A
This is a pension purchased by superannuation money but the client cannot make withdrawals.
NCAP/Non-Commutable Allocated Pension
The maximum period of time when the benefits are paid to the client.
Benefit Period
This pays the client a guaranteed pension income for a defined period of time.
Annuity
TPD benefit can be claimed if you’re a homemaker who can no longer perform domestic duties.
Home Duties
TPD benefit can be claimed if you can no longer perform activities of daily living.
Activities of Daily Living
The price charged by the insurance company for providing insurance cover
Insurance Premium
These are the outcomes of underwriting.
Accepted, Declined, Revised/Amended Terms
Something that is specifically not covered under the insurance policy.
Exclusions
The benefit is based on the income when you made the claim.
Indemnity Value
A facility that provides an easy way to consolidate an existing pension account balance with any additional super benefits.
Pension Refresh
In the event of the member's death or in some cases, the diagnosis of a terminal illness, the fund provider pays a lump sum benefit to the client or client's beneficiary
Life Insurance/Death/Life Term
TPD benefit can be claimed if the person is unlikely to ever work in any occupation.
Any Occupation
A practice or arrangement by which a company provides the money you need for a specified loss, illness or death in return for payment of a premium.
Insurance
The evaluation of the risk and exposures of potential clients
Underwriting
Covers the cost of rehabilitation, debt repayments and future cost of living.
TPD/Total Permanent Disablement/Permanent Incapacity
The period of time that you must wait before you can get your IP benefit.
Waiting Period
A multiplier applied to the insurance policy to cover losses from insuring a high risk client.
Loadings
In the event of the diagnosis of a terminal illness or injury, the fund provider pays a lump sum benefit. This is also never taken inside super.
Trauma/Crisis Recovery/ Critical Illness/Recovery Insurance and Stand Alone Living
How much is being paid as an Income Protection benefit since 1 Oct 2021?
70%
The benefit is based on the income when you applied for the policy
Agreed Value
A scheme that allows a client to access their super as an income stream while working part-time or full-time.
Transition to Retirement
Payment one receives for temporarily losing work.
Income Protection/Total Salary Continuance/ Temporary Incapacity/Income Secure
This is a government allowance paid to eligible Australians who reached the retirement age.
Age Pension
TPD benefit can be claimed if the person is unlikely to ever work in his own occupation.
Own Occupation
The minimum and maximum drawdown rate for Non-Commutable Allocated Pension.
4% and 10%