Make your insurance affordable this tax year and beyond

1. Make yourinsuranceaffordable thistax yearand beyond Presented by: Insert name here

2. Important Information • This presentation was prepared by MLC Limited, ABN 90 000 000 402 and AFSL 230694, a member of the National Australia Group of companies. • The information here is current as at 1 April 2013. • MLC is not a registered tax agent. If you wish to rely on this presentation to determine your personal tax obligations, you should consult in a registered tax agent. • The presentation does not take into account your personal objectives, financial situation or needs. Accordingly you should consider how appropriate the information is to you with regard to your personal circumstances. You may wish to obtain an adviser’s assistance to make this assessment. Before buying any financial product, you should read the Product Disclosure Statement for that product. • Make your insurance affordable this tax year and beyond

3. Buy Life and TPD insurance in super Tax concessions Make your insurance affordable this tax year and beyond Could buy insurance in super with pre-tax dollars Employee Employment income < 10% of total income1 Could claim super contributions as tax deduction Can use co-contribution (up to $5002) to help pay for future insurance premiums Eligible for co-contribution Can use tax offset (up to $540) to help pay for future insurance premiums Low income spouse 1 Includes assessable income, reportable fringe benefits and reportable employer super contributions. 2 In 2012/2013

4. Buy Life and TPD insurance in super How could you benefit? These tax concessions: Make it more affordable1 to insure in super May help you to get higher levels of cover you otherwise couldn’t afford Make your insurance affordable this tax year and beyond 1 This can also be the case if the sum insured is increased to make a provision for any lump sum tax that may be payable on TPD and death benefits in certain circumstances.

5. Buy Life and TPD insurance in super Case Study Make your insurance affordable this tax year and beyond • Jack, aged 45, is married to Claire, aged 41 • Claire’s looking after two young children • Jack earns pre-tax salary of $100,000 pa • They have a mortgage • Jack is worried whether Claire would cope financially if anything happened to him • They speak to an adviser to see if Jack has enough insurance

6. Buy Life and TPD insurance in super Case Study Make your insurance affordable this tax year and beyond • Adviser recommends $700,000 in Life & TPD insurance so if something unfortunate happens (ie. death or total & permanent disability), Claire can: • continue to pay off debts (i.e. mortgage, school fees) • maintain the family's financial position • have some financial security • Premium is $1,2311 in year one • Adviser also recommends Jack insures in super 1 Premium is for a 45 year old, non-smoking, male and is based on MLC’s standard premium rates as at 1 April 2013 and includes policy fee.

7. Buy Life and TPD insurance in super Case Study 1 Premium is for a 45-year-old, non-smoking, male and is based on MLC Insurance (Super) standard premium rates as at 1 April 2013. Includes policy fee. 2 Includes Medicare levy of 1.5%. Make your insurance affordable this tax year and beyond

8. Buy Life and TPD insurance in super Tips and Traps If you have a non-working spouse who needs insurance, you could: Make personal deductible contributions Benefit from up-front tax concessions Split some of contributions into spouse’s super account Get spouse to buy insurance in their super fund Having premiums deducted from investment account without making additional contributions can help you: afford insurance if don’t have sufficient cash flow free-up cash flow to purchase other non-super insurances (e.g. Critical Illness1) Make your insurance affordable this tax year and beyond 1 Critical Illness insurance can generally only be purchased in your own name (outside super).

9. Buy Life and TPD insurance in super Tips and Traps With Critical Illness insurance, can reduce cost if ‘connect’ cover with Life and TPD in super1 (i.e. take cover as extension) If require ‘own occupation’ TPD policy, you may want to: buy TPD insurance outside super consider TPD Optimiser and utilise the benefits of insuring through super (i.e. utilising super money to fund insurance premiums) for your "Any Occupation" TPD cover, while having the protection of additional "Own Occupation" cover outside super Make your insurance affordable this tax year and beyond 1 No additional policy fee payable. Where a Critical Illness claim is paid, the amount of Life and TPD cover held in super will be reduced by the amount of Critical Illness benefit paid.

10. Other smart ideas Income Protection insurance (outside super) 2 3 4 6 5 1 Pay annual premiums on new policies Pre-pay up to 12 month's premiums by paying annually Convert existing policy from monthly to annual premiums Reduce your tax bill Annual premiums often cheaper too Claim larger deduction this financial year

11. Summary Consider buying Life and TPD insurance in super Consider connecting Critical Illness cover Consider pre-paying 12 month’s Income Protection premiums Choose the right premium payment option for you Make your insurance affordable this tax year and beyond

12. MLC is not a registered tax agent. If you wish to rely on this information to determine your personal tax obligations, you should consult with a Registered Tax Agent. For more information call MLC from anywhere in Australia on 132 652 or contact your adviser.Postal address: MLC Limited, PO Box 200North Sydney NSW 2059Registered office: Ground Floor, MLC Building105–153 Miller StreetNorth Sydney NSW 2060mlc.com.au