Are Your Assets Protected Hany Salib
- 1. Are your AssetsProtected?
- 2. Analogy of buildinga house on a block of land and the importance of laying the foundations
- 3. Income protection insuranceWhat percentage of your income is been allocated after your working life? What percentage of your income is been allocated during your working life?
- 4. What if somethingwrong happens to you, illness or accident which will prevent you from working?
- 5. If that wouldhappen to you, how long would your employer continue to pay you an income?
- 6. After that periodof time, if you still can’t go to work, what will happen to your income?
- 7. What bills willstop coming to your mailbox if you are not working?
- 8. Mortgage Payments ClothingElectricity Bills School Fees Rates Credit Cards Insurance What if? Income Cost of living
- 9. Is that whatyou want to happen to your income?
- 10. Where between noughtand 100%, would you want your income to be replaced?
- 11. In that situation,would you want your debts to be paid off? The difference between good and bad debts.
- 12. What about yourmortgage, would you want that to be paid off?
- 13. Would you liketo have access to funds which will give you a better chance of survival in case of illness, keeping in mind that the treatement might cost you 60 to 70k a year out of your own pocket.
- 14. Note: The AustralianGovernment recognizing the importance of programmes providing a replacement of income, in most cases allows TAX DEDUCTIBILITY for contributions made to income protection programmes. Cost effective Long or short term protection Tax deductible Instant self reliance The Income Protection Alternative
- 15. Source: Institute ofActuaries of Australia – 2000; Risk Store – 2009; One in three Australians are at risk of becoming disabled for more than 3 months before turning 65. 1 Australian insurers paid $697,677,939 in Income Protection claims in 2008. 2
- 16. It is estimated that less than Are you at risk 10% of the working population has Income Protection . Source: Survey by Research International - 2003
- 17. US Government Survey2005 Mortgage Foreclosures there are 3 homes lost through death and 48 homes lost through disablement For every home lost through fire
- 18. Source: MLC DisabilityClaims Data 2005 Examples of Income Protection Claims:
- 19. Health Salary protectionCar House and contents Business protection Savings account Emergency funds Family protection Long-term savings LOW RISK INVESTMENTS TIMBER FARM PROPERTY SHARES COMMODITIES WEALTH PROTECTION WEALTH CREATION WEALTH CREATION RETIREMENT / SUPERANNUATION Wealth Creation
- 20.
- 21. Have you evermet or known someone affected with cancer? Critical Illness Cover Cash to reinvent your life
- 22. If you hada heart attack, would you rather lose: Critical Illness Cover Your house? Your business? Your home or business loan? OR OR
- 23. Malignant Neoplasm Source:Causes of Death, Australia - 2002 Critical Illness Cover HOWEVER That’s 7 Times more ! 36,750 will die 261,402 are diagnosed with critical illness
- 24. Australians will suffera critical illness during their working lives. Source: 1A85-90 Report to Disability Committee 1995 1 in 2 women, 2 in 3 men Critical Illness Cover
- 25. Examples of Trauma/TPDClaims: Source: MLC Critical Illness Claims Data 2005
- 26. Critical Illness Cover– the mechanics A cash lump sum A broad range of common illness and injuries Paid on diagnosis Instant self reliance Critical Illness Cover
- 27. Assist towards astress-free recovery Keep business going Home help is affordable Income for dependants Special treatment affordable and available Repay debt Put affairs in order Critical Illness Cover – the purpose Critical Illness Cover
- 28. DEATH COVER Rightnow you are married and have children If you died today , would you want your wife and kids to be better off, worse off, or at least as well off financially? Is that for a year or two, or on an ongoing basis?
- 29. 2 things weknow for sure:- 1. You’re going to die, we just don’t know when. 2. After you die, you don’t earn anything for your family.
- 30. What is itthat will have to be replaced to maintain their standard of living on an ongoing basis? The answer is your earnings potential, but at worst your earnings today, ie $50,000 per annum Assume 5% return = 20 x income So if there was not $1,000,000 there today, for example, would you agree that you should make up the shortfall? So, if you could buy $1,000,000 cover today for $5 a month would you buy it today? If it costs you $500 a month today, could you buy it today? Therefore, provided $1,000,000 cover costs somewhere between $5 and $500 per month and it does not take bread off your table, is there any reason why you would not buy it today?
- 31. Broke Here’s howit will work (The wedge) Well off $ $ $ Comfortable $ $ Just Managing $ 1
- 32. Broke Here’s howit will work 1 Well off $ $ $ Comfortable $ $ Just Managing $
- 33. What are twothings we don’t like to take a risk with? & Money Health
- 34. What situations relating to both health and money pose a financial risk? Death Getting sick or having an accident Suffering a major illness Becoming permanently disabled
- 35. What options dowe have when dealing with risk? H E L P Hope that it won’t happen to me, ignore it. Eliminate the risk. Lessen the impact of the risk. Pass the financial risk on to someone else.
- 36. My commitment toyou Design a plan to ensure you and your family are no worse off than you were immediately before the event happened. With the aim to pass on all of the financial risk to someone else. Use skill, knowledge and expertise to provide a cost-efficient solution to the problem. To choose the right insurer who will be there when you need them most.
- 37. It’s your life,don’t risk it.
Editor's Notes
- #9 Pose the question to the audience. Pay office closed and no income from any source. Bills will continue What will they do? Assuming there is no income protection. Go to next slide.
- #15 Or is MLC Income protection a better solution. Ad lib and highlight tax deduction.
- #16 Ask the question Did most think disabilities were due to sickness or accident? Sickness, top claim at present Stress!!!!!!
- #17 ASK THE QUESTION If we all agree income protection is so vital then why don't more people have it? get response. Answer education " if we don't tell and promote to clients who will" We have an obligation to all prospects to promote IP
- #18 Continue to disturb with this slide (Great bank slide!) I find this quite confronting. If our clients have a mortgage and no sufficient cover, are we doing our job
- #19 Numerous questions to ask client to really feel the need. Great sales aid here. Various occupations not necessarily hazardous Causes of disability various. Ages, it can happen to you no matter what your age. Monthly benefit looks like a few might have wanted to cover the mortgage, best practice always to go to maximum. Benefit paid so far (vital ) ask client if MLC did not pay this amount where would the client get the funds. Benefit period IT consultant 5 year benefit (What then)
- #22 Tell the Marius Barnard story
- #23 Great slide especially when client has just taken out a business or home loan. Bank takes security why? in case of default. Bank may call in security if loan repayments can't be made. Revisit the question on the slide. Trauma cover a must.
- #24 Information only for backup data
- #25 The chances are high. Ask audience to create two lists in their mind. 1 list all the people they know who have died in an accident etc List all the People they know who have been touched by Heart attack, Cancer or Stroke Important to have client understand that it’s a case of when not if !!!!
- #26 Once again, Work through slide but ask the question on amount paid, Where else would you get this money if MLC hadn't paid it.
- #27 Ad lib and reinforce the simplistic benefits. Don’t go into technicalities.
- #28 AD LIB
- #32 Let me show you how it will work Individuals financial situations usually fall into four categories Click each one Ask the client to indicate where on the line they see themselves. Click Explain that this is where most people sit between just managing and comfortable but it doesn’t really matter where the power ball goes. It is only a power ball while finances are unaffected. Ask! If you were to lose your current financial status due to death, disability or critical illness, would the ball rise or fall. (fall of course ) problem is how far. Click Click again Wedge appears. Go to next slide
- #34 Money – Absolutely critical. Both now and in the future. Health – Absolutely critical. So that we can enjoy the money. Do you think these two things are linked? Most often than not, money is created by someone’s Ability to work and to put their skills to work. Sometimes lack of money can cause health problems. However most problems with money come as a result of someone losing their biggest asset, their ability to generate income.
- #35 When someone dies, becomes sick or has an accident, suffers a major illness or becomes permanently disabled, do you think this can be a major financial risk either on the ones left behind or to the one who suffers.
- #36 So given that risk is with us all the time, and given that in most cases there’s not much we can do about it, what options do we have when it comes to dealing with the risk? H – Far too many of us deal with risk this way, the she’ll be right mate attitude. E – This would be great, but how practical is it? L – Maybe less risk is better, but how do we lessen the risk.? P – In other words, accept that the risk is there but let someone else carry the financial risk for you.