Netwealth Group Ltd. · ASX:NWL
Netwealth — TAL — Investor Presentation (August 2018)
30 slides from Netwealth's investor presentation, August 2018
Slide 1: Risk Academy August 2018
Risk Academy August 2018
Slide 2: Comparing Retail, Group & Direct
Comparing Retail, Group & Direct Presented by: Liam Carroll ADVICE
Slide 3: Agenda
01 An Overview 02 Group Insurance Comparison 03 Direct Insurance Comparison 04 Frequently Asked Questions Agenda
Slide 4: Disclaimer
Disclaimer: The information contained in this presentation is general information only, and is not intended to be legal, taxation or financial advice. TAL Life, its subsidiaries and its representatives have not taken into consideration any individual’s personal circumstances, financial needs or obje
Slide 5: An Overview
An Overview
Slide 6: Claims paid
Claims paid Claims paid across all TAL products Life Critical Illness TPD Income Protection Total Total claims paid $598M $66M $399M $332M $1,394M % split 43% 5% 29% 24% 100% Claims paid per $2.4M $0.3M $1.6M $1.3M $5.6M working day Life Critical Illness TPD Income Protection Total Total claims paid
Slide 7: An overview of how the Products and Terms differ
An overview of how the Products and Terms differ Direct Cover Group Cover (inside super) Retail Cover (outside super) Cover types Death (including Terminal Illness (TER)) Death (including Terminal Illness (TER)) Death (including TER) TPD Attached Death, TER attached to Total and Permanent Disablemen
Slide 8: An overview of how the Products and Terms differ
An overview of how the Products and Terms differ Direct Cover Group Cover (inside super) Retail Cover (outside super) Income protection sum Indemnity value Indemnity value Indemnity value insured Agreed value Major terms and Interim cover restricted to accidents only Interim cover restricted to acci
Slide 9: Group Insurance Comparison
Group Insurance Comparison
Slide 10: Super Fund Insurance Example
Super Fund Insurance Example Default Cover Opt-in Options Tailor Cover Age Life Cover TPD Cover 25 $125,000 $175,000 35 $240,000 $240,000 45 $132,000 $132,000 55 $42,000 $42,000 65 $16,000 $16,000 Must satisfy ‘At Work’ requirements for 30 consecutive days SG contribution within 120 days ‘Employees’
Slide 11: Super Fund Insurance Example
Super Fund Insurance Example Default Cover Opt-in Options Tailor Cover Life & TPD options – 24 month Limited Cover Apply to increase by 50% within 120 days Apply to increase cover further by 50% if primarily office based at no extra cost Apply to increase cover by 25% following life events Age Life
Slide 12: Group Default and Additional Cover
Group Default and Additional Cover Death Income and TPD Protection Additional start-up cover Total death and TPD = 6 units cover = $1,000,000* ($650,000) Opt-in cover = $4,000/month for 2 years Default cover = 3 units ($350,000) * AAL - $1m 12
Slide 13: Super Fund Insurance Example
Super Fund Insurance Example Default Cover Opt-in Options Tailor Cover Life and TPD Up to $5M Terminal Illness and $3M TPD Income Protection 90 days interim cover Up to 85% and $30,000 per month. Underwritten with new rates Cover is indexed. now applicable Interim cover, underwritten with Fixed Cove
Slide 14: TPD Example
TPD Example Nicholas, 40 deemed totally and permanently disabled under ‘Occupation’ tier of definition. He has $186,000 cover at time of disability Year 5 Assessment Year 4 Assessment Year 3 Assessment Year 2 Claimant can return to Assessment work Year 1 Can not return to work Nicholas is now 43 yea
Slide 15: IP - Pre-Disability Earnings
IP- Pre-Disability Earnings An important consideration especially for Indemnity or non-endorsed agreed value Plan Start Waiting Period Date Begins Feb ‘06 Feb ‘07 Feb ‘08 Feb ‘09 Feb ‘10 Feb ‘11 Feb ‘12 Feb ‘13 Feb ‘14 Feb ‘15 Feb ‘16 Agreed Value Indemnity 15
Slide 16: Direct Insurance Comparison
Direct Insurance Comparison
Slide 17: Types of Life Cover Sold Direct
Types of Life Cover Sold Direct Product type Number offering cover Number underwritten* Total number of main products 204 89 Total number of sub-products 234 107 Term Insurance 80 46 Term Insurance – full underwriting 36 36 Term Insurance – limited underwriting 8 8 Term Insurance – no underwriting 9
Slide 18: Direct Marketing
Who Gets Advice? Who Buys Direct? geoTribes Lifecycle Dimension geoTribes SES A. Living at B. Young C. Young D. Middle Aged E. Mature F. Mature G. Early Seniors: H. Late Seniors: Dimension Home: Independents: Families: Families: Families: Independents: Total 65-74 yrs 75+ yrs 18-44 yrs 18-44 yrs 18-
Slide 19: Direct designed for high acceptance or decline
Direct designed for high acceptance or decline No medicals Immediate acceptance or decline or referral Some offer loadings 19
Slide 20: Life Cover
Life Cover Sums Insured “ Insurance ends for a Life Insured when the first of the “Life $1.0 – $1.5 million following occurs: $500,000 – 56 to 65 • the date of payment of a death or Terminal Illness claim for that Life Insured; or • the date you cancel the Policy; or Restricted Benefits & Features •
Slide 21: TPD Cover
TPD Cover Sums Insured “ $1.5 million – 16 to 45 If the Life Insured is not a Homemaker, a state of physical or mental incapacity which: – results in the Life Insured being $1 million – 46 to 55 disabled and unable to work in any employed capacity for at $500,000 or Nil – 55 to 59 least six consecut
Slide 22: Critical Illness Cover
Critical Illness Cover Sums Insured “ $500,000 - 16 - 55. The following cancers are not covered: • tumours showing the malignant changes of carcinoma in situ, Child cover - $20,000 - $50,000 (including cervical dysplasia CIN-1, CIN-2, and CIN-3) or which are histologically described as pre-malignant
Slide 23: Income Protection
Income Protection Sums Insured “ $3,000 to $10,000 per month We will not pay an Income Benefit in respect of a claim for a Disabling Sickness or Injury occurring directly or indirectly from: • a Mental Disorder or Illness; or Restricted Benefits & Features • an intentional self inflicted act; or • a
Slide 24: Income Protection Claims
Income Protection Claims “ Source: TAL 2014 Claims 24
Slide 25: Frequently Asked Questions
Frequently Asked Questions
Slide 26: Adviser Questions
Adviser Questions 1. It states that the member must be employed in a certain period prior to disability in order to qualify for the receipt of temporary incapacity benefits. Why is this and what does this mean for my client? 2. Is there a Pre-existing Condition Exclusion that applies within a Group
Slide 27: Client Questions
Client Questions 1. Do I really need a tailored product? 2. I already have life insurance through my super, isn’t that enough? 3. I’ve heard you don’t need to get medical tests when you buy direct products? 4. Am I covered for pre-existing medical conditions with a direct product? 5. Why should I pa
Slide 28: Claims support
Claims support Help during the claims process You understand the cover You know the client Your personal service… 28
Slide 29: In conclusion
In conclusion Group insurance is designed for the average working Australian Due to complexity, Direct and Group products do not offer the cover available through Retail products. Ensuring you have a good understanding of Group & Direct insurance will enable you to have the appropriate conversations
Slide 30: Thank you
Thank you Thank you for joining the TAL Risk Academy.