Macquarie Term
Life Insurance
Product Disclosure Statement
Issued by Macquarie Life Limited ABN 56 003 963 773
January 2010
01 At a glance
03 Terms and conditions
04 Your Policy
07 General information
11 Who to contact
12 Glossary
Contents At a glance
What is Macquarie Term Life Insurance?
Macquarie Term Life Insurance (Cover) has been designed to provide financial support for those people who are close to you in the unfortunate event of your death or upon you being diagnosed with a terminal illness.
Who can take out Cover?
You must be an Australian resident and aged between 18 and 60, inclusive of those ages, to apply for the Cover. Cover can continue until the Cover anniversary when you are aged 65.
Who owns the Cover?
When the Cover starts, you will be the owner of the Cover. After the Cover starts, you can transfer the ownership of the Cover to another person.
How to apply for Cover?
If you want to apply for Cover, you will need to complete the application process. The application process will require you to disclose personal information and may result in Cover being offered or declined.
Please note that you have a duty of disclosure that applies throughout the duration of the application process. This is explained on page 7 and it is important that you read and understand this duty before applying for Cover.
How much Cover can you apply for?
The minimum amount of Cover you can apply for is
$100,000. You can apply for Cover in $50,000 increments, above $100,000, up to a maximum Cover amount of
$1,000,000. Important Information
This Product Disclosure Statement (PDS) contains important information about insurance products issued by Macquarie Life Limited (Macquarie Life). Macquarie Life is not an authorised deposit-taking institution for the purposes of the Banking Act (Cth) 1959 and its obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542. Macquarie Bank Limited does not guarantee or otherwise provide assurance in respect of the obligations of Macquarie Life.
Macquarie Term Life Insurance policies are referable to Macquarie Life’s No. 4 Statutory Fund. Please note that this product is designed purely for protection. It does not have an investment or savings component and will not have a surrender or cash value.
Information contained in this PDS can change from time to time. If the change is not materially adverse, the updated information will be available on our website, www.macquarielife.com.au. A paper copy of any updated information will be given to you on request without charge.
This PDS has been prepared by Macquarie Life to help you decide whether to buy Macquarie Term Life Insurance but it does not take into account your objectives, financial situation or needs. If you are unsure about the appropriateness of the Macquarie Term Life Insurance product having regard to your objectives, situation and needs, then we recommend that you obtain financial, legal and taxation advice before making a decision to acquire the product.
About this document
When reading this PDS a reference to “we”, “our” and “us” means Macquarie Life. Any reference to “you” or “your” means the applicant for, or owner of, a Macquarie Term Life Insurance policy.
Some of the terms used in this PDS have a special meaning. These terms are shown
This part of the PDS sets out the terms and conditions of the Cover.
If we accept your application, we will issue a Certificate of Insurance, which together with the Terms and Conditions set out in this part of the PDS, will be the contract between the owner and us.
In some circumstances, we will not pay a benefit. These circumstances are shown in the section headed “When we won’t pay”.
Words or expressions shown in italics have the meaning explained in the Glossary at the end of the PDS.
Death benefit
What is the Death benefit amount?
The amount of Death benefit provided, known as the Death sum insured, is the amount shown in the Certificate of Insurance.
When is the Death benefit paid?
The Death sum insured will be paid if the insured person: dies; or
is diagnosed with a terminal illness
after the Cover start date shown on the Certificate of Insurance and before the Death benefit ends, explained in the section titled “When Cover starts and ends” on page 4. If we agree that a Death benefit is payable, it will be paid as a lump sum amount.
When we won’t pay
A Death benefit claim will not be payable if death or terminal illness is directly or indirectly caused, or contributed to, by:
suicide, or an intentional self inflicted act within 13 months of the Cover start date;
a criminal act by the insured person; alcohol abuse or alcohol dependence;
improper use of prescription drugs, over-the-counter drugs, and controlled substances; or
a pre-existing condition.
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How much does it cost?
The premium you pay is calculated by multiplying the insured amount by a premium rate. The premium rate that applies is based on a number of factors including:
your age (premium rates generally increase with age); your gender (premium rates will vary depending on the gender of the insured person); and
whether or not you smoke (premium rates are higher for smokers).
The premiums are calculated on a 5 year stepped basis, which means that the premium increases on each 5 year anniversary of the Cover start date. Before each 5 year Cover anniversary, we will notify you of the premium for the period to the next Cover anniversary.
The actual premium cost will be confirmed by us upon completion of the application process. The premium for the first 5 years of Cover will be shown on the Certificate of Insurance.
What if I change my mind?
If within 21 days of being issued with Cover you decide it does not meet your needs, please write to us and we will cancel your Cover immediately and refund any premiums paid, as long as you have not made a claim during this period. This cooling off period is explained in more detail on page 6.
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Terms and conditions
What happens if premiums are not paid?
If a premium payment is not made, we will notify you advising the date on which the policy will end if the amount due is not paid. We will give at least 20 business days notice before the policy is cancelled because of non payment of premiums. If a payment sufficient to meet the amount due is not made by that date, we will cancel the policy.
Can we change the premium rates?
We can change the premium rates for Macquarie Term Life Insurance , but only if we do this for a group of policy holders. Any changes to premiums will come into effect for your policy from the next Cover anniversary after we make the change. We can also pass on any government taxes and charges which may be introduced or increased during the life of your policy. If we increase premium rates we will provide 30 days notice before the increase comes into effect for your policy.
Guaranteed renewable
Provided you continue to pay your premiums when due, your Macquarie Term Life Insurance policy is guaranteed renewable until Cover ends, as explained in the section titled
‘When Cover starts and ends’ on page 4. This means that we cannot cancel or alter the terms of the Cover because of changes in your health, occupation or pastimes. Worldwide Cover
Your policy covers the insured person 24 hours a day, anywhere in the world.
Keeping us informed
To ensure that our records are kept up to date and correct, we request that you advise us in writing:
of a change in your address or contact details; or of a change in banking or credit card details.
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Your Policy
When Cover starts and ends
Cover will start on the Cover start date shown in the Certificate of Insurance and will continue until one of the following things happen:
the date we receive the owner’s written request to cancel the Cover;
we cancel Cover due to the non-payment of the premium when due;
a benefit under the Cover becomes payable; or
the Cover anniversary when insured person is aged 65. The Cover start date is the date on which the application process is completed, which is when your application has been completed and accepted by us either verbally, electronically or in writing, and we have issued a certificate of insurance.
Changes to your Cover
You can request a change in the Cover at any time. Any request to increase must be made in writing to us and is subject to our acceptance, which may include medical and/or financial underwriting. If your request is accepted, we will confirm this in writing and issue an updated Certificate of Insurance. Any increase in benefits will be subject to a minimum increase of $50,000 and restricted by the maximum benefit cap of $1,000,000.
You can request to decrease the Cover at any time but it cannot be reduced below $100,000. Any request to decrease the Cover must be made in writing to us and once effected, we will confirm this in writing. How are the premiums paid?
The premium is calculated and payable on a monthly basis. Your monthly premium will be automatically deducted one month in advance from your nominated bank account or credit card each month. We will deduct your first payment on your Cover start date.
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Your duty of disclosure
Before entering into a contract with Macquarie Life Limited you have a duty, under the Insurance Contracts Act 1984, to disclose to us every matter you know, or could reasonably be expected to know, that is relevant to our decision whether to accept the risk of the insurance and, if so, on what terms. You have the same duty to disclose those matters to us before your Cover is extended, varied or reinstated. Your duty, however, does not require disclosure of a matter:
that diminishes the risk to be undertaken by us; that is of common knowledge;
that we know or, in the ordinary course of our business, ought to know; or
as to which compliance with your duty is waived by us. Importantly, your duty of disclosure continues until a written contract of life insurance has been issued by Macquarie Life. Non-disclosure
If you fail to comply with your duty of disclosure and we would not have entered into the contract on any terms if the failure had not occurred, we may avoid the contract within 3 years of entering into it. If your non-disclosure is fraudulent, we may avoid the contract at any time.
If we have not avoided a contract of life insurance, we may, within 3 years of entering into it, reduce the amount that you have been insured for in accordance with a formula that takes into account the premium that would have been payable if you had disclosed all relevant matters to us. Information about privacy
Your privacy is important to Macquarie Life. This statement explains how personal information can be used or disclosed and provides information about your privacy rights.
By completing the application you agree to allow Macquarie Life to use your personal information:
assess and process the application for insurance; communicate with you about the application and any Cover Macquarie Life supplies to you;
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Cooling off period
If you are accepted for Cover, we will issue you with a Certificate of Insurance. You have 21 days from the date that Cover starts to check that the Cover meets your needs; this is known as the cooling off period. As long as you do not make a claim during this period you can ask us to cancel the Cover during the cooling off period and we will refund any premiums you have paid. Your request to cancel must be in writing and your Certificate of Insurance will need to be returned to us.
Making a claim
Notifying us of a claim
You or your personal representative should contact Macquarie Life on 1800 208 130 or via insuranceclaims@macquarie.com if you think you are eligible to make a claim, or are unsure and would like some assistance. It is important that we are notified as soon as possible after any event that may lead to a claim. We will send a claim form and explain in detail our requirements and what the next steps are.
Assessing a claim
Macquarie Life will pay a benefit only after all our claim requirements have been met and we admit liability. If we require additional information, beyond our normal claim requirements, to assess a claim, Macquarie Life will meet these costs. Otherwise you or your personal representative must meet the cost of satisfying our claim requirements. Payment of a claim
We will pay the claim as soon as possible once it has been approved. All claims will be paid in Australian dollars.
General information
Insurance and any benefit they receive will not be included in their assessable income for tax purposes. In any case, we suggest you speak to your tax adviser who will be able to give you advice that is specific to your circumstances and answer any questions you may have regarding the tax consequences of taking out Cover under Macquarie Term Life Insurance.
Direct Debit Service Agreement
Where you have elected to have your Macquarie Term Life Insurance premium deducted from your account by direct debit, you agree to the terms detailed below.
1. I/we have requested Macquarie Life Limited, ABN 56 003 963 773 AFSL No. 237497, (User ID 145096) to deduct my/our nominated account with any amounts that become payable in relation to my/our Macquarie Term Life Insurance policy, through the BECS (Bulk Electronic Clearing System).
2. The financial institution may, in its absolute discretion, at any time by notice in writing to me/us terminate this request as to future debits.
3. Macquarie Life may, by notifying me/us within 14 days, vary the timing of future debits.
4. Where the due date does not fall on a business day and I am/we are uncertain whether sufficient cleared funds will be available to meet the direct debit, I/we will contact my/our financial institution directly and ensure that sufficient cleared funds are available.
5. I/we can modify or defer this regular Direct Debit Request at any time by giving Macquarie Life 14 days notice. 6. I/we can stop or cancel the regular Direct Debit Request
at any time by giving Macquarie Life or my/our financial institution 14 days notice.
7. If at any time I/we feel that a direct debit against my/ our nominated account is inappropriate or wrong it is my/our responsibility to notify Macquarie Life or my/our financial institution as soon as possible.
monitor, audit, evaluate and otherwise administer your policy; and
assess, process and investigate any claims. You also agree that other companies in the Macquarie Group and our external service providers (including for example, reinsurers, mailing houses and claims assessors) may access personal information when appropriate to assess your application, administer your policy or process any claims. If you do not supply Macquarie Life with the personal information requested, Macquarie Life may not be able to provide the Cover applied for.
Unless you notify Macquarie Life otherwise, the personal information may be used by us or other companies in the Macquarie Group to offer products or services which may be of interest to you.
Disclosure of Personal Information and your rights We may also disclose your personal information:
if acting in good faith, we believe the law requires or permits us to; or
if you consent.
Under the Privacy Act, you may request access to your Personal Information held by Macquarie Life. You can contact us to make such a request for any other reason relating to the privacy of your personal information. Contact details are shown in the section titled “Who to contact”. Health information
The references in this Privacy Statement to personal information include sensitive information such as your medical and health related details. If required to assess your application, administer your policy or process any claims, Macquarie Life may seek further information from any medical attendant consulted by you.
Taxation
Typically, an owner of a Macquarie Term Life Insurance policy will be unable to claim a tax deduction for any premiums they pay in respect to Macquarie Term Life
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0 We are here to help with any questions you have about your Cover. The contact details for Macquarie Life are:
TeLePHoNe 1800 629 323
FAx 1800 812 175
eMAIL insurance@macquarie.com
PosT Macquarie Life GPO Box 5216 Brisbane QLD 4001
You should be aware that all telephone conversations with you relating to your policy will be recorded. What to do if you have a complaint
Macquarie Life has procedures in place to properly consider and deal with your enquiries and complaints within 45 days of a complaint being made. If you have a complaint you may contact the Complaints Officer of Macquarie Life on the contact details shown above.
If your complaint is not resolved to your satisfaction within 90 days you may refer it to the Financial Ombudsman Service (FOS), which provides external dispute resolution for consumers and financial service providers. For more information about FOS, including how to lodge a complaint, please visit www.fos.org.au or call 1300 780 808.
8. If I/we believe there has been an error in debiting my/ our account, I/we will notify Macquarie Life or my/our financial institution and confirm by notice in writing to Macquarie Life as soon as possible.
9. Direct debiting through BECS is not available on all accounts. I/we will check my/our account details against a regular statement or check with my/our financial institution as to whether I/we can request a direct debit from my/our account.
10. It is my/our responsibility to ensure that there are sufficient cleared funds in my/our nominated account to honour the Direct Debit Request. I/we understand that the Direct Debit Request will be automatically cancelled if two debit payments are dishonoured because of insufficient funds. Macquarie Life will give me/us 14 days notice in writing if they intend to cancel my/our Direct Debit Request. Macquarie Life will also charge the cost of dishonoured direct debits against my/our account. Macquarie Life may cancel my/our Macquarie Term Life Insurance cover if the Direct Debit Request is cancelled because of dishonours.
11. It is my/our responsibility to ensure that the authorisation given to debit the nominated account is identical to the account signing instruction held by the financial institution where the account is held.
12. Macquarie Life may need to pass on details of my/our direct debit request to their sponsor bank in BECS to assist with the checking of any incorrect or wrongful debits to my/our nominated account.
Who to contact
alcohol abuse means an established pattern of problem drinking that results in health consequences and/or social problems.
alcohol dependence means a physiological and/or psychological reliance on or addiction to alcohol, which results from recurrent use; characterised by mental and/or physical changes in the user that make it difficult to stop usage despite repeated alcohol related problems.
pre-existing condition means any condition, injury, illness, disease, sickness or related condition and/or associated symptoms, whether specifically diagnosed or not:
which the insured person knew about (or ought reasonably to have known about); or
for which the insured person sought or received advice, treatment or counselling from any medical practitioner; in the 24 months immediately prior to the Cover start date or the Cover start date for any requested increase in Cover (but only in respect of that increase).
terminal illness means that the insured person is diagnosed with an illness, which reduces life expectancy to less than 12 months from the date of claim, as confirmed by a specialist physician approved by Macquarie Life.
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Glossary
For enquiries, call 1800 629 323
or email insurance@macquarie.com
For claims, call 1800 208 130
or email insuranceclaims@macquarie.com
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