INCOME CARE, INCOME CARE PLUS AND INCOME CARE PLATINUM FOR
EXISTING CLIENTS.

The Income Care range is now closed to new business (except continuation options and replacements). Existing customers can still increase, decrease, add options and obtain replacement policies. They will also continue to receive product improvements to ensure they provide ongoing valuable, contemporary protection.

Note: Existing clients aren’t able to change indemnity Income Care Super to agreed value effective 1 April 2020.

Income Care is a valuable form of insurance that provides up to 75 per cent of income if your client is sick or injured and are permanently or temporarily unable to work. Premiums are generally tax deductible. Benefits are normally paid monthly and like income, are generally subject to tax, these products are held outside of super.

Income Care Plus offers all the protection of Income Care with an additional 11 benefits such as Home Care benefit, Death benefit and Family Support benefit.

Income Care Platinum offers all the protection of Income Care Plus with the three-tier Total Disability definition.

Product Disclosure Statement (PDS)

INCOME PROTECTION FEATURES AND BENEFITS

At a glance

Choice of Indemnity or Extended Indemnity (Agreed Value or Guaranteed Agreed Value are only available if the client already held these benefits as at 31 March 2020):
- Indemnity, the monthly benefit will be the lesser of 75 per cent of your average monthly income 12 months before the claim and the amount of your existing clients cover
- Extended indemnity, the monthly benefit will be the lesser of 75 per cent of your highest monthly income in any consecutive 12 months period in the 36 months before the claim and the amount of your existing clients cover
- Agreed Value, as long as income earned in the 12 months prior to the application date supports the insured amount, then regardless of any subsequent reduction in the life insured’s income, the benefit payable will be for the amount insured for. Clients cannot change their income protection to agreed value, they must have held this cover as at 31 March 2020
- Guaranteed Agreed Value, provided this is reflected in your client’s policy schedule, we pay the monthly benefit chosen and don’t ask your client to justify that amount when they claim. Clients cannot change their income protection to agreed value, they must have held this cover as at 31 March 2020
Choice of 14 days or 1, 2, 3, or 6 months or 1 or 2 years waiting period
Stepped premium type:
- Minimum entry age 17
- Maximum entry age 60 (or 63 for benefit period to age 70)
Level premium rate type:
- Minimum entry age 17
- Maximum entry age 54

Note: Aviation, Specialist Risk and different expiry ages have different eligibility entry age ranges, please read the PDS

Choice of cover expiry on anniversary before life insured’s:
- 60th birthday
- 65th birthday
- 70th birthday.
Choice of benefit period:
- two years
- five years
- to the cover expiry date which applies i.e. the policy anniversary before the insured's 60th, 65th or 70th birthday

Key benefits

Total Disability benefit: pays a monthly benefit if the life insured suffers a loss of income because they can’t do any work at all due to disability as defined in the PDS
Partial Disability benefit: pays a partial monthly benefit if, due to disability, the life insured can only work in a reduced capacity and suffers a reduction of income as defined in the PDS
Boosted Total Disability benefit: if the life insured is totally disabled by a serious medical condition as defined in the PDS we increase the monthly benefit by one third so it more closely reflects 100 per cent of the life insured’s income rather than just 75 per cent
Recurrent Disability benefit: allows continuation of the original claim without having to satisfy the waiting period again if the life insured suffers the same sickness or injury again
Medical Professionals benefit: pays a lump sum benefit if the life insured is a medical professional who has to stop work because of an HIV or hepatitis infection as defined in the PDS
Reward Cover benefit: after three years of holding the income protection we will provide $50,000 Accidental Death Cover. We then increase the Accidental Death Cover by $10,000 on each policy anniversary until the cover reaches $100,000
Rehabilitation benefit: pays a benefit for up to 12 months if the life insured is totally disabled and participates in an approved occupational rehabilitation program
Waiving premiums: no income protection premiums payable while a Total or Partial Disability benefit is being paid or up to six months for defined personal considerations
Involuntary Unemployment Cover benefit for CBA Group loans: pays a monthly benefit for up to three months to help the life insured cover minimum monthly repayments for a CBA Group loan where they’ve been unemployed for more than 60 consecutive days
Death benefit: pays a lump sum of the lesser of four times the monthly benefit and $75,000. Your client doesn't have to be on IP claim to obtain this benefit. This is only available under Income Care Plus and Income Care Platinum.

Download the PDS for a full list of benefits >

When is a benefit paid?

We’ll pay the Total Disability Benefit if the insured can’t do any income earning work at all for longer than their nominated waiting period
If the insured suffers a serious medical condition as defined in the PDS, we recognise that they will most likely never return to work and in these circumstances we could pay up to 100 per cent of the pre-disability income
We’ll pay the Partial Disability Benefit if the insured can only work in a reduced capacity after the waiting period has ended.

NOTE: for Income Care Platinum, the above applies even if your client can work in a reduced capacity.

CASE STUDY

Jemima is a vet, married with two children. Jemima and her husband have a significant mortgage and other expenses to pay. During 2015, Jemima's financial adviser recommended that she take out Income Care Platinum cover as part of her financial plan.

When Jemima's adviser explained that her premiums were tax deductible*, she decided to take out the recommended insurance.

Two years later, Jemima was totally disabled and met the definition in the CommInsure Protection Product Disclosure Statement (PDS). But thanks to her monthly Income Care Platinum payments, she was able to continue paying her mortgage, as well as covering her car loan repayments, her children's school fees and the cost of a house cleaner.

*CommInsure is not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and you should seek tax advice from a registered tax agent or a registered tax (financial) adviser if you intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.

The examples used are for illustrative purposes only.

Availability:Income Care, Income Care Plus and Income Care Platinum coverage continues for existing policy holders. Income Care Super’s features and benefits vary from Income Care and Income Care Plus. New income protection policies are no longer available effective from 1 April 2020. Are you wanting to know more about income protection within superannuation for existing policy holders?

Income protection in superannuation Income protection in SMSF

^{*Income Care Super’s features and benefits vary from Income Care and Income Care Plus.}

Split IP

Split IP cover allows customers to enjoy the benefits of holding cover both inside and outside the superannuation environment, providing optimal access to benefit payments. The majority of the premium is paid from super, with the balance paid from cash sources.

The cover held inside super is governed by SIS regulations, which does not allow benefits such as the unemployment benefit for CBA loans, medical professionals benefit and rehabilitation benefit to be paid. Using Split IP allows customers to access these types of benefits via the cover held outside super.

Split IP only available if the client already has this benefit as at 31 March 2020, then it can be inside: Income Care Platinum, Income Care Plus, Income Care, and Essential Cover (Accident Only).

For Financial Adviser use only

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INCOME PROTECTION FEATURES AND BENEFITS

CASE STUDY