Income Protection Presentation

Okay, so the theme I have used is contingency. What is your contingency plan? And I wanted to start off a couple of things before I introduce myself. Did you know that a 35 year old on an $80,000 a year salary will earn $2.4 million over the next 30 years before retirement? And obviously a little bit of legal warning as a child, general advice and please consult a professional. That would be me. Okay, so my name's Aaron. I run a business called ARW Financial Services. Now it's a play on words. Robin is my wife. She unfortunately couldn't come to me. But it's a rwc, nothing too stubborn in there. I have three kids, Samuel is eight, Cassandra is six. And last week while I wasn't here, I was taking her to school and she absolutely loves it and is dying to be able to read. Lucinda is two and she's crazy. I know that. I've talked to people who have three kids. The third one is nuts. Obviously. I'm learning the bagpipes part of part of a pipe band called My Macquarie Governor Macquarie Pipeline, which used to be the Hawkesbury Pipeline. I got into personal risk insurance very, very quickly. I have a background as an intensive care nurse and I've also been in the hot seat before chasing V8 supercars around the tracks. And also in medical response, I've talked to a lot of people that have at the bedside that have had insurance and that can sometimes be a nice positive conversation even though something's going on. And I've talked to people that have had no insurance and it's quite an interesting project management in addition to the healthcare that they are being provided at the bedside. So it's quite highly motivational to me to be doing personal risk insurance because I've seen what it is to have it and what it is to not have it, hence why I have it myself. I'm also driven by issues that affect me. A lot of things that I've got into in my life I've been driven by to be involved with. Okay, so what do I do? I balance the risk to remove the financial question from what is an intensely social and psychological draining issue, which is illness and sickness. And it can take the finance off the table. It allows people to deal with what they need to deal with and hopefully protect relationships, get well and get rehabilitated. I provide medically underwritten life insurance, total permanent disability trauma insurance, including options for children which some people don't know about between the ages of 2 and 18. Okay, so question if I Could get a show of hands of who has this type of insurance in the room. Awesome. Okay, further question. Who knows what they can claim on this insurance in this room? Awesome. You two are cheating. And who has peace of mind that this type of insurance can cover them and their family? So today I was going to focus on income protection insurance as I introduced. Did you know that people are more likely to have an injury or illness versus having a traumatic event like death? 1 in 6 working men and 1 in 4 working women are expected to suffer from a disability between the ages of 35 and 65 resulting in 6 months off work or more. Remember the 35 year old that I introduced at the beginning of the talk? They will earn $2.4 million over the next 30 years. Did you know the biggest asset that that person has to get that sort of income is their ability to get out of bed and work in the morning? The most valuable asset you have is to do that. So why aren't people protecting it? Some people in the rent have put their hands up whether they were shy or not wanting to put themselves on the spotlight. Obviously people would consider it logically reasonable to insure their house when they go and see Ange for a home loan. Or they might look at getting their car protected because they got a loan from Frank. And they'll obviously look at things like their own content, which Manny does a good job with those insurances. But most of the time they'll forget to look at themselves and what insurance they have to protect that $2.4 million that they are going to earn over 30 years and be able to provide for their family going forward. Okay, so there's four points to income protection. Number one, it ensures a set level of income. Number two, it continues to pay you at an agreed level for an agreed period of time. It has a varied waiting period before payment. And there are also different varying premium types. And they're all dependent on people's circumstances. Without income protection, people may be limited or restricted to the government disability support pension and not entirely sure how that may pay your mortgage if you have one of those. So what makes me different? Anyone seen the ads on TV for insurance? Anyone heard of the word no medicals and no blood tests? Yeah. How cool is that? It's a fancy way of saying that they're not going to have a look at what you have right now and leave that to the guessing game. When you're sick or injured. So the underwriting will occur when you're sick or injured versus being right now when you are your youngest. And that can result in claim rates down to what we call a guessing game and questions whether that condition is pre existing or not. So the difference between that and myself is that we want the information up front. I want the information up front. So, yes, there is going to be a medical questionnaire, yes, there is going to probably be some blood tests and there potentially might be a referral request to get some information from your doctor. But the insurer is going to then take out the guessing game when it comes to claims. So we go from being able to be a guessing game to a recent report that I've read with one of the insurers that I deal with that we're able to get the claim rates up to about 94 to 97% success rate across different insurances, whether it's life or income protection. So let's take the case and gave two minutes. So what is a referral request I need? As with any insurance, the best insurance is taken out prior to the event. But more specifically, there's some specific triggers in life. One is getting a mortgage, getting into debt. So people that are going into debt or have debt, it actually is a requirement of most mortgage brokers to understand whether they've got some sort of contingency in place. The other one that's quite interesting is in the legal profession, where people are divorced or anything like that, looking at their beneficiaries can be a trigger to look at do they have the right cover going forward in addition to wills and estates and having something to help them out while they're actually living? The sweet point of insurance is typically between 30 and 40 years old, although younger is better because you can get lower premiums for a lot longer. But the sweet point is between 30 and 40 families with loans and debts. And maybe having one breadwinner loves to do a bit of DIY on the weekend or after work does increase your risk of something happening that won't cover you for what you may be covered at work. So there might still referral. So in wrapping up, life happens, we get sick, we get injured, and that's why we have income protection. Thank you.