Insurance for farmers

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

2. Disclaimer/AFSL details etcThis 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 33 009 657 176, AFSL 238341) (OnePath Life) and OneCare Super is issued by OnePath Custodians Pty Limited (ABN 12 008 508 496, AFSL 238346, RSE L0000673) (OnePath Custodians). You should read the product disclosure statement, available at onepath.com.au, before making a decision about the products.

3. Life on the land • In 2013, the Agriculture, Forestry and Fishing industry had1: • 10 x the national average of work-related fatalities • 2 x the national average of serious workers compensation claims 1 Source: Safe Work Australia, 2015

4. Life on the land • People in rural Australia are significantly more likely to be diagnosed with: • Bowel cancer • Melanoma • Prostate cancer • Survival rates for cancer are also lower in rural communities – due in part to lack of access to quality medical care Source: National Rural Health Alliance, January 2012

5. Protection for farmers • If you were unable to work... • What would it mean for your income? • What about your family’s lifestyle? • Could you afford to relocate to seek treatment? • How long would your personal savings last? • How long would your farmsurvive?

6. 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 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

7. Protection for farmers • Life insurance strategies should consider the cost to: • Fund ongoing living costs for your family • Fund ongoing farm expenses • Repay or service debts (personal and business) • Meet child education needs • Meet medical expenses (incl. travel/accomm) • Maintain savings plans • Allow your partner to take time off

8. Protecting your true income • There’s more to income protection than reviewing your tax return... • Does your spouse earn an income from the farm, and would it stop if you did? • Are you re-investing profits in your farm? • What are you really worth to your business?

9. 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.

10. OnePath, one of the market leaders for farmers • Extra Care Cover can be attached to any cover type to add up to $1m cover for accidental death • Guaranteed benefits that don’t fluctuate, even if your income does • Packaging discounts of up to 10% when you take out a policy with a spouse, immediate family member or business partner

11. Types of cover available • Life cover for death and terminal illness • Helps the family eliminate debts and keep living on the farm • Provides an ongoing income for the family • Pays medical bills and funeral costs • Can be used as part of your estate equalisation strategy for your children • Income protection for sickness or injury • Helps families keep up with mortgage repayments and day-to-day living expenses • Premiums are generally tax-deductible

12. 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 • Pays out-of-pocket medical costs (including travel and accommodation costs) • Helps your spouse take time off work to provide care • Allows you to make lifestyle changes – like reducing work hours, or taking an extended holiday

13. Types of cover available 2015 OnePath paid over $116 million in Income protection and business expenses insurance Business expense cover for sickness or injury • Pays a monthly benefit to cover your fixed business expenses – such as tools and equipment hire • Helps keep your farm running in your absence • Premiums are generally tax-deductible • Child cover for sickness or injury • Pays a lump sum if your child suffers a serious illness or accident • Helps pay medical costs, travel and accommodation • Allows time off work to provide care

14. 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

15. Thank you Questions?