NEOS Benefit Fund update

If you hold a NEOS Protection plan, 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 13 November 2024, effective 6 December 2024.

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.

Product update – 6 December 2024

Changes that apply to new and existing Members

NEOS and NobleOak updated the Rules applicable to:

• Life Cover
• Total and Permanent Disability (TPD) Cover
• Critical Illness Cover
• Income Support Cover
• Income Protection Cover; and
• Child Cover

These changes include clarifications and enhancements which apply to all new and existing Members who hold one of the above cover types.

For existing Members with a NEOS Protection plan issued under a NEOS Protection PDS dated 1 June 2024 or earlier, the changes only apply to the extent that they result in more beneficial outcomes than any previously issued terms and conditions. We will always apply the rule that results in a more favourable outcome for an existing Member with a NEOS Protection plan issued under a NEOS Protection PDS dated 1 June 2024 or earlier.

The changes are summarised below.

Critical illness and medical definitions changes

Several critical illness and medical definitions have been reviewed and updated. These updated definitions will only apply to future claims. They will not apply to current claims, or claims resulting from an illness, injury or disability which occurred before the definition change came into effect.

Renamed definitions

Previous name	New name
Benign brain tumour (resulting in irreversible neurological deficit)	Benign brain or spinal cord tumour (resulting in irreversible neurological deficit)
Diagnosed benign brain tumour	Diagnosed benign brain or spinal cord tumour
Cancer (excluding early stage cancers)	Cancer (of specified criteria)
Loss of hearing (total and irrecoverable)	Loss of hearing (profound and irrecoverable)
Loss of hearing in one ear (permanent)	Loss of hearing in one ear (profound and irrecoverable)
Pulmonary arterial hypertension (idiopathic and familial)	Pulmonary arterial hypertension (idiopathic and familial with significant permanent impairment)

Updated definitions

Benign brain or spinal cord tumour (resulting in irreversible neurological deficit) Blindness (total and irrecoverable) Cancer (of specified criteria) Cancer (in children, excluding early stage cancers) Carcinoma in situ Cardiomyopathy (permanent and irreversible) Chronic lung failure (requiring long-term oxygen therapy) Coma (of specified severity and duration) Coronary artery angioplasty Diagnosed benign brain or spinal cord tumour Early stage melanoma (excluding melanoma in situ) Encephalitis and meningitis (resulting in significant permanent neurological impairment) Loss of hearing (profound and irrecoverable) Loss of hearing in one ear (profound and irrecoverable) Loss of independent existence (permanent and irreversible)

Loss of sight (permanent) Loss of sight in one eye (total and irrecoverable) Loss of speech (total and irrecoverable) Major head trauma (with significant permanent neurological impairment) Medically-acquired HIV (contracted from a medical procedure or operation) Meningococcal Disease (resulting in significant permanent impairment) Multiple sclerosis (with multiple episodes of neurological deficit and persisting neurological abnormalities) Muscular dystrophy

Occupationally-acquired hepatitis B or C Occupationally-acquired HIV Out of hospital cardiac arrest (excluding medical procedures) Parkinson’s disease (permanent) Pneumonectomy (total) Pulmonary arterial hypertension (idiopathic and familial with significant permanent impairment) Severe burns (covering at least 20% of the body’s surface area) Severe Crohn’s disease (requiring permanent immunosuppressive medication) Severe rheumatoid arthritis (with significant impairment) Severe ulcerative Colitis (requiring permanent immunosuppressive medication) Triple vessel angioplasty

Changes that apply to new Members only

NEOS and NobleOak have updated the Rules for Members applying for cover under the NEOS Protection PDS dated 6 December 2024.

New premium labels 

Premium labels have been updated to ensure that Members have a clearer understanding of how premium rates can change over time.

Existing labels	New labels
Stepped premiums	Variable age-stepped premiums
Level premiums to age 65	Variable premiums to age 65
Level premiums to age 70	Variable premiums to age 70

Income Support Cover – Income replacement tiers

Income replacement tiers for Income Support Cover have been updated. The new tiers allow Members to apply for 70% of the first $300,000 of annual income, up from the previous limit of $240,000, with adjustments to subsequent tiers. This change also applies to the monthly benefit calculation at the time of claim.

Existing income replacement tiers	New income replacement tiers
70% of the first $240,000 per annum ($20,000 per month)  of regular income; plus 50% of the next $240,000 per annum ($20,000 per month) of regular income; plus 20% of the remaining regular income.	70% of the first $300,000 per annum ($25,000 per month) of your regular income; plus 50% of the next $200,000 per annum ($16,667 per month) of regular income; plus 20% of the remaining regular income.

Income Support Cover suitable work definition¹ for five-year benefit period

The definition of “suitable work” will remain based on the Member’s “regular occupation” for the entirety of the benefit period.

^{1 When a two-year waiting period is selected in combination with a five-year benefit period, the definition of “suitable work” will change to an “any occupation” basis after two years of the benefit period.}