IMPACT OF DISABILITY OF A PARENT ON THIER PARTNER AND CHILDREN LATEST RESEARCH IMPACT OF DISABILITY OF A PARENT ON THIER PARTNER AND CHILDREN December 2015

Important information Material contained in this presentation refers to research conducted by Ipsos on behalf of OnePath. This material is for information purposes only. It should not be considered a comprehensive statement on any matter nor relied upon as such. Whilst care has been taken in preparing this material, OnePath Life does not warrant or represent that the information, opinions or conclusions contained in this document (“information”) are accurate. The graphs and examples shown are for illustrative purposes only and is not a prediction or estimate of the actual savings you can achieve. To the extent permitted by law, OnePath Life does not accept any responsibility or liability arising from your use of this information. The information provided is general information only current as at the time of production. It has been prepared without taking into account your personal objectives, financial situation or needs and you should consider whether it is appropriate for you. It is not intended to be a substitute for professional advice and should not be relied upon as such. OnePath Life recommends that you obtain independent and specific advice from appropriate professionals before implementing a financial strategy, including reading any relevant product disclosure statements and/or terms and conditions.

About the research In 2015, OnePath partnered with Ipsos to study the impact the permanent disability of a parent has on Australian families. The research was conducted by Ipsos on behalf of OnePath. The interviews were carried out amongst Australians aged 18+ who have either experiences a parent becoming permanently disabled while they were under 18 or in full-time study, or their partner became disabled while they still have at least one child under 18 or in full-time study. Fieldwork took place between 24th April and 12th May 2015. This study was conducted online amongst members of an opt-in research panel.

Contents Key Insight 1 – It happened so suddenly 5 Key Insight 2 – Financial stability affected 6 Key Insight 3 – Children grew up too quickly 7 Key Insight 4 – The effects on child’s health & wellbeing 8

It happened so suddenly KEY INSIGHT 1 It happened so suddenly 46% of families had less than a week’s warning, that a partner/parent would become disabled and 33% had no warning at all

It happened so suddenly KEY INSIGHT 1 It happened so suddenly It’s never too early to review your finances and insurance policies, whether you’re in your 20’s or 70’s. By ensuring you have insurance in place, you will reduce the stress your family may experience should you become permanently disabled. Have you nominated a trusted relative or friend your Power of Attorney? Do you have adequate insurance in place to cover expenses like school fees for a few years? 75% of families without TPD or Income Protection agreed that in hindsight it would have helped if their partner had cover KEY MESSAGE You don’t always get time to prepare. When you have family and financial responsibilities, it’s important to get your affairs in order – including your Will, life insurance and guardianship of children. As uncomfortable as these conversations may be, to take no action may result in your family being caught off guard when tragedy strikes and put in an uncertain financial future.

Financial stability affected KEY INSIGHT 2 Financial stability affected

KEY INSIGHT 2 The financial hardship and disruption that can accompany the disablement of a parent can be severe. The research looked at the finances of those with and without insurance. KEY MESSAGE Having insurance cover in place can reduce the severity of financial hardship and disruption experienced by the family and carer partner.

PARENT // Anonymous, no insurance cover KEY INSIGHT 3 Children grew up too quickly The negative impact is stronger on younger children; they feel helpless and lose confidence PARENT // Anonymous, no insurance cover

KEY INSIGHT 3 Children often have to take on greater responsibility in the family home as a result of a parent becoming disabled – including more housework, and more time looking after siblings. As a result, they’re forced to grow up extremely quickly. This can have a detrimental effect on a child’s lifestyle and emotional wellbeing, making it harder for them to keep up with school work and interact with friends. Key message The financial support provided by life insurance can help reduce the additional burden placed on children. By allowing families to pay for child care or help around the house, children can be given the opportunity to maintain a sense of normality in their lives. Having life insurance in place can help avoid placing extra pressure on children to contribute to the household financially during an already challenging time.

The effects on child’s health & wellbeing KEY INSIGHT 4 The effects on child’s health & wellbeing “For a long time my brother and I were forced to fend for ourselves. I had to get myself to school and cook and clean. This and all the added stress significantly affected my schooling. My brother and I both had to work as well.” CHILD // Anonymous, no insurance cover The study showed a concerning pattern of over 1 in 4 children experiencing mental health issues, including drug and alcohol abuse, after the disability of their parent. In addition to this, children often lost contact with friends and had a reduction in their school activities. Fortunately for those families covered the chances of this were drastically reduced, suggesting that having insurance in place can help keep children in their current school and they’re still able to participate in extra curricular activities. KEY MESSAGE The psychological impact on a child can be severe. Having life insurance can help families reduce the upheaval in a child’s life – helping them stay in the same house, the same school and among the same group of friends.

KEY INSIGHT 4 Children often have to take on greater responsibility in the family home as a result of a parent becoming disabled – including more housework, and more time looking after siblings. As a result, they’re forced to grow up extremely quickly. This can have a detrimental effect on a child’s lifestyle and emotional wellbeing, making it harder for them to keep up with school work and interact with friends. Key message The financial support provided by life insurance can help reduce the additional burden placed on children. By allowing families to pay for child care or help around the house, children can be given the opportunity to maintain a sense of normality in their lives. Having life insurance in place can help avoid placing extra pressure on children to contribute to the household financially during an already challenging time.

This information is produced by OnePath Life Limited ABN 33 009 657 176 AFSL 238341 (OnePath Life). It is current as at December 2015 but is subject to change. OneCare is issued by OnePath Life. OneCare Super is issued by OnePath Custodians Pty Limited (ABN 12 008 508 496 AFSL 238 346 RSE L000673). This information is for adviser use only and may only be reproduced with the permission of OnePath Life Limited. The information is of a general nature only and prepared without taking into account of a potential policy holder’s personal objectives, financial situation or needs. Potential policy holders should read the OneCare Product Disclosure Statement available at onepath.com.au or by calling 133 667 and consider whether this product is right for them before making a decision to acquire or continue to hold the product. Taxation law is complex and this information has been prepared as a guide only and does not represent taxation advice. A potential policyholder should see their tax adviser for independent taxation advice. As the rules associated with the superannuation and taxation regime are complex and subject to change, you should seek personalised advice from a financial adviser and tax adviser before making any financial decision in relation to the matters discussed in this presentation.   <Insert company name>, ABN <insert>, is a Corporate Authorised Representative of <insert Licensee name> <Insert adviser name> is an Authorised Representative of <insert Licensee name>

OnePath Custodians Pty Limited ABN 12 008 508 496 AFSL 238346 RSE L0000673 OnePath Life Limited ABN 33 009 657 176 AFSL 238341