Insurance – for your peace of mind<Adviser’s Name>

<Adviser name> is an Authorised Representative of RI Advice Group Pty Ltd

Insurance – for your peace of mind<Adviser’s Name>

<Adviser name> is an Authorised Representative of RI Advice Group Pty Ltd

Insurance – for your peace of mind<Adviser’s Name>

<Adviser name> is an Authorised Representative of RI Advice Group Pty Ltd

Insurance – for your peace of mind<Adviser’s Name>

<Adviser name> is an Authorised Representative of RI Advice Group Pty Ltd

My Name Financial

Insurance – for your peace of mind<Adviser’s Name>

<Adviser name> is an Authorised Representative of RI Advice Group Pty Ltd

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Disclaimer

Important Notice

RI Advice Group Pty Ltd, ABN 23 001 774 125, holds Australian Financial Services Licence Number 238429 and is licensed to provide financial product advice and deal in financial products such as: deposit and payment products, derivatives, life products, managed investment schemes including investor directed portfolio services, securities, superannuation, Retirement Savings Accounts.

The information presented in this seminar is of a general nature only and neither represents nor is intended to be specific advice on any particular matter. RI Advice Group strongly suggests that no person should act specifically on the basis of the information contained herein but should obtain appropriate professional advice based on their own circumstances.

RI Advice Group Pty Ltd | ABN 23 001 774 125 AFSL 238429

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• Experienced

- Over 30 years experience

- Over 80,000 clients

- Over $10b under advice

• Professional personal advice

• Advice underpinned by quality research and technical teams

• Over 110 offices nationwide

RI Advice Group: our credentials

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• Your most important asset

• What is personal protection?

• Types of insurance/protection against the unexpected

• Why you need protection

• What are the costs?

• Summary

Agenda

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• Many people consider their family home, investment property or superannuation to be their greatest financial asset

• What about your future income?

• How important has your income been in achieving your current financial position?

• Who depends on your income?

What is your most important asset?

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A few questions to think about

What would happen if you were not around to provide for your family?

What would happen if your spouse/partner was not around?

Who would pay the mortgage if you had a short term illness?

What would happen if you were not able to work due to permanent disablement or severe illness?

What would happen if you had to give up work to care for a family member?

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What is protection?

Transfer of risk from you to the insurance company

Insurance creates an environment in which people and their families can operate with peace of mind

Without protection, an unexpected event can leave individuals and families financially destitute

It is a means of protecting your wealth, assets, income, life, dependants, health and future plans

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Types of personal protection

Life cover

Total and Permanent Disablement cover

Trauma/Critical Illness cover

Income protection

Living expense cover

Business cover

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A few facts

In 2012

Ischaemic heart disease (20,046) and cerebrovascular including stroke (10,779) were the top 3 causes of death overall in Australia

Followed by dementia / Alzheimer's (10369) and trachea, bronchus, lung cancer (8137)

Ischaemic heart disease is the top cause of death for both male and females

Trachea, bronchus, lung cancer is the next ranking cause in males

Dementia / Alzheimer's is the next ranking cause in females

Cerebrovascular causes rank third for both male and female deaths.

Heart disease is falling but dementia is on the rise

In Females aged 25 – 44yo Breast cancer is the most common form of cancer related deaths

Land and transport accidents are a leading cause of accident related deaths

.

Source: AIHW 2013 analysis of AIHW National Mortality Database 

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Common myths

• Centrelink or worker’s compensation will cover you in the event of illness or accident

• Centrelink will pay a maximum Disability Support Pension of:

– $842.80* per fortnight for singles― $635.30* per fortnight for each member of a couple

• Worker’s compensation will only cover you for an injury that occurs at work― ABS statistics state that 60% of all injuries occur away from the workplace

* Pension rates valid until 31/12/2014

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Life cover

Life cover insures a person in the event of death

It pays a specified lump sum or instalments on death of the life insured

Some super funds automatically provide you with some level of insurance. However, the default level of cover is generally not enough to meet the needs of most people’s dependents

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What do you use it for?

On death, a family can use life insurance to:

• Pay medical and funeral expenses

• Pay legal expenses

• Clear debt (home mortgage, credit cards, personal loans)

• Replace household income

Life cover

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Who should consider life cover?

People with dependants who require funds to cover:

Repayment of debts

Replacement of household income

Children’s education

Childcare and housekeeping

Care of disabled children

Medical and funeral expenses

Life cover

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Total and Permanent Disability (TPD)

Pays an agreed lump sum, or instalments, to the insured on being classified as never being able to work again

TPD is normally combined with life cover or trauma cover

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Trauma cover

• Pays a lump sum, or instalments, when the insured suffers a specified medical condition

• Most policies have around 35 specified medical conditions

• The most common specified medical conditions claimed are:

- Cancer

- Stroke

- Heart attack

- By-pass surgery

- Angioplasty

• These 5 conditions make up approximately 80% of all trauma claims

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Why would you need Trauma cover?

• Used to provide financial cushion in the event of a major illness

• Trauma insurance can cover costs associated with:– Medical & rehabilitation– Financial stress of income lost– Employment of home care– Modification of home/vehicle– Travelling overseas to seek specialised medical assistance

Trauma cover

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Who should consider Trauma cover?

Anyone with debt

Couples with children

House wife/husband who are not employed but essential to the family’s well being

Business partners

Trauma cover

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Over one-quarter (26%) of those seriously injured due to road traffic crashes sustained life-threatening injuries over the 9-year period from 2000-01 to 2008-09.

The highest rates were for persons aged 15–24 years for both males and females

The rate of cases involving pedal cyclists shows an average annual rate of increase of 6.8%.

Source:

1.Australian Institute of Health and Welfare

2.Australian Bureau of Statistics, Road Traffic Accidents,1984

Illness and injury

In 2007–08, almost all Australians aged 15 and over (99%) had at least one risk factor for poorer health (such as high blood pressure or not eating enough vegetables), and about 1 in 7 people had 5 or more risk factors.

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Injury

In 2001, over 2 million Australians had a long term health condition due to injury

Males of all ages are more likely than females to experience injury

The most common injuries in 1999-2000 were falls (29%), followed by other unintentional injuries (26.7%)

Physical injuries can inhibit your ability to earn income and be a serious impediment to your financial future

Worker’s compensation can protect you financially for injuries suffered at work, but those that occur outside of work are not covered

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Income protection

• Pays a benefit (up to 80% of salary) if the insured person is unable to work due to sickness or injury.

• Pays an income stream over the selected benefit period chosen (can be 2 or 5 years or until age 60 or 65)

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Why would you need income insurance?

Guarantees stability of the household income to cover general living expenses (for singles or families)

Ability to continue paying mortgage/loans

Ability to continue paying bills

Ability to continue making superannuation contributions

Income protection

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Who should consider income protection?

Anyone earning an income

Anyone with mortgage/loan commitments

Anyone with family members that rely on your income

Income protection

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Income protection options

• Waiting Period - between 2 weeks to 2 years.

• Benefit Period - as short as 2 years or to age 65.

• Guaranteed, Agreed Value or Indemnity – Defines how your benefit is calculated based on the level of income you’ve earned in the past.

Income protection

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Key features of income protection

You should understand the main criteria and how they are defined in your insurance contract.

Premiums are generally tax deductible

Main criteria you should be aware of: Total disability definition Partial disability definition Offsets Exclusions

Income protection

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Living expense cover

Designed for:

• Retirees

• Pre-retirees

• Casual employees

• Home makers/ stay at home mums and dads

• People that want basic cover

• People ineligible for income protection

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Business cover

Designed for:

• Business owners

• Self-employed

To help cover costs if the unexpected was to occur:

• Rent

• Business loan

• Overheads

• Salaries

Almost a quarter of people retire because of ill health, injury or disability

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• Many people are underinsured

• Protection allows you to transfer the financial risks of death/disability/ illness to an insurance company

• Whose financial future are you putting at risk by not having enough insurance cover?

Summary

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The right funds

lifestyle maintenance, children’s education, debt cancellation

In the right hands

partner or spouse, children, grandchildren, charities, minimise tax

At the right time

immediate, medium and long term needs

Protecting your loved ones with appropriate cover and estate planning

Plan for the unexpected

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There is a large chance that you will suffer a major health condition before you die or that you die prematurely.

Will you, your family or your business be financially healthy if the unexpected occurs?

Plan for the unexpected

Thank you for attending

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Case study: Living expense cover

Mary, a retiree 60 years old

• Diagnosed with rheumatoid arthritis

• No longer able to perform her home-make duties

• $3,000 per month cover to age 80 will pay for- Full time carer- Cooking needs- Cleaning needs

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Case study: Life cover

Richard, a 45 year old electrician

• With a wife (Sally) and 2 young children

• Diagnosed with leukemia

• Died within 12 months

• $800,000 lump sum paid to policy owner – Sally. Allocated:- $7,000 funeral costs- $13,000 immediate expenses and recovery holiday to see relatives- $100,000 repay mortgage - $50,000 investment bond for children’s future- $630,000 portfolio to pay annual living costs for family