Why do I need life insurance?

It's not something most of us like to think about, but would your family be able to cope financially if something were to happen to you? Do you have enough saved to pay the mortgage and the kids' school fees?

If you're like most Australians the answer will be 'no'. Even though there's a good chance most of us will need it at some point.

With the SMSF Master Insurance Plan you can have peace of mind knowing your family will be looked after. And that's the most important thing in the world.

What types of life insurance cover do you offer?

The SMSF Master Insurance Plan offers:

• Death cover which can provide your dependants with a lump sum benefit if you die or are diagnosed with a terminal illness
• Total and Permanent Disablement (TPD) cover which can provide you or your dependants with a lump sum benefit if you are sick or injured to the extent where you are not expected to ever work again
• Income Protection cover which can provide you with an ongoing monthly income in the event that you become totally or partially disabled (either temporarily or permanently) and are unable to work due to sickness or injury

How much cover do I need?

Finding the right level of cover is going to be different for everyone. It depends on your age, how much you want to pay in premiums and the ongoing needs of your family and loved ones. The online Insurance Needs Calculator is a simple way to assess how much insurance you may require. Note the tool does not take all of your needs into account and does not constitute financial advice and you should consider obtaining advice from a licensed financial adviser prior to making any decision.

Can I transfer existing cover from another fund or insurer?

You can transfer existing insurance cover of up to $2 million Death and TPD and $20,000 per month Income Protection from a superannuation fund or retail insurer. You will receive the same level of cover subject to the underwriting terms of the former insurer.

What are the factors that affect my premiums?

Premiums are calculated based on the following:

• Your age.
• Your gender.
• Your occupation category.
• Whether you are a smoker.
• The type and amount of cover you apply for.
• For Income Protection, the Waiting Period and Benefit Period you require.
• Any special factors that AIA Australia may apply upon underwriting your application.

Am I covered immediately?

With the SMSF Master Insurance Plan, your cover will start on the date your application is accepted. While your application for insurance cover is being assessed, you will be provided with interim accidental Death, Total and Permanent Disablement (TPD) and Income Protection (IP) cover. This interim accidental cover will apply at the increased level of cover being sought, to a maximum of $1.5 million for Death or TPD and/or $15,000 per month for IP and will continue until the earlier of:

• the date your application is either accepted or declined;
• you cancelling or withdrawing this application;
• 90 days from the date AIA Australia receives your application; and
• the date your cover would have otherwise ceased under the Policy.

A benefit will be paid in the event of Accidental Injury resulting in your death or disability. Accidental Injury shall mean a physical injury which occurs whilst your cover under the Policy is in force that is caused solely and directly by violent, visible, external and unexpected means that is not traceable, even indirectly, to any pre-existing mental or physical condition

No benefit will be payable if, during the interim accidental cover period, death, or disability is caused directly or indirectly by:

• you engaging in any sport or pastime that we would not normally cover at standard rates or terms; or
• other excluded events under the Policy.

Can I increase or decrease my cover?

You can increase or decrease your cover at any time subject to the underwriting of your application for increased cover. For one of the following Life Stage events, you can also apply for an increase to your Death and/or TPD cover without the usual requirement of providing health evidence:

Do I need a medical check-up or blood test to be accepted?

Depending on your age and amount of cover you apply for, medical exams and blood tests may be required. As one of the country's leading life insurers, AIA Australia stays at the forefront in minimizing medical underwriting requirements to make it easier to apply for cover.

Am I covered if I go overseas?

Yes. You are covered 24/7 anywhere in the world. In the event of a claim, you may be required to return to Australia (at your own expense) during the claims assessment process.

Note that insurance cover is subject to continuing remittance of insurance premiums whilst overseas.

Can other members of my SMSF apply for insurance with the SMSF Master Insurance Plan as well?

Yes, anyone eligible can apply.

Can I apply on behalf of other members of my SMSF?

No, each member is required to complete an application on their own behalf.

Can other members of my SMSF and I have different levels of cover?

Yes, each member's cover under the Policy is separate.

Are there eligibility requirements for taking out a policy?

To be eligible for the SMSF Master Insurance Plan, you must be between the ages of 15 and 64 on your most recent birthday and be:

• an Australian citizen;
• a permanent Australian resident; or
• a 457, 422 or 418 visa holder.

Will my premium change?

Your premium will increase each year in line with your age. Your premium will also change in accordance with any changes you may make to your cover.

How do I pay my premiums?

For cover held within your SMSF, payment will be direct debited from your SMSF bank account.
For non-superannuation cover, you have the option of making payment either by credit card or direct debit.
For both types of cover, you have a choice of paying annually with a 3% discount or monthly in advance.

What if I have a change of heart?

For whatever reason, you might change your mind. That's why there is a 28-day cooling off period, where you can cancel your cover under the Policy and receive a full refund. You just need to send a written request along with your Policy Insurance Certificate. The cooling-off period starts from the date the Policy Insurance Certificate is emailed to you.

There's just one exception: the cooling-off period automatically ends if you make use of your cover under the Policy. For example, if you make a claim.

Can I cancel my cover?

Yes, you can cancel your cover under the Policy at any time. Simply send your request to AGI in writing and your premiums will cease on the later day of either the date nominated in your request or the date AGI receives your request for cancellation. Annual premium paid in advance will be refunded to you on a pro-rata basis. No refund is applicable for premiums paid on a monthly basis.

How do I make a claim?

You must advise us in writing within a reasonable period of time of an event that is likely to give rise to a claim. Once notified of a claim, we will provide you with claim forms which must be completed and returned together with any other information or documentation we may require. This may include relevant health certificates, Medical Practitioners' reports, Employer reports and any other related evidence to the claim.

What happens if I don't pay my premiums?

It's really important to remember to keep your premiums up-to-date. If you don't pay your premiums within 60 days of the due date, your cover under the Policy will lapse and you won't be covered.

What do I do if my personal information changes, for example if I move house?

If you change your address or if there's any other change which may require an alteration to your cover under the Policy, simply email smsf@agigroup.com.au.