Limited Scope Statement of Advice

Risk Insurance

Prepared for: George Dough

Date prepared: 01 April 2016

Prepared by: John Demo

ABOUT THIS ADVICE (SCOPE, BASIS AND RATIONALE)

As agreed by you, this advice addresses your risk insurance needs only.The advice addresses your objective of obtaining appropriate risk insurance provided by a reliable insurer with a reputation for paying claims in full and on time.

In preparing this advice, we have carefully considered your personal circumstances as outlined in the personal details section of this statement. In light of these circumstances, we have considered a range of risk insurance products that are available to you and which may suit your needs. You can view a comprehensive description of these products via the following links:

MoneySmart / Life Cover / Total and Permanent Disability / Income Protection / Trauma / Insurance Through Super
Dover / Key Concepts / Life Cover / Total and Permanent Disability / Income Protection / Trauma

DISCLOSURES

Review by Dover Legal Pty Ltd

Dover Legal Pty Ltd (‘Dover Legal’) is an Australian Legal Practitioner. Dover Legal has reviewed this statement of advice including the materials in Dover's Client Protection Policy. Dover Legal has confirmed that it is in your best interests and is appropriate to your circumstances. A copy of Dover Legal’s confirmation statement is available on request.

Dover’s Client Protection Policy comprises additional conditions of our contract with you to give you the maximum protection possible under the Corporations Act and related law. You must read and understand Dover's Client Protection Policy before acting on this statement of advice.

John Demo is an authorised representative (112233) Of Dover Financial Advisers.

Email: . Phone: (03) 1234 5678.

Demo Financial Planning is a corporate authorised representative (332211) of Dover Financial Advisers.

A financial services guide setting out the services we offer, our fees and the compliant process was provided at our meeting. You can request another copy by contacting John Demo.

Dover Financial Advisers Pty Ltd (ABN 87 112 139 321) holds Australian Financial Services License 307248.

Suite 2, 616 Balcombe Rd, Black Rock, Victoria. Tel: (03) 8516 5350.

PERSONAL DETAILS

Name / Mr George Dough
Date of birth / 01 December 1983
Marital status / Married
Health / Good
Employment status / Self-employed
Occupation / Fitter
Gross income (ex super) / $55,000

Children and Dependants

Georgie / 7 years old / Child
James / 5 years old / Child

YOUR ASSETS, LIABILITIES AND CURRENT INSURANCES

Assets

Assets / Value owned / Owned by
Superannuation - CBUS / $45,000 / George
Home / $500,000 / George

Liabilities

Liabilities / Value / In name of
Mortgage / $400,000 / George

Net Assets: $145,000

Current Insurances

Insurer / Type of Cover / Amount Insured / Annual Premium / Premium Type / Start Date / Through Super
CBUS / Life with linked TPD / Life: $208,000
TPD: $108,000 / $744.00 / Stepped / 1-04-2000 / Yes
Total / $744.00

RECOMMENDATIONS

We recommend the following cover be taken out:
Insurer / Type of Cover / Amount Insured / Annual Premium / Premium Type / Through Super
MLC / Life with linked TPD / Life: $1,000,000
TPD: $1,000,000 / $1,058.05 / Stepped / Yes
MLC / Income Protection - Indemnity value- 30-day waiting period - Payable to age 65 / $3,438/month (75% of gross income) / $1,436.84 / Level / Yes
Total / $2,494.89

To find out more about the product(s) recommended above, please read the insurer’s PDS here: MLC

Reasons for recommendations

The recommended sums insured has been calculated based on the needs analysis we have conducted. A copy of this needs analysis has been provided to you.The above options are recommended because:
Level Premium
  • You have long term insurances needs because you have financial dependents

  • You intend on holding your policies for a long period of time

Stepped Premium
  • You want to reduce the initial cost of your insurances as much as possible

30-day waiting period
  • You cannot survive for longer than 30 days without an income

  • You are reliant on your monthly benefit to start as soon as possible to cover your living expenses

  • You have no liquid assets that you can utilize in an emergency if you are off work for any reason

  • You have no other sources of income other than your employment income

  • You are unable to rely on any family member or spouse to provide you with financial assistance in the event you are off work for any reason

To-age-65 benefit period
  • Your income will be insured to the standard retirement age of 65

Indemnity value
  • You wish to obtain a cheaper policy

Life insurance in superannuation fund
  • You do not have sufficient cash flow to cover the premiums

  • You wish to reduce the effective cost of the insurance by accessing a net tax benefit

Income protection in superannuation fund
  • You do not have sufficient cash flow to cover the premiums

  • You want to obtain cheap group salary continuance through your superannuation fund

REPLACEMENT OF EXISTING COVER

Once the above insurance policies are in place, we recommend that the following products be discontinued:
Insurer / Type of Cover / Amount Insured / Annual Premium
CBUS / Life with linked TPD / Life: $208,000
TPD: $108,000 / $744.00

This advice recommends that you replace existing insurances with new policies. There can be disadvantages to changing policies. These potential disadvantages are discussedhere. We have considered these potential disadvantages and, on balance, we believe that the new policies are more in your best interests.

The existing products were considered and their characteristics compared to other insurance products. This comparison is provided in the appendix. We concluded that the recommended products were more appropriate to you than the existing and the other products. The reason for this advice is that :

  • the recommended product has a more cost effective premium based on the recommended level of cover. This makes the premium more affordable.

  • we believe the recommended product is a superior policy. This is based on technical aspects of the policy, such as the definitions used for insured events, the range of events covered by the policy and the ease with which any eventual benefits can be accessed.

FEES

The following table lists the premiums that you will pay if you follow our advice.
Insurer / Type of Cover / Amount Insured / Annual Premium / Premium Type / Annual Initial Commission / Annual Ongoing Commission
MLC / Life with linked TPD / Life: $1,000,000 / $1,058.05 / Stepped / $1,163.86 (110%) / $105.81 (10%)
MLC / Income Protection / $3,438/month (75% of gross income) / $1,436.84 / Level / $1,580.52 (110%) / $143.68 (10%)
Total / $2,494.89 / $2,744.38 / $249.49

The insurer will pay us the amounts shown in the columns headed initial commission and ongoing commission, which covers the costs of our advice and implementation. The initial commission is paid to us once you have paid your premium and the insurance is in place. The ongoing commissions are paid to us each year after you have renewed your policy for that year. The annual ongoing commission shown is indicative based on the first year premium.

CONFIRMATION

By accepting this advice, you confirm you have:

  1. received this statement of advice dated 01 April 2016;
  2. understood this statement of advice, Dover’s Client Protection Policy, the Financial Services Guide and product disclosure statements provided alongside this statement of advice;
  3. accepted the additional conditions of our contract in Dover's Client Protection Policy; and
  4. received a clear and prominent disclosure of the limits of my authority from Dover as set out in Dover's Client Protection Policy;

We will not implement this advice until you instruct us to do so. To accept this advice, you may either:

  1. Accept by email

Please email us at , with a copy to . Please include your name and the date of this statement of advice in your email.

  1. Accept in writing

Please sign below to accept this advice:

I wish to proceed with the recommendations outlined within this Statement of Advice and authorise the recommendations to be implemented in full.

______/___/___

George Dough

Appendices

All appendices are available from the next page.

Appendix 1.1

pg. 1