Zurich Wealth Protection

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18 December 2017

Zurich Wealth Protection
Statement of Advice
Product information helper

Zurich Wealth Protection SOA helper1Adviser use only

Table of contents

Introduction3

Important information3

About Zurich4

Zurich Insurance Group – a global view

Zurich’s wealth protection solutions

Generic product benefits4

Life insurance

Total and Permanent Disablement (‘TPD’)

Trauma

Child cover

Income protection

Business expenses

Superannuation optimiser

Zurich Protection Plus6

Superannuation ownership – Zurich Protection Plus

Zurich Income Protector Plus10

Superannuation ownership – Zurich Income Protector Plus

Zurich Income Protector14

Superannuation ownership – Zurich Income Protector

Zurich Business Expenses18

Zurich Child Cover19

Introduction

This document is designed to provide some product information which may be relevant in your Statement of Advice (‘SOA’) when one or more products are beingrecommended from the Zurich Wealth Protection product range.

The content and form of the SOA is a matter for you to determine. This document includes information about the Zurich Wealth Protection range that is set out in the Zurich Wealth Protection PDS(15 May 2017)which may be useful to you when preparing a SOA. The text included is suggested text only, and some sections may not be relevant.You must make a determination about which parts are relevant and whether it is appropriate for inclusion in your SOAs.

Instructions for cutting & pasting (Microsoft Word 2010 and beyond)

To use any text from this document to help prepare your SOA, follow these instructions:

1. Select the text you wish to use.

2. Choose ‘Copy’ from the ‘Home’ menu.

3. Place your cursor in the destination section of your document.

4. Choose ‘Paste’ from the ‘Home’ menu.

If the paste option provides an undesired font type or style, use this alternative method:

1. Select the text you wish to use.

2. Choose ‘Copy’ from the ‘Home’ menu.

3. Place your cursor in the destination section of your document.

4. Click the arrow under ‘Paste’ in the ‘Home’ menu and select ‘Paste Special’.

5. Select ‘Unformatted Text’ from the option list.

Commission details

You can calculate commission amounts as part of the Zurich premium quote on a life insuredand benefit basis.

Commission amounts are not impacted by the year one Rollover reward.

Important information

This document is only to be used by licensed financial advisers (‘you’) and does not take into account the personal financial situation, needs or objectives of any person.

This document is provided to assist with your preparation of a Statement of Advice (‘SOA’) by providing text about Zurich Wealth Protection products. Zurich makes no recommendation about whether the products may be appropriate for your clients, or whether the information contained in this document is suitable or appropriate for inclusion in an SOA.

This document is dated 18 December 2017and is derived from the Zurich Wealth Protection Product Disclosure Statement (‘PDS’) dated 15 May 2017,which should be considered in full before preparing any SOA. This document should not beconsidered to be a comprehensive statement on any matter and should not be relied on as such.NeitherZurich Australia Limited ABN 92 000 010 195 AFSLN 232510 nor any of its related entities, employees or directors gives anywarranty of reliability or accuracy nor accept any responsibility arising in any way including by reason of negligence for errors andomissions. You remain responsible for the content of the SOA.

You should refer to the PDS for further information or to apply for any of the products.The relevant PDS must be provided to your client. Zurich Australia Limited is the issuer of Zurich Wealth Protection.

Zurich Australia Limited ABN 92 000 010 195 AFSLN 232510
5 Blue Street North Sydney NSW 2060
AWAS-013023-2017 V912/17 / Customer Care: 131 551

About Zurich

Zurich Financial Services Australia (‘Zurich Australia’) is a member of the Swiss-based worldwide Zurich Insurance Group - the only global financial services group operating in Australia under a single brand in the core business lines of general insurance, life risk, investment and superannuation solutions. Zurich Australia operates under the global Zurich brand.

Zurich Insurance Group – a global view

The Zurich Insurance Group is one of the world’s largest insurance based financial services insurance groups, and one of the few to operate on a truly global basis.

It has a global network of subsidiaries and offices in North America, Europe, Asia-Pacific, the Middle East, Latin America and other markets. Founded in 1872, the company’s headquarters are in Zurich, Switzerland.

The Zurich Insurance Group employs about 54,000 people, helping customers manage risk in more than 210 countries and territories. The Group is listed on the Swiss stock exchange. For more information, visit

Zurich’s wealth protection solutions

Zurich Australia’s Life Risk business provides choice and flexibility through a suite of award-winning business and personal life risk solutions. Life Risk personal solutions include life, trauma and disability insurance. Zurich Australia is able to draw on its global strength to provide exceptional service and outstanding value, and provide innovative, customer-friendly products.

Zurich’s most recent awards for excellence in service and products are listed on the Australian website,

Generic product benefits

Life insurance

Life insurance (death cover) can help your dependants cope financially afteryou die.

Life insurance pays a lump sum in the event of your death,which can be used to:

• pay off the mortgage or any other debts that may affectyour family’s financial future
• pay for funeral costs
• pay for child care or home help to aid the remainingpartner, and
• provide a reserve to generate an income stream from theinterest earnings and the capital drawdowns should theremaining partner choose not to work.

Total and Permanent Disablement (‘TPD’)

Total and permanent disability insurance can help you copefinancially when disabled and unable to work again.

TPDinsurance pays a lump sum,which you can use to:

• pay for disability-related costs, including rehabilitation
• pay for changes to your lifestyle, for example, to refityour home
• enable your partner to reduce their working hours tolook after you or, alternatively,to fund a carer
• pay off your mortgage or any other debts you may have,and
• provide a reserve to use as an income replacement.

Trauma

Trauma insurance can help you cope financially with theeffects that a trauma event can have on your life. Traumaevents include conditions like cancer, heart attack, stroke andcoronary bypass surgery. It can be taken as astand-alone product, or in conjunction with life insurance orTPD cover.

Trauma insurance pays a lump sum, which you can use to:

• pay for expensive recovery costs, including rehabilitation
• pay for changes to your lifestyle, for example, refityour home
• enable your partner to reduce their working hours to lookafter you or, alternatively, to fund a carer
• pay off your mortgageor any other debts you may have, and
• cover the cost of extra childcare or housekeeping.

Child cover

Trauma insurance for your children can help you to cope financially with the effects that a traumatic illness or injury suffered by your child can bring on your family.

Child cover pays a lump sum, which you can use to:

• take time off work to care for your child
• pay for major unplanned medical expenses, and
• make lifestyle changes to support the change in needs.

Income protection

Income protectioninsurance can help you cope financially if you lose your income due to sickness or injury.You can cover yourself for up to 75% of your income.

If after the expiry of your waiting period, you continue to betotally or partially disabled, and you’re under the regularcare of (and following the advice of) a doctor, you are entitled to a benefit.

Income protectioninsurance pays an income stream, whichyou can use to:

• maintain a regular income stream through sicknessand/or injury
• retain the ability to pay your mortgage/rent, bills, ongoingnormal expenses, and
• provide your partner the benefit of not having to increasetheir working hours.

Business expenses

Business expenses insurance reimburses ongoing fixed business expenses or the costs to hire a replacement employee while you are disabled due to sickness or injury.

Superannuation optimiser

Superannuation law imposes restrictions on the payment of benefits from a superannuation fund. Superannuation optimiser allows you to splitsuper and non-super benefits into two related policies –one inside and one outside of superannuation. This allows a mixture of super and non-super benefits to be linked, even though the benefits are provided under two separate policies. Linked cover means a claim payable on one policy will affect the other - as if it were held in one policy.

Zurich Wealth Protection SOA helper1Adviser use only

Zurich Protection Plus

The Zurich Protection Plus policy offers Death cover, Total and Permanent Disablement(‘TPD’) cover and Trauma cover. Each of these covers is optional. The product includes a range of benefits which are in-built and optional benefits that can be added.

The covers recommended for you are:

• Death cover
• Total and Permanent Disablement (‘TPD’) cover
• Trauma cover

Death cover

The following benefits apply when Death cover is selected:

• Death benefit - a lump sumpayment on death.
• Terminal illness benefit -an advance payment of the Deathbenefit on diagnosis of a terminal illness.
• Advancement for funeral expenses - an advance payment of $15,000 towards funeral expenses.
• Accidental injury benefit -an advance payment of part or all of the Death benefit ifthe life insured suffers a specified accidental injury, eg. loss of the use of a hand or foot.
• Future insurability business benefit - increase cover without underwriting if certain business events occur.

Platinum TPD cover

The following benefits apply when Platinum TPD is selected:

• TPD benefit – pays the TPD sum insured if the life insured suffers a permanent disability that meets the selected TPD definition: [own occupation/ any occupation/ domestic duties/ modified TPD]
• [not modified TPD] The TPD benefit is also payable if the life insured suffers functional impairment of at least four extended activities of daily living (‘extended ADLs’), suffers permanent and irreversible whole person impairment of at least 60%, or meets the modified TPD definition
• TPD advancement benefit, for specific events – advances a portion of the TPD sum insured if the life insured suffers a partial loss of limbs or sight, and
• Partial impairment benefit – pays part of the TPD sum insured if the life insured suffers functional impairment of two or three extended activities of daily living (‘extended ADLs’).

Essential TPD cover

The following benefits apply when Essential TPD is selected:

• TPD benefit – pays the TPD sum insured if the life insured suffers a permanent disability that meets the selected TPD definition: [own occupation/ any occupation/ domestic duties/ modified TPD]
• [not modified TPD] the TPD benefit is also payable if the life insured suffers functional impairment of at least four extended activities of daily living (‘extended ADLs’), suffers permanent and irreversible whole person impairment of at least 60%, or meets the modified TPD definition, and
• TPD advancement benefit, for specific events - advances a portion of the TPD sum insured if the life insured suffers a partial loss of limbs or sight.

Platinum trauma cover

The following benefits apply when Platinum trauma is selected:

• Trauma benefit – a lump sum payment on diagnosis/occurrence of 42 conditions#
• Partial trauma benefit – a partial advance payment of 25% of the sum insured, up to $200,000 on diagnosis/occurrence of 12 conditions (if the sum insured is $100,000 or more)
• Paralysis booster benefit – doubles the benefit payable for paralysis (to a maximum of $2,000,000), and
• Funeral benefit – a $5,000 payment on death if death cover is not already selected on the policy.

# The policy contains the following future-proofing clause, to ensure that the trauma definitions do not become outdated over time: Where the diagnostic techniques used in our trauma condition definitions are impractical to apply or have been superseded due to medical improvements, Zurich will consider other appropriate and medically recognised tests.

Zurich Protection Plus

…continued

Extended trauma cover

• Trauma benefit – a lump sum payment on diagnosis/occurrence of 42 conditions#
• Partial trauma benefit – a partial advance payment of 10%, up to $25,000, on diagnosis/occurrence of 12 conditions (if the sum insured is $100,000 or more)
• Paralysis booster benefit – doubles the benefit payable for paralysis (to a maximum of $2,000,000), and
• Funeral benefit – a $5,000 payment on death if death cover is not already selected on the policy.

# The policy contains the following future-proofing clause, to ensure that the trauma definitions do not become outdated over time: Where the diagnostic techniques used in our trauma condition definitions are impractical to apply or have been superseded due to medical improvements, Zurich will consider other appropriate and medically recognised tests.

In-built policy provisions (all Zurich Protection Plus policies)

The following in-built provisions apply under all Protection Plus policies:

• Inflation protection - cover will increase every year unless declined by you, without health assessment.
• Financial planning advice - reimburses up to $3,000 for financial advice following a benefit payment.
• Future insurability - increase cover without underwriting on certain life events, eg. marriage or birth of a child.
• Interim cover - puts some accident cover in place as soon as cover is applied for.

• [not platform] Premium holiday - allows a break in cover of any number of months, up to 12 months over the life of the policy, to ease financial pressure. The policy must be continually in force for 12 months before a Premium holiday is available.

Optional benefits (as selected)

The following optional extra benefits have been selected:

• Business future cover option - increases cover without health evidence each year if certain events occur.
• Buy back death option (TPD) – Death cover can be reinstated on the anniversary of the payment of a TPD benefit.
• Buy back death option (Trauma) – Death cover can be reinstatedon the anniversary of the payment of a Trauma benefit.
• Buy back TPD option - TPD cover can be reinstated over three years, starting on the first anniversary of the payment of a Trauma benefit.
• Double TPD option - Death cover can be reinstated and premiums waived, following a TPD claim.
• Double trauma option - Death cover can be reinstated with premiums waived, following a Trauma claim.
• Needlestick cover option - a lump sum payment on occupationally acquired HIV, hepatitis B or C.
• Premium waiver option - pays premiums if the life insured is disabled and cannot work.
• Trauma reinstatement option - cover can be reinstated (for unrelated conditions) on the anniversary of payment of a Trauma benefit.

More information about these benefits and options, including the full terms and relevant exclusions is available in the Zurich Wealth Protection PDS. Certain terms used have special definitions set out in the PDS.

Superannuation ownership – Zurich Protection Plus

Zurich Protection Plus policies owned by a Self-Managed Superannuation Fund

When a Zurich Protection Plus policy is owned by the trustee of a Self-Managed Superannuation Fund (‘SMSF’), it is held in superannuation and considered a policy with ‘superannuation ownership’.

Protection Plus policies with SMSF ownership offer Death cover and Total and Permanent Disablement (‘TPD’) cover. Each of these covers is optional. A range of in-built benefits are included and some optional benefits can also be added.

Zurich Protection Plus policies owned by the trustee of the Zurich Insurance-only Superannuation Plan, a division of the Aon Master Trust (‘the Zurich Plan’)

When a Zurich Protection Plus policy is owned by the trustee of the Zurich Plan, it is held in superannuation and considered a policy with ‘superannuation ownership’.Once your application has been accepted you will become a member of the Zurich Plan, and have an interest in the Aon Master Trust which comprises only of insurance cover that is supported by a life insurance policy issued by Zurich Australia Limited to the Trustee, Equity Trustees Superannuation Limited. Premiums you pay for the life insurance cover are superannuation contributions.

Protection Plus policies owned by the trustee of the Zurich Plan offer Death cover and Total and Permanent Disablement (‘TPD’) cover. Each of these covers is optional. A range of in-built benefits are included and some optional benefits can also be added.

Death cover with superannuation ownership

The following benefits apply when Death cover is selected with superannuation ownership:

• Death benefit – a lump sum payment on death.
• Terminal illness benefit – an advance payment of the Deathbenefit on diagnosis of a terminal illness.
• Advancement for funeral expenses – an advance payment of $15,000 towards funeral expenses.
• Accidental injury benefit – an advance payment of part or all of the Death benefit if the life insured suffers a specified accidental injury, eg. loss of the use of a hand or foot
• Financial planning advice – reimburses up to $3,000 for financial advice following a benefit payment.

TPD cover with superannuation ownership

The following benefit applies when TPD cover is selected with superannuation ownership:

• TPD benefit
  Essential TPD (Any occupation) – a lump sum payment on the life insured’s total and permanent disablement under the ‘any occupation’ definition.

Essential TPD (Domestic Duties) – a lump sum payment on the life insured’s total and permanent disablement under the ‘domestic duties’ definition.

Essential TPD (Modified TPD)– a lump sum payment on the life insured’s total and permanent disablement under the ‘modified TPD’ definition.

• Financial planning advice – reimburses up to $3,000 for financial advice following a benefit payment.

Where TPD is fully owned under superannuation, a permanent incapacity restriction will be applied to your cover. This means that in addition to the requirements of the TPD definition you have selected, you must also meet the definition of permanent incapacity before a payment can be made.