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Life insurance made for living


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									Macquarie Life Active

Life insurance
made for living

  Macquarie Life
A breath of fresh air for advisers
and clients alike, Macquarie Life
Active combines traditional Life,
Total and Permanent Disability
and Trauma Insurance products
into one simple alternative.
A common sense, comprehensive approach

Active is a simple yet comprehensive insurance solution that introduces
some much needed common sense to coverage and benefits.

Broader cover                                   Multiple claims allowed
Different types of cover are bundled into       Cover that allows for multiple claims over
one policy and more conditions covered.         the lifetime of the policy.
This means that your clients are more likely
to receive a benefit compared to traditional    More affordable cover
life insurance policies.                        Providing a single policy means Active
                                                premiums can be lower than typical
Benefit payments based on need                  packaged Life, TPD and Trauma premiums.
claims are based on the severity of the
Health Event; the more serious the condition,   Simple, single solution
the greater the benefit.                        There’s only one policy to explain and less
                                                risk that your client will trade off one benefit
                                                for another.

                                                We’ll now look at each one of these
                                                five areas in more detail.

    Health Events provide broader cover

    We have introduced Health Events which covers a broader range
    of medical conditions.

    A Health Event can be one of many                 Compassionate approach
    defined conditions such as heart attack,          Even if your client suffers a condition that is
    stroke, cancer and depression, or it can          not listed, they may be able to claim under
    be the outcome of a condition which               the Activities of Daily Living. This provides
    affects your client’s ability to perform          cover where your client’s ability to perform
    a range of daily activities – things like         simple day to day tasks has been fully or
    communicating, physical activity and              partially impacted. These tasks include;
    hand functions.                                   communication, self care, physical functions,
                                                      hand functions, sensory functions and
    More conditions
                                                      advanced functions which are all crucial
    Active covers more conditions than are            to the quality of life.
    typically covered under a conventional
    trauma policy. This removes many of the
                                                      Objective criteria
    gaps that can result in clients missing out
    on receiving a claim despite suffering a          All conditions are based on transparent,
    significant Health Event.                         objective criteria that remove the need for
                                                      doctors to make subjective work-based
    It should not make a difference whether           assessments as is the case with TPD.
    your client has been told they have               An added advantage is that clients do
    Huntington’s disease or Parkinson’s               not need to wait until their condition stops
    disease – what is important is that they          them from working before they can claim
    receive the right financial support to ease       – they can claim along the way as their
    the financial pressure associated with            condition progresses.
    their illness or accident.
                                                      Real value
    Lower thresholds                                  The unique combination of features offered
    Lower thresholds for many conditions              by Macquarie Life Active increases the
    mean that clients can start claiming at earlier   likelihood that your client will receive a benefit
    stages once they experience a Health Event.       when they have suffered a Health Event.
                                                      Clients understand the real value of this and
    For example, rather than relying on meeting
                                                      see Active as a tangible and relevant policy.
    specified troponin levels, a heart attack
    payment starts for the N-STEMI (baby)
    heart attacks and increases according to
    the impact on the functioning of the heart.
    More severe conditions mean a higher level
    of benefit to be paid.

    Fairer way to make benefit payments

    Active pays claims based on the severity of the health event.

    Protection matched to need                        Flexible cover
    It makes a lot of sense to pay a larger           Health events are divided into five categories
    benefit for more severe conditions and            with higher benefit payments for more severe
    a lower one for conditions that have less         conditions as shown. Death and terminal
    impact on physical health and financial           illness is a separate category – AA.
    position. This staging of payments reduces
    some of the difficulty inherent in determining
                                                           Type            Benefit     % of the initial
    an appropriate level of cover for traditional
                                                          of cover        Category    amount of cover
    Trauma contracts. Under Active the level
    varies to match the severity of condition         Death and        AA            100% plus
    and associated need.                              terminal illness               any additional
                                                                                     death cover
    More equitable                                    Health Events   A              100%
    Active also removes the ‘all or nothing’
                                                                      B              65%
    approach to paying claims that is a feature
    of most traditional life policies, which can                      C              40%
    see a client’s claim swing from 100 per
                                                                      D              20%
    cent to zero because their condition has just
    fallen short of the policy definition. Although                   E              5%
    the client may not receive the full benefit for
    every Active claim, they are much more likely
    to receive an amount relative to the severity     Sustainable pricing, future reserves
    of the condition.                                 Staged benefit payments help alleviate
                                                      some of the pricing pressure seen under
                                                      current Trauma contracts, namely those
                                                      that pay out full benefits at early stages of
                                                      conditions, on the assumption the condition
                                                      will worsen. Staged benefits mean that the
                                                      client is still covered for future events should
                                                      the condition deteriorate or they suffer an
                                                      unrelated condition.

                                                      In short, your client’s premium pays for
                                                      real protection matched to their need.

    Multiple claims allowed during the client’s lifetime

    Active allows for multiple claims to be made during the lifetime
    of the policy. This can be for related Health Events as a condition
    progresses and for unrelated medical conditions.

    For subsequent claims we will pay:                    Built in Claim Protector
    a) The difference between the benefit                 Another important Active feature is the Claim
       paid and the higher benefit for:                   Protector. This protects 25 per cent of the
                                                          Health Event cover. This means there will
      ■    a deterioration of a condition for             generally be an amount available to provide
           which a claim has already been paid            financial support to clients who experience
      ■    unrelated conditions that occur within         multiple Health Events.
           the 12 month Limited Claim Period.
                                                          If a claim results in the cover falling below
    b) The full benefit for unrelated conditions that     25 per cent of the original initial Health Event
       occur outside the Limited Claim Period.            cover (indexed), then just 14 days after we
                                                          pay the claim, 25 per cent of the cover is
    Client-friendly definition of progression             reinstated and continues to be, subject to
    Unlike reinstatement of cover under current           specified limits, after every future claim right
    trauma contracts, only conditions due to the          through to age 65.
    same underlying medical cause will be treated
    as a progression of a previous condition.             The A to E of Benefit Payments
    For example, if your client were to suffer two        When it comes to benefit payments, one size
    types of cancer with different cell types we          does not fit all. The following chart shows how
    would treat both as separate claims.                  Active pays benefits according to need.

    The same would apply if they were to undergo
    heart valve surgery to correct a defect then
    suffer a heart attack due to blocked arteries.

    Death and terminal                                  Health Events cover
       illness cover

            cover                                                                     Initial Amount of Cover

                                                                                     Protected Amount (25%)

            AA                  A                B              C                D                   E

           100%               100%              65%            40%              20%                 5%

A more efficient way to use premiums

Better cover need not cost more – in fact our innovative and common
sense approach to structuring Active means that premiums are up to 30
per cent lower than standard bundled Life, TPD and Trauma contracts.*

More options for clients and advisers                                      Spreading the efficiencies
Lower premiums provide you with a greater                                  In addition to lower premiums, pricing
opportunity to provide comprehensive cover                                 efficiencies allow us to provide broader
for clients who are sensitive to price. These                              coverage of conditions, allow multiple claims
also enable you to offer higher levels of                                  and offer a built in Claim Protector.
cover to clients who want to receive even
greater financial support for the most
serious conditions.

Efficiency generates gains
Active achieves lower pricing through a more
efficient use of premiums. Streamlining lump
sum cover for medical conditions into a single
benefit removes cover overlap. This ensures
clients do not pay twice for cover they can
only claim on once. Staged benefit payments
also mean we are not making full benefit
payments for conditions that have only a
relatively minor impact on the client.

The single, simple solution. Active’s all-in-one solution makes
Life simpler for you and your client.

You no longer need to explain multiple                                     Providing an integrated solution also removes
benefits as well as the different definitions                              the opportunity for clients to trade off one
and options available under the current lump                               benefit over another due to the perceived cost
sum product sets.                                                          or overlap of cover. By feeling more confident
                                                                           about their decision, clients will be more likely
                                                                           to retain their cover in future years.

*Macquarie Life Limited (In house research May 2010) The premium difference is based on the comparison of the cost of Active Cover to the cost
of a Macquarie FutureWise packaged policy providing life, total and permanent disability and trauma insurance for applicants working in clerical
occupations. FutureWise provides different benefits when compared to Active, and either Active or FutureWise may provide for greater claim
payments in certain circumstances. Differences in the benefits provided, as well as differences in price, should be considered when determining
which policy is right for you.

    Policy ownership

    When you arrange cover through Macquarie Life Active, the policy
    holder is an important consideration as it may affect the following
    aspects of your client’s insurance cover.

    ■     how cover will be issued
    ■     who receives any benefit that becomes payable
    ■     types of cover and options available
    ■     benefits included in a policy, e.g. some benefits are not available when cover
          is held through superannuation
    ■     access to any benefit that becomes payable
    ■     the tax treatment of the premium paid and benefits received.

                Policy Owner                                Insured person*               Type of cover available


        A person or company                       Either:                          All types of cover are available
        (that is not a trustee of                 ■   the same person as           under a non- superannuation policy:
        superannuation fund).                         the policy owner; or         ■   death and terminal illness;
                                                  ■   a different person.          ■   Health Events;
                                                                                   ■   Income Cover (including
                                                                                       Extra Benefits option); and
                                                                                   ■   Child Cover.

        Within superannuation

        A person or company                       A member of the relevant self    The types of cover available under a
        who is a trustee of a                     managed superannuation fund.     superannuation policy are limited to:
        self managed                                                               ■   death and terminal illness;
        superannuation fund.
                                                                                   ■   Health Events (meeting the
                                                                                       SIS permanent incapacity
        Macquarie Investment                      A member of an eligible              definition); and
        Management Limited                        superannuation plan.             ■   Income Cover (not available
        (MIML) as trustee of a                                                         through the insurance- only
        superannuation fund.                      A member of the insurance-           division of the Macquarie
                                                  only division of the Macquarie       Superannuation Plan).
                                                  Superannuation Plan.

    *The person who is insured under the policy

Health Events

Macquarie Life Active has the following benefit categories
for Health Events.

Body System: Cancer                     Body system: Kidneys
■ Solid tumour cancers                  and urogenital tract
                                        ■ Renal failure
■   Lymphomas
■   Brain tumours                       ■   Kidney transplant
■   Leukaemias                          ■   Surgical procedures
■   Other cancers                       Body system: Lungs
                                        ■ Diseases of the lung
Body system: Heart and artery
■ Heart attack                          ■   Surgical procedures
■   Cardiomyopathy                      ■   Lung transplant
■   Other heart and artery conditions   ■   Other lung conditions
■   Heart transplant                    Body system:
■   Surgical procedures                 Musculoskeletal system
                                        ■ Burns
Body system: Brain and nerves
                                        ■   Back, limb and whole
■ Stroke
                                            person impairment
■   Cognitive conditions
                                        Body system: Ear
■   Coma
                                        ■ Loss of hearing
■   Surgical procedures and events
                                        ■   Surgical procedures
■   Other brain and nerve conditions
                                        Body system: eye
Body system: Digestive system
                                        ■ Loss of sight
■ Transplants
                                        ■   Surgical procedures
■   Surgical procedures
■   Other digestive conditions          Body system: HIV/AIDS
■   Liver conditions                    Body system: General
                                        ■ Body system: General
                                        ■   Inability to perform Activities
                                            of Daily Living (ADL)

To find out more about how Active provides a breath of fresh air
for you and your clients, please contact your business development
manager or call Macquarie Life on 1800 005 057.

                                         How to contact
                                         Macquarie Life

                                                 Freecall 1800 005 057
                                                 Freecall 1800 451 689
                                                 Fax Gateway
                                                 1800 812 175
                                                 GPO Box 5216 Brisbane QLD 4001
                                                 Freecall 1800 208 130

This document is current as at August 2011 and is issued by Macquarie Life Limited (Macquarie Life) ABN 56 003 963
773 AFSL 237 497 and Macquarie Investment Management Limited (MIML) ABN 66 002 867 003 AFSL 237 492 (“we”,
“us”, “our” or “Macquarie” as the context requires). Macquarie Life and MIML are not authorised deposit-taking institutions
for the purposes of the Banking Act (Cth) 1959, and Macquarie Life’s and MIML’s obligations do not represent deposits or
other liabilities of Macquarie Bank Limited ABN 46 008 583 542. Macquarie Bank Limited does not guarantee or otherwise
provide assurance in respect of the obligations of Macquarie Life and MIML. In deciding whether to acquire or continue to hold
insurance, investors should consider the Product Disclosure Statement (PDS) available from us. This information is provided for
the use of licensed financial advisers only. In no circumstances is it to be used by a person for the purposes of making a decision
about a financial product or class of financial products.


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