What are the costs?
The cost of your Policy depends on a range of factors, including your age and gender, the type and amount of Cover, the number of Cover types you hold, the length of time you’ve held Cover with us and whether or not you smoke.
We also take your occupation, health, income and personal pastimes into account. Once we know a little bit about you and the Cover you require, we can then determine the basic costs involved.
When you take out a Policy you will receive welcome documentation and a Policy Schedule, you should read it carefully. The welcome documentation will show you the first premium payable and due date. The premium amount will also include any extra amounts charged to you when we accepted your application or re-issued you a Policy.
Your health and lifestyle assessment - Loadings and Exclusions
When you apply for TAL Lifetime Protection, you will be asked a number of questions. These questions relate to your Duty of Disclosure.
Your answers to the questions may mean that you have increased risk factors under the Policy. In some cases we will be unable to provide you with all or some parts of the Cover for which you have applied. In other cases, Cover may be subject to conditions such as a premium loading, or an Exclusion. A premium loading will mean that you pay a higher premium for the Cover, an Exclusion will mean that you will not be Covered if you suffer a specified excluded medical condition, or you are injured or die as a result of participating in an excluded pastime or activity.
All premiums are payable by the due date shown in your Policy Schedule (unless otherwise advised). For subsequent years, we’ll advise you of your new premium before each Policy Anniversary.
Payment methods and frequency
Premiums are payable monthly, quarterly, half-yearly or yearly by Direct Debit or Credit Card (MasterCard or Visa).
Cheque and BPAY payments may be available if requested over the phone.
Non-payment or late payment of premiums
If we do not receive premiums by the due date, you will be sent a payment not received notice and we may attempt to collect your outstanding premium on your next due date. If we do not receive the payment by the final due date shown in your payment not received notice, you will be sent a reminder notice and your Policy may end on the date specified and you will not be insured. If this happens, you will receive a final notice informing you that your Cover has ended. You may need to apply to reinstate or have a new Policy issued if you require Cover at a later time, and a new premium may be calculated.
Cover changes and expiry
Some Cover is not able to be kept on its own. If certain Covers expire or are removed from your TAL Lifetime Protection so that a Cover remains which cannot be held on its own then that Cover must be cancelled. We will notify you if this is the case.
Level Premiums for all Life Insurance, TPD and Recovery Insurance Covers end at your Policy Anniversary prior to turning age 65. These Covers will then change to Stepped Premiums.
If TPD is still active, at the anniversary prior to your 65th birthday, it will convert to Cover for Activities of Daily Living only.
If Recovery Insurance is still active, it will convert to Cover for Activities of Daily Living at the Policy Anniversary prior to turning 70.
We can change the premium rates applying to all TAL Lifetime Protection Policies. If we do change them you will be advised of the change 30 days prior to it taking effect.
No one individual Policy can be singled out for an increase in premium rates because of an adverse change in your health or circumstances, once your Cover is in place.
Changes to Policy Terms and Conditions
The terms and conditions of the Policy may be changed if required, but only if agreed to by both you and us (or the Trustee if applicable). Any change must be confirmed in writing by us.
Where a measure, scale or other diagnostic technique or methodology used in this PDS (the obsolete term) has been superseded by a new measure, scale or other diagnostic technique or methodology (the new term) that is common usage, this document is to be read so the new term replaces the obsolete term unless to do so would, in our reasonably opinion, materially disadvantage us.
You can also choose whether you want your Cover to increase each year in line with the cost of living – this will mean that your premium will increase each year as the Cover is increased through a process called indexation. If you have a Stepped Premium Policy, it will mean that there are two reasons your Policy will increase each year.
The default setting for all TAL Lifetime Protection Policies is for those Policies to have indexation applied to them but can be turned off on request. If you are Bundling TPD or Recovery Insurance with your Life Insurance, you will need to have Inflation Protection switched on or off for all insurances.
Indexation can be declined on any number of occasions or switched off permanently at any time, otherwise indexation continues on Life Insurance, and on TPD or Recovery Insurance Bundled with Life Insurance until Policy expiry. For TPD which is Standalone, indexation ends at the Policy Anniversary prior to your 65th birthday. For Recovery Insurance which is Standalone, indexation ends at the Policy Anniversary prior to your 70th birthday.
Indexation applies to both Stepped and Level Premiums. For Level Premiums, the additional premium for the increased Cover is based on your age at the time of the increase – not at the time the Policy started. Indexation does not apply to Cover due to Life Insurance Buy Back Options, and Future Life Event increases.
The indexation rate is the CPI or 5%, whichever is the greater for Life Insurance, TPD and Recovery Insurance. For Income Protection, the indexation rate is 3% or CPI, whichever is the greater. The CPI rate is published each October and applies from the beginning of the following calendar year. Indexation applies to the Anniversary Statement issued for the next Policy Anniversary (i.e. after 1 January.) Indexation will cease on the anniversary prior to the Policy Expiry Date. Indexation continues through the maximum Cover allowable at the time of taking out the Policy.
While you have an active Income Protection claim, and you are receiving payments from TAL, the Benefits are not indexed unless the Policy has the “increasing claims” optional extra. Indexation of these Benefit Amounts is the lower of CPI and 3%.
Indexation increases can be reversed on request. In this case only the most recently increased portion of the Cover is cancelled. The rest of the Cover (pre indexation) remains the same, and the premium relating to this Cover is the premium based on the recently calculated anniversary.
Inflation Protection will not apply if Premiums are being waived under the Premium Relief Option.