Establish your Estate Plan........................................................................................................25

44. Apply for Life Insurance

We recommend that you apply for Life insurance as follows:  $XXX Life insurance on a stepped / level premium payable monthly/annually. The premiums for this risk protection insurance will be sourced from cash flow / from your XXX cash account / from your XXX Super Fund.

Benefits:

 You will have funds available in the event of death to pay down your debts of $XX / provide ongoing income of $YY to ZZZZ / pay your children’s education fees / provide funds for your funeral costs / Other.  [Super] Structuring your insurance partly through superannuation will reduce the impact on your personal cash flow.  [Super] Paying your insurance via annual rollover will give you a 15% discount on your premiums.  [Monthly] Paying premiums monthly will help you to smooth the impact on your cash flow.  Your family will have financial support in place in the event of your death.

Points to Consider:

 We have recommended new insurance that will be underwritten by the insurer to assess your application. They may offer revised terms including higher premiums or health exclusions, depending on the outcome of their assessment.  Do not cancel any existing insurance cover prior to the recommended insurance being accepted and put into force.  [Specified levels of cover] You have specified the level of cover for your Life insurance and as such, we cannot confirm if this level of cover is appropriate for your needs. You may be underinsured as a result and not have adequate cover in place to meet your financial commitments in the event of a claim.  [Limited Information] You have not disclosed your full financial position for us to determine an appropriate level of cover. We have made some assumptions on what you need which may result in you being underinsured.  You need to complete your application for insurance honestly and with full disclosure. Failure to do so may give the insurer cause to void your policy and not pay claims in the future.  We have estimated the impact of certain health events on your financial position. The actual impact may be more than we have calculated and therefore you may be underinsured. Significant changes to your circumstances may also impact the appropriateness of the level of cover recommended. Please contact our office to arrange a review in the event of any significant changes to your lifestyle and/or needs.  [Level] Level premiums may increase over time; they are not fixed rates.  [Stepped] Stepped premiums will increase each year in line with your age.  New life insurance policies generally have a 13-month suicide exclusion.  [Cash flow] The recommended insurance premiums will reduce your personal cash flow available for other expenditure.  [Super] We have recommended you pay $XXX p.a. through your XXX Superannuation Fund. This will reduce your retirement savings. We estimate that your balance will be $XXX lower at age 65 than if you do not pay insurance via your super account. Please refer to our financial projections at the end of the SoA for further explanation.  [Super] Holding life insurance within superannuation may result in tax being paid on benefits. This will result in the net payment amount being less than the calculated need. We recommend that you seek specialist tax advice to confirm the possible outcomes.