Critical Illness Presentation Pack

1. Critical Illness Presentation Pack Within this pack you will find a number of slides that you can select from to build your own CI presentation that suits your particular style. You can also tailor the presentation to suit certain audiences e.g Women, young people, business owners. Your MLC BDM can work with you to build your own CI presentation.

2. Critical Illness Cover “it won’t happen to me”

3. ….but we do expect to become ill, the question is how ill? We don’t expect to die young… Average Australian Life Expectancy.

4. Do You Feel Lucky? 50 % people who reach age 65 will experience… stroke, cancer, heart attack or some other covered condition “It won’t happen to me” Are you willing to take that chance?

5. Do you feel lucky?

6. Critical Illness does not discriminate • Homemaker, female aged 40 – Breast cancer • Restaurant owner, male aged 40 – Lymphoma • Admin Officer, female aged 39 – Stroke • Homemaker, female aged 36 – MS • Director, male aged 26 – Cancer …do you know someone who’s suffered?

7. We are all at risk • One third of women and a quarter of men will suffer cancer. Over 50% will live longer than 5 years after diagnosis • Cardiovascular disease affects 2 our of 3 Australian families • By age 75 one in 3 Australian males and one in 4 females will be diagnosed with cancer

8. The importance of cover for women • 20% of all MLC claims are for breast cancer.. • Australian Women have a 1 in 9^ risk of developing Breast Cancer by age 85.. ^National Breast and Ovarian Cancer Centre – September 2009. Critical Illness Cover protects the important things in life…

9. Are you protecting the important things in life? Event Protection Car Insurance Car Crash Home Insurance Burglary Death Life Insurance Permanent Disablement TPD Insurance Breast Cancer MLC Critical Illness Cover Bowel Cancer MLC Critical Illness Cover Heart Attack MLC Critical Illness Cover ..and MLC Critical Illness covers 38 more

10. Why you should have Critical Illness Insurance • Females (aged 25-40) • 5 times more likely to claim on Critical Illness policy than life cover • 6 times more likely to claim on Critical Illness policy than TPD • compared to male counterparts who are 3 times more likely to claim on Critical Illness • Males (aged 25-40) • 3 times more likely to claim on Critical Illness than TPD cover It makes SENSE to have MLC Critical Illness Cover!

11. What are my options? “Self Insured” Net Worth Reduction Deplete your savings and deplete your retirement accounts Liquidate your estate Go into debt Bankrupt your family Go without necessary treatment or care “MLC Critical Illness Cover” • Immediate pay-out upon confirmed diagnosis of a covered condition • Absolutely no restriction on how funds used • No impact on other benefits, such as health insurance, Medicare, etc. • Benefits are income-tax free. Outcome Outcome • Peace of Mind • Financial Security ???

12. Personal Financial Impacts • High levels of debt • Low levels of savings ill health caused 7.43% of personal related bankruptcies in 1997. By 2008 this had increased to 11.78% most are unprepared for the unthinkable… • Personal related bankruptcies. Personal related debt agreements ill health caused 4.27% of personal related debt agreements, by 2008 this had increased to 7.51% # Melbourne School of Law – Trends in Insolvency 2009 Research Paper no. 390

13. Business Financial Impacts • High levels of debt • Global Financial Crisis 2008 • Over 18% of business related debt agreements were caused by personal reasons including ill health. most are unprepared for the unthinkable… Would your business survive you getting seriously ill? # Melbourne School of Law – Trends in Insolvency 2009 Research Paper no. 390

14. The Statistics show 50% of us are at risk, and it could cost us our health, lifestyle, business or home… So what needs to be considered when taking out Critical Illness Cover?

15. What should be considered when determining Critical Illness cover. • Clear home loan debts# • Provide for a lump sum (income) equivalent to • 1-5 years of loan repayments • Provide for a lump sum (income) equivalent to 2 • years of the client’s gross salary Debts The average Australian mortgage is $350,000^ ^Australian Finance Group (AFG) Mortgage Index August 2009 # Investment Loans & Critical Illness In some instances, clients may wish to clear investment loans. Discuss and determine why this type of investment was originally entered into and whether the investment debt servicing will have a significant impact on cash flow (negative gearing) whilst the client is recovering from a critical illness.

16. The true cost of Critical Illness – Bowel Cancer Note – this does not include loss of income Estimates provided by Dial An Angel, 2009, Family Care Specialists Calculations do not reflect loss of income

17. The true cost of Critical Illness – Heart triple by-pass surgery Note – this does not include loss of income Estimates provided by Dial An Angel, 2009, Family Care Specialists Calculations do not reflect loss of income 17

18. The true cost of Critical Illness – Multiple Sclerosis Note – this does not include loss of income Estimates provided by Dial An Angel, 2009, Family Care Specialists Calculations do not reflect loss of income 18