Insurance from MLC. Personal insurance. Your family s most valuable asset, every day of the year. Mature Families

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1 Insurance from MLC Personal insurance Your family s most valuable asset, every day of the year Mature Families

2 It may come as a surprise, but your personal insurance could actually be your most precious asset. Did you know? More than one in five working-age parents will die, become seriously injured, or ill enough to prevent them from working. Source: Lifewise/National Centre for Social and Economic Modelling, 2010.

3 An asset that s with you, through life s ups and downs The one thing you can count on in life is it doesn t always go according to plan. Your insurance can be your most valuable asset. It could very well be the one constant in life that will be there for you when you need it most. And, just as life and you will change, your insurance can alter to better suit your life and your future financial needs. Mortgage repayments Paying for your children s education Mobile phone payments Credit card debt Living expenses Car repayments Saving for a holiday Friends Gym or club membership Single parent Remarried Sound familiar? Personal insurance for Mature Families Page 1

4 An asset that s with you, through life s ups and downs Remaining in the comfort zone Your family is growing up faster than you d probably like in some cases. They re starting to find their own independence but still rely on you for financial support and security. Your focus and priorities continue to change but there is still the need to plan for the future. With a growing family there s an ever increasing desire to give them the best of everything which ultimately leads to additional expense. You may have divorced and remarried and have a blended family from the two marriages. But how would your present spouse and children cope with the growing expenses and financial commitments if something unexpected happened and you were unable to work and provide for them? Your safety net Your insurance is your safety net. It s there supporting you every day of the year and comes into its own if you become ill or seriously injured. So it s important to make sure it s always kept up to date as your circumstances change, so too should your insurance. You ve done the right thing by having some insurance. So, whatever happens, you have the comfort of knowing your loved ones are protected every day. Did you know? Based on current average levels of insurance, the typical Australian s weekly family income will be cut to about $600 if the main breadwinner becomes temporarily ill or injured and can t work. Source: Lifewise/National Centre for Social and Economic Modelling, Page 2 Personal insurance for Mature Families

5 Could your family maintain their lifestyle if something happened to you? You ve built a comfortable lifestyle for your family based on hard work and commitment that s resulted in some financial rewards. It s something you ll want to protect, as a family s lifestyle is one of the things that helps keeps it together as a unit. But certain activities, and those little luxuries you re used to, don t come cheap. You probably feel you re always putting your hand in your pocket spending money. So how would your family cope if something happened to you and there wasn t the financial means available to maintain your lifestyle? Having insurance and keeping it up to date with your changing circumstances and needs is the foundation for a good financial plan now and for the future. Personal insurance for Mature Families Page 3

6 Time to review? The best time to make decisions about keeping your financial future secure is right now when you re fit and healthy. This brochure has been created to help you continue to meet your insurance needs at this particular stage of your family s life. And to help you make some of those key decisions, with the help of your adviser, for the long term. Do you have enough protection? Consider your lifestyle now, and what you could lose if something unexpected were to happen to you in the future and you didn t have enough insurance. With no way to pay, what would happen to: paying off the mortgage credit card and loan repayments mobile, car, electricity and gas bills, or the quality of your child s or children s further education. Did you know? One in two Australians will be diagnosed with cancer by age 85. Cardiovascular disease affects one in five Australians and two out of three families. Sources: Cancer Council Australia: Facts and figures, Cancer in Australia, National Heart Foundation Statistics, Page 4 Personal insurance for Mature Families

7 It won t happen to me Male Female 21% Cancer 20% 12% 4% 15% 7% 41% Heart attack Stroke Other critical illness Death from non-critical illness 4% 3% 14% 1% 58% No critical illness Statistically, before age 70, these are the chances of you being diagnosed with these illnesses. Source: Munich Reinsurance Group in Australasia, (This graphic is based on those who are currently aged 30.) You may think you ll live a life free of a critical illness but, as you see, the facts say otherwise. Statistics from the Institute of Actuaries of Australia show every working Australian has a one in three chance of becoming disabled for more than three months before turning age 65. How would you or your loved ones cope financially if something were to happen to you? Again, making sure you have enough protection financially is extremely important. As a mature family you have so much happening in your lives. Most family members will have a hobby, sporting or work commitments that take up a huge part of their lives. Personal insurance for Mature Families Page 5

8 It won t happen to me You re so focused on other things now that you don t want to think about what might or might not happen in the future. However, take a moment to consider that life is uncertain and no one knows what s around the corner. So doesn t it make sense to make sure your insurance will protect you and your family as your circumstances change? You may be fit and healthy now but you re not getting any younger. The sad fact is the ability to stay fit and healthy diminishes as you get older. You re more likely to suffer an injury, maybe in a road accident or suffer a critical illness such as cancer. If this did happen how would you and your family cope? How would you pay the bills and mortgage? Did you know? The number of new cancer cases diagnosed in Australia is predicted to rise by almost 40% by Source: Australian Institute of health and Welfare, Cancer incidence projections, Australia 2011 to 2020, Page 6 Personal insurance for Mature Families

9 One recent client claims story Following is just one example of the many grateful messages we get from clients who have made a claim with us and helps to illustrate the financial comfort offered by insurance during stressful and unforseen circumstances. To MLC and staff, Three months ago our son was diagnosed with terminal cancer shortly after his 19th birthday. He was started on six rounds of palliative chemotherapy and advised to get his affairs in order. Our solicitor, while organising his will, asked for details of his superannuation fund. When we found his MLC super details, we discovered that it included a life insurance death benefit. After consulting our financial advisor we were informed that our son could be paid out the death benefit under the terminal illness clause. We rang MLC and within one week we had the required claim forms to fill out. They were very basic and simple to fill out. Our doctor and specialist promptly completed the two medical reports required and supplied all test results requested. MLC received the papers on the Monday and by the following Monday the funds were released and transferred to his nominated bank account. He can now enjoy the time he has left comfortably without financial stress. Thank you MLC and your wonderful caring staff that helped us and our son through an emotional and stressful time. Personal insurance for Mature Families Page 7

10 Insurance that s there for you when you need it most It s an unfortunate but predictable fact; as you get older it s more likely you ll need your insurance. A brief look at our claims history shows people of all ages are subject to illness and injury and may need to make a claim. This, and the fact that accidents and illness can happen without any warning, makes keeping your insurance over the long term a sensible decision. Percentage of claims. 25% 20% 15% 10% 5% Number of claims (%) The highest percentage of claims occurs between age 51 to 55. 0% Age at claim. Source: Claims data is for lump sum policies claims during Average age of entry from inforce data to 31/12/2010. The decline indicated after the peak ages of is due to clients cancelling their insurance rather than a decline in claims per head. Without enough insurance, many people might need to think about selling their home or making radical changes to their lifestyle. The good news is more and more people are recognising the need for insurance. Page 8 Personal insurance for Mature Families

11 Could your family manage if you couldn t work? It doesn t matter if you re the main bread winner or if you provide the second income the loss of an income can have a serious financial impact on your family. That applies particularly if there are no other financial means to replace it. Having insurance in place and keeping it up to date, as your circumstances change, will provide the security you need to help make sure your family are not left with a huge financial burden if you could no longer work and support them. The insurance you have should meet both your immediate needs as well as your long-term goals. So how much is enough? It s a tricky question. You don t want to over insure, but you want to make sure you can get back on track with your health, and take care of your loved ones. Reviewing your insurance, every so often, with your financial adviser will keep it up to date with your changing needs. If you don t have an adviser, please call us on or visit mlc.com.au Did you know? If you were on an annual salary of around $100,000, and spent the same amount of time in the workforce as the average Australian male (around 43 years), you d have a lifetime earning capacity of over $9 million. Isn t that a lot to lose? Sources: Man Not at Work: An Analysis of Men Outside the Labour Force, Productivity Commission, Australian Government, January Assuming your salary increases each year by 3%. Personal insurance for Mature Families Page 9

12 Case study: Dan and Sally s story Dan is married to Sally, they have a teenage daughter and Sally has been a full-time homemaker for the past five years. Dan earns an annual salary of $95,000. Their home is valued at $500,000, they have debts totalling $320,000 and the monthly repayments are $2,797. Debts Amount owing Interest rate Current monthly repayments Home loan (20 year term) Personal loan (5 year term) $295,000 7% $2,287 $20,000 12% $445 Credit cards $5,000 17% $65 Total $320,000 $2,797 Dan is concerned that if something should happen to him, Sally would struggle to meet the loan repayments and may even need to sell the family home to clear their debts. So they decided to see a financial adviser to discuss their insurance needs. After finding out more about their financial situation, their adviser pointed out that if Dan becomes totally or partly disabled or died he (or Sally) could receive a lump sum payment from his super fund of $120,000. This includes his existing account balance and an insurance benefit provided by his fund. Their financial adviser then explained that while this money could be used to reduce the debts to $200,000, Sally may still find it difficult to meet the repayments. This is because, even though she could return to the workforce, she would probably have to meet some additional costs from her salary, such as household help. Page 10 Personal insurance for Mature Families

13 To make sure enough money would become available to meet their debts, their adviser recommended Dan take out $200,000 in Life and Total and Permanent Disability insurance to supplement the $120,000 that would be paid from his super fund. What s more, because Dan wouldn t receive a benefit from his super if he became critically ill; their adviser recommended he purchase Critical Illness insurance to cover their total debt of $320,000. This would enable Dan and his family to focus on his recovery without the financial stress of having to meet loan repayments. This case study is for illustrative purposes only. Personal insurance for Mature Families Page 11

14 What are the best ways to protect yourself and your family? These are the types of insurance you ought to be considering at your stage in life. What is there to choose from? Income Protection insurance Critical Illness insurance 1 Child Critical Illness insurance 1 Total and Permanent Disability insurance Life Cover insurance Business Expenses What are the benefits? Generally, this type of insurance can provide an income up to 75% of your salary, to age either 65 or 70, if you re unable to work due to This type of insurance generally provides a lump sum payment, when you suffer a critical illness, such as a heart attack or cancer. You could use the payment to pay off any short-term debt such as credit card bills, car loan or mortgage repayments. It may also help you pay for any medical expenses as a result of a critical illness. If you hold $100,000 or more in This type of insurance helps protect your finances if your child should suffer a serious illness resulting in you having to cope This type of insurance generally provides a lump sum payment, when you suffer a total and permanent disability and can no This type of insurance generally provides a lump sum payment when you die to help minimise This type of insurance pays you for the fixed costs incurred in 1 Critical Illness can generally only be purchased in your own name (outside super). Page 12 Personal insurance for Mature Families

15 Did you know? Every day about two children develop type 1 diabetes (also known as juvenile diabetes), which makes it one of the most common diseases amongst the young. There s no cure, so once diagnosed, the child will need lifelong insulin therapy to stay alive. Although many may look healthy, the disease ravages most organs and body systems with complications being common and often severe. MLC Insurance can now pay a benefit if your child is diagnosed with type 1 diabetes. If you hold Critical Illness Plus Insurance or Income Protection Insurance, your child will be covered under the Child Support Benefit (for Critical Illness) or the Child Support Income Benefit (for Income Protection). For more information speak to your financial adviser. Source: Better Health Channel, ( illness or injury. This income could be used to pay for your everyday living expenses such as mortgage repayments and the ongoing costs of this insurance, you may be eligible for a our Child Support benefit which pays a lump sum of $10,000 if your child suffers from one of the defined conditions (see our Product Disclosure Statement online) or dies. With this insurance you, your spouse and dependent children also get exclusive access to the unique medical advice service by Best Doctors. You ll have the ability to consult with leading medical with additional expenses, take time off work or make changes to your home. It enables you to focus on where you re needed most with longer work. It means you can relieve the family from the stress of the cost of every-day living. It may also mean you can afford to make changes to the financial burden on your family. For example, it can be used to help pay off debt such as credit card bills, keeping your business going if you suffered a total disability and, as a your child s education as well as helping you to keep your family s financial independence. specialists from around the world, at no additional cost. There are also a number of useful online information services that you can take advantage of. So if something were to happen to you or your family, you would have the peace of mind of knowing that you will not only be financially secure, but you will also have access to leading medical knowledge. your child, helping them to recover. It s available if you already have an existing MLC Insurance or Protectionfirst policy. your home to help with your disability, or help you reduce debt and pay for any medical expenses as a result of your disability. car loan or mortgage repayments that would be left for your family to take care of if you die. result, couldn t work. Your financial adviser can help you decide what type of insurance best suits your needs, so you can keep your insurance in place for when you may need it most later in life. Personal insurance for Mature Families Page 13

16 Unique to MLC: The Best Doctors medical advice service With MLC Critical Illness insurance you and members of your family (that s your spouse and dependent children) get exclusive access to the unique medical advice service by Best Doctors. Following is just one of many examples of how this unique medical advice service has helped in people s lives. Marco is 32 years old and a Brisbane real estate agent. After severe abdominal pain he went to his GP who immediately sent him to hospital where he was told he had Crohn s disease. During his stay in hospital a gastroenterologist set out a course of medication for him and an ongoing treatment plan. Marco had researched Crohn s disease online and also the medication that the doctor had prescribed, but he was struggling to understand what this meant for him and his future. After reading the Best Doctors brochure he received from MLC as part of his insurance, he realised he had access to the best doctors in the world. To be told that a leading gastroenterologist in America would review his file was something that he d never imagined as being possible. After Marco received the Best Doctors report he took it to his gastroenterologist who was amazed that this leading gastroenterologist in America actually had the time to review the case. Marco was relieved to know that his doctor was on the right path with his treatment and also the medication plan was correct. Marco commented, I would definitely recommend the Best Doctors service to family and friends. To have access to the best doctors in the world reviewing your file is pretty exceptional. Page 14 Personal insurance for Mature Families

17 Marco had a leading American gastroenterologist look at his case and make recommendations. The information contained in this case study is based on a real life case. For more information, and to hear what our client s experiences have been like, visit mlc.com.au/bestdoctorsinfo or call Best Doctors on Personal insurance for Mature Families Page 15

18 Best Doctors exclusive services Best Doctors has a range of exclusive services that provide eligible members, and their immediate family, with valuable information and guidance regarding medical conditions. InterConsultation Should you, or a member of your family, be diagnosed with a medical condition, you and your treating doctor (with your permission) would be able to access Best Doctors unique global network of 50,000 leading specialists. A leading specialist in your particular condition will then be selected to complete a full review of your medical records, retesting pathology if required, to assess your diagnosis and proposed treatment plan. This unique service brings leading medical knowledge to your door step, giving you confidence, clarity and certainty in regards to the best way of tackling your medical condition. We re obviously delighted with the outcome and feel extremely lucky that we had access to Best Doctors. Steve Jones patient who used InterConsultation FindBestCare You gain access to the best medical care in the world. If, after your InterConsultation you decide the best option is to go for treatment overseas that s been identified by Best Doctors, then they will arrange everything for you, from booking the surgeon and hospital as well as the flight and accommodation. See online for more details. Please note: although Best Doctors will arrange all aspect of the treatment for you, you ll need to pay for the associated costs involved with the treatment. Page 16 Personal insurance for Mature Families

19 I can state, without a shadow of a doubt, that choosing Best Doctors was the best decision I made as it gave me access to the best doctors in the world to treat my illness. They handled the whole process with a very high degree of professionalism and the human side was never overlooked. Carlos Barroso patient who used FindBestCare Doctor Online Medical information whenever you need it. Doctor Online gives you the ability to ask an Australian GP non-emergency, medical questions and receive an response within 48 hours. Please note: Doctor Online only provides medical information. You can access this service whether you are sick or not. See online for more details. Do not act on this information alone. You should always consult with your doctor for medical advice. Multimedia Library Discover more about certain medical conditions through Best Doctors online library of 300 educational videos featuring realistic, 3D graphics that make it simple to understand what happens deep within the body. The Multimedia Library also gives you access to a list of trusted medical websites that help you find out more about a wide range of medical conditions and support groups. See online for more details. If you d like to discuss a particular medical issue, please call Best Doctors today on Personal insurance for Mature Families Page 17

20 Helping you keep your insurance for longer There are many options available to help you keep your insurance for longer. To find out which ones will best suit your needs, please speak to your financial adviser. They can help you select the level of protection that best suits you and any changes in your life and review any of your existing insurance policies. If you don t have an adviser, please contact MLC on , 8 am to 6 pm AEST/AEDT, Monday to Friday or visit mlc.com.au Page 18 Personal insurance for Mature Families

21 Why you can count on us With over 120 years of looking after Australians, you can be certain we re going to be there when you need us. Our claims philosophy Most importantly, when you make a claim we understand it s a time of need. So we make sure our claims process is simple and convenient, treating policy-owners and beneficiaries with empathy. Did you know? In 2011 we paid out a total of over $500 million in claims across all our insurance products. As your circumstances change so do your insurance needs, so speak to your financial adviser now about insurance to meet your needs now and in the future. Worldwide insurance You re covered 24 hours a day, anywhere in the world. Keeping your insurance up to date We continuously look for ways to improve the features and benefits of our insurance, so you ll receive better protection. We ll let you know the effective date of any improvements to your policy. Year after year, we ve won insurance industry awards for innovation and market-leading products. Personal insurance for Mature Families Page 19

22 Need advice? You should seek advice before taking out insurance from MLC or altering an existing policy. A financial adviser can help you select the level of cover that best suits you and review any of your existing insurance policies. If you don t have an adviser, policyholders with MLC Personal Protection Portfolio or Life Cover Super should call Clients with MLC Insurance, MLC Insurance (Super) or Protectionfirst should contact MLC on Please make any phone calls between 8 am to 6 pm AEST/AEDT, Monday to Friday. Alternatively, you can visit mlc.com.au Full details are contained in the current Product Disclosure Statements for MLC Personal Protection Portfolio/Life Cover Super, MLC Insurance, MLC Insurance (Super) and Protectionfirst and are available at mlc.com.au This document has been printed on paper sourced from well managed, environmentally sustainable plantation forests and has been printed by an ISO14001 accredited organisation, so there s a minimum effect on the environment. It s part of our campaign to maintain our neutral carbon footprint and reduce global warming. Page 20 Personal insurance for Mature Families

23 Important information This brochure is published by MLC Limited (ABN , AFSL ), who has its registered office at Miller Street, North Sydney NSW It s intended to provide general information only, without taking into account any person s objectives, financial situation or needs. A person should, before acting on this information, consider the appropriateness of the information having regard to their personal objectives, financial situation or needs. A person should obtain financial advice regarding his or her own circumstances before making any insurance decision. The product information contained in this flyer must be read in conjunction with the Product Disclosure Statement (PDS) and the Policy Document as terms, conditions and exclusions apply. Persons should obtain a copy of this PDS and consider it before making any decision about whether to acquire or hold the product. A copy of the PDS is available by visiting our website at mlc.com.au MLC Limited is a member of the National Australia Group of companies, and your policy does not represent a deposit with, or a liability of, National Australia Bank Limited (ABN , AFSL ) or any other member of the National Australia Group of companies (other than a liability of MLC Limited as insurer). Best Doctors isn t insurance (including health insurance) and it doesn t replace your relationship with your current doctor or medical specialist. MLC reserves the right to withdraw the service at any time or to change the terms on which the service is provided to customers. Copyright Best Doctors. All Rights Reserved. Best Doctors, the star-in-cross logo and InterConsultation are trademarks or registered trademarks of Best Doctors in the European Community, the United States and in other countries and are used under license. The Best Doctors medical advice service is available to clients with these products: MLC Insurance, MLC Insurance (Super), MLC Personal Protection Portfolio, MLC Life Cover Super, MLC Protection Exec Flexible Recovery Money, MLC Protection Exec Standalone Recovery Money, MLC Protection Executive Recovery Money, MLC Protection Flexible Recovery Money 8 11, MLC Protection Recovery Money 8 11, MLC Protection Recovery Money 10 and 11 External Super, MLC Protection Standalone Recovery Money 8 11, MLC Protection Standalone Recovery Money 9 11 External Super. Recovery Money 8 11, MLC Protection Standalone Recovery Money 9 11 External Super. Personal insurance for Mature Families Page 21

24 Insurance from MLC Any questions? For more information call MLC from anywhere in Australia on or contact your adviser. Postal address: MLC Limited, PO Box 200 North Sydney NSW 2059 Registered office: Ground Floor, MLC Building Miller Street North Sydney NSW 2060 mlc.com.au 83294M0513