All efforts have been made to ensure that the following information is accurate and correct.
Life and Disability
Answers to commonly asked questions regarding Life and Disability Insurance.
The Fonterra Welfare Fund is a voluntary group insurance policy.
This means you can elect to join the policy if you choose, and select the benefit combination that suits you.
The benefit levels are fixed and cannot be adjusted.
Life and Income Protection benefits are insured by Resolution Life.
The Critical Illness benefit is insured by AIA New Zealand.
The benefits of this policy are restricted to eligible employees of the Fonterra Welfare Fund named in the eligibility section set out in the policy wording. The benefits are available to employees of:
· Fonterra Co-operative Group Limited
· Livestock Improvement Corporation
· DairyNZ
· Farmsource
· Kotahi, including:
o Coda
o Tapper Transport
· Dairy Transport Logistics
In addition to the above, members must all fit the below eligibility criteria:
· Fonterra employees commencing employment on an Individual Employment Agreement (IEA) from 1 December 2009
· Fonterra employees who move from a Collective Employment Agreement (CEA) to Individual Employment Agreement (IEA)
· Be aged between 16-70 years (age 64 for Income Protection)
The benefit does not apply to employees whose role is part of a collective employment agreement.
The insurance offered in these policies are designed to help provide you with financial relief in case of death, illness or short or long-term disablement.
The insurance can provide a sum of money that can be used to clear debts such as mortgages, pay for medical treatment, set up an education fund, pay funeral costs, replace income or to make necessary provisions for the future.
IMPORTANT NOTE: The insurances offered here do not form part of a personalised financial plan for you and your family. These voluntary group employee benefits should be considered a starting point for your personal risk needs. You should seek advice from a financial adviser, for personalised advice.
In the event of a claim, or potential claim, please contact your HR Consultant or Mercer Marsh Benefits on welfarefund.nz@mercermarshbenefits.com
The insurance is based on group policy rates, which are generally lower than comparative retail policies. The lowest premium cannot be guaranteed for any particular age, gender or cover level. Generally, premiums provided through the Fonterra Welfare Fund are lower than the equivalent retail rates seen in the open market.
Premium savings may vary depending on age, salary and policies selected.
The amount of premium is calculated based on your age, gender and the amount and type of cover selected. The premium payable will then be calculated, and deducted, in alignment with your salary pay cycle.
Each year on the policy's renewal date (November 1st), your premium will be adjusted in line with your age and salary. If any deductions are missed during the policy's year, you will remain liable for the missed premium amounts.
Missed premium payment may lead to claim payments being declined.
Yes, your premiums will change at the policy's annual renewal date (November 1st) in line with your age, salary and cover level at that time.
The underlying risk rate tables are fixed, usuaally every three years.
Your annual base salary.
Additional income such as incentives, allowances and bonuses are not included.
As long as you remain an eligible member of the Fonterra Welfare Fund and you pay your premiums, your insurance will continue until the first of the following happens:
· You leave your employment (continuation options will be available, subject to certain age and occupation constraints), whilst a member of the policy.
· Your 70th birthday (for Income Protection your 65th birthday), whilst a member of the policy.
· The group policy is discontinued.
The following cover(s) would cease in the event of a claim being paid:
· Life Insurance /Terminal Illness
· Critical Illness
If your deductions cease and you have not taken up a continuation, option the cover will cease 45 days after the date your last wage deduction was made.
It is your responsibility to notify Mercer Marsh Benefits if your circumstances change on welfarefund.nz@mercermarshbenefits.com
Prior to going on unpaid leave (Leave Without Pay/ LWOP), please notify Mercer Marsh Benefits by emailing welfarefund.nz@mercermarshbenefits.com, as the insurer requires the premium (for the duration that you are on unpaid leave) to be paid in advance of your leave.
Terms and conditions apply, please refer to the policy documents for further information.
It is your responsibility to notify Mercer Marsh Benefits if you are going on unpaid leave.
Failure to notify Mercer Marsh Benefits may put your cover under the policy at risk.
If you leave your eligible employer under the fund after joining the policy you are entitled to a continuation option.
Continuation options are subject to age and occupation constraints and are only available for 60 days after you cease employment. The insurer will not extend this period, so it is important that you let Mercer Marsh Benefits know in good time if you wish to continue with your cover.
It is your responsibility to notify Mercer Marsh Benefits if you leave or transfer to another eligible employer under the Fonterra Welfare Fund.
Please contact Mercer Marsh Benefits on welfarefund.nz@mercermarshbenefits.com
Please contact Mercer Marsh Benefits immediately if you no longer meet the policy eligibility i.e.
· work less than 15 hours per week,
· reached age 70 (life cover) / age 65 (income protection and critical illness covers),
· or your employment terms have changed.
Please refer to the policy wording and terms including full eligibility criteria and definitions.
You may be eligible to continue with your benefits if you are no longer eligible using the continuation option. This allows you to transfer the benefit(s) to a personal policy. The discount concession will be lost, but the cover can be transferred without the need for medical declaration.
Continuation options are subject to age and occupation constraints and are only available for 60 days after you cease employment. The insurer will not extend this period, so it is important that you let Mercer Marsh Benefits know in good time if you wish to continue with your cover.
It is your responsibility to notify Mercer Marsh Benefits if you leave or are no longer eligible for the cover.
For more information, please contact Mercer Marsh Benefits on welfarefund.nz@mercermarshbenefits.com
The Fonterra Welfare Fund Insurance policy renews each year on November 1st.
If you have existing cover there are a number of factors to consider before cancelling or reducing any existing insurance. We recommend seeking advice from a qualified Financial Adviser. The adviser who provided your original policy is a good starting point.
Mercer Marsh Benefits has a number of Financial Advisers who are available to provide advice if required.
To cancel your policy email: welfarefund.nz@mercermarshbenefits.com
We recommend all of our members to either put a Will in place or discuss with their solicitor their estate planning options.
The employee is the only person able to be listed on the policy. To ensure that your benefit entitlement is paid to your intended recipient, we recommend that you speak to your solicitor to discuss your options.