Westpac Loan Cover Westpac New Zealand Limited (“Westpac NZ”) has been appointed by Westpac Life-NZ-Limited (“Westpac Life”) as agent for Westpac Loan Cover. Thank you for choosing Westpac Loan Cover. This policy document sets out the full terms, conditions and exclusions of your cover under Master Policy NZWP1033 for your protection in the event of death, total disability, or unemployment arising from redundancy or bankruptcy. The Master Policy governs the terms of the insurance cover and is available for your inspection at your nearest Westpac NZ office. To be eligible for this insurance protection you must be aged between 18 and 59 years of age inclusive at the commencement of your Westpac loan and the term of your loan must expire on or before your 61st birthday. Note: If the cover does not appear to meet your needs you may return the application form to us anytime up to 30 days after the commencement date. We will then cancel the cover and refund in full the single premium paid. Where the single premium has been paid by debit to the loan account, the refund will be credited to the loan account. Life Insurance What you’re covered for: We will pay the outstanding balance on your Westpac loan as at the date of death, less any outstanding arrears, up to a maximum of $80,000 plus accrued interest and any amount advanced to pay the premium. If you have more than one loan covered by Westpac Loan Cover the outstanding loans will be aggregated and the above maximum sum will apply. What is not covered: suicide within the first 13 months of the commencement date, or intentionally self inflicted injury, or any injury, sickness or disease which existed whether or not diagnosed at the commencement date. Where this policy replaces an existing policy, these exclusions will only apply to the increase in the loan amount and/or the extension of the loan term of the varied loan. No benefit will be paid where death is the result of: war or any act of war, or AIDS, or death which is, in the opinion of Westpac Life, contributed to by AIDS or an AIDS related condition. Total Disability Total disability is any disability starting on or after the commencement date, caused by an injury or illness which directly and independently of any other cause wholly prevents you from engaging in your normal occupation (or normal household duties if you are primarily engaged in these duties). You will NOT be disabled if you would be able to engage in any other occupation, business or type of work for which you would be reasonably fitted by knowledge or experience - given appropriate training if necessary. What you’re covered for Where total disability continues beyond seven (7) consecutive days, we will pay your Westpac loan instalments up to a maximum of $1,500 per month for any period of total disability due to injury or sickness. If you have more than one loan covered by Westpac Loan Cover the instalments of those loans will be aggregated and the maximum amount of $1,500 per month will apply. What is not covered: We will not cover you for the first seven (7) consecutive days of total disability and: any injury, sickness or disease which existed whether or not diagnosed at the commencement date, or any sickness or disease which first made itself known within 28 days after the commencement date. Where this policy replaces an existing policy, these exclusions will only apply to the increase in the loan amount and/or the extension of the loan term of the varied loan. No benefit will be paid where total disability is the result of: intentionally self inflicted injury, or war or any act of war, or AIDS or any cause which is, in the opinion of Westpac Life, contributed to by AIDS or an AIDS related condition, or the taking or use of alcohol, poison or drugs other than a drug taken on the advice of a legally qualified medical practitioner. Pregnancy, childbirth and abortion are not disabilities and no benefits are payable in respect of absence from work due to these circumstances. Redundancy Redundancy is loss of employment that starts on or after the commencement date, other than by voluntary redundancy, resignation or dismissal, resulting from your position becoming superfluous to the needs of your employer. Westpac Loan Cover What you’re covered for: Where unemployment resulting from redundancy continues beyond 30 consecutive days, we will pay your loan instalments up to a maximum of $1,500 per month for up to four (4) months while you remain unemployed. If you have more than one loan covered by Westpac Loan Cover the instalments of those loans will be aggregated and the maximum amount of $1,500 per month will apply. No benefit will be paid for the first 30 consecutive days of redundancy. What is not covered: No benefit will be paid for the first 30 days of redundancy. No benefit will be paid for any redundancy that occurs, or that you become aware of, or ought to have been aware of, within 60 days from the commencement date of this policy. Where this policy replaces an existing policy, this exclusion will only apply to the increase in the loan amount and/or extension of the loan term of the varied loan. No redundancy benefit will be paid: if your employment is not paid by salary or wages, or if you are self employed, or in seasonal or contract work, or in temporary or casual work, or if you are a director where you have control over your employment, or if you are employed by a direct member of your family (spouse, parents or children). Bankruptcy Bankruptcy is when you have been declared bankrupt as a result of your creditor(s) applying to a New Zealand Court to do so. What you’re covered for: If you are self-employed and you are declared bankrupt on or after the commencement date, we will pay your Westpac loan instalments up to a maximum of $1,500 per month for up to four (4) months while you remain bankrupt. What is not covered: We will not cover you for the first 30 consecutive days of bankruptcy and: if you knew at the commencement date, that it was likely or possible that a bankruptcy notice would be issued against you or that a creditor’s application for bankruptcy would be made to Court, or if, at or before the commencement date, you had received a bankruptcy notice or committed an act of bankruptcy Where this policy replaces an existing policy, these exclusions will only apply to the increase in the loan amount and/or the extension of the loan term of the varied loan. No benefit will be paid: if you are not self-employed, or if you take voluntary bankruptcy. Claims Procedure If you wish to make a claim, you must notify Westpac Life within 30 days of the event that prompted the claim (although in some circumstances Westpac Life may accept a claim made after this time). You must also provide us with medical reports or other information that we may ask for, at your expense. All proceeds of approved claims will be paid to your loan account. Policy and Benefits Your rights and benefits under the Master Policy are personal to you and cannot be assigned or charged to any other person. Termination of Insurance Cover The cover will terminate immediately if your loan is fully repaid, discharged or refinanced or if you default payment due under the loan agreement and Westpac NZ starts proceedings against you. You can terminate this cover at any time by giving written notice to Westpac Life. Westpac Life can amend or terminate the cover at any time by giving you no less than 60 days notice in writing. Rebates If your Westpac loan is repaid in full before the due date or you vary your Westpac loan during the term by way of varied loan, a rebate of premium will be paid. The rebate proceeds will be paid direct to your loan account. The table below illustrates the percentages of initial premiums that may be rebated where loans are repaid in full before the due date: Westpac Loan Cover Original Term of Loan (months) 24 36 48 60 72 84 96 108 120 Repaid at end of 12 months 26 45 57 64 70 74 77 79 81 Repaid at end of 24 months 12 26 36 45 51 56 61 64 Repaid at end of 36 months 7 16 25 33 39 45 49 Repaid at end of 60 months 3 8 14 20 25 Repaid at end of 90 months 3 6 Repaid at end of 120 months (The table is intended for illustration purposes only and is not guaranteed. Westpac Life may make variations at any time without notice). Westpac NZ's Rights The rights and powers of Westpac NZ under your loan agreement or other agreements with you are not affected by this insurance cover. Law Any legal action concerning this policy must be conducted in New Zealand and this policy is governed by New Zealand law. Underwriter Westpac Loan Cover is arranged by Westpac NZ and underwritten by Westpac Life-NZ-Limited, which is a wholly owned subsidiary of Westpac Financial Services Group-NZ-Limited. Westpac Financial Services Group-NZ-Limited is a wholly owned subsidiary of Westpac Banking Corporation ABN 33 007 457 141, incorporated in Australia. Neither Westpac Banking Corporation, Westpac NZ, nor any other member of the Westpac Group guarantees the obligations of, or any products issued by Westpac Life-NZ-Limited. A copy of our latest financial statements is available from Westpac House, 318 Lambton Quay, Wellington. You have the right to receive a ‘replacement of business’ advice when changing from one policy to another. Westpac NZ employs salaried employees whose remuneration is influenced in the long term by the arrangement of Westpac insurance policies. Westpac NZ will receive commission payments as a result of the arrangement of Westpac policies. This policy will be included in the Westpac Life-NZ-Limited Statutory Fund No.1. Westpac Life-NZ-Limited will pay your benefits from this fund. Statutory funds are regulated pursuant to the Insurance (Prudential Supervision) Act 2010. Definitions commencement date is the date of draw-down of your Westpac loan (or part of it) under the loan agreement or the date on which we accept your Westpac Loan Cover application, whichever was the later. existing policy is the policy that this policy replaces on the same loan account. loan account means the loan account as specified on this application. loan agreement means the personal loan agreement entered into between Westpac NZ and you, for the loan amount and may include a loan variation agreement (if any). loan amount means the amount of your Westpac loan as specified in this application which may include your varied loan (if any). loan variation agreement means the loan agreement documenting the varied loan (if any). policy means this summary policy document which sets out your cover under Master Policy NZWP1033. you/ your means the person specified in the application and who we have accepted for this insurance. varied loan means a variation to the terms of your current Westpac loan by way of increase in the amount of your loan and/or extension of the term as agreed in writing in the loan variation agreement. we/our/us means Westpac Life-NZ-Limited. Westpac loan means the personal loan you have with Westpac NZ for the loan amount specified in this application, and may include your varied loan (if any). Policy Enquiries If at any time you have an enquiry or complaint about your cover, you should contact us in writing at Westpac Life-NZ-Limited, PO Box 27031, Marion Square, Wellington 6141 or call us on 0800 738 641 and we will deal with your enquiry or complaint. If you are not satisfied with the way we resolve this, we can advise you how to contact the Banking Ombudsman. If you have any questions about Westpac Loan Cover, you can call us on 0800 738 641 between the hours of 8.00am to 5.30pm, Monday to Friday.