Beyond the mortgage. September 2016 FOR ADVISER USE ONLY. NOT TO BE SHOWN TO RETAIL CUSTOMERS

Transcription

1 Beyond the mortgage September 2016

2 Q. What is the purpose of protection? A. Pay off the mortgage in the event of death? Or A. To maintain you and your dependent's standard of living or lifestyle in the event of death or loss of income due to accident, disability or serious illness

3 Q. How do your clients perceive standard of living? A. Mortgage Utilities Food Car Credit cards Loans Private medical Insurance Pension Disposable cash Communication Gym Material goods School Fees Holiday Standards of living are underpinned by the ability to maintain an income

4 Default process for mortgage clients? Or

5 Meet the Smith family

6 The Smith family fact find Names Stephen, Laura, Isabelle & Oliver Age Stephen and Laura are both 30 Stephen earns 45,000 per year and Laura earns 25,000 per year Children/ages Isabelle is 5 and Oliver is 3 Mortgage/monthly payment 200,000 / 1000 Other income N/A Mortgage 200,000 Loans Credit cards Utilities Food Entertainment Pensions Car x 2. Loan of 10,000 outstanding ( 200 per month) Stephen has a company car 2 x joint credit cards total balance 10,000. Minimum payment of 100 per month 200 per month 400 per month 100 per month 200 per month

7 Default process? 200,000 SA 25 year term Premium ,000 SA ,000 year term SA Premium 25 year term Premium All AIG illustrative quotes shown in this presentation are correct as at August 2016, based on non-smoker age 30 next birthday

8 Client scenario: Mr Smith becomes critically ill Mr and Mrs Smith receive critical illness benefit Mortgage Mortgage is paid off Bills Standard of living How long will employer pay salary? Will Mrs Smith require time off work to support Mr Smith? Will Mr Smith lose his job and death in service? What happens if Mr Smith doesn t survive the critical illness? Down size property? Different school catchment areas? May be away from support network?

9 Building a protection plan for your customers Illness Cover Protection Family Benefit Whole of Life Permanent Waiver of premium

10 An additional optional benefit Pays a monthly benefit when disability is total but not permanent Pays 1% of the critical illness sum assured per month for up to 100 months Add-on for critical illness with Permanent 26-week deferral period Own occupation, suited occupation, daily activities definitions Cover remains in place until the insured person recovers, dies, the term ends or the sum assured is paid in full

11 Benefit - cheaper than you think quotes for 100,000 sum assured with a 20-year term Age next birthday illness with term assurance including TD The cost of adding Example illustrative quotes gathered August 2016

12 Example 1 cover 300,000 Potential commission year Decreasing Joint Life 200,000 Males Children Up to 100k 25 year Decreasing Female Whole of Life Illness Cover Permanent Protection Family Benefit Waiver of Premium

13 Example 2 cover 300,000 Potential commission year Decreasing Joint Life 200,000 Males Children Up to 100k 25 year Level Female Whole of Life Illness Cover Permanent Protection Family Benefit Waiver of Premium

14 Example 3 cover 300,000 Potential commission year Decreasing Joint Life 200,000 Males Children Up to 100k 25 year Increasing Female Whole of Life Illness Cover Permanent Protection Family Benefit Waiver of Premium

15 Example 3 cover 300,000 Potential commission 1, year Decreasing Joint Life 200,000 Males Children Up to 100k 35 year Increasing Female Whole of Life Illness Cover Permanent Protection Family Benefit Waiver of Premium

16 Example 4 cover 390,000 Potential commission 1, year Decreasing Joint Life 200,000 Males Children Up to 100k FIB Male 6,000pa 15 year Level 35 year Increasing Female Whole of Life Illness Cover Permanent Protection Family Benefit Waiver of Premium

17 Example 4 cover 390,000 Potential commission 1, year Decreasing Joint Life 200,000 Males Children Up to 100k FIB Male 6,000pa 15 year Level 35 year Increasing Female Male Whole of Life Illness Cover Permanent Protection Family Benefit Waiver of Premium

18 Example 4 cover 400,000 Potential commission 1, year Decreasing Joint Life 200,000 Males Children Up to 100,000 FIB Male 6,000pa 15 year Level 35 year Increasing Whole of Life Joint Life Second death 10,000 Female Male Whole of Life Illness Cover Permanent Protection Family Benefit Waiver of Premium

19 Example 5 cover 694,000 Potential commission 1, year Decreasing Joint Life 200,000 Illness Cover Males 50k Illness Cover Children Up to 100k Protection 26 weeks FIB Male 6,000pa 15 year Level 35 year Increasing Whole of Life Joint Life Second death 10,000 Female Whole of Life Illness Cover Permanent Protection Family Benefit Waiver of Premium

20 What is the purpose of protection?

21 * AIG Life Claims statistics, 2015 COMMERCIAL IN CONFIDENCE 21

22 Any questions? For more information Call Visit Follow

23 American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries.. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange. Additional information about AIG can be found at YouTube: LinkedIn: AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries, and coverage is subject to actual policy language. Non-insurance products and services may be provided by independent third parties. Certain property-casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds, and insureds are therefore not protected by such funds.