Only 5% of Australian families have adequate insurance*

2. Only 5% of Australian families have adequate insurance* Speaker’s nameTitle/departmentMonth, 2014 * Lifewise/NATSEM Underinsurance Report 2010

3. Agenda • Insurance and why it is important • Types of insurance options available • Insurance: inside or outside of super? • Summary • Next steps • Questions

4. Insurance andwhy it is important

5. Having a Plan B • Know the odds... • You probably have car insurance. Most of us do. But why are we chronically underinsured when it comes to our most precious of all assets? • One Australian dies from a heart attack every 51 minutes1 • It is estimated that more than 43,000 people died from cancer in 20102 • 95% of families do not have adequate levels of insurance3 1 Heart Foundation, statistics 2010 2The Cancer Council Australia, Facts and Figures 2010 3Lifewise/NATSEM Underinsurance Report 2010

6. Why is insurance important? • How will your family financially cope without you? • If death or disability occurs, will your family have enough funds to: • continue their current standard of living (including servicing existing debt), and • pay medical or funeral bills • If a serious injury occurs, could you pay for: • hospital costs and ongoing treatment • time off work • living costs for you and your family until you recover • Ideally, you will have planned to help ensure there is enough cover to cope with these situations.

7. What types of insurance are available

8. What types of insurance are available? • Term Life • Total and Permanent Disablement (TPD) • Living Insurance • Income Protection (IP)

9. Term Life • Pays a benefit in the event of death. • The benefit is usually in the form of a lump sum. • Some policies may include additional cover for terminal illness, permanent disability and/or specified medical illnesses.

10. Term Life Case Study: Sam & Susan Example only • Sam and Susan have 3 children, all of school age. • Susan works part-time as a physiotherapist. • They have a mortgage of $300,000 • Two years earlier, Sam took out a life insurance policy of $500,000. • Whilst driving home from work one night, a major accident on the freeway resulted in a four car pile up. • Tragically, Sam was killed in the collision. The insurance proceeds helped pay off the mortgage with enough left over for investment to cover the children’s future school fees.

11. Total & Permanent Disablement (TPD) • Pays a benefit if the Insured Person becomes totally and permanently disabled. • The benefit is usually in the form of a lump sum and is received when the insurer’s definition of TPD is satisfied. • The cover may assist with medical and rehabilitation costs and provide you and your family with financial security. 

12. TPD Case Study: Sam • In this case study Sam survived the accident but is now a paraplegic. • Sam’s insurance cover included “own occupation” definition for the TPD benefit. • As Sam worked as an ambulance officer he can no longer drive the ambulance vehicle or assist with manual handling of patients. • Sam submits an insurance claim and, as he can no longer work again, he is paid out the sum insured lump sum applicable to the TPD benefit. • He now intends to seek professional advice from a financial planner on how best to invest the proceeds.

13. Living Insurance • Pays a benefit if the Insured Person suffers a specified medical event such as cancer, stroke, heart attack or loss of a limb. • You can use the benefit as you wish, for example to pay for expenses associated with medical treatment, mortgage repayments or give you time needed to recover. • A lump sum payment is made if you suffer one or more of the specified medical events.

14. Income Protection • Income Protection provides a regular monthly income to a person who is disabled and is unable to work because of sickness or injury. • Depending on the product provider, you can receive up to 80% of regular monthly earnings in the event of sickness or injury if you are totally disabled because of sickness or injury and unable to work, or • A partial disability benefit if you are on reduced duties and earning less than before your disability.

15. Income Protection Case Study: Matt & Joanne • Matt, 35, is married to Joanne and they have two young children. • He works as a foreman on a construction site and earns $75,000 p.a. or $6,250 a month. • Matt has a mortgage on the family home and has been worried about his family’s ability to cope should something happen to him. Matt decides to take out income protection. • A few years later, Matt is diagnosed with a blood vessel malformation – a condition that puts pressure on the lower spinal nerves and reduced his mobility. He required surgery and physiotherapy as well as a long period off work for rehabilitation. • After waiting the 30 day waiting period, Matt receives $4,687.50 (75% of $6,250 per month) which allows him to continue his mortgage payments and meet daily living expenses.

16. Who may be covered with life insurance? • Employees and self-employed • Homemakers • Medical Professionals • People in Mining, Oil or Gas • Business insurance – Key Man/Principal

17. Insurance: inside or outside of super

18. Insurance: inside or outside super? • It is important to be smart about the structure of your insurance, so that the dollars you pay for premiums work harder for you. • Whether you should hold your insurance inside or outside of super depends on your personal circumstances and needs. • By choosing the right combination of insurance inside and outside super for you, not only can you have the appropriate insurance cover for your peace of mind, but you can do it in a cost and tax effective manner.

19. Tax treatment at a glance * Deductions for own occupation cover may only be partially deductible.

20. Insurance: inside or outside super? Case study • John aged 36 • Marginal tax rate 38.5% (including Medicare levy) • Has $700 pre tax salary to purchase Life & TPD (any occupation) insurance cover • Non-smoker • Stepped premium quote required • What cover can he purchase ?

21. Insurance: inside or outside super?Case study

22. Summary

23. Summary • We often say...it won’t happen to me.. • In 2011, we paid out over $127 million in claims to over 1,400 customers. • That’s: • Around $74 million to help families cope with the loss of a loved one; • $41 million to help our policyholders manage through sickness and injuries; • Regular payments totalling more than $12 million paid to our income protection customers when they are unable to work due to sickness or injury • A range of smart and affordable insurance options to match your life stage and financial circumstances.

24. Next steps • Evaluate or review your insurance needs – consider the following factors: • Your age • Your family situation • Your income and that of your spouse/partner • Your debts (house and other) • Your existing savings and investments • Your financial and lifestyle goals • Your health and that of your spouse/partner • Speak to your Financial Planner about: • Your individual circumstances • The type and level of cover that is right for you.

25. Disclaimer QUESTIONS

26. Disclaimer This information was prepared by Asgard Capital Management Limited ABN 009 279 592, AFSL 240695 (Asgard) and is current as at March 2014. A Financial Services Guide (FSG) is available for all Asgard accounts and services and can be obtained by calling 1800 998 185.  Material contained in this presentation is an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such. This presentation contains general information only and does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. All case studies and examples used in this presentation are for illustrative purposes only and nothing in this presentation should be construed as an indication or prediction of future performance or results. Any taxation position described in this publication should be used as a guide only and is not tax advice. You should consult a registered tax agent for specific tax advice on your circumstances. As the rules associated with the super and pension regimes are complex and subject to change and as the opportunities and effects differ based on your personal circumstances, you should seek personalised advice from a financial adviser before making any financial decision in relation to any matters discussed in this presentation.

27. “Thanks”