Trust income will be assessable for Centrelink purposes and may impact your beneficiaries benefit payments.
41. Adjust your personal insurance cover We recommend that you adjust your level of cover to reflect recent changes to your circumstances. <Explain what those changes are>. Client:
[Life] Increase / Reduce your <Insurer> Life insurance to $XXX [TPD] Increase / Reduce your <Insurer> TPD insurance to $XXX [Trauma] Increase / Reduce your <Insurer> Trauma insurance to $XXX [Income Protection] Increase / Reduce your <Insurer> Income Protection to $XXX per month [IP Waiting Period] Increase / Reduce your <Insurer> Income Protection waiting period from a <Waiting period> waiting period to a <Waiting period> waiting period [IP Benefit Period] Increase / Reduce your <Insurer> Income Protection from a benefit period of <Benefit Period> to a benefit period of <Benefit Period>.
The premiums for this risk protection insurance will be sourced from <cash flow / your XXX cash account / your XXX Super Fund>. Partner:
[Life] Increase / Reduce your <Insurer> Life insurance to $XXX [TPD] Increase / Reduce your <Insurer> TPD insurance to $XXX [Trauma] Increase / Reduce your <Insurer> Trauma insurance to $XXX [Income Protection] Increase / Reduce your <Insurer> Income Protection to $XXX per month [IP Waiting Period] Increase / Reduce your <Insurer> Income Protection waiting period from a <Waiting period> waiting period to a <Waiting period> waiting period [IP Benefit Period] Increase / Reduce your <Insurer> Income Protection from a benefit period of <Benefit Period> to a benefit period of <Benefit Period>.
The premiums for this risk protection insurance will be sourced from <cash flow / your XXX cash account / your XXX Super Fund>. Benefits:
Your insurance cover will now reflect your current needs. [Increase] Your risk of being under-insured is reduced. [Reduce] You can afford to reduce the levels of <Life / TPD / Trauma> cover because <Reason for reduction>. [Reduce] Your Life insurance premium will reduce from $XXX to $XXX p.a. as a result of reducing your cover. [Reduce] Your TPD insurance premium will reduce from $XXX to $XXX p.a. as a result of reducing your cover. [Reduce] Your Trauma insurance premium will reduce from $XXX to $XXX p.a. as a result of reducing your cover. [Reduce] Your Income Protection insurance premium will reduce from $XXX to $XXX p.a. as a result of reducing your cover / increasing your waiting period / decreasing your benefit period. [Increase] Increasing your insurance cover will allow for <the repayment of your mortgage / children's education / ongoing income for XX years> in the event of your <death / illness / disablement>. [Reduce] Reducing your insurance will give you increased cash flow to direct towards <other financial goal>. [Super Ownership] We have recommended owning the <Insurance type> insurance cover inside superannuation because <insert reasons, eg the premiums are very competitive / your premiums can be paid tax-effectively using SG / salary sacrifice contributions / it reduces the impact on your cash flow / you can be automatically accepted>. [Personal Ownership] We have recommended owning the <Insurance type> insurance cover outside superannuation because <the premiums are very competitive / you are able to claim a tax deduction for the cost of the premium / you prefer to pay from your cash flow / you can afford to pay this from your cash flow>. [Monthly] Paying premiums monthly will help you to smooth the impact on your cash flow. [Super Rollover] Paying your insurance via annual rollover will give you a 15% discount on your premiums. [Yearly] Paying premiums annually will reduce the cost of your insurance. [Income Protection tax deduction] Paying your income protection premiums from cash flow will allow you to claim a tax deduction in your tax return each year.
Points to Consider:
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