Life and Income Protection Insurance for Doctors Dispelling the Myths Clive Levinthal 21 May 2016 ASO Business Skills Expo

Specialist insurance broker for the medical sector Over 5,000 clients National team Preferred insurance partner to BOQ Specialist, Wavelength and the AMA About Us

We uniquely advise doctors on all their complex insurance needs Income Protection Life Insurance Total & Permanent Disability Trauma/Critical Illness Needlestick Cover Business Disability Expenses Business Insurance Medical Malpractice Public Liability Practice Indemnity Commercial Property Insuring your future income Insuring your assets and liabilities

Our Philosophy We work for DOCTORS… not the insurers You Experien Insurance Company 1 Insurance Company 2 Insurance Company 3 Insurance Company …….. Insurance Company 11 No extra charges above the premium

Lots of insurance companies

Life & Income Protection Insurers

The giants are shrinking 17.8% down to 16.4% in 3 years 13.8% down to 11.8% in 3 years 15.1% down to 13.5% in 3 years FALL IN MARKET SHARE

Specialist life insurers are performing well

Other insurers part of conglomerates

$1bn in cumulative losses over 8 years The industry has not been doing well!

RISKMITIGANT Price increases Avoid industry superannuation funds Consider level premiums Choose your insurer wisely Adjusting your policy terms Avoid industry superannuation funds Guaranteed upgrade policy Guaranteed renewable policy New policies vs old policies Problems at claims time Avoid industry superannuation funds Avoid direct Use an adviser Full disclosure Get the right product features

Please Do This Calculation Annual income x Years to retirement =

Avoiding Mistakes Own vs. Any occupation disability cover Stepped vs. level vs. “true” level premiums Pay for cover from any super fund with “linking” Poor cover in employer and industry super funds Does your trauma insurance pay a partial benefit for prostate cancer (males) or breast cancer (females) ? Agreed value vs indemnity income protection cover

Cause of Income Protection Claims Medical professional IP claim examples: Chronic pain: $2m payment DVT: $13k pm ongoing Surgery to stomach: $15k pm ongoing

Dispelling some myths Newly qualified doctors can be treated preferentially by insurers Less health tests if you move to some insurers Power at claims time Choice of insurer Premium discounts Not cheaper dealing direct

More myths Loadings and exclusions can be reviewed Once you are in….. terms can’t get worse…. unless in super fund Cost of a review All advisers are the same Most people can be insured

Important discussions with your adviser Many doctors want their life insurance cover to continue at older ages –Does your product allow you to continue your cover at older ages? –Will your premium become too expensive at older ages? –Does your product reduce its features and coverage as you get older? Who owns your policy? Where is the policy document? Who are the beneficiaries? Don’t assume you can get cover in the future Policy exclusions Accidental cancellation of cover

You are a professional You deserve better insurance terms You can get better insurance terms