Statement of Advice

Product Information – OneCare and OneCare Super

Part One

Instructions

This document provides a summary only of the features of OneCare, OneCare External Master Trust and OneCare Super, information about OnePath and OnePath Custodians Pty Limited and describes scenarios where life risk insurance may be appropriate. Advisers must ensure that that they use the information from this document only in appropriate circumstances and in accordance with the law. For example, where the information is used in a statement of advice, advisers must ensure that they are acting in the best interest of the client. As this information is only a summary, advisers should supplement this information with additional information from the PDS and TMD as is relevant to the particular client situation. Advisers remain responsible for the whole of any Statement of Advice prepared by them that contains any of the information included in this document. You should also consider and conform to any standards or requirements of your applicable advice licensee in using or not using this wording in any Statements of Advice or other documents.

Important Information

This document is current at 1 August 2022 but is subject to change. This document is for the use of advisers only. The information provided (including the statements on taxation which are based on current laws, rulings and interpretation) is of a general nature and does not take into account potential policy holder’s personal needs and financial circumstances. Potential policy holders should consider the appropriateness of the information, having regard to their objectives, financial situation and needs. This document does not alter the responsibilities of the adviser under the Corporations Act in relation to providing advice to their clients. OneCare (including OneCare External Master Trust and OneCare SMSF) are issued by Zurich Australia Limited (Zurich, OnePath) ABN 92 000 010 195 AFSL 232510 and OneCare Super is issued by OnePath Custodians Pty Limited (OnePath Custodians) ABN 12 008 508 496 AFSL 238346 RSE L0000673. OnePath and OnePath Custodians are not related bodies corporate. Potential policy holders should read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) available at onepath.com.au and consider whether this product is right for them. OnePath and OnePath Custodians accept no responsibility for the appropriateness of any of the wording to any applicant’s objectives, financial circumstances or needs.

onepath.com.au Zurich Australia Limited (Zurich, OnePath) ABN 92 000 010 195 AFSL 232510 OnePath Custodians Pty Limited ABN 12 008 508 496 AFSL 238346

Situation analysis

Based on our fact finding interview we confirm the following details:

Personal information
Name
Date of birth
Address
Phone number (home)
Phone number (mobile)
Marital status
Number of children
Current age of children
Other dependants
Employment status
Gross annual salary
Other regular income
Summary of unrealised debts
Total cost of education
Summary of debts
Mortgage debt
Personal loan debt
Credit card debt
Other debt
Summary of unrealised assets
Total value of your income until age 65
Summary of assets
Value of managed investments
Value of superannuation fund
Value of shares
Other assets
Existing insurance
Life insurance
TPD insurance
Trauma insurance
Income protection insurance

The risk

In 2020, OnePath paid over $961 million in life insurance claims

In 2020, cancer accounted for 29.7% of OnePath Cover clams, 71.4% of Terminal Illness Cover claims and 51.6% of Trauma Cover claims

In 2020, OnePath paid a total of $305,364,610 in Total and Permanent Disability claims

Males accounted for 77.6% of all OnePath’s Income Secure Cover, Business Expense and Living Expense Cover claims paid in 2020 with a total of $201,123,797.

The problem

While it’s something you don’t want to think about, there is a risk that one day you may suffer from a severe injury, be diagnosed with a serious illness, or even die prematurely. No matter how healthy a lifestyle we lead, illness and injury doesn’t discriminate. No one is guaranteed good health and a long life.

These events can leave us emotionally, physically and financially shattered and safety nets like the disability pension and Workers’ Compensation may not provide the financial protection we think they do.

Workers’ Compensation for example, will generally only cover employees for injuries that occur inside the workplace. Even then the payments are capped at low levels. Illnesses are generally not covered as is the case for injuries occurring outside the workplace.

So if you injure your back in a game of backyard cricket, or if you are diagnosed with a serious illness such as cancer, you won’t be covered.

What’s more, the disability pension is a lot less than you probably think. The table below illustrates the maximum fortnightly amount available. Of those who qualify, many only receive a pension at a reduced rate.

Status	Maximum fortnightly Disability Support Pension (including supplements and current as at <date>)
Single	<$>*
Couple	<$>*

Would this really be enough to maintain your lifestyle?

* Government Department of Human services – www.humanservices.gov.au

So what’s important to you?

Based on our interview, the most important things to you include your lifestyle, assets, and future goals and aspirations.

Lifestyle

You work hard, and you deserve to treat yourself. But imagine you couldn’t afford your:

<rental costs/ mortgage repayments>

<everyday living expenses such as food and household bills>

<social expenses such as dinner with friends>.

Assets

It’s hard building wealth and you’re proud of what you’ve achieved. But imagine you had to sell your:

<apartment/house>

<car.>

Future goals and aspirations

Whether you want to travel, start your own business or build your dream home you know that one day it’s all possible. But imagine you couldn’t reach those dreams because you had to cash in your:

<savings/investments>

<superannuation>.

The solution

While we can’t prevent misfortune from occurring, a risk management plan can help protect you, your lifestyle and your loved ones from the financial consequences such events can bring. Insurance is a cost effective way to manage these very real risks and based on your circumstances, I recommend <a combination of income protection, trauma, TPD and life insurance>.

Life insurance

Life insurance provides you with the peace of mind that your interests will be protected after you’re gone. And at a time when emotions are running high, life insurance can provide the people you leave behind with financial certainty.

TPD insurance

In the event that you can’t work in your current job or any other job again, total and permanent disability insurance helps make sure your long-term financial needs and goals are taken care of. The money can be used to pay your medical expenses, mortgages, personal debts and to make modifications to your home. The money may also enable your spouse to take time off work so that he/she can take care of you.

Trauma insurance

In the event you suffer a serious illness or injury like cancer, heart attack or paralysis, trauma insurance provides you with choices. The money could be used to pay your medical expenses and treatment costs and in some instances provide you with lifestyle choices. You could use it to pay off your debts, go on a holiday, or even to make a permanent lifestyle change such as reduced working hours. The money may also enable your spouse to take time off work so that they can take care of you or support you while you receive treatment.

Income protection insurance

Income protection insurance can help enable you to keep up with your everyday living expenses if you’re unable to work because of illness or injury. The monthly payment allows you to concentrate on your recovery and not on how you will pay the next bill.

Summary of recommended cover types

Cover type	Description	Purpose
To pay your everyday living expenses	To fund income for your dependants	To eliminate or reduce your debts	To pay for medical costs	To fund optional costs e.g. vacations, reduced working hours	To pay for funeral expenses
Life	This cover will pay a lump sum or instalment benefit if you die or suffer from a terminal condition.
TPD	This cover will pay a lump sum or instalment benefit if you suffer from an illness or injury that leaves you totally and permanently disabled and unable to work in <your own/any> occupation again.	n/a
Trauma	This cover will pay a lump sum or instalment benefit if you suffer from a listed condition such as heart attack (diagnosed), cancer (excluding less advanced cases) or stroke (diagnosed).	n/a
Income protection	This cover will pay up to 70% of your income as a monthly benefit if you are unable to work because of illness or injury.	n/a

Summary of cover types excluded from this recommendation

Cover type	Description	Reason why it has not been recommended
Child	This cover will pay a lump sum if the insured child suffers from a listed condition such as, cancer (excluding less advanced cases) or stroke (diagnosed).	You have no children.
Extra Care	This cover allows you to take extra Terminal Illness, Accidental Death and/or Extended Needle Stick Cover for extra protection on top of your main insurance.	You do not need extra insurance.
Business Expense	This cover pays business owners a monthly benefit to assist with their day to day running of their business if they are unable to work because of illness or injury.	This cover is for business owners.
Living Expense	This cover pays a monthly benefit if you become significantly disabled.	Living Expense Cover is designed for people who are not eligible for income protection.

Schedule of protection

Cover type	Insurer	Product name	Waiting period	Benefit period	Additional options at extra cost	Cover level (1st year)	Premium type	Daily cost (1st year)	Monthly premium (1st year)
Life	OnePath	OneCare Life Cover	n/a	n/a	<Premium Waiver> <Business Guarantee> <Value Protector>	$xxx,xxx	<Stepped> <Level>	<$xx.xx>	<$xxx.xx>
TPD	OnePath	OneCare TPD Cover- <Any/Super Any> <Own> <Business> <Home-maker/Super Home-maker> <Non-working/Super Non-working> <SuperLink>	n/a	n/a	<Premium Waiver Disability> <Business Guarantee> <Double TPD> <Life Cover Purchase> <Value Protector>	$xxx,xxx	<Stepped> <Level>	<$xx.xx>	<$xxx.xx>
Trauma	OnePath	OneCare Trauma Cover <Severity> <Comprehensive> <Premier>	n/a	n/a	<Premier Maximiser> <Premium Waiver Disability> <Business Guarantee> <Double Trauma> <Life Cover Purchase> <Trauma Cover Reinstatement> <Value Protector>	$xxx,xxx	<Stepped> <Level>	<$xx.xx>	<$xxx.xx>
Income protection	OnePath	OneCare Income Secure Cover – <Protection> <Protection Super>	<insert>	<insert>	<Indexation (while on claim) Option> <Day 14 Accident Option> <Severity Booster Option>	$x,xxx per month	Stepped	<$xx.xx>	<$xxx.xx>
Total	<$xx.xx>	<$xxx.xx>

Details of the recommended cover levels

Life insurance

The calculation	Your numbers
Total ongoing income required for dependants	<insert>
+	+
Total lump sum to eliminate or reduce debt	<insert>
+	+
Total lump sum for additional expenses (children’s education, funeral and medical expenses)	<insert>
-	+
Total value of assets that would be converted to cash	<insert>
-	+
Existing insurance	<insert>
+	+
Contingency	<insert>
=	=
Life insurance gap	<insert>

TPD insurance

The calculation	Your numbers
Total ongoing income required for dependants	<insert>
+	+
Total lump sum to eliminate or reduce debt	<insert>
+	+
Total lump sum for additional expenses (children’s education, funeral and medical expenses)	<insert>
-	+
Total value of assets that would be converted to cash	<insert>
-	+
Existing insurance	<insert>
+	+
Initial income to cover the cost of a spouse/partner to take time off work to care for you	<insert>
+	+
Contingency	<insert>
=	=
TPD insurance gap	<insert>

Trauma insurance

The calculation	Your numbers
Total ongoing income required for dependants	<insert>
+	+
Total lump sum to eliminate or reduce debt	<insert>
+	+
Total lump sum for additional expenses (children’s education, funeral and medical expenses)	<insert>
-	+
Total value of assets that would be converted to cash	<insert>
-	+
Existing insurance	<insert>
+	+
Initial income to cover the cost of a spouse/partner to take time off work to care for you	<insert>
+	+
Contingency	<insert>
=	=
Trauma insurance gap	<insert>

Income protection

The calculation	Your numbers
Gross annual earnings before tax and excluding superannuation guarantee (inclusive of salary and any regular bonuses/commissions)	<insert>
X	X
70% of the first $300,000, 50% of the next $200,000 and 25% of the balance	70% <first $300,000> + 50% <next $200,00> + 25% <balance>
=	=
Monthly Benefit	<insert>

Policy structure

OneCare allows you to construct insurance packages in various ways. This flexibility means your insurances can be structured in line with your needs, objectives, budget and estate plans.

During our discussions, you stated that <cost efficiency/maximising coverage> was important to you.

<Option 1>

Income Secure Cover Trauma Cover TPD
Cover Life
Cover Your OneCare policy I recommend all your insurances are set up as stand-alone covers. This means that if you claim on one cover type other than death benefits, your other covers won’t be affected. This structure will provide you with the maximum coverage.

<Option 2>

I recommend that the Income Secure Cover and Trauma Cover are set up as standalone covers and the Life and TPD Covers are linked. This means that if you were to be paid on your Trauma Cover, your Life and TPD Cover will remain unaffected. However, if you were to be paid on the TPD Cover, the Life Cover will be reduced by the amount of the TPD benefit paid. I recommend the Life Cover be held under the super policy.

<If you are paid TPD Benefits under your cover, you will be able to use the Life Cover Buy Back feature to restore your Life Cover in 12 months’ time.>

<If you are paid TPD Benefits under your cover, you will be able to use the Double TPD Option immediately to restore your Life Cover. Under this option, you will never have to pay premiums for the restored cover.>

<Should you be paid your full Trauma Benefit under your cover, you will be able to use the Life Cover Purchase Option to purchase Life Cover up to the amount of the Trauma Benefit paid.> Not available under Severity Trauma

<You will also be able to use the Trauma Reinstatement Option to restore up to 100% of your Trauma Cover 6 or 12 months after you have been paid depending on the condition, covering you for conditions unrelated to the original cause of claim.> Not available under Severity Trauma

Your OneCare policy Income
Secure Cover Trauma
Cover Life
Cover TPD
Cover This structure provides you with the flexibility of holding Trauma Cover independently from your Life and TPD Cover. I have also provided you with a cost effective structure which links your Life Cover and TPD Cover.

<Option 3>

I recommend that your Life, TPD and Trauma Covers are linked. This structure provides you with comprehensive yet cost effective coverage. You need to be aware that if you are paid on the TPD or Trauma Cover, the remaining covers will be reduced by the amount of the benefit paid.

<If you are paid the full TPD or Trauma Benefits under your cover, you will be able to use the Life Cover Buy Back feature to restore your Life Cover in 6 or 12 months’ time, depending on the condition.> Not available under Severity Trauma

<With the Double TPD Option, if you are paid the full TPD Benefit under your cover, you will be able to immediately restore your Life Cover. Under this option, you will never have to pay premiums for the restored cover.>

<With the Double Trauma Option, if you are paid the full Trauma Benefit under your cover, you will be able to immediately restore your Life Cover. Under this option, you will never have to pay premiums for the restored cover.> Not available under Severity Trauma

Income Secure Cover Life Cover TPD Cover Trauma Cover Your OneCare policy <You will also be able to use the Trauma Reinstatement Option to restore up to 100% of your Trauma Cover 6 or 12 months after you have been paid the full Trauma Cover amount depending on the condition, covering you for conditions unrelated to the original cause of claim.> Not available under Severity Trauma

<Option 4>

I recommend that your Life, TPD and Trauma Covers are linked, with the TPD Cover split across a policy owned by the trustee of your superannuation fund, and another policy owned by you through a SuperLink arrangement. You need to be aware that if you claim on the TPD Cover, the Life Cover and the linked TPD and Trauma Cover will be reduced by the amount of the benefit paid. I recommend the Life Cover be held under the super policy.

Structuring the TPD Cover like this allows access to an ‘Own Occupation’ TPD definition whilst receiving any tax concessions under a superannuation funding arrangement. This approach also reduces the risk of TPD Benefits being ‘trapped’ in the superannuation fund.

The TPD Cover is separated into two policies. One policy containing the ‘SuperLink SIS Any Occupation’ TPD definition is owned by the trustee of your superannuation fund, and the other with the ‘SuperLink SIS Own Occupation’ TPD definition is owned by you. When assessing a TPD claim, you are first assessed under the policy held by the trustee, with the other policy only being assessed if you do not satisfy the definition under the superannuation policy

Structuring the Trauma Cover like this allows access to ‘linked’ rates instead of ‘stand- alone’ rates (which are generally higher) helping reduce the premium paid. The Trauma Cover is owned by you.

The OneCare policy held by the trustee of your superannuation fund includes a ‘SuperLink SIS Any Occupation’ TPD definition that is consistent with the Superannuation Industry (Supervision) Act (SIS) definition of ‘Permanent Incapacity’. This means that if you satisfy the TPD definition under this policy, you are also likely to satisfy the condition of release under SIS and the trustee should be able to pay you the benefit.

In the event you don’t satisfy the TPD definition under the policy held by the trustee, your claim will then be assessed under the policy held by you. Broadly, the TPD definition under this policy requires you to be unable to work again in your ‘Own Occupation.’

It’s important to note that in a SuperLink arrangement, the TPD Benefit is only ever payable once - either under the superannuation owned policy or the policy owned by you. Any benefit amount paid in respect of you under one policy will reduce the TPD amount insured under the other linked policy.

<If you claim TPD or Trauma Benefits under your cover, you will be able to use the Life Cover Buy Back feature to restore your Life Cover in 6 or 12 months’ time, depending on the condition, covering you for conditions unrelated to the original cause of claim.> Not available under Severity Trauma

<If you claim TPD or Trauma Benefits under your cover, you will be able to use the Double TPD Option and/or the Double Trauma Option immediately to restore your Life Cover. Under this option, you will never have to pay premiums for the restored cover.> Not available under Severity Trauma

<You will also be able to use the Trauma Reinstatement Option to restore up to 100% of your Trauma Cover 6 or 12 months after you have been paid the full Trauma Cover amount, depending on the condition, covering you for conditions unrelated to the original cause of claim.> Not available under Severity Trauma

This structure provides you with the flexibility of linking Trauma Cover, owned by you to your Life Cover and TPD Cover, owned by the trustee of your superannuation fund.

I also recommend you hold your Income Secure Cover through super.

The OneCare Super policy is held by the trustee of your superannuation fund and we pay your disability benefit under the super policy to the trustee in conditions that are consistent with the requirements of the Superannuation Industry (Supervision) Act (SIS). Because the policy is held under super, you will need to satisfy a condition of release under SIS.

Income Secure Protection Super TPD Cover
(SuperLink SIS Own Occupation) Trauma Cover Life Cover TPD Cover (SuperLink SIS Any Occupation) Your OneCare policy Your OneCare superannuation policy Complimentary Income Secure Protection (when Income Secure Protection Super is taken) Under Income Secure Protection Super, if you are unemployed when illness or injury occurs, generally no benefit is payable to the trustee due to SIS limits. However, OneCare Income Secure Protection Super comes with Complimentary Income Secure Protection outside of super that provides you with cover during unemployment.

<Option 5>

I recommend that your Life, TPD and Trauma Covers are linked, with the TPD and Trauma Cover owned by you through a SuperLink arrangement. You need to be aware that if you claim on the TPD Cover, the Life Cover and the linked Trauma Cover will be reduced by the amount of the benefit paid. I recommend the Life Cover be held under the super policy.

Structuring the TPD and Trauma Covers like this allows access to ‘linked’ rates instead of ‘stand-alone’ rates (which are generally higher) helping reduce the premium paid.

<If you claim TPD or Trauma Benefits under your cover, you will be able to use the Life Cover Buy Back feature to restore your Life Cover in 6 or 12 months’ time, depending on the condition, covering you for conditions unrelated to the original cause of claim.> Not available under Severity Trauma

<If you claim TPD or Trauma Benefits under your cover, you will be able to use the Double TPD Option and/or the Double Trauma Option immediately to restore your Life Cover. Under this option, you will never have to pay premiums for the restored cover.> Not available under Severity Trauma

<You will also be able to use the Trauma Reinstatement Option to restore up to 100% of your Trauma Cover 6 or 12 months after you have been paid the full Trauma Cover amount, depending on the condition, covering you for conditions unrelated to the original cause of claim.> Not available under Severity Trauma

This structure provides you with the flexibility of linking TPD Cover and Trauma Cover owned by you to Life Cover owned by the trustee of your superannuation fund.

I also recommend you hold your Income Secure Cover through super..

The OneCare Super policy is held by the trustee of your superannuation fund and we pay your disability benefit under the super policy to the trustee in conditions that are consistent with the requirements of the Superannuation Industry (Supervision) Act (SIS). Because the policy is held under super, you will need to satisfy a condition of release under SIS.

Your OneCare superannuation policy TPD Cover Trauma Cover Life Cover Your OneCare policy Income Secure Protection Super Complimentary Income Secure Protection (when Income Secure Protection Super is taken) Under Income Secure Protection Super, if you are unemployed when illness or injury occurs, generally no benefit is payable to the trustee due to SIS limits. However, OneCare Income Secure Protection Super comes with Complimentary Income Secure Protection outside of super that provides you with cover during unemployment.

Policy ownership and payment of benefits

If you are the policy owner you will receive the benefits, or in the event of your death, benefits will be paid to your beneficiaries or your estate.

If the trustee of your super fund is the policy owner, then the trustee of the fund will receive the benefits. For example, the trustee of the Retirement Portfolio Service is the policy owner of OneCare Super policies. The trustee will determine how and when to pay the benefits in accordance with the Fund’s trust deed and superannuation law. In the event of your death, the trustee will consider any valid beneficiary nominations you have made before making a payment.

If someone else or another legal entity such as a trustee of a non-super trust is the policy owner, then benefits will be paid to that person or entity.

Insurance type	Policy owner
You	Retirement Portfolio Service	Other
Life	<> <>	<> <>	<insert>
TPD – <Type>	<> <>	<> <>	<insert>
TPD – <Type>	<> <>	<> <>	<insert>
Trauma	<> <>	<> <>	<insert>
Income protection – <Type>	<> <>	<> <>	<insert>
Income protection – <Type>	<> <x>	<> <x>	<insert>

onepath.com.au Zurich Australia Limited (Zurich, OnePath) ABN 92 000 010 195 AFSL 232510 OnePath Custodians Pty Limited ABN 12 008 508 496 AFSL 238346 PVNN-017528-2021