1. Insurance for homemakers
Presenter: dd month 2016
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2. Disclaimer/AFSL details etc This information is current at January 2016 and is subject to change. As this information (including the statements on taxation which are of a general nature only and based on current laws, rulings and interpretation) has been prepared without considering your objectives, financial situation or needs, you should, before acting on this information, consider its appropriateness to your circumstances. OneCare is issued by OnePath Life Limited (ABN , AFSL ) (OnePath Life) and OneCare Super is issued by OnePath Custodians Pty Limited (ABN , AFSL , RSE L ) (OnePath Custodians). You should read the product disclosure statement, available at onepath.com.au, before making a decision about the products.
Note to Advisers - Please ensure that you satisfy your disclosure obligations as an Australian Financial Services Licensee when providing this presentation to retail clients.

3. Australia’s home-makers
There are around 1.2 million Australians performing home duties on a full-time basis1
The cost of paying someone to do the roles mums do would be around $75k per year1
Sources:
1) BT “What’s a stay at home Mum worth?”, June 2013
First, a couple of quick stats about Australia’s homemakers.
There are around 1.2 million Australians performing home duties on a full-time basis.
And it really is a full-time job. 1.

4. No income, high value
They may not have an income, but homemakers fulfil two vital roles:
1) Providing care to children and/or elderly relatives
2) Enabling the working spouse to earn an income
Homemakers may not have an income in the traditional sense, but as you know they are extremely valuable to any family.
In many cases, there are two vital roles a homemaker is fulfilling in a household:
1) They are providing care to children and/or elderly relatives – which itself would be an extremely expensive task to replace.
2) They are enabling the working spouse to go to work and earn an income
I’m sure you’ll agree these are both incredibly important. But unfortunately they’re often overlooked from an insurance perspective.

5. The forgotten worker If a homemaker gets seriously ill or injured:
Can your family afford to pay someone to perform homemaker duties?
What if the working spouse had to take time off work to look after the homemaker, or children?
In the past, life insurance has typically focused on the income-earners in a family – largely because their financial contribution is more tangible.
But are they any more likely to get seriously ill or injured than a homemaker?
Of course not. And if a homemaker did get seriously ill or injured, ask yourself this:
Can the family afford to pay someone to perform all of the homemaker’s duties?
What if the working spouse had to take time off to look after the homemaker, or even young children – what would happen to the household income then?

6. What are the odds?
1 in 2 men and 1 in 3 women will be diagnosed with cancer by the age of 851
45% of Australians will experience mental illness at some point in their lifetime2
Cardiovascular disease kills one Australian every 12 minutes3
'Facts and figures' Cancer Council Australia, October 2015
BeyondBlue “The Facts” , 2015
Data and statistics, Heart Foundation Australia 2015
According to the Cancer Council of Australia, 1 in 2 Australian men and 1 in 3 Australian women will be diagnosed with cancer by the age of 851
And what about your mental health?
According to the beyondblue, almost half of Australians will experience a mental illness at some point in their life2.
'Facts and figures' Cancer Council Australia, October
BeyondBlue “The Facts” -
Data and statistics, Heart Foundation Australia 2015

7. Did you know…? • According to a 2014 KPMG report1:
Only 27% of disability insurance needs are being met through existing cover
35% of Australians have no form of disability insurance
• According to research on the impact of the sudden disability of a parent2:
Before a parent became disabled, 11% of parents without insurance rated finance as ‘struggling’. After disability, this rocketed to 62%
75% of those without insurance agreed that in hindsight a policy covering disability would have helped
If you look at the underinsurance statistics among young families, it makes scary reading....
27% of disability insurance needs are being met through existing cover
35% of Australians have no form of disability insurance
So if all these families don’t have enough life insurance, who are they likely to turn to for help? 1.
KPMG report for Financial Services Council, 2014
IMPACT OF DEATH OF A PARENT ON SURVIVING PARTNER AND CHILDREN report. Research conducted by Ipsos on behalf of ANZ Wealth April – May 2015

8. The need for protection
Life insurance strategies should consider the cost to:
Fund ongoing living costs
Repay or service debts
Meet child education needs
Meet medical expenses
Maintain savings plans
Allow working spouse to take time off
Cover the work done in the family home by the home maker
A comprehensive life insurance strategy needs to take into account BOTH the working spouse and the homemaker.
Such a strategy should include protection to:
Fund ongoing living costs
Repay or service debts
Meet child education needs
Meet medical expenses
Maintain savings plans
Allow the working spouse to take time off

9. What about the National Disability Insurance Scheme?
Does it replace the need for life insurance? No… here’s why:
Designed to help the most severely disabled people, not everyone who has a disability.
Doesn’t cover temporary conditions that may occur. Such as disabilities from a car crash or from a serious illness.
It’s main purpose is to give people who are severely and permanently disabled more personalised assistance and a greater connection with their community. Not financial support.
Available in limited regional areas, with roll out not until 2019/2020
Even if you are eligible, it can’t help you eliminate debts, provide an replacement income or cover the out-of-pocket costs of medication and treatment.
The NDIS provides a safety net, but it was not designed to replace life insurance – which continues to play a vital role in paying out debts and replacing income after the onset of disability.

10. A bit of history
In the past, life insurers have been reluctant to offer protection to homemakers as it’s difficult to put a dollar value on their contributions
But there are now some policies that recognise the value of the non-financial contribution made by homemakers
These policies also recognise the cost of replacing their efforts for the household such as cleaning, cooking and child care
Plus the impact on finances should the main breadwinner need to stop working to look after the homemaker
Life insurers have traditionally been reluctant to offer protection to people who don’t have an income, or who work casually.
That’s mainly because it’s difficult to establish their income, or in the case of homemakers, the cost of replacing what they do.
These days, some policies do exist that cover homemakers – and these policies are designed to recognise the value of the non-financial contribution a homemaker makes to a household.

11. OnePath, one of the market leaders for homemakers
First insurer to introduce Living Expense Cover
A Baby Care Option is available to cover pregnancy or early childhood complications
Packaging discounts of up to 10% when you take out a policy with a partner or immediate family member
OnePath is one of the market-leading insurance companies when it comes to homemakers.
OnePath was the first insurer to introduce Living expense cover – which pays a monthly benefit if you are disabled by an illness or injury. Specifically designed for people who don’t work full-time, it can help you keep up with your everyway household expenses until you recover.
A Baby Care Option is available to help cover the financial burden associated with pregnancy or early childhood health complications.
OnePath also offers packaging discounts of up to 10% when you take out a policy with a partner or family member. This may be a:
spouse
son, daughter, father, mother, father-in-law or mother-in-law
person with whom the policy owner is financially interdependent and sharing a bona fide domestic living arrangement (the policy owner must provide us with satisfactory evidence that there is an established and ongoing interdependency).

12. Types of cover available
Life cover for death and terminal illness
Helps the family eliminate debts and stay in the family home
Provides an ongoing income for the family
Pays medical bills and funeral costs
Living expense cover for sickness or injury
Help cover care costs for the homemaker and recognises the value of what you do everyday despite not earning a wage
So what types of life insurance are we talking about?
The main types of cover are:
Life cover, which is basic cover for death and terminal illness.
This type of cover helps families eliminate debts and stay in the family home, it provides an ongoing income for a spouse and children, and it helps cover any medical bills and funeral costs.
Living expense cover for sickness or injury.
As I mentioned before, this type of cover helps families keep up with the mortgaged everyday expenses – like school fees, electricity bills etc etc

13. Types of cover available
Total and Permanent Disablement (TPD) Cover for permanent incapacity
Helps eliminate debts and cover long-term care costs
Pays for modifications to the family home
Provides funds to replace your role in the home
Trauma cover for serious illness
Pays out-of-pocket medical costs
Helps spouse take time off work to provide care
Provides funds to replace your role in the home and fund extra child care costs while undergoing treatment and recovery
TPD covers people who suffer a total and permanent disability.
This helps people who can never work again by helping them pay off their mortgage, and pay for a carer if they need one. If you’re in a wheelchair for example, it can also help pay for modifications to the family home.
Trauma cover covers a number of serious illnesses, like cancer.
Trauma cover helps cover the medical expenses not covered by private health insurance, which can run into the tens of thousands of dollars when you’re talking about diseases like cancer.
It can also allow a spouse to take some unpaid leave to provide care, and encourages people to make the lifestyle changes the need to recover properly – like reduce their work hours or take an extended holiday.

14. Advice about life insurance
It’s important people seek tailored advice that takes into account their income, debt levels, family status etc
A financial adviser can help with strategies to make life insurance more cost-effective, including insurance inside super
Everyone’s different of course, so the best way for miners – or anyone for that matter – to get a comprehensive life insurance plan is to speak to a financial planner.
We take into account things like your income, your debts levels, and whether or not you have any dependants.
We can also help you get the right mixture of life insurance products, and structure your insurance in a way that’s most cost-effective. For example, you may take out life cover and TPD cover inside super – which helps you take advantage of the tax benefits of the super environment.

15. Thank you
Questions?