1. Presentation for All Financials August 2007 Income Protection

2. What is your largest financial asset?  Is it your home?  Is it your business?

3. Your Income is an Asset...  Annual salary of €60,000, aged 40 –Earnings to retirement = €2.1M * Based on retirement age of 65

4. Mortgage Car Loan Savings & Investments Entertainment Light & Heat Life Cover Clothing Child-care Holidays Food Insurances BEST ADVICE VHI/ BUPA … who will pay all these bills ? SALARY SOCIAL WELFARE €185pw Creating the Need

5. The Big Drop € 40,000 € 14,000 €0€0

6. Income Protection - Product Review  Policy that pays you an income if you’re out of work for more than 13, 26, or 52 weeks  If you can’t do your own occupation  Premiums are guaranteed  Full tax relief on premiums at marginal rate  Pay out in 90% of claims  Hospital Cash after 8th day

7. Premium depends on ….  Guaranteed (exclusive to FF)  Reviewable -5th anniversary & every 5th after that - Level or Indexing options - Occupational Class e.g. 1 Office worker 1 Office worker 2 Salesperson – driving 2 Salesperson – driving 3 Vet 3 Vet 4 Carpenter 4 Carpenter  Length of deferred period - 13, 26 or 52 weeks  Ceasing age - 55, 60 or 65

8. Examples Of Occupation Classes Class 1Class 2Class 3Class 4 AccountantDentistDriving Examiner Bar Person Office Worker Estate AgentBakerMechanic Doctor Insurance Broker Social Worker Carpenter Cashier RestaurateurTiler – Floor & Walls Builder

9. Occupations The cost options: Gold: Deferred 13 weeks, ceasing age 65, indexing Silver: Deferred 26 weeks, ceasing age 60, indexing Bronze: Deferred 52 weeks, ceasing age 60, no indexation

10. Peace of mind ….  Guaranteed premiums  Help to get back to work if you need it –Rehabilitation Benefit –Proportionate Benefit –Linked Claims –Health Claims Service  Ability to increase your level of cover by 30% every 3 years - Guaranteed Increase Option  Changing Occupation

11. Benefit Limits  Min SA €100 p.w., Max €3,365 p.w. (€175,000 p.a.)  Increases to €4,080 p.w. (€250,000 p.a.) for “special occupations”  Calculation of benefit: –75% of income, less single person’s social welfare amount (€9,622 per annum)  Max Benefit Calculation 75% of first €125,000 plus 33% of balance to maximum of €175,000 75% of first €125,000 plus 33% of balance to maximum of €175,000 less state single person disability benefit less state single person disability benefit less any continuing income less any continuing income

12. Position the cover  “Deluxe” cover - not everyone can get it  Depends on your occupation, health history

13. It will never happen to me...  Likelihood of long term absence is twice as high as likelihood of critical illness  Average claim payment is for 5.5 years  Longest claimant - 27 years (still paying)  Claims currently being paid …...

14. Total Cover: € 1,257,611 Value for Money Cost versus Benefit Male Age 31 n.b, to age 65, Class 2, Deferred Period 26 weeks, premium and benefit escalation Benefit:€20,800 p.a. (€400 p.w.) Gross premium €47.42 p.m. Net premium €27.50 p.m.

15. Company Directors Company Directors  Company pays the premium - its free for the client  Tax relief for the company, treated as company expense - reduce the company’s tax bill  No BIK  Pension contribution protection so can have more than 75% of salary covered, up to €40k p.a.

16. The Business Owner  Company Directors can take out Executive Income Protection - company pays the premium  Position as business insurance - necessary business expense  If out of work for medium period - need to ensure the business is still there is come back to  Can cover net profit amount to ensure own salary drawings are covered, plus money to keep business going  If business ultimately needs to be sold, then profit made from this does not effect claim payment