Home Loan Protection - Bank of Melbourne...Bank of Melbourne – A Division of Westpac Banking Corporation ABN 33 007 457 141 AFS Licence No. 233714 The insurer is St.George Life,

Home Loan ProtectionProtect what’s close to home.

Product Disclosure Statement including policy terms (PDS)

Effective: 20 October 2014

Issued by: St.George Life Limited (St.George Life) ABN 88 076 763 936 AFS Licence No. 240900.

Home Loan Protection – Product Disclosure StatementB

Issuer/Insurer:St.George Life Limited (St.George Life) ABN 88 076 763 936 AFS Licence No. 240900

Representative:Bank of Melbourne – A Division of Westpac Banking Corporation ABN 33 007 457 141 AFS Licence No. 233714

The insurer is St.George Life, which is a subsidiary of Westpac Banking Corporation ABN 33 007 457 141 AFS Licence No. 233714.

This Product Disclosure Statement including policy terms (PDS) contains information about the Home Loan Protection insurance policy. It will help you to decide whether this policy is right for you.

Contact details for St.George Life and Bank of Melbourne:

Phone: 1300 769 072 – 9am to 5pm (AEST), Monday to Friday

Fax: (02) 9952 1076

Email: [email protected]

Postal address: St.George Life, Locked Bag 1, Kogarah NSW 1485

IMPORTANT INFORMATIONPlease ensure you carefully read this PDS and understand the extent of cover before signing the application form.

Westpac Banking Corporation does not, nor do any of its related bodies corporate (as defined in the Corporations Act 2001 [Cth]) other than the insurer, St.George Life, guarantee payment of any policy benefits.

A premium is payable if you decide to take out this insurance.

Insurance is optional:This insurance is optional and is not a condition of the Home Loan. Conditions, limits and exclusions on cover apply, and are explained in the Home Loan Protection PDS.

Changes to the PDS: The information in this PDS is current at the date of preparation and may change. If the change is considered materially adverse, we will issue a supplementary or replacement PDS. Otherwise, we may provide updates on our website at www.bankofmelbourne.com.au (search for “Home Loan Protection”). On request, we will send you a copy of any updated information free of charge.

General Advice: This PDS provides general information about the product and does not take into account your personal objectives, financial situation or needs. You should consider this PDS fully and carefully before making your insurance decision, having regard to your own personal circumstances.

Your Duty of Disclosure:In applying for this insurance, it is important that you comply with your Duty of Disclosure. Please refer to page 13 of the PDS and page 2 of the application form at the back of this PDS, to ensure you understand this important duty.

Some words have particular meanings:In this PDS, words that have a particular meaning use Capitalised First Letters. When we say “you” or “your” in this PDS, we mean each person who is named as an Insured Person in the application for this insurance and who we agree to insure - “we”, “us” and “our” means St.George Life.

1bankofmelbourne.com.au

ContentsHome Loan Protection ..................................................................................................................................................... 2

Table of benefits ................................................................................................................................................................... 3

Life Cover ................................................................................................................................................................................. 3Life Cover benefit ............................................................................................................................................................................................... 3

Recovery Cover benefit .................................................................................................................................................................................. 3

Repayment Cover ............................................................................................................................................................... 4Disability Cover benefit ..................................................................................................................................................................................4

Involuntary Unemployment Cover benefit ........................................................................................................................................ 5

Who can apply? .................................................................................................................................................................... 6

Joint Policy ............................................................................................................................................................................. 6

Premiums ................................................................................................................................................................................ 7What happens if your premium is not paid? ....................................................................................................................................... 7

How is the premium calculated? ............................................................................................................................................................... 7

When does the cover begin and end? ....................................................................................................................... 7

Making changes to your cover ..................................................................................................................................... 9

Making a claim ...................................................................................................................................................................... 9Some situations are not covered (exclusions) ............................................................................................................................... 10

How will we pay the benefit? .................................................................................................................................................................... 10

Other information ............................................................................................................................................................. 13Cancelling the policy ...................................................................................................................................................................................... 13

Duty of Disclosure ........................................................................................................................................................................................... 13

Privacy .................................................................................................................................................................................................................... 14

Remuneration .................................................................................................................................................................................................... 15

Tax implications ................................................................................................................................................................................................ 15

This policy has no cash value .................................................................................................................................................................... 15

Where we put your money ......................................................................................................................................................................... 15

Relevant Law ...................................................................................................................................................................................................... 15

Currency ................................................................................................................................................................................................................ 15

No assignment ................................................................................................................................................................................................... 15

Future improvements.................................................................................................................................................................................... 15

Enquiries and complaints ............................................................................................................................................. 16

Definitions ............................................................................................................................................................................. 17

Application for Home Loan Protection

Home Loan Protection – Product Disclosure Statement2

Home Loan ProtectionThe Home Loan Protection insurance policy is designed to provide:

a lump sum benefit:

• if you die or are diagnosed with a Terminal Illness; or

• are diagnosed with a Covered Medical Condition; and

a monthly benefit if you cannot work due to:

• Injury or Illness; or

• Involuntary Unemployment.

See over page for the definition of Terminal Illness.

This is a summary of the cover only. The cover provided is set out in this PDS, and the Policy Schedule, which you will receive if we accept your application.

You can choose between these combinations of cover:

+ Life Cover and Repayment Cover;

Life Cover only; or

Repayment Cover only.


Table of benefits

Life CoverYou can select Life Cover up to the amount of your approved Home Loan, subject to a minimum of $10,000 and a maximum of $750,000.

If you choose Life Cover, we also give you Recovery Cover to the value of 2.5% of your Life Cover or $10,000, whichever is less. The Recovery Cover benefit comes with Life Cover for no extra charge.

Life Cover benefitIf you are first diagnosed with a Terminal Illness or die during the period of insurance, we will pay the Life Cover Sum Insured shown in the Policy Schedule as a lump sum.

Example 1: Your policy has a Life Cover Sum Insured of $300,000. If you are diagnosed with a Terminal Illness, we pay $300,000.*

Example 2: Your policy has a Life Cover Sum Insured of $400,000. If you die, we pay $400,000.

For the purposes of this cover, Terminal Illness means you have been diagnosed as having a life expectancy of less than 12 months, as confirmed by a registered Medical Practitioner approved by us.

We will only pay the Life Cover benefit (including Terminal Illness) once for either Insured Person under the policy.

Recovery Cover benefit (comes with Life Cover for no extra charge)If you first suffer or are first diagnosed with a Covered Medical Condition during the period of insurance, we will pay the lesser of 2.5% of your Life Cover Sum Insured or $10,000 as a lump sum.

The Covered Medical Conditions (which are defined in the “Definitions” section on pages 17–18) are:

• Cancer;

• Coronary Artery Bypass Surgery;

• Heart Attack;

• Open Heart Surgery; and

• Stroke.

Example 1: Your policy has a Life Cover Sum Insured of $300,000. You therefore have Recovery Cover to the value of $7,500 (i.e. 2.5% of $300,000). You suffer a Stroke for the first time. We pay $7,500.

Example 2: Your policy has a Life Cover Sum Insured of $500,000. You therefore have Recovery Cover to the value of $10,000 (i.e. the $10,000 limit applies). You suffer a Heart Attack for the first time. We pay $10,000.

We will only pay the Recovery Cover benefit once for each Insured Person. Payment of the Recovery Cover benefit will not reduce the Life Cover benefit.

*Note: all examples provided in this PDS are illustrative only.


Table of benefits

Repayment CoverYou can have Repayment Cover up to the amount of your approved monthly Home Loan repayment, subject to a minimum of $100 per month and a maximum of $7,500 per month. The benefit is paid as a monthly payment.

Repayment Cover includes:

• Disability Cover benefit; and

• Involuntary Unemployment Cover benefit.

We do not pay both the Disability Cover benefit and the Involuntary Unemployment Cover benefit in respect of the same period. In other words, at any one time we pay only one (1) of these benefits.

Disability Cover benefitIf you become disabled during the period of insurance solely due to Injury or Illness, after a 30-day Waiting Period we will pay a monthly benefit until you cease to be disabled or return to any Gainful Employment (whichever occurs first).

In addition, we will only pay up to a maximum of 24 monthly payments for all claims under the Disability Cover benefit.

The benefit is the Repayment Cover Sum Insured shown in the Policy Schedule for each full month of disability after the Waiting Period or, for a partial month of disability, one-thirtieth of the Repayment Cover Sum Insured for each day of disability after the Waiting Period.

Subject to receipt of satisfactory proof of claim, we make the first payment 30 days after the Waiting Period ends, and then make monthly payments after that.

Example: Your policy has a Repayment Cover Sum Insured of $2,000 per month. After the 30-day Waiting Period, you are disabled for a further 20 months. We pay a total of $40,000 ($2,000 x 20 months).

We make your first payment of $2,000, 60 days after you become disabled (i.e. 30 days after the Waiting Period ends), and then we make monthly payments of $2,000 after that.

For the purposes of this cover:

• you are disabled if due to Injury or Illness, you are unable to attend or engage in your usual profession, business or occupation and you are under the care of, and following the treatment recommended by, a Medical Practitioner approved by us;

• Injury means bodily injury caused solely by an accident which happens by chance after the cover starts; and

• Illness means sickness or disability which first shows Symptoms after the cover starts.

If after an initial period of disability you become disabled again from the same or a related cause within six (6) months, the further period of disability will be treated as a continuation of the initial period of disability and the 30-day Waiting Period will not apply.


Table of benefits

Involuntary Unemployment Cover benefitIf you are subject to Involuntary Unemployment during the period of insurance, after a 30-day Waiting Period we will pay a monthly benefit until you recommence Gainful Employment.

In addition, we will only pay up to a maximum of three (3) monthly payments, or $7,500, whichever comes first, for all claims under the Involuntary Unemployment Cover benefit.

The benefit is the Repayment Cover Sum Insured shown in the Policy Schedule for each full month of Involuntary Unemployment after the Waiting Period or, for a partial month of Involuntary Unemployment, one-thirtieth of the Repayment Cover Sum Insured for each day of Involuntary Unemployment after the Waiting Period.

Subject to receipt of satisfactory proof of claim, we normally make the first payment 30 days after the Waiting Period ends, and then make monthly payments after that.

Example 1: Your policy has a Repayment Cover Sum Insured of $2,000. After the 30-day Waiting Period, you are Involuntary Unemployed for a further two months. We pay a total of $4,000 ($2,000 x 2 months).

We make your first payment of $2,000, 60 days after you become Involuntary Unemployed (i.e. 30 days after the Waiting Period ends), and then we make your second payment of $2,000 one month after that.

Example 2: Your policy has a Repayment Cover Sum Insured of $1,500. After the 30-day Waiting Period, you are Involuntary Unemployed for a further four months.

We pay a total of $4,500 (i.e. we pay the monthly benefit of $1,500 for the total benefit period of three months for all claims).

Example 3: Your policy has a Repayment Cover Sum Insured of $3,000. After the 30-day Waiting Period, you are Involuntary Unemployed for a further three months.

We pay a total of $7,500 (i.e. a limit of $7,500 applies for all claims).

For the purposes of this cover, you are Involuntary Unemployed if, after the cover starts:

• you are an employee (i.e. a person working for salary, wages or commission), and the role that you were performing is no longer required by your employer and your employment ends; or

• you are self-employed or in a partnership and your business stops operating due to actual or imminent insolvency or business factors beyond your reasonable control.


Who can apply?You can apply if you are:

• aged from 18 to 59 years;

• applying for, or have, a Home Loan for a residential or investment property home in Australia; and

• ordinarily a resident of Australia or New Zealand.

Also, to apply for Repayment Cover you must be working at least 20 hours per week in continuous and regular employment (including self-employment or in a partnership). Continuous and regular employment means that for at least six (6) months immediately prior to your policy start date, you have been working consistently for financial gain in a position that is not seasonal, temporary or under a fixed-term non-renewable contract.

A Home Loan means a residential or investment property home loan which you applied for with Bank of Melbourne, St.George Bank or BankSA.

Joint PolicyWhere there are two (2) borrowers on a Home Loan, you can choose to cover just one (1) borrower or both borrowers. Where there are two (2) borrowers listed as Insured Persons, this is referred to as a Joint Policy. Both borrowers must be listed as mortgagees on the Home Loan.

Each Insured Person can choose the same level of cover, however the Sum Insured for the Life Cover benefit must be the lesser of $750,000 or the amount of the approved Home Loan.

Example 1: You and your partner apply for a Home Loan for $400,000. You both select a Life Cover benefit of $400,000 and Repayment Cover of $2,500.

Alternatively, each Insured Person can select a different Sum Insured amount as in the example below.

Example 2: You and your partner apply for a Home Loan for $400,000. You select a Life Cover benefit of $400,000 and Repayment Cover of $2,500 and your partner selects a Life Cover benefit of $200,000 and Repayment Cover of $1,200.

Where there are two (2) Insured Persons, one (1) Life Cover benefit is payable under the policy. To read about the way the benefits are paid, see section “How will we pay the benefit” on pages 10–12.


$ PremiumsPremiums are payable once the cover has commenced. Premiums for Home Loan Protection are charged either monthly or annually and payment can be made by bank account or credit card debit acceptable to us.

In addition to the premium, we may recover other charges that we incur for direct debit payments that you make.

What happens if your premium is not paid?If you do not pay your premium by the due date, we may cancel your policy by giving you 30 days written notice of cancellation.

How is the premium calculated?The amount of the premium depends on a number of factors including your age, gender, smoking status, occupation, the type of cover, the Sum Insured, number of applicants, the payment option you select, and other information you provide in your application (such as your state of health). The premium includes stamp duty.

Whilst premium rates generally increase with age, any other changes that you make to the policy, such as increasing cover, will also vary the premiums.

Your initial premium will be shown on the Policy Schedule. Each year you will receive a policy renewal notice confirming the premiums that apply for the next 12 months.

We may increase your premium rates for all Home Loan Protection policies in the same risk category, as determined by us. We will give you 30 days written notice of any premium increase.

When does the cover begin and end?Your Home Loan Protection cover will commence from the date when both:

• your Home Loan has Drawn Down; and

• we have accepted your application.

The commencement date of your policy will be shown in the Policy Schedule.

If you apply for Home Loan Protection and your Home Loan does not Draw Down within 90 days from the date we receive your Home Loan Protection application, the policy will not commence. If you still wish to have cover, you will need to re-apply.

A Life Cover benefit for an Insured Person ends on the earliest of the following:

• the date we pay a Life Cover benefit;

• the date you ask us to cancel a Life Cover benefit.

A Recovery Cover benefit for an Insured Person ends on the earliest of the following:

• the date we pay a Recovery Cover benefit;

• the date you ask us to cancel a Life Cover benefit.


When does the cover begin and end? (continued)A Repayment Cover benefit for an Insured Person ends on the earliest of the following:

• For Disability Cover:

– the date we pay the maximum total benefit period of 24 months;

– the date you ask us to cancel a Repayment Cover benefit;

– the date you cease to be disabled;

– the date you return to any Gainful Employment.

• For Involuntary Unemployment Cover:

– the date we pay the maximum total benefit period of three months;

– the date we pay the maximum total benefit amount of $7,500;

– the date you ask us to cancel a Repayment Cover benefit;

– the date you return to any Gainful Employment.

All benefits for an Insured Person end on the earliest of the following:

• the date we pay a Life Cover benefit in respect of any Insured Person;

• the first Policy Anniversary after the Insured Person turns 65 years of age;

• the date you ask us to cancel all benefits for the Insured Person;

• the date the Home Loan is closed.

A Joint Policy - if you ask us to cancel a benefit (or benefits), the benefit (or benefits) end only when both Insured Persons have asked us to cancel the benefit (or benefits).

The policy ends on the earliest of the following:

• the date all benefits end (including because the Home Loan is closed);

• where there is only one Insured Person – the date the Life Cover benefit is paid;

• where there are two Insured Persons (Joint Policy) – the date one Life Cover benefit is paid in respect of one Insured Person or equally split between two Insured Persons;

• where there is only one Insured Person – the first Policy Anniversary after the Insured Person turns 65 years of age;

• where there are two Insured Persons (Joint Policy) – the first Policy Anniversary after the youngest surviving Insured Person turns 65 years of age;

• where there is only one Insured Person – the date you ask us to cancel the policy;

• where there are two Insured Persons (Joint Policy) – the date both Insured Persons ask us to cancel the policy

• where you do not pay your premiums by the due date - the date we cancel your policy.

When the policy ends we will write to you to confirm this.


Making changes to your coverYou can apply to increase or decrease your cover at any time by notifying us in writing. Our address is St.George Life, Locked Bag 1, Kogarah NSW 1485.

Increasing your cover includes:

• increasing your Sum Insured on either the Life Cover or Repayment Cover benefit; and

• adding either the Life Cover or Repayment Cover benefits to your policy.

You can increase the Life Cover benefit on your Home Loan Protection policy up to the lesser of $750,000 or the balance of your approved Home Loan at the time of your application to increase.

You can also increase the Repayment Cover benefit on your Home Loan Protection policy up to the lesser of $7,500 or the repayments on your approved Home Loan at the time of your application to increase.

You may also remove or add an Insured Person to your policy up to a maximum of two (2) Insured Persons per policy provided you are both mortgagees on the Home Loan.

For a Joint Policy, both Insured Persons need to request changes to their Home Loan Protection policy in a manner acceptable to us.

Once we accept your application to change cover in writing, the change will take effect on the next premium due date for Insured Persons paying monthly. If you are paying annually, the premium will be adjusted for the remaining period until your next Policy Anniversary.

Making a claimTo make a claim, call us on 1300 769 072 – 9am to 5pm (AEST), Monday to Friday, and ask for a claim form. Then complete the form and return together with, and not limited to, the following documents (at your cost):

• death claim – proof of death, identity and age;

• Terminal Illness claim – a report from a Medical Practitioner acceptable to us confirming that you first suffered, or were first diagnosed with, a Terminal Illness (see page 18 for definition) during the period of insurance;

• Recovery Cover claim – a report from a Medical Practitioner acceptable to us with medical evidence confirming that you first suffered, or were first diagnosed with, a Covered Medical Condition during the period of insurance;

• Disability Cover claim – a report from a Medical Practitioner acceptable to us confirming that you are disabled (see “Disability Cover benefit” section on page 4);

• Involuntary Unemployment Cover claim – proof that you commenced Involuntary Unemployment; and proof that you are registered with Centrelink (or another organisation approved by us) as looking for work. If you were self-employed or in a partnership, the required proof includes a letter from your accountant giving details of your business ceasing to operate.

We may require you to provide further information or documentation about the claim (at your cost).

We may require reports from treating doctors and hospitals and we may require you to have a medical examination. We will pay for any additional reports and examinations that we require.

To assess a claim we may need to disclose information about your claim to the Medical Practitioner. It’s a condition of making a claim that you agree to the necessary collection and disclosure of your personal information, including health and medical information.

We aim to assess all claims in a timely manner. However, we rely on you to provide the information required within six (6) months or as soon as possible after the occurrence of the event giving rise to a claim.


Some situations are not covered (exclusions)We will not pay any claim for, or connected with:

Life Cover

• suicide or attempted suicide in the first 13 months after the cover start date, or any increase in the cover but only in respect of the increase;

Recovery Cover

• any condition for which you were treated or diagnosed or showed Symptoms, which would cause a reasonable person to seek medical advice in the first 90 days after the cover starts. However, this does not include any condition which has been disclosed to us in the application for insurance and which we have agreed to cover;

Disability Cover

• the first 30 days of any period of disability (i.e. the Waiting Period);

• deliberately self-inflicted injury;

• your taking part in professional motor racing, scuba diving or aviation (other than as a fare-paying passenger); and

• childbirth, abortion or pregnancy;

Involuntary Unemployment Cover

• the first 30 days of any period of Involuntary Unemployment (i.e. the Waiting Period);

• unemployment that you were aware of prior to the cover start date, or that occurs in the first 90 days after the cover begins;

• termination during your probation period;

• termination due to serious or wilful misconduct or poor performance;

• the ending of your apprenticeship;

• the ending or non-renewal of a fixed-term contract; or

• resignation, voluntary redundancy or retirement.

How will we pay the benefit?We will pay all Life Cover and Repayment Cover benefits directly into your Home Loan account (which reduces the balance of your Home Loan).

Example 1: You have a Life Cover benefit of $300,000. At the time of your death the outstanding balance of your Home Loan is $300,000. We pay $300,000 to your Home Loan and the policy ends.

Life Cover where the Sum Insured exceeds the Home Loan balance

Where you are the only Insured Person, if the Sum Insured exceeds the Home Loan balance, we will pay the remaining Sum Insured:

• to you in the case of Terminal Illness; or

• to your estate if you die.

Example 2: You have a Life Cover benefit of $500,000. At the time you are diagnosed as being Terminally Ill the outstanding balance of your Home Loan has reduced to $300,000. We pay $300,000 to your Home Loan, the remaining $200,000 to you and the policy ends.


Life Cover where the Sum Insured exceeds the Home Loan balance (continued)

If you have a Joint Policy, and the Sum Insured exceeds the Home Loan balance, we will pay the remaining Sum Insured:

• to you in the case of Terminal Illness;

• to the surviving Insured Person if you die.

Example 3: You have a Life Cover benefit of $600,000 on a Joint Policy. At the time of your death the outstanding balance of your Home Loan has reduced to $400,000. We pay $400,000 to your Home Loan and the remaining $200,000 to the surviving Insured Person. No further benefits can be claimed by the surviving Insured Person and the policy ends.

If you have a Joint Policy and both Insured Persons die as a result of the same accident, and each Insured Person has the same Sum Insured, only one Life Cover benefit is payable.

We will pay the Life Cover benefit into the Home Loan account and equal proportions of any remaining Sum Insured into each Insured Person’s estate.

Example 4: You and your partner have a Home Loan with an outstanding balance of $200,000 and you each have a Life Cover benefit of $400,000. You both die in the same car accident and a total benefit of $400,000 is payable on the policy.

We will pay $200,000 to the Home Loan. The remaining $200,000 will be paid in equal proportions into each of you and your partner’s individual estates and the policy ends.

If you have a Joint Policy and both Insured Persons die as a result of the same accident, and each Insured Person has a different Sum Insured, the higher of the two Life Cover Sum Insured is payable.

If the higher Sum Insured exceeds the Home Loan balance, the remaining monies will be paid in equal proportions into each Insured Person’s estate.

Example 5: You and your partner have a Home Loan with an outstanding balance of $200,000. You have a Life Cover Sum Insured of $400,000. Your partner has a Life Cover Sum Insured of $200,000. You both die in the same car accident. A total benefit of $400,000 is payable on the policy.

We will pay $200,000 to the Home Loan. The remaining $200,000 will be paid in equal proportions into each of you and your partner’s individual estates and the policy ends.

When the Life Cover benefit is paid, all benefits for the Insured Person under the policy cease.

Repayment Cover

The Repayment Cover benefit is paid into your Home Loan account. When the Home Loan balance is paid out, benefit payments cease.

Example 6: You have a Repayment Cover benefit of $2,000 per month. After a 30-day Waiting Period, you are disabled for a further 18 months. However, 10 months after the 30-day Waiting Period ends, your Home Loan is fully paid off.

We will make 10 monthly payments of $2,000 to your Home Loan account and then the benefit payments will cease.

Repayment Cover ends when your Home Loan is fully repaid.


How will we pay the benefit?

Policy type (single / joint)

Loan & benefit description

Event Loan balance

How is benefit paid

Insurance cover after event

Example 1. Single PolicyYou select a

Life Cover benefit = $300k

You pass awayLoan balance

= $300kPay $300k to loan

account

Policy ends when the Life Cover benefit is paid

Example 2. Single PolicyYou select a


You are diagnosed as Terminally Ill

Loan balance = $300k

Pay $300k to loan account

Pay remaining $200k to you

Policy ends when the Life Cover benefit is paid

Example 3.

Joint Policy

You & your partner select a


You pass awayLoan balance

= $400k


Pay remaining $200k to your

surviving partner

One Life Cover benefit is payable so the policy ends

Example 4.

Joint Policy

You & your partner select a


You both die in an accident

together



Pay remaining $200k split equally

to you & your partner’s estates

Total of $400k is paid


Example 5.

Joint Policy

You select a Life Cover benefit

= $400k Your partner

selects a Life Cover benefit

= $200k

You both die in an accident

together



Pay remaining $200k split equally

to you & your partner’s estates Total of $400k is paid (i.e. higher

Sum Insured amount)


Example 6. Single Policy

You select a Repayment Cover benefit = $2,000

per month

After a 30-day Waiting

Period you are disabled for a further 18

months

Your loan is paid out 10

months after the 30-day

Waiting Period

Pay 10 monthly payments of

$2,000 to loan account, the

payments cease

Repayment Cover ends when your

Home Loan is fully repaid


Other information

Cancelling the policy

During the cooling-off period

After we issue your Policy Schedule, you have 30 days from the date cover commences, to check that the policy meets your needs. This is known as the “cooling-off” period.

If you are not satisfied within the cooling-off period, you can cancel the policy by calling us on 1300 769 072 – 9am to 5pm (AEST), Monday to Friday, or by writing to us at St.George Life, Locked Bag 1, Kogarah NSW 1485.

Any premium paid will be refunded in full, less any stamp duty. However, your cooling-off right does not apply if you have made a claim.

After the cooling-off period

You may cancel the policy at any time by notifying us in writing. You will not be entitled to a full refund.

What happens if my Home Loan doesn’t proceed?

If your Home Loan application is not Drawn Down within 90 days from the date we receive your Home Loan Protection application, your Home Loan Protection policy will not commence.

When your Home Loan is closed

If the Home Loan is closed this policy ends. We will write to you to confirm this.

See the section ”When does the cover begin and end?” on pages 7–8.

Duty of DisclosureYour Duty of Disclosure

You have a duty, under the Insurance Contracts Act 1984, to tell us every matter that you know, or could reasonably be expected to know, is relevant to our decision whether to insure you and, if so, on what terms.

The Duty of Disclosure applies before you enter into, extend, vary or reinstate a policy, and applies until the time when we issue a Policy Schedule or other written confirmation of the issue, extension, variation or reinstatement.

If any information provided to us changes (including any change to your health, occupation or pastimes) before we send the Policy Schedule or other written confirmation of cover to you, you must tell us.

The duty does not require disclosure of any matter:

• that diminishes the risk to be undertaken; or

• that is of common knowledge; or

• that we know or, in the ordinary course of our business, ought to know; or

• as to which compliance with your duty is waived by us.

Non-disclosure

If you fail to comply with your duty and we would not have entered into the policy if the failure had not occurred, we may:

• vary the policy to reduce the Sum Insured or to reflect the terms that would have applied if you had complied with your duty; or

• treat the policy as never having existed if it is within three (3) years of entering into the policy or your non-disclosure was fraudulent.


PrivacyIn this section “we” refers to St.George Life, Bank of Melbourne, Westpac and its related bodies corporate as defined in the Corporations Act 2001 (Cth).

Why we collect your personal information

We collect personal information from you to process your application, provide you with your product or service, calculate your premium, assess any claims made by you and manage your product or service. We may also use your information to comply with legislative or regulatory requirements in any jurisdiction, prevent fraud, crime or other activity that may cause harm in relation to our products or services, and help us run our business. We may also use your information to tell you about products or services we think may interest you.

If you do not provide all the information we request, we may need to reject your application or claim, or we may no longer be able to provide a product or service to you.

Disclosing your personal information

We may disclose your personal information to other members of the Westpac Group* and its reinsurers, anyone we engage to do something on our behalf such as a service provider, and other organisations that assist us with our business.

We may disclose your personal information to an entity which is located outside Australia. Details of the countries where the overseas recipients are likely to be located are in the Westpac Privacy Policy.

As a provider of financial services, we have obligations to disclose some personal information to government agencies and regulators in Australia, and in some cases offshore. We are not able to ensure that foreign government agencies or regulators will comply with Australian privacy laws, although they may have their own privacy laws. By using our products or services, you consent to these disclosures.

Other important information

We are authorised to collect personal information from you by certain laws. Details of these laws are in the Bank of Melbourne Privacy Policy.

The Bank of Melbourne Privacy Policy is available online at: www.bankofmelbourne.com.au (search for “Privacy”) or by calling 13 22 66.

It covers:

• how you can access the personal information we hold about you and ask for it to be corrected;

• how you may complain about a breach of the Australian Privacy Principles, or a registered privacy code and how we will deal with your complaint;

• how we collect, hold, use and disclose your personal information in more detail.

The Bank of Melbourne Privacy Policy will be updated from time to time.

Where you have provided information about another individual, you must make them aware of that fact and the contents of this Privacy Statement.

We will use your personal information to contact you or send you information about other products and services offered by the Westpac Group* or its preferred suppliers. If you do not wish to receive marketing communications from us please call us on 13 22 66 or visit any of our branches.

*The Westpac Group means Westpac Banking Corporation and its related corporate bodies.


RemunerationBank of Melbourne and its agents may receive up to 20% of premiums from us for providing information and support in the sale of Home Loan Protection.

Bank of Melbourne may pay referrers or aggregators (such as mortgage brokers) remuneration of up to 20% of premiums for providing information and support in the sale of Home Loan Protection.

The remuneration payable is paid by us out of the premium we receive and is not an additional cost to you.

When a representative of Bank of Melbourne provides information on Home Loan Protection and you decide to apply for the insurance, he or she may benefit indirectly because these applications play a part in their overall performance. Good overall performance on their part can qualify them for bonus payments. Any such bonus payments are not an additional cost to you.

Tax implicationsGenerally, the premium is not tax deductible and the policy benefits are not assessable either as ordinary income or as a capital gain to you.

This statement reflects our view of the taxation law in its present form. You should check your own tax situation with your accountant or taxation adviser.

This policy has no cash valueThis is not a savings plan. This product does not allow you to share in any profit or surplus and your policy does not have a surrender or cash value.

Where we put your moneyWe pay your premiums into a statutory fund called the St.George Life Limited Statutory Fund Number 1, and benefits under your policy are paid out from that fund. The Life Insurance Act 1995 (Cth) contains rules designed to protect the money in the fund.

Relevant LawThis policy is governed by the laws of Australia.

CurrencyAll dollar ($) amounts referred to are in Australian currency. Claims and premiums are payable in Australian dollars.

No assignmentThe policy is not capable of assignment without our prior written consent.

Future improvementsIf we improve the Home Loan Protection policy terms in future we may add these improvements to your policy. We will give you 30 days written notice of any improvements to your policy.


Enquiries and complaintsWe are always striving to provide our customers with the best possible service, so we will do our best to resolve any complaint that you have quickly and fairly. If you have a complaint about anything related to this Home Loan Protection policy, here’s what you should do.

Step 1We ask that you first contact one of our consultants on 1300 769 072 between 9am to 5pm (AEST), Monday to Friday, to discuss your complaint.

If our consultant is unable to resolve the matter, they will refer it to a Senior Officer or Manager. The Senior Officer or Manager will acknowledge your complaint within two (2) business days and try to resolve your complaint within 15 business days.

However, if we consider that further information, assessment or investigation of the complaint is required, we will agree reasonable alternative timeframes with you.

Step 2If you are still not satisfied after the Senior Officer or Manager has investigated the issue, you may ask for us to refer the dispute to our Internal Dispute Resolution Officer.

The Internal Dispute Resolution Officer’s contact details are:

Internal Dispute Resolution Officer

St.George Life Locked Bag 1 Kogarah NSW 1485

Phone 1300 769 072

The Internal Dispute Resolution Officer will provide you with a response within 15 business days.

With both steps 1 and 2, we will do our best to resolve your complaint quickly and fairly.

However, in cases where further information, assessment or investigation is required, we will agree reasonable alternative timeframes with you.

Step 3If 45 days have passed since you first told us about your complaint and you haven’t heard back from us, or if you are not satisfied with the decision made, or we cannot otherwise reach an agreement, you can refer your dispute to the Financial Ombudsman Service. This is a free independent dispute resolution service for customers who have a general insurance dispute.

The Financial Ombudsman Service’s contact details are:

Financial Ombudsman Service

Address GPO Box 3, Melbourne VIC 3001

Phone 1300 780 808

Fax (03) 9613 6399

Email [email protected]

Website www.fos.org.au


DefinitionsIn this PDS, the following definitions apply.

Cancer means a malignant tumour pathologically confirmed and characterised by the uncontrolled spread of malignant cells and the invasion of normal tissue. Also included are Hodgkin’s disease, lymphoma, colorectal cancer (from Dukes stage A) and leukaemia.

The following are specifically excluded:

a. all skin cancers except:

• metastatic squamous cell carcinomas; and

• melanomas of 1.0 millimetre or more Breslow thickness, or Clark Level 3 or more depth of invasion, or with evidence of ulceration;

b. all tumours which are histologically described as microcarcinoma, pre-malignant or showing the malignant changes of ‘carcinoma in situ’, including cervical dysplasia rated as CIN 1, 2 or 3; ‘Carcinoma in situ’ of the breast is not excluded if it results directly in:

• the removal of the entire breast. This procedure must be performed specifically to arrest the spread of malignancy and be considered the appropriate and necessary treatment; or

• breast conserving surgery and adjuvant therapy (such as radiotherapy and/or chemotherapy). The surgery and treatment must be undertaken specifically to arrest the spread of malignancy, and be considered the appropriate and necessary treatment as confirmed by an appropriate specialist doctor acceptable to us. Chemotherapy means the use of drugs as prescribed by an appropriate specialist doctor specifically designed to kill or destroy cancer cells;

c. chronic lymphocytic leukaemia (less than RAI stage 1); and

d. prostatic tumours which are histologically described as TNM classification T1 (including T1a,T1b and T1c), or characterised by Gleason Score of less than 6, or are of another equivalent or lesser classification. Prostate cancer is covered if it results directly in total prostatectomy. This procedure must be performed specifically to arrest the spread of malignancy and be considered the appropriate and necessary treatment.

Coronary Artery Bypass Surgery means the use of bypass graft(s) to one (1) or more coronary arteries for treatment of coronary artery disease. The surgery must be the most appropriate treatment for the disease.

All non-surgical procedures such as angioplasty, laser or other intra-arterial techniques are excluded.

Covered Medical Condition means:

• Cancer;

• Coronary Artery Bypass Surgery;

• Heart Attack;

• Open Heart Surgery; and

• Stroke.

Drawn Down (or Draw Down) means your Home Loan is “Drawn Down” on the date on which funds are first released from your Home Loan to fund the purchase of your residential or investment property home.

Gainful Employment means:

• for employees, a person is working for salary, wages or commission;

• for self-employed, a person is working in a business or professional practice and as a result of their personal exertion is generating an income from the business or professional practice.

Heart Attack means death of heart muscle caused by inadequate blood supply, evidenced by typical rise and/or fall of cardiac biomarker blood tests with at least one (1) of the following:

a. acute cardiac symptoms and signs consistent with a heart attack,

b. new serial electrocardiograph changes associated with myocardial infarction, or

c. imaging evidence of new loss of viable myocardium or new regional wall motion abnormality.


Heart Attack (continued)

If the above tests are inconclusive or superseded by technological advances, we will consider other appropriate and medically recognised tests in support of a diagnosis. Events which meet the above criteria which are diagnosed as lesser acute coronary syndromes, including unstable angina, angina pectoris, myocite necrosis classified as microinfarction, and acute coronary insufficiency are excluded as part of this definition.

An elective percutaneous procedure for coronary artery disease, which is the sole cause of a rise in cardiac biomarkers, is also specifically excluded under this definition.

Home Loan means a residential or investment property home loan for which you have applied with Bank of Melbourne, St.George Bank or BankSA.

Illness means sickness or disability which first shows Symptoms after the cover starts.

Injury means bodily injury caused solely by an accident which happens by chance after the cover starts.

Insured Person(s) means the person (or persons) whose life is insured under this policy and is the person who has the rights and control to apply to change, cancel or extend this policy. (For a Joint Policy, both Insured Persons need to request the change, cancellation or extension of the policy in a manner acceptable to us.)

Involuntary Unemployment (or Involuntary Unemployed) means:

• you are an employee (i.e. a person working for salary, wages or commission), and the role that you were performing is no longer required by your employer and your employment ends; or

• you are self-employed or in a partnership and your business stops operating due to actual or imminent insolvency or business factors beyond your reasonable control.

Joint Policy means a policy where two (2) individuals who are listed as borrowers on a Home Loan, are also Insured Persons on a Home Loan Protection policy (or policies).

Medical Practitioner means a person qualified and registered to practise medicine (other than you or members of your immediate family).

Open Heart Surgery means open chest surgery for the surgical treatment of a cardiac defect, cardiac aneurysm or cardiac tumour.

PDS means Product Disclosure Statement including policy terms.

Policy Anniversary means the anniversary each year of the policy’s commencement date.

Policy Schedule means the most recent document that we issue to you which details the choices of cover you have made along with the Sum Insured.

Sum Insured means the amount that has been agreed to be covered, as shown in the Policy Schedule, under this policy.

Symptom means a departure from normal function or feeling which is noticed by the Insured Person, indicating the potential presence of Illness or other abnormality. The symptom is taken to have existed when first noticed by the Insured Person.

Stroke means any cerebrovascular accident (CVA) or incident resulting in neurological deficit. The stroke must be:

a. confirmed by a consultant neurologist; and

b. evidenced by neuro-imaging (eg. CT, MRI or similar scanning technique).

Cerebral events with reversible neurological deficits, migraine, hypoxic events, trauma, and neurovascular disease affecting the eye or vestibular functions are excluded.

Terminal Illness means you have been diagnosed as having a life expectancy of less than 12 months, as confirmed by a registered Medical Practitioner approved by us.

Waiting Period means the minimum period of time which must elapse before any benefit entitlement under Repayment Cover may accrue.

you and your means each person named as an Insured Person in the application, who we agree to insure; and we, our and us refer to St.George Life, except where otherwise indicated.

1

Application for Home Loan Protection

Only complete this application if you are paying monthly premiums

Home loan application or account number

Policy detailsA premium quote can be obtained from St.George Life by calling 1300 301 883 - select option “3”, 8am to 8pm (AEST), Monday to Friday.

1st Insured Person

Life Cover Sum Insured $ Premium $ per month

Repayment Cover Sum Insured $ Premium $ per month

2nd Insured Person

Life Cover Sum Insured $ Premium $ per month

Repayment Cover Sum Insured $ Premium $ per month

Note: If you have a birthday prior to the application being accepted, any policy issued will be based on the premium rates for your age at the time of acceptance.

1st Insured Person’s detailsTitle Given names (in full) Surname

Home address Postcode

Home Phone Work Phone Mobile

When assessing your application, we may phone you if we need more information to understand your situation.

Please indicate which phone number above is your best contact

Home Work Mobile

Convenient times Monday to Friday, 9am to 5pm

or from am/pm to am/pm

Mon Tue Wed Thu Fri

Email Address

2

2nd Insured Person’s detailsTitle Given names (in full) Surname

Home address Postcode

Home Phone Work Phone Mobile

When assessing your application, we may phone you if we need more information to understand your situation.

Please indicate which phone number above is your best contact

Home Work Mobile

Convenient times Monday to Friday, 9am to 5pm

or from am/pm to am/pm

Mon Tue Wed Thu FriEmail Address

Duty of DisclosureYour duty of disclosure

You have a duty, under the Insurance Contracts Act 1984, to tell us every matter that you know, or could reasonably be expected to know, is relevant to our decision whether to insure you and, if so, on what terms.

The duty of disclosure applies before you enter into, extend, vary or reinstate a policy, and applies until the time when we issue a policy schedule or other written confirmation of the issue, extension, variation or reinstatement.

If any information provided to us changes (including any change to your health, occupation or pastimes) before we send the policy schedule or other written confirmation of cover to you, you must tell us.

The duty does not require disclosure of any matter:• that diminishes the risk to be undertaken; or• that is of common knowledge; or• that we know or, in the ordinary course of our business, ought to know; or• as to which compliance with your duty is waived by us.

Non-disclosure

If you fail to comply with your duty and we would not have entered into the policy if the failure had not occurred, we may:• vary the policy to reduce the sum insured or to reflect the terms that would have applied if you had complied with your duty; or• treat the policy as never having existed if it is within 3 years of entering into the policy or your non-disclosure was fraudulent.

1st Insured Person’s details (continued)Date of birth Gender Male Marital Status Single

/ /

Female Married/De facto

Have you smoked or used a tobacco product (including cigarettes and nicotine replacement therapy) in the last 12 months? No Yes

If Yes, please advise what type (e.g. cigarettes) and average amount smoked per day

Please advise your: Height (cm) Weight (kg) Occupation

3

2nd Insured Person’s details (continued)Date of birth Gender Male Marital Status Single

/ /

Female Married/De facto

Have you smoked or used a tobacco product (including cigarettes and nicotine replacement therapy) in the last 12 months? No Yes

If Yes, please advise what type (e.g. cigarettes) and average amount smoked per day

Please advise your: Height (cm) Weight (kg) Occupation

Further details

1st Insured Person 2nd Insured Person

1 Are you working 20 or more hours per week in continuous and regular employment? Yes No Yes No

2 Have you ever had high blood pressure, high cholesterol, diabetes, epilepsy, alcohol or drug related problems or any mental or nervous condition? If Yes, please provide details in the table below:

Yes No Yes No

3 Have you ever suffered from any disease or disorder of the heart (including chest pain), circulatory system (including stroke), kidney, bladder, lung, liver (including hepatitis), stomach, bowel or cancer of any kind? If Yes, please provide details in the table below:

Yes No Yes No

4 Have you ever had arthritis or any back, neck, joint or muscle disorder that: you have had symptoms from or required any treatment for in the last 2 years; or required surgery; or requires any ongoing or future treatment? If Yes, please provide details in the table below:

Yes No Yes No

5 Are you infected with, or do you have any increased risk of exposure* to, the Human Immunodeficiency Virus (HIV), Hepatitis B or Hepatitis C? If Yes, a confidential lifestyle questionnaire will be sent to you to be completed.

*Increased risk of exposure may include, but is not limited to, in the last 3 years: Sex with a person who injects non-prescribed drugs, with a sex worker, or with someone you know or suspect to be HIV, Hepatitis B or Hepatitis C positive; or unprotected anal sex (except in a relationship where neither of you have had sex with anyone else in the last 3 years).

Yes No Yes No

6 Do you have any other medical condition requiring ongoing treatment or do you contemplate seeking any medical examination, advice or treatment, including surgery, for anything not already disclosed (excluding minor complaints such as flu and colds)? If Yes, please provide details in the table below:

Yes No Yes No

Question number (2,3,4,6)

Insured Persons 1 or 2

Condition, illness or injury

Dates from – to

Length and type of treatment

Time off work Degree of recovery

Name/address of doctor attended

If you require more space to provide your answers, please use the additional information section over the page.

4

Further details (continued)

1st Insured Person 2nd Insured Person

7 Have two or more of your immediate relatives (either alive or deceased) ever had the same serious illness such as heart trouble, bowel cancer or breast cancer (female applicants only) before the age of 65? If Yes, please provide details in the table below:

Yes No Yes No

8 Has any relative ever suffered from a hereditary condition such as Huntington’s disease or polycystic kidney disease? If Yes, please provide details in the table below: Yes No Yes No

Insured Persons 1 or 2

Relation Condition/illness Age when diagnosed

Additional Information

5

Declarations by the Insured PersonsDeclarationI declare that:• I am aged between 18 and 59 years.• I am ordinarily a resident of Australia or New Zealand.• I have read and understood my duty of disclosure, details of which are set out in the Product Disclosure Statement provided to me.• I agree to be bound by the terms of cover contained in this Product Disclosure Statement.

Signature of the 1st Insured Person

Date

/ /

Signature of the 2nd Insured Person

Date

/ /

Credit Card Authority (Complete this section if you wish to pay by credit card)

I hereby authorise St.George Life Limited to charge my (tick one)

Card type: Visa MasterCard

Card Number Expiry date

/

Cardholder name (please print)

Signature

Date

/ /

Direct Debit Request ( Complete this section if you wish to pay by monthly deductions from your bank, building society or credit union account)

This authorises St.George Life Limited to debit insurance premiums from your account(Note: Direct Debiting is not available on all accounts. If in doubt, please ask your bank, building society or credit union before completing this form.)

Name of financial institution (bank, building society or credit union) Branch Number (BSB)

Branch address Postcode

Account name Account Number

I authorise and request St.George Life Limited, User ID 77820, until further notice in writing, to debit my/our insurance premiums from my/our account described above through the direct debit system.

I acknowledge and agree that:1. This Direct Debit Request is governed by the terms of the St.George Life Direct Debit Request Service Agreement (Agreement) which will be

sent to me (and which is also available on request); and2. St.George Life may vary the amount and frequency of future debits by giving notice to me in accordance with the terms of the Agreement.

Signature of Account Holder

Date

Second Signature (if joint account)

Date

/ /

/ /

6

Office use only:

Application ChecklistLender Name Employee Number

Branch Number (GHS)

Before submitting this Home Loan Protection application form, please check the following:

Attached a signed and dated quote

You have given the Product Disclosure Statement and the Financial Services Guide to the client

All relevant sections have been completed and any alterations initialled by the client

Your client has been advised of the follow-up procedures (i.e. we may phone if we require more information about their health situation) and contact phone number/s have been provided in the application form

The declaration is signed and dated

The deduction authority has been completed

Checked the sum insured covers do not exceed the value of the approved home loan &/or the monthly home loan repayments

The Home Loan has been formally approved

To submit a Home Loan Protection application for processing:

Email [email protected]

Fax (02) 9274 5996

© 2014 St.George Life Limited ABN 88 076 763 936 AFS Licence No. 240900 BOM06057 (07/14)

To find out more, just talk to us

Existing policy enquiries:

1300 769 072 9am to 5pm (AEST) Monday to Friday

St.George Life Locked Bag 1, Kogarah NSW 1485

(02) 9952 1076

@ [email protected]

www.bankofmelbourne.com.au (search for “Home Loan Protection”)

Sales enquiries:

1300 301 883 (select option “3”) 8am to 8pm (AEST) Monday to Friday

Documents

Home Loan Protection - Bank of Melbourne...Bank of Melbourne – A Division of Westpac Banking Corporation ABN 33 007 457 141 AFS Licence No. 233714 The insurer is St.George Life,