1. For intermediary use only - not for use with your clients
Protecting your client’s most valuable assets Protecting your clients, their families and their homes
Bernadette Mahon
Strategic Partner Specialist
Zurich Intermediary Group
For intermediary use only - not for use with your clients
PCMVA v02 08/15

2. Important information
This presentation is provided to you by Zurich Intermediary Group in your capacity as a financial services industry professional. It must not be made available or copied or otherwise quoted or referred to in whole or in part in any way, including orally, to any person without our express written permission, which we may, at our absolute discretion, grant or withhold or grant subject to conditions, including conditions as to our responsibility.
We accept no duty or responsibility, and we disclaim all liability whether in contract, tort (including negligence) in respect of this material but this sentence does not exclude any liability which by law cannot be excluded.
For intermediary use only - not for use with your clients
PCMVA v02 08/15

3. For intermediary use only - not for use with your clients
Learning objectives
Establish the impact of not having the right level or type of protection cover in place
Consider some practical sales ideas to provoke client thought and realization – “What Client’s Might Say”
Discuss ways in which to deal with clients objections for protection
Consider the importance of Critical Illness cover in today’s protection planning strategies
For intermediary use only - not for use with your clients
PCMVA v02 08/15

4. Your clients’ advice landscape
Mortgage and Protection …. A great place to start?
The table below represents the pattern those who take advice tend to follow through their life, with mortgages often the first reason to seek advice, followed by protection and pensions
Mortgage
Protection
Pension
Investing & Savings
General finance health check / review
Setting financial goals
IHT/Tax planning
PIPSI
Source9: unbiased.co.uk and Optimum Research, taken from the Zurich Consumer Insights Bulletin February 2014
For intermediary use only - not for use with your clients
PCMVA v02 08/15

5. For intermediary use only – not for use with your clients
Families at risk
1 in 29 children loses a parent before completing full time education*
57% of UK mortgage holders have no life insurance protection**
Only 11 days until the money runs out for working age families***
Sources: 57 moneysavingexpert.com, 58 FT Adviser, 59 L&G Deadline to the Breadline
For intermediary use only – not for use with your clients
PCMVA v02 08/15

6. For intermediary use only - not for use with your clients
Sliding doors
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PCMVA v02 08/15

7. For intermediary use only - not for use with your clients
Your clients could lose their homes
No homeowner likes to think about repossession. But how many clients realise what would happen if they couldn’t pay their mortgage, as a result of being critically ill?
What mortgage lenders really mean:
Statement:
Translation:
If you can’t keep up your payments for any reason, even if you are ill, have an accident or lose your job, then that’s a problem for both of us. We will try to help you for a while but will do whatever it takes to recover our money – even if that means repossession.
For intermediary use only - not for use with your clients
PCMVA v02 08/15

8. For intermediary use only - not for use with your clients
Meet ….. James and Sophie
James – aged 35
Sophie – aged 32
Both non-smokers
Mortgage amount - £200,000
Decreasing term assurance
25 year term
Healthy lives
For intermediary use only - not for use with your clients
PCMVA v02 08/15

9. What James and Sophie might say ….. ‘It won’t happen to us’
Half of all people now diagnosed
with Cancer survive their disease
for at least 10 years***
Every 3 minutes someone is having a heart attack in the UK*
Every 2 minutes in the UK someone is diagnosed with Cancer***
70% of people who
have a heart attack
will survive it*****
MS is not a fatal condition –
more than 100,000 people
in the UK are living with MS****
Symptoms of MS are usually diagnosed between the ages of ****
Just over every 3 minutes someone in the UK suffering a stroke**
There are approx 1.2m
Stroke survivors in the UK**
*Source63: British Heart Foundation – Feb 2015, **Source64: Stroke Association Jan 2015, ***Source62: Cancer Research UK Feb 2015, ****Source 14: Medical News Today/MS Trust ***** Source 69:BHF Feb 2015
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PCMVA v02 08/15

10. Critical illness conditions claimed 2014
86% of claims were for the ‘big four’ conditions:
- heart attack, cancer, stroke and MS
(Source 65: Zurich claims MI 2014
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PCMVA v02 08/15

11. Critical illness claims before the age of 40
1 in 4
8% between ages 25 – 40
claim on their life plan
24% between ages 25 – 40
claim on their critical illness plan
Source16: RGA Study, Cover Magazine 22/04/2014
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PCMVA v02 08/15

12. For intermediary use only - not for use with your clients
It could be you
Average spend £3.00 a week on gambling (£156 a year)****
Happy to take a risk on the lottery with little chance of a payout
More likely to suffer a serious illness than to win the lottery
Take a Punt
BOOKMAKERS
The Rat Race
35 yr old hurdle
Lottery Win*
Heart Attack**
Cancer***
Death
14m/1
6/1
3/1
Odds On
*Source 17: Moneywatch website, **Source 18: British Heart Foundation – Males dying from Heart Attack, ***Source 19: Cancer Research UK key facts, ****Source 20: This is Money
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PCMVA v02 08/15

13. What James and Sophie might say ….. ‘We can’t afford it’
Treats
How many each month
Cost per treat
Total
Bottle of wine/beer
Frothy coffees
Daily snacks
Magazines
Take-away meals/dining out
Beauty treatments
Working lunch
DVDs/cinema/satellite TV
Other
Saving £15.93 pm could provide James & Sophie with
£200,000 life cover
Zurich quote 1 Feb 2015 JLFD
For intermediary use only - not for use with your clients
PCMVA v02 08/15

14. Self-cancelling mortgage
3% interest rate
Without life cover
or critical illness
Based on £200,000 mortgage, capital and interest, 25 years
£948 per month
£108pm ?
4% interest rate With life cover and critical illness plan
£1056 per month
Source 66: moneysavingexpert.com mortgage repayment calculator
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15. What James and Sophie might say ….. ‘We can’t afford it’
Treats
How many each month
Cost per treat
Total
Bottle of wine/beer
Frothy coffees
Daily snacks
Magazines
Take-away meals/dining out
Beauty treatments
Working lunch
DVDs/cinema/satellite TV
Other
Saving £80.53pm could provide James & Sophie with
£200,000 life cover AND Critical Illness
Zurich quote 2 Feb 2015 JLFD
For intermediary use only - not for use with your clients
PCMVA v02 08/15

16. For intermediary use only - not for use with your clients
Family Spending 2013
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17. Every little helps £200k life cover with extra £20,000 accelerated CI
Overall premium cost = £23.73
Extra CI cost = £7.80
Total average weekly household
expenditure in £ in 2013
38 weeks x £ = £
BREATHING SPACE TO RECOVER
Zurich Quote 3 Feb 2015 JLFD
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PCMVA v03 08/15

18. What James and Sophie might say… ‘We’ll think about it’
Meet Christian “A few months ago my life was fantastic... then out of the blue I get a cough and then suddenly get told it's cancer”
For intermediary use only - not for use with your clients
PCMVA v02 08/15

19. For intermediary use only - not for use with your clients
The cost of delay
25 year term
James is age 35
Sophie is age 32
Cover Details
Life Cover only
Life Cover
and CI
Monthly Premium
£15.93
£80.53
Total Premiums
paid
£4779
£24159
20 year term
James is now aged 40
Sophie is now aged 37
Cover Details
Life Cover only
Life Cover
and CI
Monthly Premium
£19.24
£103.51
Total Premiums
paid £ £
25 year term
James is age 40
Sophie is age 37 now
Cover Details
Life Cover only
Life Cover and CI
Monthly Premium
£21.96
£119.84
Total Premiums paid
£6588
£35952
(Zurich Quotes 4, 5, 6, 7 JLFD, February 2015 JLFD
For intermediary use only - not for use with your clients
PCMVA v02 08/15

20. For intermediary use only - not for use with your clients
What James and Sophie might say …. ‘We’ve insured all of our valuables’
Current Insurance Policies
Source10 :
For intermediary use only - not for use with your clients
PCMVA v02 08/15

21. What James and Sophie might say ….. ‘Our house is our biggest asset’
Most people don’t think twice about taking out insurance to protect holidays, homes, cars and pets. But not themselves
Does your client realise their own worth?
A person aged 25 who earns £517pw, £26,884pa and plans to retire at 65 will earn over £1,000,000 during their working life (ignoring pay increases, promotions and bonuses)
Would you insure an asset potentially worth £1m or more?
£1,4881
Yes
£16,0004
£27,2193
£32,4005
£250,0002
£1,075,3606
???
Source 22: 1Based on family of 4, 1 week holiday ABI.org.uk April 2011, Source 23: BBC News, ONS, Source 24: 3This is Money, , Source 25: 4This is Money 09/11 based on cost of keeping dog for its lifetime, Source 26: 5The Telegraph, Source 27: 6Based on gross median earnings full time employees April 2013 £517 pw for a person aged 25 working until age 65 ONS
For intermediary use only - not for use with your clients
PCMVA v02 08/15

22. What James and Sophie might say ….. ‘We’d each like our own policy’
Sum Assured £200,000
Term 25 years
Male aged – 35 years
Female aged – 32 years
Total of 2 x SL lifes added together
Extra £ compared to JLFD
Life Cover only
£10.30
£9.25
£19.55
£3.62
Life and CI
£49.51
£40.02
£89.53
£9.00
Total Sum Assured
£400,000
James
Sophie
Zurich Quotes 8, 9, 10, 11 Feb 2015 SL
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PCMVA v02 08/15

23. What James and Sophie might say ….. ‘It won’t pay out’
Perceived Life Insurance Payout Rates
Source 67: Protection Insurance Survey 2015, Drewberry Insurance Experts
For intermediary use only - not for use with your clients
PCMVA v02 08/15

24. Critical illness conditions
48 conditions in total
42 conditions pay out 100% of the sum assured
6 conditions pay up to 20% of the sum assured
(maximum amount £15,000)
10 ABI plus definitions
For intermediary use only - not for use with your clients
PCMVA v02 08/15

25. Cancer’s hidden price tag
4 out of 5
This figure is made up of:-
reduced income and
increased costs across the following categories:
inpatient and outpatient costs
other healthcare costs
clothing
equipment for and modifications to the home
day-to-day living costs.
83% of people with cancer are, on average, £570 a month worse off because of their diagnosis.
£570 is comparable to the monthly mortgage payment most people pay in the UK
Source 31: MacMillan Cancer Support, Cancer’s Hidden Price Tag report 2012
For intermediary use only - not for use with your clients
PCMVA v02 08/15

26. For intermediary use only - not for use with your clients
Claims for cancer 2013
2013
Breast Cancer
55%
Leukaemia 4%
Other
12%
Ovarian Cancer 3%
Melanoma 7%
Lung Cancer 2%
Prostate Cancer 0%
Testicular Cancer
Bowel Cancer
Renal Cancer
Lymphoma
Bladder Cancer
Cervical Cancer
Brain Cancer 1%
Children’s cancer
Total: 100%
Source 30: based on Zurich 2013 claims for all cancers
For intermediary use only - not for use with your clients
PCMVA v02 08/15

27. For intermediary use only - not for use with your clients
Partial payments
Carcinoma in situ of the breast requiring mastectomy or lumpectomy
Carcinoma in situ of the testicle requiring surgery to remove one or both testicles
Carcinoma in situ urinary bladder
Cerebral aneurysm treated by craniotomy or endovascular repair
Non malignant pituitary adenoma with specified treatment
Prostate cancer low-grade
For intermediary use only - not for use with your clients
PCMVA v02 08/15

28. Spouse assurance - the true cost of running the home
What James and Sophie might say ….. ‘Sophie doesn’t work at the moment’
Spouse assurance - the true cost of running the home
The Value of a Mum = £31,627 pa
Source 32: Value of Parent Research 2013 L&G
For intermediary use only - not for use with your clients
PCMVA v02 08/15

29. Objection Handling Toolkit
For intermediary use only - not for use with your clients
PCMVA v02 08/15

30. Objection handling toolkit
The State will look after me
Objection handling toolkit
For intermediary use only - not for use with your clients
PCMVA v02 08/15

31. I’m covered by my Company pension scheme
For intermediary use only - not for use with your clients
PCMVA v02 08/15

32. For intermediary use only - not for use with your clients
Learning outcomes
Be able to discuss and demonstrate to clients the need to de-risk themselves and their families using protection
Be able to identify those clients needing cover with the knowledge to recognise the preferred type and level of cover
Articulate the potential financial impact on mortgage holders when someone becomes ill or dies
Be confident to address any objections a client may have towards protection to cover their personal needs
For intermediary use only - not for use with your clients
PCMVA v02 08/15

33. For intermediary use only - not for use with your clients
Any questions?
Please keep in touch – Website – Zurich switchboard – FreePhone
For intermediary use only - not for use with your clients
PCMVA v02 08/15

34. Important information
This presentation is provided to you by Zurich Intermediary Group in your capacity as a financial services industry professional. It must not be made available or copied or otherwise quoted or referred to in whole or in part in any way, including orally, to any person without our express written permission, which we may, at our absolute discretion, grant or withhold or grant subject to conditions, including conditions as to our responsibility.
We accept no duty or responsibility, and we disclaim all liability whether in contract, tort (including negligence) in respect of this material but this sentence does not exclude any liability which by law cannot be excluded.
For intermediary use only - not for use with your clients
PCMVA v02 08/15 34

35. Thank you for listening
Important information
Any tax and legislation information is based on Zurich’s current understanding and may change in the future
Protection is provided by Zurich Assurance Ltd.
Zurich Assurance Ltd. Registered in England and Wales under company number
Registered Office: The Grange, Bishops Cleeve, Cheltenham, GL52 8XX.
Zurich Intermediary Group Limited. Registered in England and Wales under company number
Telephone
We may record or monitor calls to improve service
For use by professional financial advisers only. No other person should rely on, or act on any information in this advertisement when making an investment decision. This advertisement has not been approved for use with clients
For intermediary use only - not for use with your clients
PCMVA v02 08/15