Meet Peter (45 years old)
Peter is a 45 year old Club Manager. He elected when he joined to hold 6 units of Death and TPD cover. As his age next birthday at the effective date of change is 46 years, the amount of cover he holds at 30 September 2017 (the day prior to the change) for both Death and TPD is 6 x $52,600 = $315,600. On 1 October 2017, one unit of Death cover has a value of $90,000 (for a member aged 46 next birthday) and one unit of TPD cover has a value of $30,000 at the changeover date.
To ensure that Peter has the same level of cover that he made an application for prior to the changeover date, we will allocate him 4 units of death only cover and 11 units of TPD cover. This provides Peter with a slightly higher level of cover than he held previously as we have rounded his units of cover up to the next whole unit.
From October 1, Peter’s premium has also changed. Instead of paying $3.20 per week per unit for 6 units of cover ($998.40 per annum), Peter will now pay $1.17 per unit per week for his death cover and $1.25 per unit per week for his TPD cover. Peter’s annual premium will be calculated as (Death cover 4 * $1.17 * 52) + (TPD cover 11 * $1.25 x 52) = $958.36 per annum.