. We may also notify you directly.

Table 6: Occupational loadings

Occupation Death only cover

Death & TPD

Income Protection

White collar 1.00 1.00 1.00

Light blue 1.25 1.40 1.40

Medium blue

1.50 2.00 2.50

Heavy blue 1.75 2.50 2.50

Table 5: Initial requirements for Income Protection cover applications (permanent full-time and part-time employees)

Monthly benefit

Initial requirements

Under age 45

Up to $12,000 Personal statement

$12,001 - $15,000 Personal statement and blood tests

$15,001 - $20,000

Personal statement, blood tests, FastCheck Exam by Paramedical Service

$20,001 - $25,000

Personal statement, blood tests, FastCheck Exam by Paramedical Service, financial questionnaire, tax returns and assessment notices for the last 2 tax years

$25,001 - $30,000

Personal statement, blood tests, Full Blood Count (FBC), Prostate Specific Antigen (PSA - men only), Personal Medical Attendants Report PMAR (usual doctor, TAL arranges), medical exam by own GP, financial questionnaire, tax returns and assessment notices for the last 2 tax years

Age 45

and over

Up to $12,000 Personal statement

$12,001 - $15,000

Personal statement, blood tests, PMAR (usual doctor, TAL arranges), FastCheck Exam by Paramedical Service

$15,001 - $20,000

Personal statement, blood tests, PMAR (usual doctor, TAL arranges), FastCheck Exam by Paramedical Service

$20,001 - $25,000

Personal statement, blood tests, Prostate Specific Antigen (PSA - men only), Mid-Stream Urine (MSU), PMAR (usual doctor, TAL arranges), medical exam by own GP, financial questionnaire, tax returns and assessment notices for the last 2 tax years

$25,001 - $30,000

Personal Statement, blood tests, Full Blood Count (FBC), Prostate Specific Antigen (PSA - men only), Mid-Stream Urine (MSU), PMAR (usual doctor, TAL arranges), medical exam by own GP, financial questionnaire, tax returns and assessment notices for the last 2 tax years

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06When are insurance benefits paid?

Death benefit Your base level of cover and any top-up insurance means your dependants or legal personal representative (as applicable) could receive a lump sum insurance benefit in addition to the balance of your super account, in the event of your death.

Terminal illness benefitYou will qualify for a terminal illness benefit if you suffer from a sickness or injury which:

• two medical practitioners (one of whom specialises in an area related to your illness or injury) believe will lead to your death within 12 months of the date of written certification, despite reasonable medical treatment, and

• TAL is satisfied, on medical or other evidence, will lead to your death within 12 months of the date of the certifications, despite reasonable medical treatment.

The amount of the benefit that is paid is the insured Death cover amount (up to $5 million) and your account balance.

Access to super for members with a terminal medical conditionYou can apply to TelstraSuper for the release of your account balance if you have a terminal medical condition.

A terminal medical condition exists if:

• two registered medical practitioners have certified, jointly or separately, that you are suffering from an illness, or have incurred an injury, that is likely to result in your death within 24 months of the date of certification

• at least one of the registered medical practitioners is a specialist practicing in an area related to your illness or injury

• the certification period has not ended for each of the certificates.

Benefits released during the certification period are received as a tax-free lump sum payment. The certification period is 24 months from the date of certification. You should consider leaving enough funds in your super account to cover your insurance premiums otherwise your insurance cover will cease. Leaving sufficient funds to ensure your insurance cover continues means you may be eligible for a terminal illness benefit, which is based on a 12 month prognosis.

TPD benefitTo obtain a benefit for TPD you must have TPD cover and satisfy the requirements of the TelstraSuper Trust Deed and TAL Policy and have:

• continuously been off work for at least three months^ if the Unable to Work TPD definition applies; or

• satisfied one of 15 specified medical conditions (see pages 18 and 19) in which case there is no waiting period to receive the benefit (referred to as the Day 1 TPD definition); or

• been unable to perform any Domestic Duties for three consecutive months since the date of disablement if the Domestic Duties TPD definition applies; or

• be unable to perform certain Activities of Daily Working without the physical assistance of another person if the Activities of Daily Working TPD definition applies.

The applicable TPD definition you must satisfy will depend upon whether at the date of disablement you were working, not working or performing Domestic Duties.

Generally, the Unable to Work TPD definition or the Day 1 TPD definition applies if you were working for a minimum of 15 hours per week on average for the six months prior to the date of disablement (or such shorter period where applicable).

The Domestic Duties TPD definition applies if you were not working and you were engaged in Domestic Duties for a minimum of 15 hours per week on average for the six months prior to the date of disablement (or such shorter period where applicable).

The Activities of Daily Working TPD definition applies if you were not working and engaged in Domestic Duties or work for less than 15 hours per week on average for the six months prior to the date of disablement (or such shorter period where applicable).

Income Protection

When are payments made?To obtain monthly payments for income protection, you must have Income Protection cover and:

• have been working a minimum of 15 hours or more per week averaged over the six consecutive months prior to your date of disablement or if you have been working for less than six months, the period since your cover commenced; and

• have been unable to work for your employer (and off work) for the applicable waiting period; and

• satisfy the Policy definition of total disability or partial disability.

^ TAL may exercise its discretion and waive any requirement that the member be absent from all active work for at least three consecutive months.

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‡ Extended cover excludes income protection benefits.

* Any period in which a benefit was payable but is calculated to be zero does not amount to an interruption to an entitlement to a disability benefit.

† Partial disability benefits may be payable depending upon your income.

You may be eligible to receive partial disability payments if:

• you are totally disabled for no less than seven of the first 12 consecutive days of the applicable waiting period; and

• you are either partially or totally disabled for the rest of the applicable waiting period; and

• you decide to return to work on a reduced capacity resulting in a reduction in your income; and

• you are under the ongoing care of a registered medical practitioner.

If eligible, income protection payments are paid:

• from the end of the applicable waiting period after the day you last worked for your employer

• monthly in arrears

• for a period of two or five years (as applicable) providing you continue to meet the definition of total disability or partial disability.

Up to 75% of your salary (excluding super) is paid directly to you, and 10% is paid to your TelstraSuper Personal Plus account.

Income protection payments will be reduced by the amount of any other payments you receive during a payment period (such as sick leave payments or workers’ compensation payments). Social security benefits and motor accident compensation are not offset against insurance benefits.

Where a member is receiving income protection payments over a five year benefit period without a break*, payments are indexed annually by the lesser of 5% or the CPI increase (for the 12 months ending 30 September in each year).

Under current legislation your income protection payments are treated as income and will be taxable. Premiums are waived by TAL while you are receiving income protection payments.

When do benefits stop?Your income protection benefits cease upon occurrence of one of the following conditions (whichever occurs first):

• you return to work†

• you have received payments for the total benefit period

• you cease to satisfy the definition of total disability or partial disability

• you reach age 65, or

• you die.

Income protection payments are subject to the continued approval of your eligibility by TAL and the Trustee.

07On leave or overseas?On leave Subject to satisfying the relevant Policy conditions, Death & TPD cover is provided 24 hours a day, seven days a week for insured members while on paid or unpaid leave. Income Protection (if applicable) is provided for insured members for a period of up to two years while on unpaid leave.

If overseas Subject to satisfying the relevant Policy conditions, Death & TPD cover and Income Protection cover are provided 24 hours a day, seven days a week for insured members who are Australian residents while overseas. If you make an insurance claim while overseas, the Insurer may require you to return to Australia at your own expense in order for the claim to be assessed.

‘Australian resident’ means an Australian or New Zealand citizen or person with the unrestricted right to permanently reside in Australia. This includes persons with the right to reside in Australia on a de facto or work type visa, but only during the period they reside in Australia.

08Leaving TelstraSuperIf you decide to withdraw your benefit from TelstraSuper Personal Plus and leave the Fund, any Death & TPD insurance cover you have will continue for a period of 60 days‡. If you leave TelstraSuper, any outstanding premiums will be deducted from your account at that time.

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09Need more information about insurance cover?

Call us on 1300 033 166.

Visit telstrasuper.com.au Find out everything about your current insurance arrangements on our website.

ComprehensiveWe offer Death, TPD and Income Protection insurance cover. You also have the option to apply to transfer any Death only or Death & TPD external insurance cover you may have, or to apply for extra cover when significant changes occur in your life. You cannot transfer Income Protection cover, however you can apply for cover and be assessed by TAL. Our insurance cover is provided 24 hours a day, seven days a week whether at work or play, offering genuine peace of mind.

AffordableWe’ve negotiated bulk insurance rates to cover our members, potentially saving you hundreds of dollars per year in premium payments compared to insuring yourself individually.

ConvenientHaving your insurance and super with the one provider simplifies your financial arrangements, with premiums conveniently deducted from your super account at the end of each quarter.

Your insurance needs are covered with TelstraSuper

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10Definitions of medical conditionsThe following words or expressions used in the Day 1 TPD definition have the meanings set out below.

Blindness (permanent)Means the total and irrecoverable loss of sight (whether aided or unaided) in both eyes as a result of Sickness or Injury to the extent that visual acuity in both eyes, on a Snellen Scale after correction by suitable lens is less than 6/60, or to the extent that the visual field is reduced to 20 degrees or less of arc.

Cardiomyopathy (permanent)Means a disease of heart muscle causing the heart muscle to enlarge and become weaker, resulting in significant permanent cardiac impairment to the degree of at least Class 3 of the New York Heart Association functional classification system.

Chronic lung failure (requiring permanent oxygen therapy)Means end-stage lung disease with a consistent pulmonary function test result of:

• FEV1 less than 40% predicted, or

• a DLCO less than 40% predicted, and

• requiring permanent oxygen therapy.

Dementia including Alzheimer’s disease (permanent)Means the unequivocal diagnosis of dementia by a consultant neurologist or geriatrician. The diagnosis must confirm dementia or Alzheimer's Disease due to permanent failure of brain function with associated cognitive impairment.

A Mini-Mental State Examination score of 24 or less out of 30 or evidence from another neuropsychometric test that is acceptable to us is required.

Loss of hearing in one ear (permanent)Means the irrecoverable profound loss of hearing below 91 decibels, both natural and assisted, as a result of Sickness or Injury.

Loss of speech (permanent)Means the total and irrecoverable loss of the ability to produce intelligible speech, as a result of permanent damage to the larynx or its nerve supply or to the speech centres of the brain, due to Sickness or Injury.

Major head traumaMeans accidental head injury resulting in neurological deficit causing:

• at least a permanent 25% impairment of Whole Person Function, or

• the Insured Person being totally and permanently unable to perform any one of the Activities of Daily Living:

• dressing – the ability to put on and take off clothing • toileting – the ability to use the toilet, including

getting on and off • mobility – the ability to get in and out of bed and

a chair • continence – the ability to control bowel and

bladder function • feeding – the ability to get food from a plate into

the mouthas certified by a consultant neurologist who is a medical practitioner.

Progressive and debilitating motor neurone diseaseMeans the unequivocal diagnosis of a progressive form of debilitating Motor Neurone Disease.

The diagnosis must be confirmed by a neurologist and supported by ancillary testing (e.g. clinical neurophysiology) and exclusion of other causes by structural imaging and appropriate investigations.

19

Multiple sclerosis (with multiple episodes of neurological deficit and persisting neurological abnormalities)Means a disease characterised by demyelination in the brain and/or spinal cord. Multiple Sclerosis must be unequivocally diagnosed. There must be more than one episode of well-defined neurological deficit with persisting neurological abnormalities. Neurological investigations such as lumbar puncture, MRI (Magnetic Resonance Imaging), evidence of lesions in the central nervous system, evoked visual responses, and evoked auditory responses are required to confirm diagnosis.

Muscular dystrophyThe unequivocal diagnosis of muscular dystrophy, confirmed by genetic test results and supportive investigations including electromyography.

Paralysis (permanent)Means the total and permanent loss of function of two or more limbs through sickness or injury causing permanent damage to the nervous system. This includes, but is not limited to quadriplegia, paraplegia, diplegia and hemiplegia.

Parkinson’s disease (permanent)Means the unequivocal diagnosis of degenerative idiopathic Parkinson's Disease caused by degeneration of the nigrostriatal system and as characterised by the clinical manifestation of one or more of the following:

• rigidity,

• tremor, and

• akinesia

All other types of Parkinsonism are excluded (e.g. secondary to medication).

Primary pulmonary hypertensionMeans the unequivocal diagnosis of Primary Pulmonary Hypertension with right ventricular enlargement established by investigations including cardiac catheterisation, resulting in significant permanent cardiac impairment to the degree of at least Class 3 of the New York Heart Association functional classification system.

Severe burnsBurns (covering at least 20% of the body's surface area)means tissue Injury caused by thermal, electrical or chemical agents causing third degree or full thickness burns to at least:

• 20% of the body surface area as measured by the Lund and Browder Body Surface Chart,

• 50% of both hands, requiring surgical debridement and/or grafting, or

• 50% of the face, requiring surgical debridement and/or grafting.

Severe rheumatoid arthritis (with significant impairment)Means diagnosis of severe rheumatoid arthritis causing permanent Whole Person Impairment of at least 25% or have evidence of all the following:

• typical rheumatoid joint deformity,

• simultaneous bilateral and symmetrical soft tissue joint swelling or fluid (not bony overgrowth alone) in the upper and lower limbs, and

• erosions seen on x-ray imaging in two or more joints or the presence of either a positive rheumatoid factor or anti-citrullinated protein antibodies.

The diagnosis must be confirmed by appropriate radiology and blood tests and the condition must have failed to respond to all treatment regimens including, but not limited to conventional and targeted synthetic disease modifying drugs and biological agents.

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11Glossary

AccidentThe occasioning of any injury caused directly and solely by some violent, external and visible means and which is capable of direct proof.

Active EmploymentActive employment means either:

a) If you work a minimum of 15 hours per week or perform Domestic Duties for a minimum of 15 hours per week you must be:

i) performing all duties of your gainful work or Domestic Duties; and

ii) in TAL's opinion, be capable of performing all of the duties of your gainful work or Domestic Duties on a full time basis (this being at least 30 hours per week) even if you are not currently doing so.

b) If you work less than 15 hours per week, perform Domestic Duties for less than 15 hours per week or are not working:

i) you must not be absent from work or prevented from engaging in work or Domestic Duties due to illness or injury; and

ii) in TAL’s opinion, you must be capable of performing the duties of your gainful work or Domestic Duties on a full time basis (30 hours per week) even if you are not currently in work or performing Domestic Duties.

15 hours per week is based on an average over the last 6 months. If you were employed or performing domestic duties for less than 6 months, the average is over the entire time you were performing working or performing domestic duties.

Activities of Daily Working TPD definitiona) you are, as a result of accident or sickness which

occurred after cover has commenced, permanently unable to perform at least two of the five everyday working activities without the physical assistance of another person, despite the use of appropriate assistive aids and that permanent inability has lasted for a continuous period of six months or more following the date of disablement; and

b) you are unlikely ever to engage in any gainful work for which you are reasonably qualified by education, training or experience; where everyday working activities means Mobility, Communicating, Vision, Lifting and Manual Dexterity and:

• unable to perform Mobility means: i) you cannot walk more than 200m on a level

surface without stopping due to breathlessness or severe discomfort; and/or

ii) you cannot bend, kneel or squat to pick something up from the floor and straighten up again after bending, kneeling or squatting; nor can you get in and out of a standard sedan car.

• unable to perform Communicating means: i) you cannot speak in your first language so

that you are understood in a quiet room; nor can you hear (with or without a hearing aid or other aid) an instruction given in a normal voice in your first language in a quiet room; and/or

ii) you cannot understand a simple message in your first language, and relay that message to another person

• unable to perform Vision means you cannot, with or without glasses or contact lenses read ordinary newsprint, nor can you pass the standard eyesight test for a car licence

• unable to perform Lifting means you cannot lift, carry or move objects weighing up to 5kg using either or both hands

• unable to perform Manual Dexterity means you cannot use either or both hands or fingers to manipulate small objects with precision (such as picking up a coin or fastening shoelaces or buttons, using cutlery, or using a pen or keyboard to write a short note).

At WorkMeans you are actively performing all the primary duties of your regular occupation and are not in receipt of and/or entitled to claim income support benefits from any source including workers' compensation benefits, statutory transport accident benefits and disability income benefits.

A person who does not meet these requirements is correspondingly described as not At Work.

Consumer Price Index (CPI)The latest Consumer Price Index (weighted average of eight capital cities combined) as last published by the Australian Bureau of Statistics or its successors in respect of the 12 months preceding 30 September in each year.

21

Date of disablement• If you were employed, it means the date you ceased all

gainful work.

• If you are not employed and not performing domestic duties, it means that date you became unable to perform any gainful work.

• If your sole occupation was performing unpaid domestic duties, it means the date you became unable to perform these duties on a full time basis.

As a result of sickness or accident that is the principal cause of the TPD for which a claim is made.

Day 1 TPD definitionIf you suffer from one of a range of medical conditions and don’t meet the definition of Terminal illness, you may be eligible for a benefit if your condition is so severe that you are no longer able to work.

You will be considered totally and permanently disabled if, following your date of disablement, you have been continuously absent from all active work as a result of suffering from:

• Cardiomyopathy (permanent), primary pulmonary hypertension, major head trauma, progressive and debilitating motor neurone disease, multiple sclerosis (with multiple episodes of neurological deficit and persisting neurological abnormalities), muscular dystrophy, paralysis (permanent), dementia including Alzheimer’s disease (permanent), Parkinson’s disease (permanent), blindness (permanent), loss of speech (permanent), loss of hearing in one ear (permanent), chronic lung failure (requiring permanent oxygen therapy), severe burns or severe rheumatoid arthritis (with significant impairment) (as defined in the ‘Definitions of medical conditions’ on page 18); and

• in the opinion of TAL, after considering medical and other evidence, you are unlikely ever to be able to engage in any gainful work for which you are reasonably suited by education, training or experience and that you are likely to be disabled for life.

Eligibility for a benefit payment under this definition may allow for a quicker assessment and payment of a TPD benefit.

DependantsYour dependants include your spouse, children of any age (including adopted and stepchildren), and any person totally or partially financially dependent on you at the time of your death or any person with whom you have an interdependency relationship. You can only nominate your dependants or your legal personal representative as your beneficiary in the event of your death.

Domestic DutiesMeans the performance of all of the following unpaid tasks by you:

a) cooking meals for yourself or your family

b) cleaning the home

c) shopping for food

d) doing laundry, and

e) where applicable, taking care of dependent children

but excludes any of the above tasks performed for salary, reward or profit.

Domestic Duties TPD definitiona) you are, as a result of an accident or sickness, under

the ongoing care of a medical practitioner and are unable to perform any Domestic Duties, or be engaged in any active work for a period of three consecutive months; and

b) at the end of the period of three consecutive months, are disabled to such an extent as to render you likely to require ongoing medical care and never again be able to perform Domestic Duties or engage in any gainful work for which you are reasonably qualified by education, training or experience.

Employee Is a person engaged under a contract of employment and includes a contractor. You are still an employee if you are on sick leave or unpaid leave.

Employer Is the organisation which employs and pays you for your work. It may be an individual or a company.

Everyday working activities Being unable to perform everyday working activities means you can’t do two or more of the everyday working activities listed under Activities of Daily Working TPD definition on page 20, without physical assistance despite the use of any assistive aids.

ExclusionA medical exclusion may be placed on your insurance cover as a result of assessment of medical information supplied by you to TAL as part of your application for new or additional insurance. An exclusion means that you cannot claim an insurance benefit in relation to that condition. Common exclusions include knee, back or cardiovascular exclusions.

Other exclusions such as suicide or self-injury may also apply in the event of a claim. Please refer to the Insurance Policy documents for details of applicable exclusions.

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IncomeYour level of Income Protection cover is dependent upon your income and working status at the time of making your application.

Your income will be assessed as the total of a, b and c:

a) for a member who is employed on a permanent basis or works as a contractor:

i) the total annual remuneration (excluding super contributions) received from your gainful work, before the deduction of income tax, including:

• cash salary; and

• the monetary value of non-cash benefits or fringe benefits provided by your employer in direct substitution of salary.

Income does not include commissions, bonuses, or overtime unless we agree in writing that it is included.

b) for a member who is employed on a casual basis:

i) the total remuneration (excluding super contributions) received from your gainful work, before the deduction of income tax, including:

• cash salary; and

• the monetary value of non-cash benefits or fringe benefits provided by your employer in direct substitution of salary;

averaged over the lesser of:

• the previous 12 months; and

• the period since you commenced employment in this role.

Income does not include commissions, bonuses, or overtime unless we agree in writing that it is included.

c) for a member who directly or indirectly owns all or part of a business from which they earn their regular salary (excluding super contributions) and before the deduction of income tax and they are an employee of that business:

i) the regular salary earned from your personal exertion through your gainful work after the deduction of your share of all business expenses incurred in earing the income averaged over the previous three financial years or lesser period as agreed by us.

Income does not include investment income, profit distributions or similar payments that may continue in the event of disability.

If you make a claim for income protection payments, the amount of the benefit will be assessed against your pre-disability income, which is the average monthly income earned with respect to the 12 months immediately prior to the date of disablement (up to the amount of existing cover). Payments are subject to maximum cover limits of $50,000 per month for a two year benefit period and $30,000 per month for a five year benefit period.

Interdependency relationshipYou have an interdependency relationship with someone when:

• you have a close personal relationship; and

• you live together; and

• one or each of you provides financial support; and

• one or each of you provides the other with domestic support and personal care.

You may also have an interdependency relationship with someone when you have a close personal relationship but do not satisfy the other criteria listed above by reason that either or both of you suffer from a physical, intellectual or psychiatric disability.

Legal personal representativeThe person nominated by you to be the executor of your will or appointed to distribute your assets according to the laws of the relevant State or Territory (if you do not have a Will). You can only nominate your legal personal representative or dependants as your beneficiary.

Limited CoverLimited Cover means you are only covered for:

a) sickness that first becomes apparent, or

b) an accident that first occurson or after the date the cover commences, recommences, or increases under the Policy.If you make a claim in the future, TAL will consider whether Limited Cover will apply and for how long.

Medical practitioner A medical practitioner who is legally qualified and registered to the equivalent Australian standards (and includes an appropriate specialist) who is not the policy owner or the life insured, their spouse, relative or business associate.

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Monthly in arrearsA payment relating to the past month and deducted at the end of the month.

Partial disabilityFollowing a period of total disability (of at least seven out of the first 12 consecutive days of the applicable waiting period) a member may remain partially disabled yet able to return to work in some capacity. In this instance, reduced income protection payments may be paid after the applicable waiting period provided you continue to meet the definition of partial disability in the insurance Policy document and remain under the ongoing care of a registered medical practitioner and have an income less than the amount of income prior to the disability.

Premium loadingA loading (or increase) may be applied to a member’s premium due to their occupation, health or lifestyle. Loadings are applied when certain circumstances place the member at a higher risk to TAL. Loadings may be issued at TAL’s discretion, based on medical evidence and information supplied to TAL for assessment.

Reasonably qualifiedReasonably qualified means you are reasonably suited to the work by education, training or experience that you have attained. Assessment will consider (but is not limited to) the following:

• your suitability to do any job that you can do relevant to your educational attainment, further studies and training taken, whether paid and unpaid, and on the job experience

• your age

• geographic accessibility to real world job prospects.Consideration of attained transferable skills and experience will be up to the date of your disablement.

Rehabilitation programA rehabilitation or retraining program that your employer has for sick, injured or infirm employees.

SicknessSickness means suffering from an illness or disease, diagnosed by an appropriately qualified medical practitioner.

SpouseSpouse means a person to whom you are legally married, a person whether of the same or a different sex with whom you are in a relationship that is registered under an Australian State or Territory law, and a person whether of the same or a different sex with whom you are not legally married but who lives with you on a genuine domestic basis as a couple.

Terminally ill A person who has an illness or injury that despite reasonable medical treatment will lead to their death within 12 months* as certified by two registered medical practitioners, one of whom is a specialist practicing in an area related to the illness or injury.

* You can apply to TelstraSuper for a full or partial early release of your TelstraSuper account balance if you are expected to live less than 24 months. Refer to page 15.

Total disabilityTotal disability means the member has been absent from employment with that employer through accident or sickness for the applicable waiting period and:

• in TAL's opinion, has been rendered unable for the time being to perform the regular duties of their regular occupation, and

• is not working in any occupation, and

• is under the ongoing care of a medical practitioner.

Unable to Work TPD definitionTo satisfy the Unable to Work TPD definition, due to accident or sickness you must:

• have been continuously absent from all active work for a period of three consecutive months† and have been required by your employer to participate in a rehabilitation program; and

• In TAL's opinion, be unlikely to ever engage in any gainful work for which you are, for the time being, reasonably qualified by education, training or experience.

† TAL may exercise its discretion and waive any requirement that the member be absent from all active work for at least three consecutive months.

Work or working Means engagement in any business, trade, profession, vocation, calling, occupation or employment.

221626/FA PG008/65/1219

Telstra Super Pty Ltd PO Box 14309 Melbourne VIC 8001

1300 033 166 www.telstrasuper.com.au contact@telstrasuper.com.au