Insurance for homemakers

1. Insurance for homemakers 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. Australia’s home-makers • There are around 1.2 million Australians performing home duties on a full-time basis1 • The cost of paying someone to do the roles mums do would be around $75k per year1 Sources: 1) BT “What’s a stay at home Mum worth?”, June 2013

4. No income, high value They may not have an income, but homemakers fulfil two vital roles: 1) Providing care to children and/or elderly relatives 2) Enabling the working spouse to earn an income

5. The forgotten worker • If a homemaker gets seriously ill or injured: • Can your family afford to pay someone to perform homemaker duties? • What if the working spouse had to take time off work to look after the homemaker, or children?

6. What are the odds? • 1 in 2 men and 1 in 3 women will be diagnosed with cancer by the age of 851 • 45% of Australians will experience mental illness at some point in their lifetime2 • Cardiovascular disease kills one Australian every 12 minutes3 • 'Facts and figures' Cancer Council Australia, October 2015 • BeyondBlue “The Facts” , 2015 • Data and statistics, Heart Foundation Australia 2015

7. 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

8. The need for protection • Life insurance strategies should consider the cost to: • Fund ongoing living costs • Repay or service debts • Meet child education needs • Meet medical expenses • Maintain savings plans • Allow working spouse to take time off • Cover the work done in the family home by the home maker

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. A bit of history • In the past, life insurers have been reluctant to offer protection to homemakers as it’s difficult to put a dollar value on their contributions • But there are now some policies that recognise the value of the non-financial contribution made by homemakers • These policies also recognise the cost of replacing their efforts for the household such as cleaning, cooking and child care • Plus the impact on finances should the main breadwinner need to stop working to look after the homemaker

11. OnePath, one of the market leaders for homemakers • First insurer to introduce Living Expense Cover • A Baby Care Option is available to cover pregnancy or early childhood complications • Packaging discounts of up to 10% when you take out a policy with a partner or immediate family member

12. Types of cover available • Life cover for death and terminal illness • Helps the family eliminate debts and stay in the family home • Provides an ongoing income for the family • Pays medical bills and funeral costs • Living expense cover for sickness or injury • Help cover care costs for the homemaker and recognises the value of what you do everydaydespite not earning a wage

13. Types of cover available • Total and Permanent Disablement (TPD) Cover for permanent incapacity • Helps eliminate debts and cover long-term care costs • Pays for modifications to the family home • Provides funds to replace your role in the home • Trauma cover for serious illness • Pays out-of-pocket medical costs • Helps spouse take time off work to provide care • Provides funds to replace your role in the home and fund extra child care costs while undergoing treatment and recovery

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?