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

2. Disclaimer/AFSL details etc This 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 , AFSL ) (OnePath Life) and OneCare Super is issued by OnePath Custodians Pty Limited (ABN , AFSL , RSE L ) (OnePath Custodians). You should read the product disclosure statement, available at onepath.com.au, before making a decision about the products.
Note to Advisers - Please ensure that you satisfy your disclosure obligations as an Australian Financial Services Licensee when providing this presentation to retail clients.

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
One of the great things about being a professional in Australia is the opportunity it gives you for a fantastic lifestyle.
Professionals earn 30% more than the average Australian. And many professionals will earn much higher incomes than that.
This earning potential often translates to higher lifestyle expectations. Bigger houses, more holidays, nicer cars. And higher debt levels, because you know you have the income to service those debts.
It’s a good position to be in. But it’s also a position you need to protect.
Source: 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 5 Australians 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” -
As you know, life doesn’t always go to plan.
According to the Cancer Council of Australia, 1 in 2 Australians will be diagnosed with cancer by the age of 852
And what about your mental health?
According to the Australian Institute of Health and Welfare, one in five Australians aged 16 to 85 will experience mental illness in any given year.
Almost half of Australians will experience a mental illness at some point in their life.
'Facts and figures' Cancer Council Australia, October
Beyond Blue -

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
If you look at the underinsurance statistics among young families, it makes scary reading....
27% of disability insurance needs are being met through existing cover
35% of Australians have no form of disability insurance
So if all these families don’t have enough life insurance, who are they likely to turn to for help? 1.
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 business survive?
Now imagine you couldn’t work due to a serious illness of injury:
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 business survive?

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.
Can I get by without life insurance?
Many people think they’ll receive financial assistance through Workers Compensation, their health fund, or the Government in the event of injury or illness.
However, here are some things to think about:
Workers compensation generally doesn’t cover injuries that happen away from work, or provide protection against serious illnesses like cancer and heart attack.
The amount of Social security payments you're eligible for 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.
The NDIS provides a safety net, but it was not designed to replace life insurance – which continues to play a vital role in paying out debts and replacing income after the onset of disability.

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)
A comprehensive life insurance strategy needs to take into account the financial needs of yourself, your family, and your business if you have one.
Such a strategy should include protection to:
Fund ongoing living costs
Repay or service debts
Meet child education needs
Meet medical expenses
Maintain savings plans
Keep your business running if you’re 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
Life insurers have traditionally been accepting of professionals because of their low-risk occupations
This can help reduce the cost of your insurance premiums – and allow you to take higher levels of cover.
This can help you get higher levels of cover with affordable premiums.

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
OnePath is one of the market-leading insurance companies when it comes to professionals.
SuperLink TPD allows you to split your disability cover inside and outside super. This helps you get the more specialised protection of an ‘Own Occupation’ TPD policy outside super, while also giving you the tax-effectiveness of an ‘Any Occupation TPD’ policy inside super. Your adviser will discuss contribution caps and ways to decrease the reduction in retirement funds as part of your overall strategy should you chose to pay for your policy this way.
OnePath offers guaranteed benefits on their Income Protection policies. That means you may be eligible to receive an agreed monthly benefit – without showing any proof of income at claim time.
OnePath also offers packaging discounts of up to 10% when you take out a policy with a 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
So what types of life insurance are we talking about?
The main types of cover are:
Life cover, which is basic cover for death and terminal illness.
This type of cover helps families eliminate debts and stay in the family home, it provides an ongoing income for a spouse and children, and it helps cover any medical bills and funeral costs. Allows funding for the replacement of the key person in the business
Income replacement cover for sickness or injury.
Usually known as ‘income protection’, this type of cover helps families keep up with the mortgage and everyday expenses – like school fees, electricity bills, etc.

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
TPD covers people who suffer a total and permanent disability.
This helps people who can never work again by helping them pay off their mortgage, and pay for a carer if they need one. If you’re in a wheelchair for example, it can also help pay for modifications to the family home.
Trauma cover covers a number of serious illnesses, like cancer.
Trauma cover can help cover the medical expenses not covered by private health insurance, which can run into the tens of thousands of dollars when you’re talking about diseases like cancer.
It can also allow a spouse to take some unpaid leave to provide care, and encourages people to make the lifestyle changes they need to recover properly – like reduce their work hours or take an extended holiday.

14. Types of cover available
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
2015 OnePath paid over $116 million in Income protection and business expenses insurance
Business expense cover is similar to income protection in that it pays a monthly benefit for sickness or injury. The difference is it is related to the fixed expenses of the business, not your income.
It pays a monthly benefit to cover costs such as tools and equipment hire, motor vehicle leases and advertising commitments
With your fixed costs taken care of, Business expense cover is designed to keep your business running in your absence
Like income protection, the premiums for business expense cover are generally tax-deductible

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
Everyone’s different of course, so the best way for professionals – or anyone for that matter – to get a comprehensive life insurance plan is to speak to a financial planner.
We take into account things like your income, your debts levels, and whether or not you have any dependants.
We can also help you get the right mixture of life insurance products, and structure your insurance in a way that’s most cost-effective. For example, you may take out life cover and TPD cover inside super – which helps you take advantage of some of the tax concessions within the super environment.

16. Thank you
Questions?