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Example INSURANCE. CRITERIA AMP Flex Lifetime AustSafe HESTA. Insurer In-house CommInsure CommInsure. Types of cover available

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Insurer In-house CommInsure CommInsure

Types of cover available

Death only Available to all members up to and including age 74 (renewable to age 98)

Available to all members up to and including age 69 Available to all members up to and including age 74

Death & TPD Available to all members up to and including age 60 (renewable to age 98)

Available to all members up to and including age 69 Available to all members up to and including age 69. Fixed TPD cover reduces from age 61 and must be taken in conjunction with death cover

Income protection Choice of 4, 8, 13 or 26 week waiting period with either a maximum benefit period of 2 years or a long-term benefit period to age 65 (104 week waiting period also available for long-term benefit period). Maximum benefit of 75% of salary plus 15% super. Available to all members up to and including age 59 (renewable to age 64)

Choice of 30, 60 or 90 day waiting period with a maximum benefit period of 2 years, 5 years or to age 65. Maximum benefit of 75% of salary plus 10% super. Available to all permanent employees up to and including age 64 who work at least 15 hours per week

Choice of 30, 60 or (standard) 90 day waiting period with either a maximum benefit period of 2 years or a long-term benefit period to either 60th or 67th birthday. Maximum benefit of 85% of salary. Available to all members up to and including age 66

Terminal Illness incl. in Death cover Yes Yes, max $3m Yes, max $3m

TPD Only available Yes No No

TPD cover > Death cover available Yes No No

Income protection cover only Yes Yes Yes

Fixed cover available (Death, TPD) Yes Yes Yes

Individual takeover terms No Yes No

Cover for self-employed Death Only, Death & TPD, TPD only, Income Protection

No cover (but cover is available through AustSafe Personal)

Death Only, Death & TPD, Income Protection

Cover for casuals Death Only, Death & TPD, TPD only, Income protection

Death Only, Death & TPD Death Only, Death & TPD, Income Protection (auto cover available)

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Cover for non-working members Death Only, Death & TPD, TPD only Death Only, Death & TPD Death Only, Death & TPD, Income Protection Notes

1. Types of cover available: This shows the eligibility for each type of cover, including the maximum age at which cover can be taken out (plus the maximum renewal age if this differs from the maximum entry age).

2. Individual takeover terms: This refers to the ability to transfer cover from another fund without providing health evidence, other than confirming the member is able to work on transfer, is not terminally ill and answering one simple health question.

3. AMP Flex Lifetime: Death & TPD cover for employee members is only renewable to age 64

4. AMP Flex Lifetime: Income protection cover for employee members is only available up to and including age 54 (renewable to age 64) 5. AustSafe: For income protection, benefit period to age 65 is not available to heavy blue collar members

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Benefit levels

Death No max, min $75,000 Max $5m, no min Max $5m, no min

TPD Max $5m, min $75,000 Max $3m, no min Max $3m, no min

Income protection Max $30,000 per month, min $1,250 per month Max $30,000 per month, no min Max $25,000 per month, no min Default cover - Death only

(e'er sponsored mbrs only)

Nil 2 units 2 units

Default cover - Death & TPD (e'er sponsored mbrs only)

Nil 2 units Nil

Default cover - Income Protection (e'er sponsored mbrs only)

Nil Nil 2 units - 90 day waiting period, covered to age 67

AAL - Death only

(e'er sponsored mbrs only)

Nil Same as default Same as default

AAL - Death & TPD (e'er sponsored mbrs only)

Nil Same as default Nil

AAL - Income protection (e'er sponsored mbrs only)

Nil Nil Same as default

Increase cover for life events

Death & TPD Up to 25% increase of current sum insured (max $250k) on marriage/register/start de facto relationship, divorce, legal separation, death of spouse/de facto, birth/adoption of child, child starts school, commence first home mortgage, increase home mortgage, complete first undergraduate degree, become a carer, income increase by at least $10k pa and 10%, business interest increase, key person value increase or commence business loan. Must be aged under 55 and max 1 increase pa for a lifetime max of $1m for Death, $2.5m for TPD

Increases of 2 units for marriage, divorce, death of spouse, birth/adoption of child, child starts primary/secondary school, commence home mortgage. Max 1 increase pa, 3 over lifetime

Increase by 2 units (max 100% of benefit) on marriage, divorce, death of spouse, obtain tertiary qualification, birth/adoption of child, child starts primary or secondary school, 25th, 30th, 40th or 50th birthday, or take out residential mortgage. Max 1 increase pa

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Income Protection Option to increase cover by up to 10% pa on salary increases - max $1,500 per month

Option to reduce waiting period on change of employer. Must be aged under 55 and max 1 increase pa

25% increase for salary increase Increase cover by 1 unit or reduce waiting period to the next shortest waiting period on marriage, divorce, death of spouse, obtain tertiary qualification, birth/adoption of child, child starts primary or secondary school, 25th, 30th, 40th or 50th birthday, take out residential mortgage or salary increase due to promotion or employment status change to full-time. Max 1 increase pa, 3 over lifetime

Indexation of cover

Death & TPD CPI increases - min 5% pa Not provided Not provided

Income Protection CPI increases Not provided Not provided

Indexation of IP payments Benefit escalation option available for long term cover for additional premium

Not provided CPI increases - max 5% pa

Notes

1. Benefit Levels: For death only and death and TPD cover, if a member can elect to have no cover, there is no minimum level. For income protection cover, the minimum level refers to the situation where a member elects to have cover.

2. AAL: For death only and death and TPD cover, AALs apply to employer sponsored members only and do not apply in the Personal division. Most funds require that cover must be taken out within a certain period of commencing employment for the AAL to apply.

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Premium basis

Death only Age, gender, smoking status Same weekly premium per unit for all ages. Level of cover depends on age and occupation

Same weekly premium per unit for all ages. Level of cover depends on age. Fixed cover is also available - different premium rates apply

Death & TPD Age, gender, occupation, smoking status Same weekly premium per unit for all ages. Level of cover depends on age and occupation

Same weekly premium per unit for all ages. Level of cover depends on age. Fixed cover is also available - different premium rates apply

Income protection Age, gender, occupation, smoking status, waiting period, benefit period

Age, gender, occupation, waiting period, benefit period

Weekly premium per unit depends on waiting period and benefit period. Same benefit for each unit of cover ($425 per month i.e. $98 per week)

Premiums for unitised cover

Death only n.a. $1.00 per unit per week $0.85 per unit per week, ie $0.72 grossed-up for tax, as tax deduction not passed on to member

Death & TPD n.a. $1.40 per unit per week $1.88 per unit per week, ie $1.60 grossed-up for tax, as tax deduction not passed on to member

Income protection n.a. n.a. $1.19 per unit per week (waiting period 90 days,

benefit period to age 67) - default

$0.35 per unit per week (waiting period 90 days, 2 yr benefit period, cover period to age 67)

The above premiums have been grossed-up for tax, as tax deduction not passed on to member. Different premiums apply for 30 and 60 day waiting periods.

Level premiums available No No No

TPD cover - Own occupation available

No No No

Income Prot - Agreed value or indemnity

Indemnity only Indemnity only Indemnity only

Notes

1. Premium basis: In addition to the factors shown above, the premiums for commercial providers may also depend on other health and lifestyle factors. The state of residence will also affect income protection premiums where stamp duty is not included in standard premiums.

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TPD definition Any occupation (employed at any time during last 6 months working at least 10 hours per week & under age 65); otherwise

Any occupation and one of the following: - Activities of daily living

- Loss of use of limbs/eyes - Cognitive loss

- Any occupation (permanent employees working at least 15 hours per week, under 65)

- Loss of use of limbs/eyes (under 65)

- Activities of daily living (6 month waiting period) - Activities of daily work (under 65)

Any occupation; otherwise

Any occupation and one of the following: - Loss of use of limbs/eyes

- Cognitive loss - Activities of daily living

- Home duties (not employed during last 12 months, 6 month waiting period)

- Activities of daily work

- Specific medical conditions (under 65)

TPD waiting period (any occupation) 3 months 3 months 3 months

Waiting period waived for (any occ.) Activities of daily living Cognitive loss

Specified medical conditions (under age 65) Loss of use of limbs / eyes

- Specified medical conditions Cognitive loss

Loss of use of limbs/eyes Activities of daily living Activities of daily work Specific medical conditions

Exclusions

Death Self-inflicted injury (first 13 months) Pre existing conditions (basic cover only)

Armed service

Pandemic illness (additional cover only, first 30 days of cover)

Pre-existing condition (new members from 6/12/13)

Act of war

TPD Self-inflicted injury

Pre existing conditions (basic cover only)

Armed service

Pre-existing condition (new members from 6/12/13)

Self-inflicted injury Act of war Income Protection Self-inflicted injury

Act of war Uncomplicated pregnancy Self-inflicted injury Act of war Armed service Uncomplicated pregnancy Self-inflicted injury Act of war Uncomplicated pregnancy

Cover while overseas Yes, but Income Protection payments limited to 3 months if overseas except New Zealand (longer if approved)

Yes, but Income Protection cover limited to 13 weeks (longer if approved)

Yes, but Income Protection payments will only continue after 6 months if sufficient evidence of disability can continue to be provided to insurer

Example

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Cover while on unpaid leave Yes Yes, but Income Protection cover limited up to 12 months (and leave must be approved by employer)

Yes, free cover for up to 12 months for parental leave (if approved by employer). Cover for other leave (and parental cover after 12 months) will continue if balance is sufficient to pay premiums Notes

1. In some funds, the TPD definition for members who joined before 1 July 2014 may be different to what is shown above, as broader pre-1 July 2014 TPD definitions have been retained for these members. 2. TPD definition: 'Any occupation' generally refers to the member being 'unlikely' to return to any occupation for which they are reasonably suited due to education, training or experience. 'Activities of daily living' generally refers to being unable to perform 2-3 of the basic activities of daily living (bathing, dressing, toileting, mobility, feeding). 'Home duties' generally refers to not being able to perform domestic duties or child rearing. 'Loss of use of limbs/eyes' generally refers to some combination of the loss of use of limbs, hands, feet, eyes. 'Cognitive loss' generally refers to the total and permanent deterioration or loss of intellectual capacity requiring constant care. TPD benefits generally also require a waiting period of 6 months before a benefit can be paid, but some funds apply a test for permanent impairment (eg permanent impairment of 25% of the whole person) or specific medical conditions which can facilitate earlier payment.

3. Exclusions: At the commencement of underwritten cover, or automatic cover when joining outside eligibility, a further exclusion will generally apply for pre-existing conditions. The insurer may also apply other member level exclusions for underwritten cover. These exclusions do not apply to automatic cover when joining within the eligibility period. The exclusion for armed service generally allows

membership of the Australian Armed Forces Reserve but there is an exclusion for active service. Any time period attached to an exclusion generally applies from date of either commencement of cover or increase in cover.

4. For some funds, cover while overseas or on leave without pay may require notification of the insurer and additional conditions may apply.

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Commission/admin fee included in premiums (%) Death & TPD 257 Adviser Nil AMP Nil Total Nil 51 Adviser Nil AustSafe 10.71 Total 10.71 106 Adviser Nil HESTA Nil Total Nil Income protection 257 Adviser Nil AMP Nil Total Nil 51 Adviser Nil AustSafe Nil Total Nil 106 Adviser Nil HESTA Nil Total Nil

Insurance admin fee ($ pa)

257 96.60 51 Nil 106 Nil

Large cover discount Yes, discounts for over $150k cover No No

Notes

1. Commission Included in Premiums: These commissions are included in the premiums shown in the Insurance Premium Table on the following page.

2. Commission refers to any amounts retained by the fund which are included in the standard premiums, as well as the adviser commission payable from the standard insurance premiums. The table above shows the level commissions paid to advisers, but several funds also have other arrangements where the adviser is paid more in the first year of cover and less thereafter.

3. All commissions include GST.

4. The above commissions are the standard flat commissions built into insurance premiums. Other commission structures are available that pay an upfront commission with a lower ongoing commission. 5. Administration Fee: This fee is in addition to the insurance premium charged.

6. AMP Flex Lifetime: No advisor commission is payable for accounts opened on or after 1 July 2014

7. AMP Flex Lifetime: Most advisers receive 112.8% upfront commission and 11% pa ongoing commission on insurance premiums.

8. AustSafe: The insurance admin fee shown above is for Death and TPD cover. The admin fee for Death only cover is 12% of the weekly premium.

Example

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20 0.61 1.35 0.58 0.52 25 0.57 1.04 0.58 0.52 30 0.53 0.84 0.58 0.52 35 0.58 0.86 0.39 0.52 40 0.71 1.04 0.39 0.52 45 0.99 1.55 0.72 0.77 50 1.45 2.87 1.11 1.05 55 2.63 5.48 2.03 1.61 60 4.77 10.77 7.29 2.39 65 8.59 20.90 7.29 3.72 Notes

1. ANB refers to age next birthday

2. Premiums/medians: Premiums shown above are the annual cost per $1,000 of cover and are for monthly premium payment and include any monthly loading factor that may apply. The median premium represents the median of funds included in the Chant West database.

3. Income Protection: Premiums are for a 30 day waiting period and a 2 year benefit payment period and include stamp duty. Where stamp duty is not included in standard premiums, the premiums have been increased by 8% to allow for an average level of stamp duty.

4. HESTA: The default income protection benefit has a 90 day waiting period and a benefit period to age 60. Few HESTA members are covered by the 30 day waiting period and 2 year benefit period for which the premiums are shown above.

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The products, reports and ratings do not contain all of the information that is required in order to evaluate the nominated service providers, and you are responsible for obtaining such further information. This information does not constitute financial product advice. However to the extent that this information may be considered to be general financial product advice, Chant West warns that: (a) Chant West has not considered any individual person’s objectives, financial situation or particular needs; (b) individuals need to consider whether the advice is appropriate in light of their goals, objectives and current situation; and (c) individuals should obtain a product disclosure statement from the relevant fund provider before making any decision about whether to acquire a financial product from that fund provider. A Financial Services Guide has been made available by Chant West through its website.

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Financial Services Guide Prepared on 7 July 2010

This is a Financial Services Guide (FSG) for Chant West Pty Limited (Chant West, we us or our). It is designed to assist you in determining whether to use the financial services we provide under our Australian financial services licence. It also informs you of remuneration that may be paid to us in relation to our financial services and how complaints against us are dealt with.

Our Services

Chant West is a superannuation consultancy which primarily provides research and advice to employers, trustees and financial advisers, as well as a ratings service in relation to superannuation funds and multi-manager investment options. Our research and advice is predominantly provided through written reports or our website. Some of our research may be accessed by the public by subscription. Our licence authorises us to provide financial product advice about:

(a) life products, including investment life insurance products and life risk insurance products; (b) interests in managed investment schemes, including investor directed portfolio services; (c) securities; and

(d) superannuation.

Chant West is also licensed to deal in each of the financial products listed above to retail and wholesale clients. General Advice Only

Any advice we provide is general advice only, and we do not take into account your objectives, financial situation or needs. You should consider whether our advice is appropriate for your own

objectives, financial situation or needs, and consult a financial adviser if necessary. Before making any decision about whether to acquire a financial product, you should obtain from the product provider a product disclosure statement and read it.

Chant West does not currently accept instructions from individuals to provide personal financial services. Remuneration

Chant West receives fees from its research clients in return for a licence to access, use, and in some cases to make available to others, our research reports. Superannuation funds do not pay to have the fund rated. However, superannuation funds and investment managers pay a fee to have their multi-manager investment options rated. They may also purchase our research services.

Superannuation funds and investment managers may also pay us a licence fee so that they may use our ratings for promotional purposes. Chant West employees receive a salary and do not receive remuneration, commissions or other benefits from any financial product issuers. Chant West charges consulting clients either on a retainer basis or a fixed daily fee for providing superannuation consultancy services.

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Contacting Chant West Chant West

47 Albion Street Surry Hills Sydney NSW 2010 Australia Tel: 02 9361 1400

E-mail: info@chantwest.com.au

References

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