Review your Will/s...................................................................................................................27

47. Apply for Income Protection Insurance

We recommend that you apply for Income Protection insurance as follows:  $XXX per month Income Protection insurance on a stepped / level premium payable monthly / annually.  <Waiting Period> waiting period and a benefit period to <Benefit Period>. Income Protection provides a benefit if you suffer a loss of income due to a Sickness or Injury. A monthly payment for a nominated period of time can help you keep your household up and running, and provide for your loved ones while you recover. An income protection policy can pay up to 70% of your pre-tax income for a set time period if you’re unable to work due to a partial or total disability (depending on your policy). This could allow you to stay on top of your bills and expenses as you recover*. The premiums for this risk protection insurance will be sourced from cash flow / from your XXX cash account / from your XXX Super Fund.

Benefits:

 In the event of illness or injury, you will have ongoing income to help meet your financial commitments and medical costs.  [Super] Structuring your insurance 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 should anything happen to you and your ability to earn income.  [Tax deductible] 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:

 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.  [Super] Features and benefits maybe limited inside super due to the legislative restrictions on how you can use money from super.  [Specified levels of cover] You have specified the level of cover for your income protection insurance which is less than the maximum cover on offer. You may not have enough income to meet your living and medical expenses.  [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.  [IP] The amount you are paid at claim will depend on your income in the months leading up to your claim. This may mean you get paid less than the benefit amount you are insured for.  [IP] The benefit amount paid at claim can be offset by other payments such as leave entitlements and workers compensation etc.  [IP Change in definition] The definition of occupation you have to meet when on claim will change after XX years on claim. This will change from you being fit to do any occupation versus your own occupation, making it harder to meet the requirement when it changes.  [IP benefit payment to reduce when on claim] The amount you are paid on claim will reduce after XX years from XX% to XX% ($XX per month to $XX per month).  [Level] Level premiums may increase over time; they are not fixed rates.  [Stepped] Stepped premiums will increase each year in line with your age.  [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.