Insurance Recommendations: Diploma Financial Planning - FNSASICX503

This report provides insurance recommendations for Laura and John, considering their income, resources, and current insurance coverage. It explains various types of life insurance, including life cover, total and permanent disability (TPD), trauma cover, and income protection, assessing their relevance to the clients' situation. The report suggests that John should maintain his existing life insurance and consider a TPD cover, while Laura should minimize insurance outside her superannuation fund. It further recommends trauma insurance for John and income protection insurance for Laura, especially considering her upcoming leave. The report concludes by advising a trauma insurance of $200,000 and emphasizes the immediate need for Laura to acquire income protection insurance, with a life and trauma coverage value of $3,450,000.

Part 2
Recommendation
Introduction
In this paper, an endeavour is made to give guidance to Laura and John in view of their
present circumstance. The guidance is made after completely investigating the present
circumstance of both Laura and John. This is inclusive of understanding their level of salary,
accessible resources and current insurance cover. The fundamental point of this statement of
advice is to find out the present protection necessity of the customers and giving proposals. In
order to give out suggestions various kinds of insurances will be explained and they will be
assessed with the present circumstance of the customer so as to comprehend whether they would
require the insurance. Furthermore, unique insurance items will likewise be investigated so best
can be chosen for the customer.
Life Insurance
There are distinctive kinds of life coverage depending on the cover. The cover is chosen
relying on the conditions and need. The distinctive sorts of life insurance covers are:
 Life cover
 Total and permanent disability covers (TPD)
 Trauma cover
 Income protection cover

Life Cover
The life cover is a kind of extra security that is known as the death cover or term life
coverage. In this protection, the recipient got a set measure of cash if the insured expires. The
choice on the measure of life cover ought to be founded on the measure of obligation, education
expense of the children in future and the sum that is required by the family to leave life easily in
future. It ought to be noticed that higher the cover more is the insurance amount payable and
therefore before making the decisions the present financial scenario needs to be evaluated.
On assessing the present circumstance of the customer, it can be seen that both Laura and
John has life insurance coverage. Laura has life insurance held inside the superannuation.
By looking at the current situation it can be said that John has one life insurance over the
superannuation. He should sustain with that insurance cover, as it is adequate. On the other hand,
Laura has insurance within the super balance. It is suggested to minimise two insurance outside
the superannuation fund in order to reduce the premium and enhance cash flow.
Total and permanent disability cover (TPD)
On assessing the present circumstance, it can be seen that Laura has TDP protection
cover from the insurance agency. While John does not have the TDP protection covers.
The TDP protection is critical if there should arise an occurrence of crises. Subsequently,
it is suggested that John should take a TDP protection cover from the superannuation finance or
outside back up plan.

Trauma Insurance
In the present circumstance, both Laura and John do not have trauma insurance.
Nonetheless, Laura has adequate life insurance cover so she won't require trauma insurance.
Then again, John has life insurance yet it is suggested that trauma insurance will be helpful for
him since his work depend on working outside and does not have a fixed income.
Income Protection
The income protection insurance assists to recover the income that is lost due to illness or
sickness. This is an essential insurance for anyone who depends on income. In the current
scenario, it is observed that the couple does not have income protection insurance cover. Hence,
it is recommended that the client should take income protection insurance.
Recommendations and Conclusions
In view of the above assessments it is prescribed that a trauma insurance of $200000
ought to be taken to cover the medical costs. The income protection insurance is basic and ought
to be taken out promptly by Laura as because of her pregnancy as she would not be going to
office for the next 2 year. This suggests that if the income protection insurance is not purchased
then the client income would fall. In case of Life and trauma insurance the coverage value should
be $3450000.
(85000+53000)= 138000
138000/.04= $ 3450000.