Insurance for professionals

1. Insurance for professionals Presenter: dd month 2016 [Adviser logo]

2. Disclaimer/AFSL details etcThis information is current at January 2016 and is subject to change. As this information (including the statements on taxation which are of a general nature only and based on current laws, rulings and interpretation) has been prepared without considering your objectives, financial situation or needs, you should, before acting on this information, consider its appropriateness to your circumstances. OneCare is issued by OnePath Life Limited (ABN 33 009 657 176, AFSL 238341) (OnePath Life) and OneCare Super is issued by OnePath Custodians Pty Limited (ABN 12 008 508 496, AFSL 238346, RSE L0000673) (OnePath Custodians). You should read the product disclosure statement, available at onepath.com.au, before making a decision about the products.

3. A bright future • Professionals incomes are typically 30% higher than the average Australian1 • This typically leads to: • Higher lifestyle expectations (and expenses) • Higher debt levels 1. Employee Earnings and Hours, Australia, May 2014 – Australian Bureau of Statistics

4. What are the odds? • 1 in 2 Australian men and 1 in 3 Australian women will be diagnosed with cancer by the age of 851 • 1 in 5Australians will experience mental illness in any given year2 • 45% of Australians will experience mental illness at some point in their lifetime2 • 'Facts and figures' Cancer Council Australia, October 2015 • Beyond Blue “The Facts” - www.beyondblue.org.au/the-facts

5. Did you know…? • According to a 2014 KPMG report1: • Only 27% of disability insurance needs are being met through existing cover • 35%of Australians have no form of disability insurance • According to research on the impact of the sudden disability of a parent2: • Before a parent became disabled,11% of parents without insurance rated finance as ‘struggling’. After disability, this rocketed to 62% • 75% of those without insurance agreed that in hindsight a policy covering disability would have helped KPMG report for Financial Services Council, 2014 IMPACT OF DEATH OF A PARENT ON SURVIVING PARTNER AND CHILDREN report. Research conducted by Ipsos on behalf of ANZ Wealth April – May 2015

6. The need for protection • If you were unable to work... • What would it mean for your income? • What about your family’s lifestyle? • Could you sustain your current debt levels? • How would it affect your retirement plan? • How long would your businesssurvive?

7. The need for protection • Workers compensation generally doesn’t cover injuries that happen away from work, or provide protection against serious illnesses. • Social security payments may not cover your medical and living expenses, and there may be waiting periods. • Private health insurance doesn’t help you with your everyday living expenses and is often capped.

8. What about the National Disability Insurance Scheme? Does it replace the need for life insurance? No… here’s why: • Designed to help the most severely disabled people, not everyone who has a disability. • Doesn’t cover temporary conditions that may occur. Such as disabilities from a car crash or from a serious illness. • It’s main purpose is to give people who are severely and permanently disabled more personalised assistance and a greater connection with their community. Not financial support. • Available in limited regional areas, with roll out not until 2019/2020 • Even if you are eligible, it can’t help you eliminate debts, provide an replacement income or cover the out-of-pocket costs of medication and treatment.

9. The need for protection • Life insurance strategies should consider the cost to: • Fund ongoing living costs • Repay or service debts • Meet child education needs • Meet medical expenses • Maintain savings/retirement plans • Keep your business running (if self-employed)

10. A bit of history • Life insurers have traditionally been accepting of professionals because of their low-risk occupations • This can help you get higher levels of cover while keeping your premiums down

11. OnePath, one of the market leaders for professionals • SuperLink TPD allows you to split your total and permanent disability cover inside or outside super • Guaranteed benefit payment types for income protection • Packaging discounts of up to 10% when you take out a policy with a spouse, immediate family member or business partner

12. Types of cover available Life cover for death and terminal illness • Helps the family eliminate debts and stay in the family home • Provides an ongoing income for the family • Pays medical bills and funeral costs • Allows funding for the replacement of the key person in the business Income replacement cover for when you are unable to work due to sickness or injury • Helps families keep up with mortgage repayments and day-to-day living expenses

13. Types of cover available Total and Permanent Disablement (TPD) cover • Helps eliminate debts and cover long-term care costs • Pays for modifications to the family home Trauma cover for serious illness • Pay out-of-pocket medical costs • Helps spouse take time off work to provide care • Allows people to make lifestyle changes – like reducing work hours, or taking an extended holiday

14. Types of cover available 2015 OnePath paid over $116 million in Income protection and business expenses insurance Business expense cover for sickness or injury • Pays a monthly benefit to cover your fixed business expenses – such as tools and equipment hire, motor vehicle leases and advertising commitments • Helps keep your business running in your absence • Premiums are generally tax-deductible • Can fund a locum replacement in the business while you recover

15. Advice about life insurance • It’s important people seek tailored advice that takes into account their income, debt levels, family status etc • A financial adviser can help with strategies to make life insurance more cost-effective, including insurance inside super

16. Thank you Questions?