If you hold NEOS Protection, you’re a member (Member) of the NEOS Benefit Fund (the Fund). From time to time, updates are made to the Rules of the NEOS Benefit Fund (the Rules), which govern the Fund. This summary is provided to keep you aware of some recent changes to the Rules which were approved by The Australian Prudential Regulation Authority (APRA), on 22 March 2022.
The changes to the Rules were considered carefully by NobleOak, as the issuer of NEOS Protection, and NEOS to ensure that they don’t disadvantage you. As noted in the Product Disclosure Statement (PDS) applicable to your cover, you may request to view the Rules for the NEOS Benefit Fund at any time.
NEOS and NobleOak updated the Rules applicable to Income Support Cover. These changes include clarifications and enhancements which will apply to all new applications for Income Support Cover from 22 March 2022 and to Members who held Income Support Cover prior to this date. For existing Members, the changes only apply to the extent that they result in more beneficial outcomes than any previously issued terms and conditions.
The changes are summarised in the table below.
|Insurable income||You can cover up to $240,000 in annual income at the maximum rate of 70%.|
|Passive income||Monthly benefits are no longer reduced by passive income received while on claim.|
|Business income||Ongoing business income may be covered and only offset at claim.|
|Inactive employment||You can be on leave, sabbatical or unemployed for up to 12 months immediately prior to disability, before you are assessed based on an Any Occupation definition.|
|Indexation||Indexation Benefit and Increasing Claim Option CPI rates are no longer capped at 5% in relation to super.|
|Pre-disability income||Pre-disability income definition updated where you have been on leave, sabbatical or unemployed prior to disability.|
|Offsets||Payments from individual or group insurance policies are only offset where they relate to disability income insurance, and employee entitlements, excluding sick leave, are only offset when paid.|
|Exclusions||Illness and injury prior to the cover commencement date are no longer automatically excluded.|
You will still retain the original terms and conditions and continue to pay the premium rates for your existing plan(s). Any changes to your plan terms and conditions will always be reviewed at claim time to ensure you are assessed using the terms and conditions which are most beneficial to you.
If you would like more information on how these changes apply, please contact your financial adviser or NEOS.