Who’s got you covered?

1. Who’s got you covered? Insurance for females Presented by <adviser name> [dd month] 2008

2. Important information • This material is not intended to constitute personal advice and must not be relied upon as such. • This material is of a general nature only and has been prepared without taking into account your individual objectives, financial situation or needs. Before making a decision based on this material, you should consider the appropriateness of this material having regard to your objectives, financial situation and needs and consider obtaining independent advice from a licensed financial adviser. • We recommend that you refer to the relevant Product Disclosure Statement where reference is made to a particular product before taking any action.

3. About me • <<name>> • Licensed Financial Adviser • <<company name>> • <<company details etc>>

4. Agenda • Why do you need insurance? • What cover do you need? • Strategies to make insurance more affordable • The real benefits to you

5. Insurance - why do you need it?

6. Why you need insuranceUnique risks for females • Shorter working lives • More likely to accept the role of primary carer • Less time in the workforce means: • less savings • less superannuation • less able to cope with a financial setback

7. Why you need insuranceUnique risks for females • And you live longer! • A male aged 40 today - expected to live to 80 • A woman aged 40 today - expected to live to 84 • Women are more exposed to ‘longevity risk’ Source: ABS Life Tables, Australia 2004-2006

8. Why you need insuranceIt could happen • You probably know someone who’s been affected by sudden illness or injury • Illness like breast cancer can strike at any age • The costs of treatment can be financially crippling

9. Why you need insuranceIt does happen • 1 in 3 women affected by cancer before age 751 • The number of women diagnosed with breast cancer has more than doubled in the last 20 years2 • 1 in 4 women will experience depression in their lifetime3 • 1.1 million Australians are disabled as a result of cardio-vascular disease4 1. ‘Cancer in Australia Snapshot, 2004-05’ – ABS 2. ‘Breast cancer rates up, but survival improving’ – Australian Institute of Health and Welfare, 2006 3. ‘What is depression?’ – www.beyondblue.org.au 4. ‘Australia’s Health 2004’ – Australian Institute of Health and Welfare

10. Why you need insuranceIt does happen

11. Why you need insuranceBecause you’re worth it! Try to put a cost on everything you do: • Your income • Your child care • Your meals • Your housework

12. Why you need insuranceCould your family survive without you? In the short term: • Could you pay the bills with only one income? • Could you afford to get someone in to help at home? • Could you pay expensive medical bills? In the long term: • Could you maintain the mortgage? • Could you maintain your family’s lifestyle? • How long would your savings last?

13. What cover do you need? Insurance for females

14. What cover do you need?Insurance for females • Replace your income - on a temporary or permanent basis • Pay increased medical expenses for you and your family (including children) • Debt protection to repay outstanding personal debt • Pay someone to help keep your household running

15. What cover do you need?The types of insurance • Income protection provides regular payments to replace your income if you’re temporarily off work • Recovery provides a lump sum to help cover medical costs and extra household expenses • Life Cover and Total & Permanent Disability(TPD) provides a lump sum to help replace your long-term income, pay for help at home, and cover your debts

16. What cover do you need?Case study: Life cover • Karen - 38 year old office manager • Sole carer of her 14 y.o. son, Stephen • Suffered a brain haemorrhage • Stephen, as sole beneficiary, received $500,000 in trust Source: Asteron Life Limited

17. What cover do you need?Case study: Life, Recovery & TPD • Sarah - 33 year old executive • Diagnosed with MS, received $500,000 from her Recovery policy • When she could no longer work, she received $1.5m from her TPD policy • When she became terminally ill, she received $1.5m from her Life cover policy Source: Asteron Life Limited

18. What cover do you need?How much does it cost? • Katie, a 35 year old teacher on $60,000 pa, wants to cover her mortgage. • $500,000 Life Cover • $250,000 Recovery • Her annual premium is $803, or around $15 per week Source: Asteron Life Limited, based on a non-smoker taking out Life Cover with Recovery Plus, both with stepped premiums paid annually.

19. What cover do you need?How much does it cost? • Jen, a 39 year old doctor on $120,000 pa, wants to cover her mortgage and income: • $750,000 Life Cover (with Needlestick cover) • $250,000 Recovery Package • $7,500 per month Income Protection • Her annual premium is $3,318 (after tax) or around $64 per week Source: Asteron Life Limited, based on a non-smoker taking out an Agreed Value Income Advantage policy with a 30-day waiting period, and a Life Cover policy, both with stepped premiums paid annually.

20. Making insurance more affordable • Premiums for income protection are tax-deductible • Life and TPD cover may be available in your super fund - this can reduce the effective cost • You may be able to use the Government co-contribution to help pay your insurance premiums • You may be able to use spouse super contributions to pay your premiums

21. Case studies Making insurance more affordable

22. Making insurance more affordableSalary sacrificing into super • Take out insurance inside super, and use pre-tax money to pay your premiums How it works: • Your insurance premium = $2,930 pa • Strategy: You salary sacrifice $2,930 pa into super • Income to pay this premium outside super (MTR 41.5%) = $5,010 • Saving from this strategy (year 1) = $1,216 Source: Asteron Life Limited

23. Making insurance more affordable Using Government co-contribution • Make after-tax contributions to super, and receive the Government co-contribution to help pay your premiums How it works: • Your insurance premium is $1,566 pa • Strategy: You make an after-tax super contribution of $1,000 • The Government tops-up your super by $1,500 - covering most of your premiums • You make a valuable contribution to your retirement savings Source: Asteron Life Limited

24. Making insurance more affordable Spouse contribution splitting • Your spouse salary sacrifices into their super, then ‘splits’ this amount to your super fund to pay your insurance premiums How it works: • Your insurance premium = $2,500 pa • Your spouse salary sacrifices $2,941 into their super • Your spouse splits 85% of this amount ($2,500) into your super • Your spouse’s saving in tax (year 1) = $927 Source: Asteron Life Limited

25. Making insurance more affordable Taking insurance inside super • There may be different rules for insurance inside super • You should discuss these strategies with your financial adviser • You may find you’re better off taking insurance outside super

26. The real benefits to you • Peace of mind • Financial security for your family • Lifestyle choices for you and your family - you decide what happens in the future

27. Next steps • Think about everything you need to protect • Find out how much insurance you currently have • If you have a spouse, talk to them about their insurance • Make an appointment to meet with an adviser

28. Questions?