Who’s got you covered? Insurance for the small business owner Presented by XX November 2007

2 Important information »This material is not intended to constitute personal advice and must not be relied upon as such. »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. »Suncorp Portfolio Services Limited (SPSL), ABN , AFSL , RSE Licence No. L Asteron Life Limited ABN , AFSL The obligations of SPSL and/or Asteron Life Limited are not guaranteed by any other company in the Suncorp Group.

3 About me » > »Licensed Financial Adviser » >

4 Agenda »Insurance - who needs it? »Get the cover you need »Case studies »The real benefits to you »Summary and next steps

5 Insurance - who needs it?

6 Insurance - who needs it? It could happen »Illness or injury can strike at any time »You probably know someone who’s been affected by sudden illness or injury »Financial impact can be far more severe for small business owners »Most people have some form of insurance - but it’s often not enough

7 Insurance - who needs it? For what reasons do people make claims?

8 Insurance - who needs it? Small business. Big risks. Everything depends on the ability of you, your business partners and your key staff to keep working: »Business debts »Running costs »Employee wages »Household expenses »And most importantly, your family

9 Insurance - who needs it? Could your business survive without you, your partner, or a key employee? In the short term: –Could the business stay afloat? –How much revenue would you lose? –Could you afford to hire a replacement? In the long term: –Could you repay business debts? –Could you or your business partner afford to buy each other out? –Would you be able to sell the business - or your share in it? –Would there be a valuable business left to sell?

10 Insurance - who needs it? And what about your family? »How would they replace your lost income? »How long would your savings last? »Could you afford to pay the mortgage?

11 Insurance - who needs it? Complete business protection All businesses should consider a protection plan covering: Keep business running Business succession planning Protect the family Buy/sell agreement Personal insurance Key person cover Business expenses cover

12 Get the cover you need Click here to add subtitle

13 Get the cover you need Strategies for your business »Cover to repay debt »Cover fixed business expenses »Cover for the loss of a key employee »Cover to trigger a buy/sell agreement if something happened to you or your business partner

14 Get the cover you need Strategies for your family »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

15 Get the cover you need Strategies for your wallet »Premiums for income protection and business expenses are tax-deductible »Some business insurance is deductible »Life and TPD cover may be available in your super fund - this can reduce the effective cost

16 Case studies Two businesses and their insurance needs

17 Case study 1 »A hardware business run by three siblings »Decided no need for buy/sell agreements Solution: »Took out personal insurance to cover mortgages and family needs »Also took out $100K key person cover on each sibling »The $100K would cover loss of income if one died so the business could keep running - allowing them to take time off to grieve

18 Case study 2 »Two brothers running a large distribution business »Their extended family is wholly dependent on the business »One brother is the lynchpin of the operation »If he died, it would be difficult and very expensive to hire a replacement Solution: »Take $600K key person cover on this brother »Keep business afloat until a replacement could be hired

19 The real benefits to you »Peace of mind »Financial security for your business and your family »Lifestyle choices for you and your family - you decide what happens in the future

20 In summary »Small business owners are often financially vulnerable to illness or injury to themselves or key employees »Insurance is an effective safety net for you, your business and your family »Insurance can provide financial freedom and choices for the future »Look for specific products and features to protect the small business owner »Get professional advice on what’s right for you »Questions?