1.  Life Protection Plan and Total and Permanent Disablement (TPD)

1.1 Terminal Illness Benefit

The Terminal Illness Benefit does not apply to stand-alone Total and Permanent Disability.

When the life insured is diagnosed as Terminally Ill, the Benefit Amount will be paid and the Life Protection Plan will cease.

1.2 Guaranteed Personal Insurability Benefit

You can increase the Benefit Amount of the Death Benefit and/or Total and Permanent Disability Benefit (if applicable) for a life insured, subject to:

• an application in writing for an increase being made within 30 days of an Allowable Event (as described below) or within 30 days of the Policy anniversary following an Allowable Event;
• the life insured being less than age 55 at the time of an Allowable Event;
• the increase being up to the lesser of:
  - 25% of the original Benefit Amount;
  - $200,000;
  - five times the annual amount of salary increase (if applicable), and
  - the amount of mortgage being taken out or increased (if applicable);
• total death cover on the life insured (including the cover with TOWER and any other organisation) being less than $3,000,000;
• total Total and Permanent Disability cover on the life insured (including the cover with TOWER and any other organisation) being less than $3,000,000; and
• evidence, satisfactory to us, of the Allowable Event, being provided.

For all increases applied for under this benefit, the maximum amount by which you can increase the Benefit Amount is the lower of:

• the original Benefit Amount; and
• $1,000,000

subject to total cover (with TOWER and any other organisation) not exceeding $3,000,000 for death and $3,000,000 for Total and Permanent Disability.

If Total and Permanent Disability Benefits are attached to the Life Protection Plan, or you have a stand-alone Total and Permanent Disability Plan linked to a Life Protection Plan, the Total and Permanent Disability cover cannot exceed the death cover.

Only one Guaranteed Insurability Benefit (either Personal or Business) may be exercised in any 12 month period.

The premium for the new Benefit Amount will be calculated in line with the Plan Conditions.

If cover increases as a result of the Guaranteed Personal Insurability Benefit, changes in the health, occupation or pastimes of the life insured will not be taken into account.

Allowable events are:

• the birth of a child where the life insured is a parent;
• the adoption of a child by the life insured;
• a dependent child of the life insured starts secondary school;
• marriage of the life insured;
• divorce of the life insured;
• a change in employment status of the life insured where the life insured’s salary increases by at least $10,000 a year;
• the life insured completes a post graduate degree; or
• taking out, or increasing, a mortgage by the life insured (either alone or jointly with another person) on a home which is the primary residence of the life insured.

During the first six months after exercising the Guaranteed Personal Insurability Benefit, the increased portion of the Benefit Amount will only be paid in the event of the life insured suffering:

• Accidental Death (unless the cover is stand-alone Total and Permanent Disability); or
• Total and Permanent Disability that is caused by Accident (if applicable).

It should be noted that the Guaranteed Personal Insurability Benefit cannot be exercised while premiums are being waived under the Premium Relief Option.

This benefit is not available if:

• a loading or an exclusion has been applied to your cover for the life insured; or
• your Life Protection Plan cover results from applying the Death Buy-Back on Total and Permanent Disability; or
• your Life Protection Plan cover results from applying the Death Buy-Back on a Crisis Protection Plan.

1.3 New Benefit payable under the Total and Permanent Disability Benefit for the Loss of a Single Limb or the Loss of Sight in one eye

The Total and Permanent Disability Benefit is payable if the life insured becomes Totally and Permanently Disabled. The Benefit is paid immediately upon any one of the four criteria in the definition of Total and Permanent Disability being satisfied.

Unless you have chosen to structure the Life Protection Plan through the TOWER Superannuation Fund, an advanced payment will be made under this Benefit if the life insured suffers the Loss of a Single Limb or the Loss of Sight in one eye. The amount to be paid will be 25% of the Benefit Amount, up to a maximum payment of $500,000. This is payable only once and the Total and Permanent Disability Benefit Amount will be reduced by the amount paid for the Loss of a Single Limb or the Loss of Sight in one eye. The advanced payment will only be paid if the condition or the circumstances leading to the claim occurs after the Plan start date.

If the Total and Permanent Disability Benefit is attached to the Life Protection Plan, or a stand-alone Total and Permanent Disability Plan is linked to a Life Protection Plan, when a Total and Permanent Disability Benefit is paid, the following will apply:

• the Death Benefit Amount will be reduced by the Total and Permanent Disability Benefit paid;
• the Total and Permanent Disability Benefit will be reduced by any Terminal Illness Benefit paid; and
• premiums will be payable based on the reduced Benefit Amount.

If the stand-alone Total and Permanent Disability Benefit applies in respect of the life insured;

• any current Death Benefit will not be reduced after a Total and Permanent Disability Benefit is paid; and
• the Total and Permanent Disability Benefit will not be reduced if a Terminal Illness Benefit is paid.

1.4-1.7 Total and Permanent Disability and Total and Permanent Disablement mean that:

• solely because of a Sickness or Injury, the life insured has not been in any occupation for three consecutive months and, in our opinion, after consideration of medical and any other evidence, is incapacitated to such an extent as to render the life insured unlikely ever to be able to work in any occupation for which they are reasonably suited by training, education or experience which would pay remuneration at a rate greater than 25% of the life insured’s earnings during their last 12 months of work; or
• solely because of a Sickness or Injury, the life insured has suffered at least 25% impairment of Whole Person Function and has not been working in any occupation, and, in our opinion, after consideration of medical and any other evidence, is incapacitated to such an extent as to render the life insured unlikely ever to be able to work in any occupation for which they are reasonably suited by training, education or experience which would pay remuneration at a rate greater than 25% of the life insured’s earnings during their last 12 months of work; or
• the life insured suffers the loss of:
  - both feet, both hands or sight in both eyes; or
  - any combination of two of, a hand, a foot or sight in an eye.
  
  ‘Loss’ in this instance means the total and permanent loss of:
  - the use of the hand or foot from the wrist or ankle joint; or
  - sight to the extent that visual acuity in the eye, on a Snellen Scale after the correction by a suitable lens, is less than 6/60; or
• the life insured is totally and permanently unable to perform at least two of the five Activities of Daily Living without the physical assistance of another person.

From the Policy anniversary prior to the life insured’s 65th birthday, ‘Total and Permanent Disability’, and ‘Totally and Permanently Disabled’ mean that the life insured suffers:

• Loss of Independent Existence; or
• Loss of Limbs; or
• Blindness.

When ‘Own Occupation’ is shown in the Policy Certificate, the references above to ‘any occupation for which they are reasonably suited by training, education or experience which would pay remuneration at a rate greater than 25% of the life insured’s earnings during their last 12 months of work’ will be replaced by ‘their Own Occupation’.

Own Occupation

Own Occupation is the occupation in which the life insured was working immediately prior to the Sickness or Injury causing disability.

If the life insured had been working in more than one occupation that meets these criteria, ‘Own Occupation’ will include all of those occupations.