Womens Wealth Protection

Who’s got you covered?Insurance for WomenInsurance for Women

Presented by Justin Pagotto

Important information

» This material is not intended to constitute personal advice and must not be relied upon as such.

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» 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.

About me» Justin Pagotto

Licensed Financial Adviser

» Jireh Financial

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» Jireh FinancialHelping our clients achieve real prosperity,peace, wholeness and wellbeing.

02 93456 888 or www.jirehfinancialservices.com

Australian Women Today

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» … are juggling many different roles

Agenda

» Why do you need insurance?

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» What cover do you need?

» Strategies to make insurance more affordable

» The real benefits to you

» Special thanks to Asteron and CommInsure

Insurance - why do you need it?

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Insurance - why do you need it?

The 4 Big Things– Live too long

– Die too young

– Get “sick along” the way

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– Get “sick along” the way

– Suffer a serious disability

Why you need insurance

Unique risks for females» Shorter working lives

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» 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


Unique risks for females» And you live longer!

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» 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


It could happen» You probably know someone who’s been affected

by sudden illness or injury

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by sudden illness or injury

» Illness like breast cancer can strike at any age

» The costs of treatment can be financially crippling


It does happen» 1 in 3 women affected by cancer before age 751

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» 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


It does happen

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Because you’re worth it!Try to put a cost on everything you do:

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Try to put a cost on everything you do:

» Your income

» Your child care

» Your meals

» Your housework


Could your family survive without you? In the short term:

– Could you pay the bills with only one income?

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– 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?

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What cover do you need?

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Insurance for females


Insurance for females

» Replace your income - on a temporary or permanent

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» 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


The types of insurance

» Income protection provides regular payments to replace

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» Income protection provides regular payments to replace your income if you’re temporarily off work

» Trauma 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


Case study: Life cover

» Karen - 38 year old office manager

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» 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


Case study: Life, Trauma & TPD

» Sarah - 33 year old executive

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» Sarah - 33 year old executive

» Diagnosed with MS, received $500,000 from her Trauma 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



How much does it cost?

» Katie, a 35 year old teacher on $60,000 pa, wants to

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» Katie, a 35 year old teacher on $60,000 pa, wants to cover her mortgage.

– $500,000 Life Cover

– $250,000 Trauma

» 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.


How much does it cost?

» Jen, a 39 year old doctor on $120,000 pa, wants

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» 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 Trauma 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.

Making insurance more affordable

» Premiums for income protection are tax-deductible

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» 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 contributionsto pay your premiums

Case studies

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Case studies



Salary sacrificing into super» Take out insurance inside super, and use pre-tax money to pay

your premiums

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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



Using Government co-contribution» Make after-tax contributions to super, and receive the

Government co-contribution to help pay your premiums

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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 savingsSource: Asteron Life Limited


Spouse contribution splitting» Your spouse salary sacrifices into their super, then ‘splits’ this

amount to your super fund to pay your insurance premiums

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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



Taking insurance inside super

» There may be different rules for insurance

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» 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

The real benefits to you

» Peace of mind

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» Financial security for your family

» Lifestyle choices for you and your family - you decidewhat happens in the future

Next steps

» Think about everything you need to protect

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» 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

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Questions?

Womens Wealth Protection

Economy & Finance