Increase your Loan Repayments..............................................................................................22

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: