Welcome to the October edition of TOWER Talk.
Providing you with current information concerning TOWER, our products and the industry.
In this edition:

UPDATE: New Total and Permanent Disability Definition – TOWER Protection Policy
The TOWER Protection Policy definition of Total and Permanent Disability has been updated from “unable” definition to an “unlikely” definition. To read more, click here.

TOWERnet Update
The current version of TOWERnet will expire on 31 October 2005. To read more, click here.

30 June 2005 Retail Annual Statements
The Personal Superannuation Plan, Superannuation Rollover Master Plan & Risk under Superannuation Annual Statements (former FAI Life products), which have a reporting period of 1 July 2004 to 30 June 2005 will be mailed to TOWER members over a two week period, commencing on 28 October 2005. To read more, click here.

Super Fast Facts
Quick facts and updates on Superannuation to keep you informed. To read more, click here.

Canberra Corner
For an easy to read update on the progress of legislation through parliament, click here.

UPDATE: New Total and Permanent Disability Definition – TOWER Protection Policy

The TOWER Protection Policy definition of Total and Permanent Disability has been updated from “unable” definition to an “unlikely” definition, with an updated PDS to be released on 1 November 2005. The new definition is available here.

Under the Guarantee of Upgrade, we are pleased to be able to pass on the new definition to all series 23, 24 and 25 clients. The following letter will be sent out to series 23, 24 and 25 clients who have TPD benefits:

View the Upgrade Client Letter

The updated PDS is being released with effect from 1 November 2005. Please contact your state office to obtain a supply. Although the 1 November 2005 PDS will supersede the earlier edition dated 1 April 2005, any applications written on the current PDS after 1 November will be accepted until 30 November 2005. Cover written on the 1 April 2005 PDS throughout November will still be covered by the new TPD definition and will receive details of the definition in their welcome pack. A sample of the welcome letter is attached:

View the Welcome Letter Series 25.1

We hope you find the Guarantee of Upgrade useful in keeping your client’s valuable insurance cover current.

TOWER Protection Policy Definition

Total and Permanent Disability and Totally and Permanently Disabled mean that:

• solely because of a Sickness or Injury, the life insured has not been in any occupation for six consecutive months and 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; 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.

On the statement date 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.

When “Own Occupation” is shown in the Policy Certificate, the reference above to “any occupation for which they are reasonably suited by training, education or experience” will be replaced by “their Own Occupation”.

When the life insured is classed as a homemaker, Total and Permanent Disability means that:

• the life insured is wholly engaged in full time unpaid domestic duties in their own residence; and
• solely because of Sickness or Injury the life insured has been unable to perform unpaid domestic duties and not been in any occupation for six consecutive months, and at the time of claim is unlikely ever to be able to engage in full-time domestic duties or any occupation for which the life insured is reasonably suited by training, education or experience.
  

TOWERnet Update

The current version of TOWERnet will expire on 31 October 2005.

An updated version of TOWERnet is now available on the TOWER Adviser website.

Changes to TOWERnet included in this upgrade include:

• Policy Fee rules have been updated to reflect TOWER's current policy. Two Policy Fees will now be listed where two clients have been selected AND LPP (Super) has been selected by one of the clients. In all other circumstance only one policy fee will be shown.
• "Tool Tips" have been introduced to provide a brief explanation of policy benefits. These descriptions appear when you hover the cursor over the names of certain benefit options.
• Indexation can now be selected for a TPD Benefit Amount of $2.5 million
• Indexation can now be selected for a CPP Benefit Amount of $2 million
• Split IP Benefits will now be listed separately on the Benefit Summary printout (currently a Total Benefit Amount is shown).
• The TOWER Adviser Manual PDF has been updated.

To download the updated version of TOWERnet, please follow the steps below:

1. Go to www.toweradviser.com.au
2. Select TOWERnet Updates.
3. Select TOWERnet 5.2update (includes all updates).
4. Select Download.

For support please call the TOWERnet helpdesk on 1800 815 530 or email towernet@au.towerlimited.com.

30 June 2005 Retail Annual Statements

The Personal Superannuation Plan, Superannuation Rollover Master Plan & Risk under Superannuation Annual Statements (former FAI Life products), which have a reporting period of 1 July 2004 to 30 June 2005 will be mailed to TOWER members over a two week period, commencing on 28 October 2005.

Copies of your Client's statements will be available online at the TOWER adviser website under the Client Correspondence on the "Your Business Online Section" from 31 October 2005.

To access the site, follow the steps below:

1. Login into www.toweradviser.com.au. If you do not have a password, please contact our TOWER Helpdesk on 1800 815 530.
2. Click on the Your Business Online tab.
3. Click on the Client Correspondence tab.
4. Type in the policy number for the client you wish to view

If you have any questions about the 30 June 2005 Retail Annual Statements please contact your Sales Manager or your Service Team.

Super Fast Facts

1. The Minister for Revenue and Assistant Treasurer, Mal Brough, recently announced in a press release, that the Government will update the allocated pension drawdown factors in line with the current life expectancy. The changes will apply to new pensions commencing from 1 January 2006. To view the press release please click here.
   
2. The Government has recently released the Tax Laws Amendment (Superannuation Contributions Splitting) Bill 2005, which outlines the proposed rules in relation to splitting of superannuation contributions between spouses. The proposed date of effect is in respect of contributions made on or after 1 January 2006. To view the explanatory memorandum please click here.

Canberra Corner

There are many changes made to legislation that may affect you and your clients month to month. For an easy to read update on the progress of legislation through Parliament, click here.

Disclaimer
This document has been prepared to be used by financial planners and advisers only. It is not to be provided to individual clients. The information contained in this document is general information only and cannot be considered to be financial advice. The information does not take account of the investment objectives, financial situation or particular needs of any particular client. To the extent permissible by law, TOWER Australia Limited (ABN 70 050 109 450, AFSL 237848) and its related companies (TOWER) specifically disclaims any liability that may arise for any direct, indirect, incidental, consequential or special damages that may arise from the access to or use of this document. No liability is accepted by TOWER for errors and omissions or for loss or damage suffered as a result of reliance on this document.

Important
If you no longer wish to receive the TOWER Talk please e-mail us at TowerTalk@au.towerlimited.com providing your full name and the email address these are being sent to.

Login to the TOWER adviser website to obtain other information on TOWER products, investments, or technical news. All current PDS's are on the site and can be printed off for sales use.

TOWER Australia Ltd
A.B.N. 70 050 109 450
AFSL Number 237848