Macquarie Sumo
SoA Insert
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Warning
The product description and sample wording below have been prepared by Macquarie Life Limited as a guide only to assist you in developing your own Statement of Advice (SOA)when advising your clients in relation to Macquarie Sumo.
This information may not be considered complete as it does not consider your clients’ personal situation, needs or objectives – it is your responsibility to consider these aspects when formulating theSOA for your clients.
Macquarie Life is not authorised to provide personal advice and accordingly has not considered any individual person’s financial situation, need or objectives. Macquarie Life is not responsible for any personal advice you provide, even if it is based on this document.
It is important to note that some product features may not be fully explained, some words or phrases have a specific meaning and rules may apply to the availability of certain features and options. For these reasons, this SOA should be used in conjunction with the terms and conditions set out in the Macquarie Sumo Product Disclosure Statement (PDS) dated 7 June 2014
Should you choose to use all or part of this template to fit with your particular SOA, this is at your discretion. The law applying toSOAs is subject to amendment and reinterpretation at any time. This document is based on information from the Macquarie Sumo PDS Statement dated 7 June 2014
Instructions
The following section provides an example of wording that can be inserted into an SOA to explain the benefits of the product and why the cover has been recommended. Fees are not included in this template and should be included in the fee disclosure section of the SOA.
The wording is provided as a guideline and advisers should seek guidance from their own compliance area to ensure all licensee and ASIC requirements have been met.
In some sections, there are several options for wording to allow advisers to tailor the advice to the client’s circumstances. Instructions for tailoring are shown in blue text and in brackets. Advisers should insert their own details or delete any sections that do not apply to the advice given, as well as delete the instructions. In some cases, advisers may need to modify or provide additional wording to suit the client’s unique circumstances.
1. About Macquarie Life 3
Macquarie Group 3
The Macquarie Group Foundation 3
2. Why Macquarie Life? 4
Why Macquarie Life Sumo? 4
Claims 4
Service 4
Sustainability 4
Macquarie Life awards 5
3. Life Insurance 6
Purpose of the cover 6
Standard benefits and features 6
Payment of benefits – non-superannuation 6
Payment of benefits – within superannuation (SMSF) 6
Limitations 6
4. TPD Insurance 7
Purpose of the cover 7
Standard benefits and features 7
Benefit structure 7
Superannuation Optimiser 7
Payment of benefits – non-superannuation 7
Payment of benefits – within superannuation (SMSF) 8
Limitations 8
5. Trauma Insurance 9
Purpose of the cover 9
Standard benefits and features 9
Benefit structure 9
Limitations 9
6. Disability Income Insurance 10
Purpose of the cover 10
Type of cover 10
Monthly benefit 10
Waiting period 10
Benefit period 10
Disability benefits 10
Standard benefits and features 11
Benefit structure 11
Limitations 11
1. About Macquarie Life
Macquarie Life is a retail life insurance provider, recognised as a market leader for service and innovation. Established as part of Macquarie Group, it has offered insurance products through Macquarie Wrap since 1999.
In 2007 Macquarie Life launched FutureWise, its first retail product giving the retail market access to its online application and full suite of comprehensive insurance products. This was soon followed by Sumo for high net worth clients, and the unique and innovative Macquarie Life Active product.
With a culture of supporting financial advice through innovation, Macquarie Life provides efficiency and choice, while delivering outstanding service. As a result, industry award recognition has been consistent across the last six years – the most recent being named in the Canstar Innovation Excellence Awards for new financial products and services (March 2013), Consumer Innovation award at the Financial Services Council (FSC) Insurance Awards (March 2013) and Association of Financial Advisers’ 2013 Client Service Team Awards: Underwriting Team of the Year, Claims Team of the Year and Business Support Services/BDM Team of the Year.
In addition, Macquarie Life has been awarded five-star status in the Beaton Benchmarks Life Insurance Intermediaries Study, for six consecutive years. This is an Australian first and makes Macquarie Life the most consistent performer in the industry over this time.
Macquarie Life Limited is a registered life insurance company and is subject to the Australian Prudential Regulation Authority (APRA) prudential framework. APRA regulations define minimum capital requirements that must be held by life insurance companies to fund future liabilities (ie claims) for the actual and projected insurance policies held. It is a legal requirement that the capital held by Macquarie Life Limited, to protect the interests of its life insurance policyholders, be held in statutory funds solely for the purpose of Macquarie Life Limited’s insurance operations.This capital cannot be used to support any other Macquarie business.
Macquarie Group
· Macquarie Group is a global financial services provider. It acts primarily as an investment intermediary for institutional, corporate and retail clients and counterparties around the world
· Macquarie has built a uniquely diversified business. It has established leading market positions as a global specialist in a wide range of sectors, including resources, agriculture and commodities, energy and infrastructure, with a deep knowledge of Asia-Pacific financial markets
· Macquarie’s diverse range of services includes corporate finance and advisory, equities research and broking, funds and asset management, foreign exchange, fixed income and commodities trading, lending and leasing and private wealth management
· Founded in 1969, Macquarie employs more than 13,900 people in 28 countries. At 31 March 2014, Macquarie had assets under management of $A382 billion
The Macquarie Group Foundation
· The Macquarie Group Foundation was formally established in 1985 and is a leading benefactor to the community sector. Since its inception, the Foundation, together with Macquarie staff, has given more than $A200 million to more than 2,500 community organisations around the world
· A key feature of the Macquarie Group Foundation’s approach is the diversity of its support. The Foundation supports programs in the areas of health, education, the arts, welfare and the environment.
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2. Why Macquarie Life?
Why Macquarie Life Sumo?
· Macquarie Life Sumo provides life insurance for high net worth clients, enabling access to high levels of cover not easily attainable elsewhere in the Australian market
· Priority service: Sumo applications are treated with high priority by the Macquarie underwriting and administration teams. You are provided with a dedicated phone number and email address for all Sumo-related queries
· Access to experts: In addition to our own in-house financial risk specialist, Macquarie Life has established relationships with experts in the field of forensic and tax accounting. If required, they can help analyse complex financial structures and make the underwriting process clearer and more efficient
· Easy application process: Macquarie arranges all medical appointments and related transportation to minimise the disruption to your busy schedule.
Claims
Macquarie Life has a strong focus on the claims experience and the services offered to policy holders. This includes:
· free counselling sessions for claimants and their immediate family members
· information packs on a number of common medical conditions
· the ability to notify claims via the web, phone, email, post or fax
· a dedicated claims assessor and claim administrator
· a tele-claims service delivered by skilled and empathetic nurses and claims assessors, reducing the need to submit ongoing paper forms for income protection claims
· the ability to fast track certain income protection claims in less than five working days using disability duration guidelines
· a personalised Claim Management Plan incorporating rehabilitation, vocational and integrative medicine specialists.
Service
Macquarie Life is the only life insurer in Australia to have been awarded a five-star status in the Beaton Benchmarks for the past six years (2008-2013), ranking first in a number of categories including Call Centre, and Administration and Communications. Beaton is an Australian research and consulting firm that provides information and market insights, lead indicators and industry trends based on a survey of Australian financial advisers.
Sustainability
· Macquarie Life develops products with a view to their long-term sustainability. This means that any upgrades that are likely to have a future impact on premiums are generally offered to you as an optional benefit for which you may apply. It also means that Macquarie Life may face less pressure in the future to increase premium rates
· Since launching FutureWise in 2007, Macquarie Life has not increased premium rates. In fact, in 2011 it was able to pass on a premium rate decrease to all Life Insurance policy holders.
Macquarie Life Awards
2013
· Beaton Benchmarks – five-star status
· Australian Banking and Finance – Insurance Call Centre of the Year
· Australian Banking and Finance – Life Insurance Company of the Year (finalist)
· Canstar – Innovation Excellence Award
· Financial Services Council – Consumer Innovation Award
· Association of Financial Planners – BDM Team of the Year (finalist)
· Association of Financial Planners – Innovation of the Year (finalist).
2012
· Beaton Benchmarks – five-star status
· Association of Financial Planners – Innovation of the Year
· Australian Banking and Finance – Innovation of the Year.
2011
· Beaton Benchmarks – five-star status
· Canstar – Innovation Excellence Award
· Asset Financial Review – Trauma Award
· Australian Banking and Finance – Marketing Campaign of the Year
· Asia Insurance Industry Awards – Innovation of the Year (finalist).
2010
· Beaton Benchmarks – five-star status
· Australian Banking and Finance – Life Product of the Year
· riskInfo – Best New Initiative.
3. Life Insurance
Purpose of the cover
· Life Insurance provides a lump sum payment should you be diagnosed with a terminal illness or die
· The funds can be used to help seek medical care while terminally ill, fund estate planning arrangements such as buy/ sell agreements between business partners, extinguish debt or provide an income stream for your family.
Standard benefits and features
In addition to payment of the sum insured on diagnosis of a terminal illness or death, Life Insurance includes:
· Indexation Increases – this feature increases your sum insured each year to ensure that it retains its value against inflation. You can choose not to take up the increase in any year
· Future Increases – this feature allows you to apply to increase your sum insured without further medical assessment when certain life events occur (eg marriage, birth of a child, etc)
· Funeral Advancement benefit – this benefit advances 10 per cent of the sum insured up to a maximum of $15,000 to cover immediate funeral expenses
· Financial Planning benefit – this benefit reimburses up to $1,000 towards the cost of engaging a financial planner to prepare a financial plan following the payment of the sum insured.
Payment of benefits – non-superannuation
· Benefits payable under a Life Insurance policy held outside superannuation will generally be paid to your nominated beneficiaries (if any) or your legal personal representative (estate) if no beneficiaries are nominated
· You are able to nominate up to five beneficiaries to receive any claim proceeds payable in the event of your death. Each beneficiary you nominate must be a person, a company, a trust or a legally recognised charity.
Payment of benefits – within superannuation (SMSF)
· In the event of your death, benefits payable under a Life Insurance policy held by a self managed superannuation fund will be paid to the trustee of the fund. The trustee must then distribute the benefits to either your legal personal representative or one or more of your dependants (as defined under superannuation law), subject to the governing rules of the superannuation fund.
Limitations
· As with most Life Insurance policies, an exclusion applies in the first 13 months to intentional self-inflicted acts
· For any amount above $15 million, a Life Insurance claim will not be payable if death or terminal illness is due to an intentional self-inflicted act at any time under the policy.
4. TPD Insurance
Purpose of the cover
· TPD Insurance provides a lump sum payment should you suffer total and permanent disablement
· The funds can be used to help extinguish debt, provide funding for buy/sell agreements between business partners, provide an income stream for you and your family, or pay for rehabilitation, home modifications or nursing care.
Standard benefits and features
In addition to payment due to total and permanent disablement, TPD Insurance includes:
· Indexation Increases – this feature increases your sum insured each year to ensure it retains its value against inflation. You can choose not to take up the increase in any year
· Future Increases – this feature allows you to apply to increase your sum insured without further medical assessment when certain life events occur (eg marriage, birth of a child, etc)
· TPD Advancement benefit – this benefit advances 25 per cent of the TPD sum insured up to a maximum of $500,000 if you suffer partial loss of limbs or partial loss of sight
· Financial Planning benefit – this benefit reimburses up to $1,000 towards the cost of engaging a financial planner to prepare a financial plan following the payment of the sum insured
· Life Insurance Buy Back – allows you to reinstate any Life Insurance sum insured 12 months after being reduced by a Standard tier TPD Insurance claim up until the cover anniversary when the insured person is 65.
Benefit structure
· Sumo provides cover for TPD in excess of limits typically available by other providers
· The TPD sum insured has two tiers of cover, with each having a number of distinct definitions applying to it