HOSTPLUS Executive Member Guide

To provide you with high-value protection 24 hours a day, seven days a week, HOSTPLUS Executive offers different types of Death and Total & Permanent Disability (TPD) Insurance Cover to choose from, as well as Salary Continuance Insurance Cover. There’s even an offer to automatically increase your cover due to a specific life event.

Some employers have made special insurance arrangements with HOSTPLUS Executive on behalf of their employees. If this is the case, you will be advised of these arrangements by your employer and/or in your welcome letter.

If your employer hasn’t made insurance arrangements or you have opted out of your employer’s insurance arrangement with HOSTPLUS Executive, you will generally receive default cover as described in Option 1: Default Death and TPD Insurance Cover arrangements.

Your insurance premiums are used to cover the cost of the insurance policy as well as the cost of its administration.

HOSTPLUS Executive gives your employer the option to really add value to your total benefits package by allowing them to fund all or part of your Death & TPD Insurance Cover, Death Only Insurance Cover and/or Salary Continuance Insurance Cover. If your employer chose this option, full details of your insurance arrangement will be included with your welcome kit. Please note that under this arrangement premiums are still deducted from your account and reimbursed to you by your employer as an additional super contribution. However, if your employer fails to pay your premiums, we will still continue to deduct premiums from your super account to ensure you are covered for the unexpected. Please be aware that this additional contribution is counted towards your concessional caps and tax rate.

As a new member of HOSTPLUS Executive and if your employer hasn’t made a special insurance arrangement with HOSTPLUS Executive, or you have opted out of your employer’s specific insurance arrangement, you have the opportunity to:

• Increase your unitised Death and Total & Permanent Disability cover by an additional one or two units; or
• Apply for fixed benefit Death and Total & Permanent Disability cover of up to $500,000 to replace your unitised cover; and
• Apply for Salary Continuance insurance cover (as described in Salary Continuance Insurance Cover) for up to $4,000 per month with a benefit period of up to two years.

This special offer is available to you as a one-off opportunity when you first complete your Membership application form available at www.hostplusexecutive.com.au to join the fund and if you do not have an employer arrangement or have opted out of your employer’s arrangement. 

It is available to you if you elect this option on your Membership application form, and return the forms within 6 months from the effective date of the first on time SG contribution or within 60 days from the day you receive your HOSTPLUS Executive welcome letter, whichever is the later. This offer is only available to new members joining HOSTPLUS Executive, who don’t have any current or existing memberships with HOSTPLUS.

To help ensure your Death and TPD Cover keeps up whenever you take a big step forward – like buying a new home or starting a family, you have the opportunity to take advantage of our life events feature.

This feature allows you to increase your unitised cover by one additional unit or under fixed benefit cover, by 25% of your current sum insured up to a maximum of $200,000, without the need to supply medical information.

To obtain the additional cover under this feature, you must apply within 6 months of:

• getting married;
• the birth or adoption of a child/children;
• buying a house (your principle place of residence only);
• taking out a mortgage or negotiating an increase to your existing mortgage (principle place of residence);
• taking out a business loan in excess of $100,000;
• increasing an existing business loan, by at least $100,000 (excluding re-draw and refinancing).

You will need to provide proof that the event has occurred. If you have Death Only cover, the increase will be for Death Only cover. If you have Death and TPD cover, the increase will apply to both types of cover. 

You can take up one life events cover increase every 12 months, to a maximum of three increases in total in a lifetime of your membership.

If you have been previously declined in your application for insurance by the insurer you will not be eligible for Specific life events cover.

Use the Specific life events insurance application form available at www.hostplusexecutive.com.au to apply for this type of insurance cover.

Death (includes Terminal Illness Cover) and TPD Insurance Cover Cover in the event of your death, or if you are suffering from a total and permanent disability or a terminal illness.
Option	Best suited if you want	How it works
1. Default cover	Automatic arrangements.	Generally all members are automatically provided with one unit (aged 11 – 24) or two units (aged 25 – 64) of Death (includes Terminal Illness Cover) and Total & Permanent Disability Cover depending on the member’s age and unless their employer has made other arrangements on their behalf. See Option 1: Default Death and TPD Insurance Cover arrangements.
2. Salary-Linked Cover	Cover linked to salary.	Your employer can choose to offer this option which calculates cover using factors including benefit multiple and salary. See Option 2: Salary-Linked Death and TPD Cover.
3. Fixed Benefit Cover	Stability of insurance benefits payable.	You or your employer can choose a dollar amount of cover. Each year the premium is adjusted to maintain cover at the nominated level. See Option 3: Fixed Benefit Death and TPD Cover.
4. Unitised Cover (also known as Fixed Cost Cover)	Stability of insurance costs charged.	You or your employer can choose cover that is calculated based on the number of units chosen. The value of each unit is linked to a member’s age and reduces with each passing year. See Option 4: Unitised Death and TPD Cover (also known as Fixed Cost Cover).
Death Only Insurance Cover (includes Terminal Illness Cover) Cover in the event of your death or ‘terminal illness’.
Option	Best suited if you want	How it works
5. Salary-Linked Cover	Cover linked to salary.	Your employer can choose to offer this option which calculates cover using factors including benefit multiple and salary. See Option 5: Salary-Linked Death Only Cover.
6. Fixed Benefit Cover	Stability of insurance benefits payable.	You or your employer can choose a dollar amount of cover. Each year the premium is adjusted to maintain cover at the nominated level. See Option 6: Fixed Benefit Death Only Cover.
7. Unitised Cover (also known as Fixed Cost Cover)	Stability of insurance costs payable.	You or your employer can choose cover that is calculated based on the number of units chosen. The value of each unit is linked to a member’s age and reduces with each passing year. See Option 7: Unitised Death Only Cover (also known as Fixed Cost Cover).
Salary Continuance Insurance Cover A monthly benefit for when you’re temporarily unable to work due to illness or injury.
Option	Best suited if you want	How it works
8. Salary-Linked Cover	Uniform cover for groups.	Your employer can choose this option to provide default cover based on a percentage of your salary when you join. See Option 8: Salary-Linked Cover.
9. Fixed Benefit Cover	Stability of insurance benefits payable.	You choose a dollar amount of cover and a benefit waiting period. Each year the premium is adjusted to maintain your chosen cover. See Option 9: Fixed Benefit Cover.

Note: In some circumstances you may only be eligible for New Events TPD cover. See New Events TPD cover.

The type of insurance cover available to you depends on what type of arrangements your employer has made with HOSTPLUS Executive.

If your employer has elected HOSTPLUS Executive as its default fund and your employer is making contributions into HOSTPLUS Executive for 75% or more of its employees, then HOSTPLUS Executive offers you different insurance options. You will receive the cover up to the amount determined by your employer (and agreed to by the insurer) under these options without having to show evidence of health, subject to the amount of cover being less than the applicable Automatic Acceptance Level (AAL). If your employer has elected options 2 through to 9 you will be advised in your Welcome kit and you will also be advised of the applicable AAL.

If the amount of cover elected by your employer is above the applicable AAL, you will receive the cover up to the AAL and you will need to apply for the amount of cover in excess of the AAL. While the insurer is assessing your application for the additional cover you will receive interim cover (see What is Interim Accident Cover?).

For example:

The applicable AAL is $100,000 and your employer has elected fixed cover valued at $150,000. You will automatically receive the $100,000 but you will need to apply for the $50,000 over the AAL.

Any additional cover is subject to the insurer’s written acceptance.

The AAL will only apply if:

• you do not have any other insurance arrangements with HOSTPLUS or HOSTPLUS Executive;
• no benefit is paid or is payable under those arrangements; and
• you were at work on:
• the date detailed on your employer’s participation certificate as the applicable establishment date; and
• the first day you satisfied the eligibility criteria.

If your employer has agreed to participate in HOSTPLUS Executive, but HOSTPLUS Executive is not the default fund or your employer does not make contributions into HOSTPLUS Executive for 75% of its employees or more, you automatically receive option 1. However, if your employer elects options 2–9, you will be able to receive the amount of this cover subject to the insurer’s written approval and you completing a health questionnaire and if necessary providing further medical disclosure.

In certain circumstances HOSTPLUS Executive may offer to match a member’s existing insurance arrangement. If such offer is made, you will be notified in writing and you will need to comply with the requirements set out in the notification.

When your membership in HOSTPLUS Executive commences and you are:

• away from work due to an injury or illness; or
• at work in a reduced capacity; or
• in receipt of and/or entitled to income support benefits from any source including workers compensation benefits, statutory transport accident benefits and disability insurance benefit

you will be provided with Death cover at the default level and New Events TPD.

New Events TPD Insurance Cover, covers you for Total & Permanent Disability caused by an illness which became apparent to you or an injury that occurred to you on or after the date your insurance cover in HOSTPLUS Executive commenced.

This New Events cover will be replaced with full TPD Insurance Cover when you resume your normal duties with your employer, subject to you not having received or being entitled to receive a TPD benefit from any other source.

Members transferring their super account from HOSTPLUS to HOSTPLUS Executive should understand that insurance cover under HOSTPLUS will cease and the HOSTPLUS Executive arrangements will apply. However, if the HOSTPLUS insurance is of a higher value than the insurance negotiated by their employer under the HOSTPLUS Executive arrangement, then this higher insurance value will be transferred to the member’s new HOSTPLUS Executive account.

If you have insurance cover through another superannuation fund you may be able to transfer up to $1 million in Death and TPD insurance cover into HOSTPLUS Executive provided that:

• your insurance cover held in your other fund is still in force;
• you transfer your superannuation account balance to HOSTPLUS Executive;
• any loadings, restrictions and exclusions which apply on your policy with the other fund will also apply to your transferred cover; and
• you cancel the insurance held in your other fund once the transfer to HOSTPLUS Executive has occurred.

To apply to transfer your existing cover to HOSTPLUS Executive, please complete the Insurance transfer form available at www.hostplusexecutive.com.au. You will be advised of your acceptance.

Please note that any insurance cover transferred over to HOSTPLUS Executive will be in addition to any insurance cover already held in respect of you under HOSTPLUS Executive.

If more than one account is opened for you in HOSTPLUS Executive, or you have joined another division of HOSTPLUS, you are eligible for insurance cover in only one account (usually you will retain the highest level of insurance cover in the respective account, unless you tell us otherwise).

Insurance premiums will be refunded for the account with the cancelled insurance cover. Please note that if you are an existing member and have a duplicate account or have joined another division of HOSTPLUS you are not entitled to the Special offer to increase your cover – for new members.

If you or your beneficiaries need to lodge an insurance claim with HOSTPLUS Executive please call us on 1300 799 998. We will assist you with your claims enquiry and documentation required.

Our Death and TPD Insurance Cover provides financial peace of mind in the event of an unexpected ‘injury’ or sickness, including ‘terminal illness’. To obtain any insurance:

• your employer must join HOSTPLUS Executive;
• you must be a member of HOSTPLUS Executive;
• you must meet the eligibility criteria (see eligibility criteria below).

You are eligible for Death and TPD insurance cover if you are:

• a member of HOSTPLUS Executive;
• aged between 11 and 64;
• an Australian citizen; or
• a person who is a permanent resident, within the meaning of the Migration Act 1958(Cth); or
• a lawful non-citizen, within the meaning of the Migration Act 1958(Cth) for whom the employer is required to make on-time contributions; and
• not an Excluded Member.

An Excluded Member is a member who satisfies one or more of the following:

• has declined, or elected not to be covered for benefits provided under any Group Life policy issued to the Trustee of HOSTPLUS;
• a member who is eligible to receive, or, has received, a lump sum benefit for total and permanent disability from any source;
• a Member who has attained the age of 65.

Default Death and TPD Insurance Cover based on the Standard scale is automatically available to you if:

• you satisfy the eligibility criteria;
• you are ‘at work’ when joining HOSTPLUS Executive*;
• your employer makes an on-time SG contribution no more than 3 months after the SG cut off date on your behalf; and
• your employer has not made other default insurance arrangements.

If you satisfy the first three items above and your employer has made other arrangements for you (as detailed in your welcome letter) you will generally receive those arrangements and not the default cover.

The automatic default insurance is as follows:

• if you’re aged under 25, you’ll automatically receive one unit of Death and TPD Insurance Cover based on the Standard scale (at $1.50 per week);
• if you’re aged between 25 and 64, you’ll automatically receive two units of Death and TPD Insurance Cover based on the Standard scale (at $3 per week).

Age next birthday	Standard scale sum insured 1 unit	Age next birthday	Standard scale sum insured 1 unit
Up to 25	$112,346	46	$54,724
26	$113,090	47	$47,321
27	$113,090	48	$40,387
28	$113,090	49	$35,922
29	$113,090	50	$28,874
30	$113,090	51	$25,453
31	$113,090	52	$23,495
32	$113,090	53	$21,537
33	$113,090	54	$17,622
34	$113,090	55	$15,664
35	$113,090	56	$13,948
36	$113,090	57	$11,955
37	$114,578	58	$9,962
38	$114,578	59	$8,967
39	$115,322	60	$7,971
40	$116,066	61	$7,096
41	$107,848	62	$6,690
42	$96,914	63	$6,082
43	$84,949	64	$5,676
44	$74,935	65	$5,068
45	$62,250

No cover is available for members aged over 65.

If you satisfy the definition of ‘White Collar employee’ and you indicate this on your Membership application form available at www.hostplusexecutive.com.au you may receive default cover under the ‘Management/Clerical (white collar) employee scale’ which may mean you receive significantly higher cover for the same cost. See Death and TPD, Death Only and Salary Continuance Insurance Cover – definitions for the definition of ‘White Collar employee’.

You can also apply for the Management/Clerical (white collar) scale anytime by downloading the Insurance upgrade to Management/Clerical (white collar) scale form available at www.hostplusexecutive.com.au

* If you are not ‘at work’ you will receive Death and TPD New Events cover only (see What happens if I’m not at work when my HOSTPLUS Executive insurance arrangements start?).

Example of a member under age 25

Michael is 22 years old and a waiter at a hotel. His employer has made no insurance arrangements for him. Michael is under age 25 and is eligible for one unit of default cover. Looking at the Default Death and TPD Insurance benefits based on the Standard scale per unit table, one unit of cover for a 23 year old (age next birthday) is $112,346 under the Standard scale, at $78 per annum.

Example for a member aged 25 and above

Michelle is 48 years old and the manager at a five-star restaurant. Her employer has made no insurance arrangements for her. Michelle is over age 25, is eligible for two units of default cover and has applied for cover under the Management/Clerical (white collar) employee scale. Looking at the Death and TPD and Death Only benefits based on the Management/Clerical (white collar) employee scale per unit table, one unit of cover for a 49 year old (age next birthday) is $53,883 under the White Collar employee scale, but Michelle receives two units of cover, so her insured benefit is $107,766 at $156 per annum.

Under Salary-Linked Death and TPD Cover, your employer can choose for you to have cover that’s linked to your salary.

Benefits are calculated as a multiple of your salary. Generally, if your salary grows over time, so too does your level of cover, as does the corresponding cost of insurance. However, if your salary decreases, so will your insurance cover.

Each year your cover may change depending on your employer providing details of your salary. Premiums will be deducted accordingly.

If a benefit is calculated using your salary while you are under an employer’s arrangement, we are reliant upon the employer’s notification of any salary changes. Where we are not notified of a change in salary and no additional premium is paid, and in the event of a claim we may pay a lower benefit based on the salary that was previously advised or salary at the last review date.

Once you reach age 60, non-unitised TPD cover decreases by 20% each year tapering down until your cover reaches $0 at age 65. Death cover remains the same, until it ceases at age 65.

If your employer has chosen this option, the specific arrangements will be outlined in writing. If you don’t have a copy of this, call HOSTPLUS Executive on 1300 799 998, tell us the name of your employer and we will send you full details.

The formula that’s generally used for Salary-Linked Death and TPD Cover is:

Benefit multiple (usually expressed as a % or factor) x salary = insured benefit

Future service to a certain age (often age 65) is also sometimes included in the benefit calculation.

Travis’ employer has nominated a benefit multiple of five times his salary. Travis is 34 years old and earns $100,000. Therefore his Salary-Linked Death and TPD Cover would be $500,000, that is:

5 (the benefit multiple) x $100,000 (annual salary) = $500,000 (insured benefit)

The cost of Travis’ cover is then calculated the same way as Fixed Benefit Death and TPD Cover. See Example: Fixed Benefit Death and TPD Insurance Cover in action to see how this is worked out.

Fixed Benefit Death and TPD Cover allows you or your employer to choose the dollar amount of insurance. This amount of cover is fixed, but as each year passes, the premium is adjusted to maintain the fixed level of cover.

Once a member reaches age 60, non-unitised TPD cover decreases by 20% each year tapering down until your cover reaches $0 at age 65. Death cover remains the same, until it ceases at age 65.

Only under fixed benefit cover (Option 3) you can have different amounts of Death and TPD cover. But you cannot have TPD cover by itself or for an amount which exceeds your Death cover.

Use the Annual premium per $1,000 of insured amount for Death and TPD Insurance Cover and the Annual premium per $1,000 of insured amount for Death Only Insurance Cover tables to calculate your premiums for different levels of Death and TPD and Death Only cover.

You can use this table to calculate your premiums for Death and TPD Cover. See Having different levels of Death and TPD cover.

Age next birthday	Male White Collar employee	Female White Collar employee
	Death & TPD	Death & TPD
16	0.71	0.30
17	0.71	0.30
18	0.71	0.30
19	0.71	0.30
20	0.71	0.30
21	0.69	0.29
22	0.67	0.28
23	0.64	0.27
24	0.62	0.26
25	0.60	0.25
26	0.57	0.24
27	0.56	0.24
28	0.55	0.24
29	0.55	0.25
30	0.56	0.26
31	0.57	0.28
32	0.58	0.31
33	0.60	0.34
34	0.63	0.38
35	0.66	0.43
36	0.69	0.48
37	0.73	0.54
38	0.78	0.61
39	0.84	0.69
40	0.92	0.78
41	1.03	0.89
42	1.14	1.01
43	1.29	1.12
44	1.45	1.23
45	1.64	1.33
46	1.83	1.45
47	2.04	1.58
48	2.28	1.77
49	2.54	1.98
50	2.84	2.24
51	3.18	2.53
52	3.53	2.86
53	3.94	3.20
54	4.38	3.55
55	4.82	3.89
56	5.27	4.23
57	5.79	4.59
58	6.39	4.95
59	7.09	5.33
60	7.87	5.74
61	8.74	6.19
62	9.67	6.74
63	10.67	7.42
64	11.74	8.25
65	12.91	9.18

Occupation Class	Death Only Premium Multiple	Death and TPD Premium Multiple
White collar	1.00	1.00
Light blue collar	1.30	1.55
Heavy blue collar	1.70	2.66

You must apply for cover in $1,000 increments. No cover is available for members aged over 65 years.

To calculate the cost of insurance under the Light blue or Heavy blue collar employee scale, multiply by the premium multiple. Under fixed benefit cover you can have different amounts of Death and TPD cover. But you cannot have TPD cover by itself or for an amount which exceeds your Death cover. See the Annual premium per $1,000 of insured amount for Death Only Insurance Cover table for the Death Only fixed benefit scales.

For definitions of White Collar, Light blue and Heavy blue collar employee, please refer to Death and TPD, Death Only and Salary Continuance Insurance Cover – definitions.

Lauren is 43 years old and head chef of a hotel’s five star restaurant, so her insurance is calculated under the Light blue collar employee scale. Looking at the Death and TPD benefits table above, each $1,000 of cover for a female turning 44 years old next birthday costs $1.23 a year under the White Collar employee scale. However, as Lauren’s cover is calculated using the Light blue collar employee scale, a loading needs to be applied.

$1.23 (White Collar employee cost per $1,000 of cover) x 1.55 (Light blue collar employee loading) = $1.91 (Light blue collar employee cost per $1,000 of cover)

Lauren wants $380,000 in cover. So if $1,000 of cover costs $1.91 a year, her full cover will cost $725.80 a year or around $14 per week, calculated as follows.

($380,000 [total cover] ÷ $1,000) x $1.91 (cost per $1,000 of cover) = $725.80 (total cost per year)

$725.80 (total cost per year) ÷ 52 weeks = $13.96 (total cost per week)

As each year passes, this cost will be adjusted to maintain $380,000 of cover. For example, following the same process as above, in 2011 Lauren’s cover will cost $782.80 a year or $15.05 a week, and in 2012 this will increase to $855.00 or $16.44 a week.

You can use this table to calculate your premiums for Death Only Cover. See Having different levels of Death and TPD cover.

Age next birthday	Male White Collar employee	Female White Collar employee
	Death Only	Death Only
16	0.60	0.25
17	0.60	0.25
18	0.60	0.25
19	0.60	0.25
20	0.60	0.25
21	0.58	0.23
22	0.54	0.22
23	0.51	0.21
24	0.47	0.19
25	0.44	0.18
26	0.41	0.17
27	0.39	0.16
28	0.37	0.15
29	0.36	0.15
30	0.36	0.15
31	0.36	0.16
32	0.36	0.16
33	0.36	0.18
34	0.36	0.19
35	0.37	0.21
36	0.37	0.23
37	0.38	0.25
38	0.40	0.27
39	0.42	0.29
40	0.45	0.32
41	0.49	0.35
42	0.53	0.37
43	0.58	0.40
44	0.63	0.42
45	0.69	0.44
46	0.75	0.45
47	0.81	0.47
48	0.87	0.50
49	0.95	0.54
50	1.03	0.58
51	1.11	0.63
52	1.20	0.70
53	1.29	0.77
54	1.39	0.84
55	1.50	0.91
56	1.60	0.99
57	1.74	1.08
58	1.88	1.15
59	2.04	1.25
60	2.23	1.34
61	2.43	1.45
62	2.63	1.57
63	2.84	1.74
64	3.06	1.93
65	3.28	2.14

Under this option, the level of cover is chosen by nominating a number of units, where each unit is linked to a dollar value that’s based on your age at your next birthday. Only whole units can be purchased. Each unit of insurance costs $1.50 per week.

The insured benefit is simply worked out by multiplying the number of units with their corresponding age-based value. With each passing year, the insured amount will decrease but the cost of cover will remain the same.

Members with current unitised cover can switch to Fixed Benefit cover with no underwriting. You cannot have a combination of unitised cover and fixed benefit cover.

Upon switching, the insured amount will be rounded up to the next highest $1,000 value.

If you or your employer have chosen this option, you may take advantage of the Special offer to increase your cover - for new members.

Age next birthday	Management/Clerical (white collar) employee	Age next birthday	Management/Clerical (white collar) employee
Up to 25	$184,173	46	$82,086
26	$185,394	47	$70,982
27	$185,394	48	$60,582
28	$185,394	49	$53,883
29	$185,394	50	$43,311
30	$185,394	51	$38,180
31	$183,539	52	$35,242
32	$181,685	53	$32,305
33	$179,832	54	$26,432
34	$177,978	55	$23,495
35	$176,123	56	$20,922
36	$174,270	57	$17,933
37	$175,624	58	$15,940
38	$174,684	59	$14,946
39	$174,873	60	$12,952
40	$174,098	61	$12,164
41	$161,773	62	$11,150
42	$145,371	63	$10,136
43	$127,423	64	$9,124
44	$112,403	65	$8,110
45	$93,374

No cover is available for members aged over 65 years. For the definition of Management/Clerical (white collar) employee, see Death and TPD, Death Only and Salary Continuance Insurance Cover – definitions.

For the benefits per unit for Standard or ‘default’ cover see the Default Death and TPD Insurance benefits based on the Standard scale per unit table.

Tim works in human resources for a catering company, so his insurance is calculated under the Management/Clerical (white collar) employee scale. Looking at the table above, one unit for a 38-year-old (age next birthday 39) provides an insured benefit of $174,873. He wants Death and TPD Cover of $450,000, therefore:

$450,000 (cover sought) ÷ $174,823 (value of one unit for a 38-year-old) = 2.57 (units)

As only whole units can be purchased, Tim rounds this up to three units to achieve his insurance cover goal. This means he will have $524,619 of cover at a cost of $4.50 per week, which is deducted from his superannuation account each week. As each year passes, Tim’s cover will reduce but his premium will remain at $4.50 per week.

Death Only Insurance Cover provides you with an insured benefit, payable to your dependants or legal personal representative(s) in the event of your death or terminal illness. This benefit is paid in addition to your HOSTPLUS Executive account balance. A member must fall into either the ‘White Collar’, ‘Light blue collar’ or ‘Heavy blue collar’ employee definitions to be eligible for this cover. See Death and TPD, Death Only and Salary Continuance Insurance Cover – definitions.

Under Salary-Linked Death Only Cover, your employer can choose to have cover that’s linked to your salary. As with Death and TPD Cover, benefits are calculated as a multiple of your salary so, generally, as your salary grows over time, your level of cover and the corresponding cost of insurance do too. However, if your salary decreases so will your cover.

Each year your cover may change depending on your employer providing details of your salary. Premiums will be deducted accordingly.

If a benefit is calculated using your salary while you are under an employer’s arrangement, we are reliant upon the employer’s notification of any salary changes. Where we are not notified of a change in salary and no additional premium is paid, and in the event of a claim we may pay a lower benefit based on the salary that was previously advised or salary at the last review date.

If your employer has chosen this option, the specific arrangements may be outlined in the insurance fact sheet for your employer. If you don’t have a copy of this, call HOSTPLUS Executive on 1300 799 998, tell us the name of your employer and we will send you full details.

The formula generally used for Salary-Linked Death Only Cover is:

Benefit multiple (usually expressed as a % or factor) x salary = insured benefit

Future service to a certain age (often age 65) is also sometimes included in the benefit calculation.

Fixed Benefit Death Only Cover allows you to choose the dollar amount of insurance you want. This amount of cover is fixed, but as each year passes, the premium is adjusted to maintain the fixed level of cover.

Age next birthday	Male White Collar employee	Female White Collar employee
	Death Only	Death Only
16	0.60	0.25
17	0.60	0.25
18	0.60	0.25
19	0.60	0.25
20	0.60	0.25
21	0.58	0.23
22	0.54	0.22
23	0.51	0.21
24	0.47	0.19
25	0.44	0.18
26	0.41	0.17
27	0.39	0.16
28	0.37	0.15
29	0.36	0.15
30	0.36	0.15
31	0.36	0.16
32	0.36	0.16
33	0.36	0.18
34	0.36	0.19
35	0.37	0.21
36	0.37	0.23
37	0.38	0.25
38	0.40	0.27
39	0.42	0.29
40	0.45	0.32
41	0.49	0.35
42	0.53	0.37
43	0.58	0.40
44	0.63	0.42
45	0.69	0.44
46	0.75	0.45
47	0.81	0.47
48	0.87	0.50
49	0.95	0.54
50	1.03	0.58
51	1.11	0.63
52	1.20	0.70
53	1.29	0.77
54	1.39	0.84
55	1.50	0.91
56	1.60	0.99
57	1.74	1.08
58	1.88	1.15
59	2.04	1.25
60	2.23	1.34
61	2.43	1.45
62	2.63	1.57
63	2.84	1.74
64	3.06	1.93
65	3.28	2.14

Occupation Class	Death Only Premium Multiple	Death and TPD Premium Multiple
White collar	1.00	1.00
Light blue collar	1.30	1.55
Heavy blue collar	1.70	2.66

You must apply for cover in $1,000 increments. No cover is available for members aged over 65 years.

To calculate the cost of insurance under the Light blue or Heavy blue collar employee scale, multiply by the premium multiple.

For definitions of White Collar, Light blue or Heavy blue collar employee, please refer to Death and TPD, Death Only and Salary Continuance Insurance Cover – definitions.

Tony is a 38-year-old function supervisor of a resort function centre. As such his insurance is calculated under the Light blue collar employee scale. Looking at the Annual premium per $1,000 of insured amount for Death Only Insurance Cover table, each $1,000 of cover for a male turning 39 years old next birthday costs $0.42 a year under the White Collar employee scale. However, as Tony’s cover is calculated using the Light blue collar employee scale, a loading needs to be applied.

$0.42 (White Collar employee cost per $1,000 of cover) x 1.30 (Light blue collar employee loading) = $0.55 (Light blue collar employee cost per $1,000 of cover)

Tony wants $250,000 in cover. So if $1,000 of cover costs $0.55 a year, his full cover will cost $137.50 a year or around $2.64 per week, calculated as follows.

($250,000 [total cover] ÷ $1,000) x $0.55 (cost per $1,000 of cover) = $137.50 (total cost per year)

$137.50 (total cost per year) ÷ 52 weeks = $2.64 (total cost per week)

As each year passes, this cost will be adjusted to maintain $250,000 of cover. For example, following the same process as above, in 2011 Tony’s cover will cost $145 a year or $2.79 a week, and in 2012 this will increase to $160 or $3.08 a week.

Under this option, the level of cover is chosen by nominating a number of units, where each unit is linked to a dollar value that’s based on your age at your next birthday. Only whole units can be purchased.

The insured benefit is simply worked out by multiplying the number of units with their corresponding age-based value. With each passing year, the insured amount will decrease but the cost of cover will remain the same.

We’ve been able to negotiate a very competitive level of insurance. Each unit of Death Only insurance costs $0.75 per week and cover can be provided under the Management/Clerical (white collar) employee scale and receive significantly higher cover for the same cost as a Standard scale employee. See Default Death and TPD Insurance benefits based on the Standard scale per unit for the Standard (default) scale and see the Death and TPD and Death Only benefits based on the Management/Clerical (white collar) employee scale per unit for the Management/Clerical (white collar) employee scale.

You can switch from unitised cover to fixed benefit cover at any time, as long as you are less than 60 years of age. But you cannot hold a combination of unitised and fixed benefit cover.

Upon switching, the insured amount will be rounded up to the next highest $1,000 value. Members wishing to switch back to Fixed Cost cover will be required to complete an Increase your insurance cover application - Part A and Part B (if applicable).

Your insurance premiums are used to cover the cost of the insurance policy as well as the cost of its administration.

Sally is a sponsorship manager for a rugby union club. As such her insurance is calculated under the Management/Clerical (white collar) employee scale. Looking at the Death and TPD and Death Only benefits based on the Management/Clerical (white collar) employee scale per unit table, one unit for a 32 year old (33 next birthday) provides an insured benefit of $179,832. She wants Death Only cover of $500,000, therefore:

$500,000 (cover sought) ÷ $179,832 (value of one unit for a 32-year-old) = 2.78 (units)

As only whole units can be purchased, Sally rounds this up to three units to achieve her insurance cover goal. This means she will have $539,496 of cover at a cost of $2.25 per week, which is deducted from her superannuation account each week.

As each year passes, Sally’s cover will reduce but her premium will remain at $2.25 per week.

A person must be a dependant on the date of your death to be considered a beneficiary. In the event of your death, the recipient(s) of your death benefit will be determined according to whether you have nominated your beneficiaries as ‘binding’ or ‘non-binding’. Regardless of which of the two options you choose a death benefit can only be paid to a member’s dependant See Section 2: How super works - Death benefit nominations at www.hostplusexecutive.com.au

Generally the automatic insurance cover (or an employer-specific arrangement) will start on the date you join HOSTPLUS Executive, provided you were ‘at work’ on that day. 

This date is usually when you commence employment, provided an on-time SG contribution is received on your behalf for this period within three months after the SG cut-off date as prescribed by law. 

If you are not ‘at work’ when you join HOSTPLUS Executive, you will be covered for Death cover and New Events TPD Cover (if applicable).

If you have previously cancelled your cover and later decide to apply for insurance cover, or you have applied to increase your insurance cover, your cover (or the increased cover) starts on the date your application is accepted by the insurer and the insurance premium is paid.

Your insurance cover will cease on the earliest of the following events:

• the date you commence active duty with the armed forces of any country;
• the date you cease to be a member of HOSTPLUS Executive;
• the date you reach age 65;
• the date we receive your written request to cancel insurance (or where the request specifies a later date, the later date specified);
• the event of your death;
• the end of the month in which your account balance has insufficient funds to pay the premium;
• the date a TPD or Terminal Illness benefit is paid or payable to you;
• the date the insurance policy ends;
• the date you no longer meet the eligibility criteria;
• by opting out of your insurance cover by selecting this option on your Membership application form available at www.hostplusexecutive.com.au; or
• the date you become a member of HOSTPLUS (ie. not HOSTPLUS Executive) and obtain insurance under that membership.

In the event of a war involving Australia or your country of residence the insurer may offer increased premium rates or exclude payment if the event giving rise to the claim is caused directly or indirectly by war as defined in the Insurance Policy.

You can elect to cancel your cover on the Membership application form available at www.hostplusexecutive.com.au or you can cancel it at any time by writing to us at the address below. You can also cancel the TPD element (leaving Death Only Insurance Cover) by writing to us:

HOSTPLUS Executive
Locked Bag 969
Carlton South VIC 3053

If you cancel your cover, you will forfeit any future access to automatic insurance cover (cover without the need for satisfactory medical evidence). You will not be able to claim for that amount and type of cover from the date that the cover is cancelled. If you subsequently decide that you would like to re-apply for insurance cover down the track, you’ll need to complete an Increase your insurance cover application Part A and Part B (if applicable) or apply through your Supersite account at www.hostplusexecutive.com.au Your new insurance cover will only start once HOSTPLUS Executive has sent you written approval.

Yes. You can apply for cover up to a maximum of $3 million for TPD cover and $5 million for Death Only cover.

Under Option 3, you can apply for different levels of Death and TPD cover and Death Only cover providing the TPD cover is less than the Death cover.

If you apply for insurance that falls outside your employer’s AAL, the insurer may require additional details including financial information, a medical examination or a blood test as part of the assessment.

Any changes will be subject to the insurer’s approval.

To apply to increase Death and TPD Insurance Cover, simply complete the Increase your insurance cover application form Part A and B (if applicable) available a www.hostplusexecutive.com.au

If you satisfy the definition of Management/Clerical (white collar) then you can apply to receive a higher level of Unitised Death and TPD cover. To be eligible for Management/Clerical (white collar) cover, you:

• must work in an office or similar environment;
• must be employed for at least 15 hours a week on an ongoing basis;
• must spend at least 90% of your working time in an office environment; and
• must fall under the definition of “White Collar” employee.

If you satisfy the definition of White Collar employee then you can apply to receive a higher level of Unitised cover for the same cost as insurance under the Standard scale. In some cases, depending on the eligible person’s age, this could result in up to 65% more cover than under the Standard scale.

So if your occupation changes to Management/Clerical (white collar), don’t forget to tell us as cover is not granted automatically.

For the definition of White Collar employee see Death and TPD, Death Only and Salary Continuance Insurance Cover – definitions.

To change or upgrade your insurance cover from the Standard scale to the Management/Clerical (white collar) scale use the Insurance upgrade to Management/Clerical (white collar) scale form available at www.hostplusexecutive.com.au

While the insurer is assessing your application for insurance cover or for an increase in your existing insurance cover, you are provided with interim accident cover. If you die or suffer total and permanent disablement as a result of an accident during the period in which the interim accident cover applies, the interim benefit will be at the same level as the cover applied for or in the case of increasing your cover, the difference between the level of increased cover applied for and the level of current cover, up to the maximum benefit level (which is $3 million for TPD cover and $5 million for Death cover).

Interim accident cover commences when we receive your application and will continue until the earlier of:

• the date the insurer accepts or rejects your application;
• 90 days after the date interim accident cover starts; or
• the date your cover otherwise ends as set out under When does cover end?

‘Accident’ means a fortuitous, external event that occurs by chance causing death or total and permanent disablement. It does not refer to an event which results in sickness, disease, injury or infirmity of the person insured, such that they would qualify for a Death or TPD benefit (as applicable) to be paid under the policy.

Whether the death or total and permanent disablement was caused by an unintended and unexpected characteristic or consequence of an intended act (such as the application of unintentionally excessive force, or the creation of unintended or excessive force, or the creation of unintended excessive pressure or strain) is irrelevant in determining whether death or total and permanent disablement has arisen as a result of an accident.

An accident must result in the death or total and permanent disablement of the person insured for a benefit to be payable where liability is contingent on an event being caused by an accident or by accidental injury.

An accident shall specifically exclude death or total and permanent disablement:

• arising out of, or contributed to in any way by, any pre-existing sickness, disease, injury, gradual physical or mental deformity, or infirmity known to the person insured when their insurance cover commenced; or
• arising in circumstances where the person insured deliberately assumed the risk or courted disaster, irrespective of whether he or she intended or contemplated the results of his or her actions.

Where there is any doubt as to the cause of death or total and permanent disablement sustained as a result of an accident, the cause will be characterised as being the result of a sickness. TPD cover is defined in the Death and TPD, Death Only and Salary Continuance Insurance Cover – definitions table.

If you’re away from work due to an injury or sickness or you’re working in a reduced capacity, when your HOSTPLUS Executive TPD Insurance Cover starts, you’ll receive Death and New Events TPD cover. See 8.8 New Events TPD cover.

If, at the date your membership with HOSTPLUS Executive commences, you have previously received a TPD benefit from any other source (including a superannuation fund), your cover will be restricted to Death Only insurance cover. However, you may apply for TPD Cover and be eligible for this cover, if your application is accepted by the insurer. If you fail to inform us that you’ve received a TPD benefit either prior to or at the time you commenced your membership with HOSTPLUS Executive, then we’ll deduct the usual weekly premium, but you will not be covered for TPD. In the event of an insurance claim you will only be covered for a Death benefit. Any insured benefit paid is in addition to your account balance. Any overpaid premiums will be refunded. For more information on Death Only Insurance Cover, see Death Only Insurance Cover (includes Terminal Illness Cover).

If you travel or reside overseas, you are covered for claims, provided your insurance premiums continue to be paid from your account and you have sufficient funds in your super account to pay the premiums.

If you’re insured for TPD and your claim is approved by the insurer, the insurer will pay the insured amount to HOSTPLUS Executive. Then, subject to certain legislative requirements having been met, we will pay the TPD benefits to you. The amount of your insured benefit is based on which insurance option you are covered by.

To receive a TPD benefit, you have to meet the conditions of the relevant part of the TPD definition that applies. If you are employed or engaged in a gainful occupation, business, profession or employment or within 6 months of the date you cease to be so employed or engaged and suffer an injury or illness which results in your total and permanent disablement, you will be assessed for TPD under parts 1 - 5 of the TPD definition. If you have been unemployed or not engaged in any work for more than 6 months as at the date you suffer an injury or illness which results in your total and permanent disablement, you will be assessed for TPD if you satisfy either parts 2 – 5 of the TPD definition. Please refer to Death and TPD, Death Only and Salary Continuance Insurance Cover – definitions for an explanation of the TPD definitions.

If you are insured for Death cover, you will also be covered for a Terminal Illness benefit. A Terminal Illness benefit is payable, if you suffer a ‘terminal illness’ (as defined under Death and TPD, Death Only and Salary Continuance Insurance Cover – definitions) and:

• the policy is in force;
• you have not lodged and do not intend to lodge a claim for a TPD benefit;
• your cover has not ended (see When does cover end?); and
• you have not attained age 65.

You are unable to claim a TPD benefit if you lodge a claim for the Terminal Illness benefit. Your Death benefit will be reduced by the amount of the Terminal Illness benefit paid to you.

The Terminal Illness benefit is the lesser of:

• the insured amount; or
• $1 million.

If your Death benefit is greater than $1 million, the balance of the benefit is payable upon your death, as long as:

• your death occurs before you attain age 65;
• premiums have continued to be paid for the reduced insured benefit; and
• the policy is in force.

For information on who will receive your benefit and how to nominate a beneficiary, see How does HOSTPLUS Executive determine to whom your death benefit is payable?

Generally, if you leave your HOSTPLUS Executive participating employer your insurance cover will continue, however your premium rates may change. If so, we will advise you of the premiums payable.

Using the same facts as the previous question, but in this instance, if you leave your previous employer and join another employer who also participates in HOSTPLUS Executive and they have their own special insurance arrangements, you will be given a choice as to what insurance level you want.

The insurance premium rates may change. If so, you will be advised of the new rates and premiums payable.

You’re required to elect which cover you want within 30 days of your new insurance cover commencing. If you do not make an election you will automatically receive the insurance cover with the higher amount of cover and the lesser cover will be cancelled effective the date the new insurance cover was due to commence.

For example, with your previous employer your insurance cover was valued at $350,000 with your new employer your insurance cover is valued at $380,000. You can elect which cover you want, but if you fail to make an election within 30 days of your new insurance cover commencing, you will be covered for $380,000 and the insurance cover of $350,000 will be cancelled.

Should an insured event occur during the 30 day period and you have not made an election as to which cover you want, you will only be entitled to one insured benefit, being the higher amount of insurance cover.

If your previous participating employer had special insurance arrangements in place and your new employer does not, you can keep the amount of cover provided under your previous employer’s special arrangement at a fixed value or decrease your insurance cover by advising us.

The premium rates may change. If so, you will be advised of the new rates and premiums payable.

You have the option of increasing your cover at any time by completing the Increase your insurance cover application - Part A and Part B (if applicable).

You should advise us of a claim as soon as reasonably possible. If you do not notify us within a reasonable time, the insurer may reduce or refuse to pay the insured benefit to the extent their assessment of your claim is prejudiced.

‘Total and Permanent Disablement’ and ‘Totally and Permanently Disabled’ (TPD) means:
1. Unlikely to return to work a) If the insured member is employed or engaged in a gainful occupation, business, profession or employment or within six months of the date an insured member ceases to be so employed or engaged: 1.1 that insured member has suffered an injury or illness and, as a result of that injury or illness, the insured member: 1.1.1 is totally unable to be employed or engaged in that occupation, business, profession or employment for a period of six consecutive months; and 1.1.2 is determined by the insurer that at the end of that six month period (or such later time as agreed with the insurer and the trustee), to be permanently incapacitated to such an extent as to render the insured member unlikely ever to be employed or engaged in any gainful occupation, business, profession or employment for which the insured member is reasonably suited by education, training or experience. Note: For the avoidance of doubt, the six month periods referred to in part 1 above do not apply to parts 2 to 5. OR 2. Permanent impairment The insured member suffers an injury or illness and, as a result of that injury or illness, the insured member: 2.1 suffers a permanent impairment of at least 25% of wholeperson function as defined in the American Medical Association publication ‘Guides to the Evaluation of Permanent Impairment’, 4th edition, or an equivalent guide to impairment approved by the insurer; and 2.2 is disabled to such an extent, as a result of this impairment, that the insured member is unlikely ever again to be able to be employed or engaged in any gainful occupation, business, profession or employment for which the insured member is reasonably suited by education, training or experience. OR 3. Specific loss As a result of illness or injury, the insured member suffers the total and permanent loss of the use of: two limbs (where ‘limb’ is defined as the whole hand or the whole foot), or the sight in both eyes, or one limb and the sight in one eye. OR 4. Loss of independent existence As a result of illness or injury, the insured member suffers loss of independent existence. ‘Loss of independent existence’ means the insurer has determined the insured member is totally and irreversibly unable to perform at least two of the following five ‘activities of daily living’ without the assistance of another adult person: bathing and/or showering dressing and undressing eating and drinking using a toilet to maintain personal hygiene, getting in and out of bed, a chair or wheelchair, or moving from place to place by walking, wheelchair or with assistance of a walking aid. OR 5. Cognitive loss As a result of illness or injury, the insured member suffers cognitive loss. ‘Cognitive loss’ means the insurer has determined that a total and permanent deterioration or loss of intellectual capacity has required the insured member to be under continuous care and supervision by another adult person for at least six consecutive months and, at the end of those six consecutive months, the insured member is likely to require permanent ongoing continuous care and supervision by another adult person. Total and Permanent Disablement has the same meaning as Total and Permanent Disability.
Further definitions
‘Accident’ refers to a fortuitous, external event that occurs by chance causing death or ‘total and permanent disablement’. It does not refer to an event which results in sickness, disease, injury or infirmity of the person insured, such that they would qualify for a Death or TPD Benefit (as applicable) to be paid under this policy. See What is Interim Accident cover? ‘At work’ means that you: are employed by a HOSTPLUS Executive employer to carry out identifiable duties, and are performing those duties, without restriction due to injury or illness on a ‘full-time’, ‘part-time’ or casual basis (depending on your employment), or directly or indirectly own all or part of the business from which you earn regular income; and are capable of, and in fact performing without restriction due to injury or illness, all of the usual identifiable duties of the occupation from which you earn your regular income on a ‘full-time’, ‘part-time’ or casual basis (depending on their employment). ‘Employee member’ means: a member whose employer has agreed with the trustee to make contributions to HOSTPLUS Executive. ‘Full-time’ means a person performing all the normal duties of their occupation and is working at least 30 hours per week. ‘Heavy blue collar employee’ means: Skilled or semi-skilled manual workers and heavy machinery operators who are not exposed to high-risk accidents or health hazards (for example gaming machine staff, laundry staff or security guards). Unskilled workers and labourers are not included in this occupation class. ‘Light blue collar employee’ means: Certain skilled technicians and proprietors in non-hazardous industries involved in light manual work e.g. jewellers, computer technicians, café/coffee shop proprietors etc. Also includes supervisors of blue collar workers and fully qualified tradespeople. Details of qualifications must be provided. ‘Management/Clerical (white collar)’ means an employee who: works at least 15 hours per week (averaged over a continuous period of 13 weeks) must work in an office or similar environment;, spends at least 90% of their working time within an office environment. falls under the definition of “White Collar” ‘Part-time’ means a person performing all the normal duties of their occupation and is working at least 15 hours per week, but less than 30 hours per week. ‘Standard Cover’ means: Death and TPD cover. ‘Terminally ill’ means having suffered an illness or injury that is such that, in the opinion of an appropriate specialist, the illness or injury is likely to lead to the death of the insured member within 12 months from the date the opinion is provided (‘Terminal illness’ has the same meaning). ‘White Collar’ means Professional white collar workers who possess university qualifications (eg lawyers, doctors, solicitors, accountants), employees who are executives or senior managerial white collar workers, clerical or administrative workers, or sales people (who are not involved in deliveries), whose duties are mainly sedentary and who do not perform any manual work.

Salary Continuance Insurance Cover provides a monthly benefit of a proportion of an insured member’s ‘salary’ in the event the insured member is ‘totally disabled’ or a monthly benefit of a proportion of an insured member’s ‘pre-disability salary’ in the event the insured member is ‘partially disabled’ for longer than the waiting period.

There are two ways you may receive Salary Continuance Cover:

1. Your employer makes special arrangements (Option 8)

If your employer:

• has elected HOSTPLUS Executive as its default fund;
• is making contributions into HOSTPLUS Executive for 75% or more of its employees);
• has requested that you be covered by Salary Continuance Cover (ie. option 8)

you will receive the cover selected by your employer (ie. the special arrangements) without having to show evidence of health, subject to the amount of cover being less than the applicable Automatic Acceptance Level (AAL).

If the amount of cover elected by your employer is above the applicable AAL (you will receive the cover up to the AAL) you will need to apply for the amount of cover in excess of the AAL. While the insurer is assessing your application for the additional cover you will receive interim cover (see What is Interim Accident Cover?).

If a benefit is calculated using your salary while you are under an employer’s arrangement, we are reliant upon the employer’s notification of any salary changes. Where we are not notified of a change in salary and no additional premium is paid, and in the event of a claim we may pay a lower benefit based on the salary that was previously advised or salary at the last review date.

2. You apply for cover (Option 9)

If your employer does not provide you with special arrangements you may apply for Salary Continuance Cover. Cover will be subject to the insurer’s written approval.

To obtain any insurance:

• your employer must join HOSTPLUS Executive;
• you must be a member of HOSTPLUS Executive;
• you must meet the eligibility criteria (see 8.14 Eligibility Criteria).

HOSTPLUS Executive offers three waiting periods: 30, 60 or 90 days. A waiting period is the period during which you must be totally or partially disabled before any Salary Continuance benefit is payable. You are not entitled to a monthly benefit for the duration of the waiting period.

The benefit period is the maximum period of time that a benefit will be paid for any one illness or injury while you are Totally Disabled or Partially Disabled. You can choose a benefit period of two years or up to age 65.

Premiums vary depending on which waiting period or benefit period you choose. Generally, the longer the waiting period and the shorter the benefit period, the lower the premium. See the Salary Continuance Cover benefits - 2 year benefit period and Salary Continuance Cover benefits - to age 65 benefit period premiums tables.

If you want to change the waiting period from:

• 90 days to 60 days or 30 days; or
• 60 days to 30 days,

you will need to complete the Increase your insurance cover application. Similarly if you want to change the benefit period from 2 years to, to age 65 you will need to apply.

During the waiting period, you can return to work once, for up to five days, without having to start a new waiting period. If you return to work for a period in excess of 5 consecutive days, or more than once, the waiting period will be increased by the number of days you have worked during the time you returned to work.

The maximum monthly benefit that will be paid by the insurer in the event of a claim is the lowest of:

• the benefit represented by the number of Units of cover for which the insurer has agreed to cover you;
• 90% of your monthly pre-disability salary of which a maximum of 75% is payable to you and the balance as a contribution to the your HOSTPLUS Executive super account;
• up to a maximum of $25,000 per month or 250 units of cover, whichever is less.

You are eligible for Salary Continuance insurance cover if you are:

• a member of HOSTPLUS Executive;
• aged between 15 and 64;
• capable of, and in fact performing without restriction due to injury or illness, all of the usual duties of your occupation on a full-time basis (if you usually work on a full-time basis), on a part-time basis (if you usually work on a part-time basis) or on a casual basis (if you usually work on a casual basis);
• an Australian citizen; or
• a person who is a permanent resident, within the meaning of the Migration Act 1958(Cth): or
• a lawful non-citizen, within the meaning of the Migration Act 1958(Cth) for whom the employer is required to make on-time contributions; and
• not an Excluded Member.

An Excluded Member is a member who satisfies one or more of the following:

• a Member who has attained the age of 65; or
• a Member who works in an excluded occupation.

An excluded occupation is an occupation that the Fund’s insurer will not cover for Salary Continuance insurance. Please refer to our website hostplusexecutive.com.au for the full list of excluded occupations.

Total disability benefit

The insurer will pay a total disability benefit if you are totally disabled (as defined opposite) for longer than the waiting period and the insurer has admitted your claim. The monthly benefit starts to accrue from the day after the end of the waiting period.

The monthly benefit is payable in arrears and stops at the earliest of:

• the end of the benefit period;
• the date you attain age 65;
• the date of your death;
• the date you are no longer totally disabled.

Partial disability benefit

The partial disability benefit is a proportion of the total disability benefit, which is payable using the formula below and subject to you meeting the definition of ‘partially disabled’.

The insurer will pay a partial disability benefit (a proportion of the total disablement) if you are partially disabled (see What’s the definition of ‘partially disabled’?), except where the insured had ceased to be employed for reasons other than illness or injury six months or more prior to the date the member becomes partially disabled, subject to relevant medical advice (including the opinion of the insured member’s medical practitioner).

The proportion will be calculated as follows:

A – B x monthly benefit
___

A

Where

A is the insured member’s pre-disability salary

B is the greater of:

• the salary the insured member earns;
• the salary the insured member is capable of earning,

for the month that the partial disability benefit is payable.

The partial disability benefit begins to accrue from the day after the insured member is no longer totally disabled or after the waiting period, as the case may be.

The partial disability benefit is payable in arrears and stops at the earliest of:

• the end of the benefit period;
• partial disability benefits having been paid;
• the date you attain age 65;
• the date you cease to be partially disabled;
• the date you are earning, or are capable of earning, monthly salary or wages equal to or greater than your pre-disability salary, or engaging in any occupation on a full-time basis (if working full-time prior to disability) or part-time basis (if working part-time prior to disability) or casual basis (if working casually prior to disability);
• the date of your death.

If, while a total disability or partial disability benefit is being paid to an insured member, he or she dies, the insurer will pay an amount equal to the monthly benefit paid for one month immediately preceding their death.

‘Totally disabled’ means that solely as a result of injury or illness, you:

• are incapable of performing one or more of the duties of your usual occupation necessary to produce income;
• are not engaging in any occupation; and
• are under the care of a medical practitioner.

‘Partially disabled’ means:

• you’ve been totally disabled for:
• a period during which a ‘total disability’ benefit has been paid; or
• at least seven days out of 12 consecutive days during the waiting period.
• you then return to work in a limited capacity or you’re capable of returning to your usual occupation but only in a limited capacity, and the salary you’re earning or capable of earning, is less than your predisability salary due to the injury or illness causing total disability; and
• you are under the care of a medical practitioner.

Insurance cover commences on the date your application is approved by the insurer (if you have applied for cover) or from the date advised by HOSTPLUS Executive in your welcome kit (if your employer has special insurance arrangements in place and you are ‘at work’).

Acceptance is subject to underwriting.

Your Salary Continuance Cover will cease on the earliest of the following events:

• the date you commence active duty with the armed forces of any country;
• the date you cease to be a member of HOSTPLUS Executive;
• the date you become a member of HOSTPLUS (i.e. not the Executive product) and obtain insurance arrangements under that membership;
• the date you reach age 65;
• the date we receive a written request to cancel your insurance (or where the request specifies a later date, the later date specified);
• the date that you permanently retire from employment;
• the event of your death;
• the end of the month in which your account balance has insufficient funds to pay the premium;
• the date when you no longer satisfy the eligibility criteria (see Who’s eligible?);
• the date the insurance policy ends.

Your cover will continue when you cease working with a HOSTPLUS Executive participating employer, subject to the “when does cover end” section above. The premiums will continue to be deducted, provided there are sufficient funds in your account. However, if you have been continuously unemployed for 12 months or more at the date you suffer an injury or illness which gives rise to a Total Disability or Partial Disability claim, you will not be entitled to a benefit, as Salary is averaged over 12 months immediately preceding the date of injury or illness.

Yes. You can apply for insurance cover or additional cover, by completing the Increase your insurance cover application form available at www.hostplusexecutive.com.au You may be required to produce evidence of health, and cover is subject to the insurer’s approval and payment of the insurance premium.

While the insurer is assessing an application for insurance or additional cover, Interim Accident Cover will apply for the assessment period and is not affected by a pre-existing condition.

The amount of Interim Accident Cover will be up to the level of cover applied for or up to the amount which the insurer would accept in accordance with terms and conditions, whichever is the lesser.

The Interim Accident Cover will continue:

• up to the date the application is accepted or rejected; or
• for 90 days; or
• until the cover ends as described above, whichever occurs first.

‘Accident’ means, for the purposes of this policy, a fortuitous, external event that occurs by chance causing total or partial disability. It does not refer to an event that results in sickness, disease, injury or infirmity of the person insured, such that they would qualify for a total or partial disability benefit (as applicable).

Whether the total or partial disability was caused by an unintended and unexpected characteristic or consequence of an intended act (such as the application of unintentionally excessive force, or the creation of unintended or excessive force, or the creation of unintended excessive pressure or strain) is irrelevant in determining whether total or partial disability has arisen as a result of an accident.

An accident must result in the total or partial disability of the person insured for a benefit to be payable where liability is contingent on an event being caused by an accident or by accidental injury.

For the avoidance of doubt, an accident shall specifically exclude total or partial disability:

• arising out of, or contributed to in any way by, any pre-existing sickness, disease, injury, gradual physical or mental deformity, or infirmity known to the person insured at the effective date of their cover under this policy;
• arising in circumstances where the person insured deliberately assumed the risk or courted disaster, irrespective of whether he or she intended or contemplated the results of his or her actions.

Where there is any doubt as to the cause of the total or partial disability sustained as a result of an accident, the cause will be characterised as being the result of a sickness.

Whilst you are in receipt of a Salary Continuance benefit, the insurer may pay all or some of the expenses incurred in relation to you participating in a return to work program if the insurer is of the opinion that the program may help you return to work. Any payments will be made to the service provider and at the insurer’s discretion.

You can only claim one Salary Continuance benefit if you suffer from different types of injuries or illness that exist at the same time. For example, if you receive a monthly benefit for the benefit period due to a broken arm, you cannot also claim a monthly benefit during the same period if you suffer from another injury.

If you travel overseas or reside overseas for more than 6 months after you commence to receive Salary Continuance benefits, the insurer may, in its discretion, refuse to continue payments. Payments will resume if entitlement is again established in Australia.

No benefit will be payable if the injury or illness is caused directly or indirectly by one of the following:

• your intentional, self-inflicted act;
• pregnancy unless you are disabled for more than three months after the end of the pregnancy, in which case the waiting period is deemed to start on the later of the date total disablement begins and the end of the pregnancy; or
• war or act of war as defined in the insurance policy.

In addition to the above, the insurer may refuse to pay any benefits:

• while you are imprisoned;
• if the premium has not been paid in respect of all members insured under the insurer’s policy;
• if you do not comply with the insurer’s claim requirements;
• where the insurer’s assessment of the claim is prejudiced.

Your Salary Continuance payments may also be reduced by other payments (including settlement or commutation amounts) as set out below, where such benefits combined with the benefit payable under the policy would exceed 75% of your pre-disability salary:

• by way of workers’ compensation;
• under any statutory accident compensation scheme; or
• as benefits under any other disability, injury or sickness insurance policy (except for lump sum benefits received from total and permanent disablement under a policy).

Any lump sum payment (such as settlement or commutation amounts) will be converted to an equivalent monthly amount by dividing the lump sum payment by the lesser of the number of months in the benefit period and 60.

If your monthly benefit is reduced because you are in receipt of other payments, as set out above, or where you are entitled to a partial disability benefit, the 15% of your pre-disability salary which is paid into your HOSTPLUS Executive account, will also be reduced proportionally.

Subject to the insured member meeting the definition of ‘total disability’ or ‘partial disability’, the insurer will pay the benefit for the benefit period applied for, be it two years or to age 65.

HOSTPLUS Executive offers three monthly benefit levels depending on the waiting period you choose – 30, 60 or 90 days. The longer the waiting period, the lower the premium level. This waiting period is the time during which you must be ‘totally disabled’ or ‘partially disabled’ before any benefit is payable. No benefits are payable during the waiting period.

If, within six months of returning to work (after a period of disability resulting in the payment of benefits), you are again unable to work in your occupation because of a recurrence of the disability, the waiting period will be waived and the claim will be treated as an extension of the earlier benefit. This will be limited to the unused portion of the benefit period applied for, whether two years or to age 65 and is subject to insurance cover still being in force.

If the recurrence of the disability occurs more than six months after returning to work and insurance cover is still in force, the waiting period will apply and the claim will be treated as a new claim.

If you’re away from work due to an injury or sickness or you’re working in a reduced capacity, when your HOSTPLUS Executive Salary Continuance Insurance Cover starts, you will be covered for any claims resulting from an injury which first occurred or a sickness which first becomes apparent after the commencement of Salary Continuance Insurance Cover with HOSTPLUS Executive.

Salary Continuance benefits are payable monthly in arrears once your claim has been accepted.

Once payment of your Salary Continuance benefits begin, your benefits will be adjusted annually in line with the increase in the CPI to protect your payments from the effects of inflation. However, they will not increase by more than 5% in any year.

When you return to work and your Salary Continuance benefit has ceased, the monthly benefit that you are covered for will revert to the pre-disability monthly benefit level.

You have the opportunity to transfer your existing Salary Continuance cover from another superannuation fund to HOSTPLUS Executive provided that the combined level of cover upon transfer is limited to the lesser of:

• the number of units to cover 90% of your pre-disability salary (of which a maximum of 75% is payable to you and the balance paid as a contribution to HOSTPLUS Executive); or
• the maximum cover of $6,000 per month.

Any amount above $6,000 will be assessed by the insurer. Generally, Salary Continuance insurance cover will generally be matched on the same waiting period and benefit period to that which was previously provided under the transferred cover.

If the waiting period is not available, the next lowest waiting period will be provided.

Conditions and other limitations apply. All applications are subject to the approval of the insurer. You should note that:

• your insurance cover held in your other fund is still in force;
• you transfer your superannuation account balance to HOSTPLUS Executive;
• any loadings, restrictions and exclusions which apply on your policy with the other fund will also apply to your transferred cover; and
• you cancel the insurance held in your other fund once the transfer to HOSTPLUS Executive has occurred.

To transfer your existing Salary Continuance cover to HOSTPLUS Executive, please complete the Insurance transfer formavailable at www.hostplusexecutive.com.au

In certain circumstances HOSTPLUS Executive may offer to match a member’s existing insurance arrangement. If such an offer is made, you will be notified in writing and you will need to comply with the requirements set out in the notification.

You should advise us of a claim as soon as reasonably possible. If you don’t notify us within a reasonable time, the insurer may reduce or refuse to pay the insured benefit to the extent their assessment of your claim is prejudiced.

‘Pre-disability salary’ means the total monthly value of salary received by an insured member from their usual occupation, averaged over the recent 12 month period immediately prior to the insured member becoming disabled, or the actual period of work (provided the period of work occurred in the 12 month period preceding the date of claim) if less. The definition of pre-disability salary relates solely to the calculation of the value of ‘A’ in the formula used to determine the partial disability benefit.

‘Salary’ means, where an insured member is an employee, the following annual remuneration which the insured member receives for their usual occupation before the deduction of income tax:

• cash salary;
• regular overtime (averaged over the previous three years, or since the insured member started their current occupation, if less);
• the monetary value of non-cash benefits or fringe benefits provided by the insured member’s employer in direct substitution of salary (as long as the fringe benefits continue to be provided to the insured member after disability payments have commenced); and
• performance related commission bonuses and other monetary benefits, averaged over the previous three years, or since the insured member started their current occupation, if less.

OR

• where the insured member directly or indirectly owns all or part of their business from which they earn their income, the total amount earned by the business over the financial year as a direct result of the insured member’s personal exertion or activities through their usual occupation, less their share of business expenses, but before the deduction of income tax, for that business (or the relevant proportion for part of the financial year).

‘Medical practitioner’ means a medical practitioner who is legally qualified and properly registered in Australia, and not related, or connected by personal relation, to you.

Other definitions for Salary Continuance Cover are as the definitions for Death and TPD as described in Death and TPD, Death Only and Salary Continuance Insurance Cover – definitions.

This table shows the annual premium per $100 of monthly benefit for White Collar employees.

Age next birthday	Male White Collar employee			Age next birthday	Female White Collar employee
	2 year				2 year
	Waiting period				Waiting period
	30 days	60 days	90 days		30 days	60 days	90 days
16	2.91	1.56	1.00	16	3.23	1.72	1.09
17	2.91	1.56	1.00	17	3.23	1.72	1.09
18	2.91	1.56	1.00	18	3.23	1.72	1.09
19	2.91	1.56	1.00	19	3.23	1.72	1.09
20	2.91	1.56	1.00	20	3.23	1.72	1.09
21	2.95	1.59	1.01	21	3.27	1.74	1.10
22	2.99	1.61	1.02	22	3.31	1.76	1.11
23	3.03	1.64	1.02	23	3.35	1.79	1.12
24	3.07	1.66	1.03	24	3.39	1.81	1.13
25	3.11	1.69	1.04	25	3.43	1.84	1.14
26	3.12	1.70	1.01	26	3.52	1.89	1.19
27	3.16	1.72	0.99	27	3.64	1.96	1.23
28	3.23	1.76	0.98	28	3.79	2.04	1.27
29	3.31	1.82	0.98	29	3.97	2.14	1.30
30	3.43	1.88	1.00	30	4.18	2.26	1.33
31	3.57	1.93	1.02	31	4.41	2.35	1.36
32	3.73	2.02	1.05	32	4.68	2.50	1.40
33	3.91	2.12	1.09	33	4.97	2.66	1.46
34	4.11	2.23	1.14	34	5.28	2.83	1.52
35	4.34	2.36	1.21	35	5.63	3.02	1.60
36	4.59	2.50	1.28	36	5.99	3.22	1.70
37	4.87	2.66	1.37	37	6.38	3.43	1.82
38	5.17	2.82	1.47	38	6.80	3.66	1.97
39	5.49	3.00	1.59	39	7.24	3.90	2.14
40	5.85	3.20	1.73	40	7.70	4.16	2.34
41	6.23	3.53	1.88	41	8.19	4.60	2.57
42	6.64	3.77	2.07	42	8.71	4.90	2.83
43	7.09	4.03	2.28	43	9.26	5.21	3.13
44	7.58	4.31	2.52	44	9.83	5.54	3.46
45	8.11	4.61	2.79	45	10.44	5.88	3.83
46	8.68	4.95	3.10	46	11.08	6.25	4.23
47	9.31	5.31	3.46	47	11.75	6.63	4.67
48	9.99	5.70	3.86	48	12.47	7.05	5.16
49	10.74	6.14	4.32	49	13.24	7.48	5.68
50	11.56	6.61	4.84	50	14.05	7.95	6.23
51	12.47	7.67	5.43	51	14.92	8.98	6.83
52	13.46	8.29	6.09	52	15.86	9.55	7.46
53	14.56	8.97	6.83	53	16.86	10.16	8.13
54	15.77	9.73	7.67	54	17.95	10.82	8.84
55	17.12	10.57	8.60	55	19.13	11.54	9.58
56	18.61	11.50	9.65	56	20.41	12.33	10.35
57	20.29	12.55	10.81	57	21.82	13.19	11.15
58	22.16	13.72	12.11	58	23.37	14.14	11.97
59	24.25	15.03	13.56	59	25.08	15.20	12.82
60	26.62	16.52	15.17	60	26.98	16.37	13.69
61	29.28	19.13	16.94	61	29.09	17.83	14.56
62	32.22	21.08	18.85	62	31.35	19.25	15.40
63	34.47	22.11	19.22	63	32.87	19.80	14.99
64	23.48	14.21	10.89	64	22.32	12.70	8.24
65	7.75	4.69	3.59	65	7.37	4.19	2.72

This table shows the annual premium per $100 of monthly benefit for White Collar employees.

Age next birthday	Male White Collar employee			Age next birthday	Female White Collar employee
	To age 65				To age 65
	Waiting period				Waiting period
	30 days	60 days	90 days		30 days	60 days	90 days
16	4.62	2.59	2.21	16	6.26	3.54	3.22
17	4.62	2.59	2.21	17	6.26	3.54	3.22
18	4.62	2.59	2.21	18	6.26	3.54	3.22
19	4.62	2.59	2.21	19	6.26	3.54	3.22
20	4.62	2.59	2.21	20	6.26	3.54	3.22
21	4.78	2.68	2.28	21	6.46	3.65	3.31
22	4.94	2.78	2.35	22	6.67	3.78	3.41
23	5.11	2.88	2.42	23	6.89	3.91	3.51
24	5.28	2.99	2.50	24	7.12	4.05	3.61
25	5.47	3.11	2.58	25	7.35	4.19	3.72
26	5.61	3.20	2.57	26	7.70	4.40	3.97
27	5.79	3.31	2.58	27	8.12	4.65	4.19
28	6.03	3.46	2.61	28	8.62	4.94	4.39
29	6.32	3.63	2.67	29	9.18	5.27	4.57
30	6.65	3.83	2.76	30	9.83	5.65	4.74
31	7.03	3.99	2.87	31	10.54	5.96	4.93
32	7.47	4.24	3.00	32	11.33	6.42	5.14
33	7.96	4.52	3.16	33	12.19	6.91	5.38
34	8.49	4.84	3.36	34	13.12	7.44	5.66
35	9.08	5.18	3.58	35	14.11	8.01	6.01
36	9.72	5.55	3.84	36	15.17	8.62	6.42
37	10.42	5.96	4.14	37	16.30	9.26	6.90
38	11.17	6.39	4.49	38	17.48	9.93	7.48
39	11.99	6.86	4.88	39	18.72	10.64	8.14
40	12.86	7.37	5.33	40	20.01	11.38	8.90
41	13.79	8.17	5.84	41	21.36	12.63	9.76
42	14.79	8.77	6.42	42	22.74	13.45	10.73
43	15.86	9.40	7.08	43	24.17	14.29	11.79
44	16.99	10.08	7.81	44	25.64	15.15	12.96
45	18.21	10.80	8.65	45	27.14	16.03	14.21
46	19.50	11.57	9.57	46	28.67	17.11	15.55
47	20.87	12.38	10.61	47	30.22	18.66	16.96
48	22.33	13.24	11.75	48	31.79	20.27	18.43
49	23.87	14.31	13.01	49	33.36	21.92	19.93
50	25.50	15.82	14.38	50	34.94	23.59	21.45
51	27.22	17.46	15.88	51	36.50	25.25	22.95
52	29.03	19.23	17.48	52	38.05	26.86	24.41
53	30.94	21.12	19.20	53	39.56	28.38	25.80
54	32.93	23.12	21.02	54	41.03	29.79	27.08
55	35.00	25.21	22.92	55	42.44	31.03	28.21
56	37.11	27.33	24.85	56	43.71	32.03	29.12
57	39.16	29.38	26.71	57	44.76	32.67	29.70
58	41.05	31.23	28.39	58	45.49	32.86	29.87
59	42.64	32.73	29.75	59	45.79	32.49	29.53
60	43.74	33.64	30.58	60	45.49	31.42	28.57
61	44.04	33.64	30.58	61	44.35	29.50	26.82
62	43.07	32.26	29.32	62	41.99	26.48	24.07
63	37.98	26.78	24.35	63	36.21	21.85	18.98
64	23.48	14.21	10.89	64	22.32	12.70	8.24
65	7.75	4.69	3.59	65	7.37	4.19	2.72

Occupation Class	Salary Continuance Premium Multiple
White collar	1.00
Light blue collar	2.10
Heavy blue collar	3.20

To calculate the cost of insurance under the Light blue or Heavy blue collar employee scale, multiply by the premium multiple.

For definitions of White Collar, Light blue or Heavy blue collar employee, please refer to Death and TPD, Death Only and Salary Continuance Insurance Cover – definitions.

Chad earns $10,416 each month (annual salary of $125,000 ÷ 12 months) as a chief financial officer for a national sporting team.

Chad wants to receive Salary Continuance Cover of $5,500 a month for a two year period (which is less than his maximum monthly benefit of $9,374, which is 90% of his monthly salary).

As Chad has considerable savings he can draw upon, he chooses the longest waiting period of 90 days, which reduces the cost of his cover significantly. As Chad’s age at his next birthday will be 47, each $100 of monthly benefit costs $3.46 a year.

($5,500 (his monthly cover) ÷ $100) x $3.46 (annual cost of cover at 90 day waiting period) = $190.30 (total cost per year)

$190.30 (total cost per year) ÷ 52 (weeks) = $3.66 (total cost per week)

As each year passes, the cost will be adjusted to maintain $5,500 of cover. For example, following the same process as above, in 2011 Chad’s cover will cost $212.30 a year or $4.08 a week, and in 2012 this will increase to $237.60 or $4.57 a week.