Can TAL cancel your Policy?
As long as your premium payments are up-to-date, your Policy will remain current until the date Cover ends. This means your Policy will continue regardless of any changes in your health, occupation, pastimes or income. We will honour claim payments in line with the Policy terms and conditions if:
- you have complied with the Duty of Disclosure; and
- you have answered all questions in your application honestly and accurately.
If we reinstate your Policy or any Cover under it after it ends, no claim payment will be made for any:
- Injury or death which occurred while your Policy or Cover had ended; or
- Illness, including Terminal Illness, that became apparent while your Policy or Cover had ended.
In order for a claim to be paid, an event giving rise to a claim must occur while the Policy or Cover is in force. Any application for reinstatement is subject to your Duty of Disclosure. If a claim is payable after your premium is due, but before your Policy ends, we will pay the claim in line with the respective Policy conditions. When this occurs, any outstanding premiums will be deducted from the claim amount. If your premiums are not paid yearly, we will deduct the balance of the current year’s premium when a claim payment results in the insurance ending.
There are risks involved with taking out TAL Lifetime Protection that you should be aware of. These include:
|Insurance type||Risk of not taking out all three Covers|
|Life Insurance||You need to consider that if you take out fewer than the three types of Life Insurance Cover available, you will not receive any Benefit if your death is a result of an event you do not have Cover for. For example, if you decide to take out Illness Cover only and you die of injuries sustained in a motor vehicle accident, then no Life Insurance Benefit would be payable. Similarly, if you decide to take out Accident Cover only and you die of a heart attack, no Life Insurance Benefit would be payable.|
|Total Permanent Disability Insurance||You need to consider that if you take out fewer than the three types of TPD Cover available, you will not receive any Benefit if your Total Permanent Disability is a result of an event you do not have Cover for. For example, if you decide not to take out Accident Cover and you become Totally Permanently Disabled as a result of injuries sustained in a motor vehicle accident, then no TPD Benefit would be payable.|
|Recovery Insurance||You need to consider that if you take out fewer than the three types of Recovery Insurance Cover available, you will not receive any Benefit if your Critical Illness, Critical Injury or Cancer is a result of an event you do not have Cover for. For example, if you decide not to take out Critical Injury Cover and you suffer paraplegia as a result of injuries sustained in a motor vehicle accident, then no Recovery Insurance Benefit would be payable.
If you select only Critical Illness Cover, then no Cover is provided in the event of Cancer or Critical Injury. For example, no Cover would be provided for skin cancers showing evidence of metastases, Blindness or Severe Burns as the result of an Accident.
|Income Protection||You need to consider that if you take out fewer than the three types of Income Protection Cover available, you will not receive any Benefit if your Total Disability or Partial Disability is a result of an event you do not have Cover for. For example, if you decide not to take out Accident Cover and you suffer Total Disability as a result of injuries sustained in a motor vehicle accident, then no Income Protection Benefit would be payable.|
In addition, when choosing life insurance you should take into account:
- that the insurance you have chosen might be inadequate to protect your circumstances, for example you may not have selected Cover suitable for your circumstance or not selected sufficiently high Benefit Amount;
- if you are replacing another insurance policy, you should consider the terms and conditions of each insurance policy before deciding to make the change as, for example, the coverage may be different;
- that claims may not be paid and this Policy may be cancelled where you have failed to comply with the Duty of Disclosure or you have made a fraudulent claim;
- that the Policy may be cancelled if you have failed to pay your premium by the due date, in the circumstances described here .
If you structure TAL Lifetime Protection through a Self-Managed Superannuation Fund (SMSF):
- the cost of premiums paid may gradually reduce your superannuation over time, leading to a lower balance at retirement.
- TAL Lifetime Protection has been designed primarily for ordinary business, i.e. paid for out of your general accounts and has not considered the requirements of Superannuation Industry (Supervision) Act (SIS) in its design. Accordingly, both your retirement and protection objectives should be kept in mind when structuring insurance through a SMSF.
You should consider if the Policy meets your needs both now and in the future. You may need to seek assistance from a financial adviser to assist you to determine if the terms are consistent with your objectives, financial situation and needs.
No Cash Value
TAL Lifetime Protection has no cash value or surrender value. The premiums paid represent the amounts due for undertaking the risk of the insured event occurring.
Misstatement of age
If your age has been understated on the application for this Policy, then the Benefit will be recalculated based on the Benefit that the premium you paid would have purchased if the correct age had been provided. If your age has been overstated we will refund any excess premium paid. Where the terms and conditions of Cover vary depending on age, your correct age, if applicable, will be used to determine whether a Benefit is payable. We may also vary the end date of the Policy to what it would have been had the correct date of birth been provided by you.
Who receives the Benefit
All payments made by us under the Policy will be made to the Policy Owner, or if you have died, to your Nominated Benefit Recipients or legal personal representative or a person we are permitted to pay under any relevant law.
If you are considering the tax implications of purchasing Cover, it is important you seek independent, professional taxation advice. The complexity of taxation laws and rulings is such that this advice should be specific to your circumstances.
The following information regarding the Australian taxation rules in force at the date of this statement is provided as a general guide only and relates to our interpretation of the rules for individuals who are the Policy Owner and are residents of Australia for income tax purposes and to self-managed superannuation funds (SMSFs) that are complying superannuation funds as defined in sections 42A and 45 of the Superannuation Industry (Supervision) Act 1993. No guidance in relation to the application of foreign tax rules or the application of the Australian tax rules to individuals who are not residents of Australia for income tax purposes, or non-complying superannuation funds, is provided. As recommended above, it is important you seek independent, professional taxation advice that is specific to your circumstances.
We reserve the right to make changes to TAL Lifetime Protection and premium rates in response to any taxation, duty, government charge or other legal changes.
Goods and Services Tax
TAL Lifetime Protection is treated as input taxed under the Goods and Services Tax Act 1999 (Cth) and any cost of GST will be included in the premium rates. No input tax credit will be available to you.
Any cost of stamp duty will be included in the premium rates.
Tax treatment of insurance premiums and benefits for Australian resident individuals
For Income Protection, premiums are generally tax deductible and benefits paid are generally assessable as income. This is not the case for Life, TPD and Recovery Insurance Cover. This may vary if insurance is affected for business purposes and you should seek professional taxation advice.
Capital Gains Tax for Australian resident individuals
Benefits payable under this Policy may be assessed under the capital gains provisions if you are not the original beneficial owner of the Policy (as defined under the Income Tax Assessment Act 1997), and you acquired TAL Lifetime Protection for consideration.
Tax treatment of insurance for SMSFs that are complying superannuation funds and their members
If you are the trustee of a complying superannuation fund, the premiums you pay under this product may be deductible. The proceeds payable under the Policy to you as trustee to facilitate the provision of benefits to members should not form part of the assessable income of the SMSF. Payments out of the SMSF in respect of such members are not deductible to the SMSF.
When the proceeds are paid out of the SMSF to or in respect of a member those proceeds may be assessable to the recipient.
In the event of the death of a member who is a Life Insured and where a lump sum benefit is paid by the SMSF, no tax is payable where that benefit is paid to a death benefit dependant as defined under the taxation law. Note that the definition of a death benefit dependant under the taxation law is slightly different to the definition under the superannuation law. Death benefits paid to a non-death benefit dependant for tax purposes may be taxed at up to 30% plus the Medicare Levy.
Terminal Illness benefits
Terminal Illness benefits paid to members are tax free
Total Permanent Disability benefits are taxed at different rates, depending on the member’s age when they were disabled and their age at the date of payment. These provisions are complex and you should consult your taxation adviser if you require more detail.
Income Protection benefits
When an Income Protection benefit is paid, this constitutes assessable income in the hands of the recipient and will be taxed at the recipient member’s marginal tax rate (plus Medicare Levy where applicable).
Where TAL is required by law to deduct any tax, duty, impost or the like in connection with the payment of a benefit, TAL will deduct the required amount from the payment and forward it to the relevant authority.
The assets of TAL’s Statutory Fund Number 1 will alone be liable for the payment of the benefits under this Policy. Your Policy will not participate in any distribution of any surplus of TAL’s Statutory Fund Number 1. You also have no rights in or in connection with the assets of any other TAL Statutory Fund.
- the kinds of personal information that TAL collects and holds;
- how TAL collects and holds personal information (including sensitive information);
- the purposes for which TAL collects, holds, uses and discloses personal information (including sensitive information);
- how our customers may access personal information about them which is held by TAL and how they can correct that information;
- and how we deal with any complaints that our customers may have regarding privacy issues.
If you would like a copy or if you have any questions about the way in which we manage your information please contact us using the details below. Personal and sensitive information will be collected from or in respect of you to enable us to provide or arrange for the provision of this insurance product. We may request further personal information in the future, for example, if you want to make a claim and we need to collect health or financial information. If you do not supply the required information, we may not be able to provide the requested product or service or pay the claim.
In processing and administering your insurance (including at the time of claim) we may disclose your personal information to other parties such as organisations to whom we outsource our mailing and information technology, Government regulatory bodies and other companies within the TAL Group and accountants (if applicable). We may also disclose your personal information (including health information) to other bodies such as reinsurers, health professionals, investigators, lawyers and external complaints resolution bodies.
Generally we do not use or disclose any customer information for a purpose other than providing our products and services unless:
- you consent to the use or disclosure of the customer information;
- the use or disclosure is required or authorised under an Australian law or a court/tribunal order;
- or the use or disclosure of the information is reasonably necessary for one or more enforcement related activities conducted by, or on behalf of, an enforcement body e.g. the police.
From time to time TAL or its related parties or business partners may wish to contact you to provide you with information about other products and services in which you may be interested. If you prefer not to receive direct marketing communications from our organisation or if you would prefer to receive telephone calls at certain times or days then please contact us using the details on the last page of this document.
We rely on the accuracy of the information you provide. If you think that we hold information about you that is incorrect, please let us know.
Under the current privacy legislation, you are generally entitled to access the personal information we hold about you. To access that information, simply make a request in writing. This process enables us to confirm your identity for security reasons and to protect your personal information from being sought by a person other than yourself.
There are some limited exemptions where TAL would be unable to provide the personal information that we hold about you. These include, but are not limited to the following circumstances:
- we reasonably believe that giving access would pose a serious threat to the life, health or safety of a person
- the request for access is frivolous or vexatious;
- the information relates to existing or anticipated legal proceedings between TAL and you and the information would not be accessible by the process of discovery in those proceedings; or
- giving access would be unlawful.
If, for any reason we decline your request to access and/or update your information, we will provide you with details of the reasons. In some circumstances it may be appropriate to provide copies of complex medical information to a treating Medical Practitioner rather than directly to you so that the medical terminology can be explained. Additional information about privacy legislation can be found at the website of the Privacy Commissioner at http://www.oaic.gov.au/ including sensible steps that individuals can take to protect their information when dealing with organisations and when using modern technology.
Life Insurance Code of Practice
We support the voluntary Life Insurance Code of Practice. This is a self-regulatory code which sets the standards for the conduct of life insurance business in Australia. These standards include appropriate procedures for resolving any dispute that could occur while your Policy is current. Should you need further information regarding the Life Insurance Code of Practice, please call us.
If you have a complaint in relation to TAL Lifetime Protection, you can write to:
The Manager, Internal Dispute Resolution Team
TAL Life Limited
GPO Box 5380, Sydney NSW 2001
We will attempt to resolve your complaint within 45 days of the date it is received by us. If we are unable to resolve your complaint within that period, we will inform you of the reasons for the delay and ask for your consent to resolve the complaint within 90 days of the date it was received.
If your complaint has not been resolved to your satisfaction within 45 days of lodging your initial complaint to TAL (or, if you have agreed, within 90 days) you may contact the Financial Ombudsman Service (FOS). FOS is an industry funded scheme, which provides free advice and assistance to consumers with complaints against financial services companies, including assisting the Policy Owner, to resolve complaints with their life insurance company. FOS is an independent and impartial body. Decisions made by FOS are binding on us.
FOS can be contacted at:Phone: 1800 367 287 or (03) 9613 6399
Financial Ombudsman Service
GPO Box 3
Melbourne VIC 3001