Assignment

Assignment
DFP2-1v2.1 Insurance and Risk Protection
Student identification (student to complete)

Please complete the fields shaded grey.
Student number
INT
Student name
Telephone number
Assignment result (assessor to complete)

Result first submission (details for each activity are shown in the table below)
Not yet competent
Result resubmission (if applicable)
Not yet competent
Result summary (assessor to complete)
Fact finder
Case study
assignment
questions
First submission
Resubmission (if required)
Section 2
Not yet demonstrated
Section 3
Section 4
Section 6
Statement of advice
Cash flow tables
Feedback (assessor to complete)

[insert assessor feedback]
DFP2-1v2.1 Assignment
Before you begin

Read everything in this document before you start your assignment for Insurance and Risk
Protection.
About this document

This document contains:
Instructions for completing and submitting this assignment
The case study
Insurance and risk protection assignment:
Fact finder and risk profile template
Case study questions
Statement of advice (SOA) template
Cash flow tables (financial position before and after implementation of strategy)
Assumptions
Saving your work

Download this document to your desktop, type your answers in the spaces provided and
save your work regularly.
How to use the study plan

We recommend that you use your study plan for this subject to help you manage your time to
complete the assignment within your enrolment period. Your study plan is in the KapLearn
Insurance and Risk Protection subject room.
Instructions for completing and submitting this

assignment
Completing the assignment
The assignment
You are required to complete the following tasks in this assignment document:
complete the fact-finder template for your clients (the risk profile template is included in
this document for you to view, but you are not required to complete the risk profile
template for this assignment)
answer the assignment questions as they relate to sections 3, 4 and 6 of the case study
complete the statement of advice (SOA) template for your client, using the data in the
case study and the fact finder (in a full analysis you would usually also use the risk profile
data)
complete the two (2) cash flow tables.
The information and data you need to do this work is presented as a case study. Some data
will have to be externally sourced; the templates clearly indicate where this will be necessary.
The Joseph and Julie Hahn case study

The case study steps you through the financial planning process: from initial contact with the
Hahns, to the development and documentation of their fact finder, and finally, to your
financial strategy documented as a statement of advice (SOA) to meet their needs.
Fact finder, risk profile, statement of advice and financial position templates
All these templates are provided in this assignment.
Additional research
You will be required to source additional information from other organisations in the financial
services industry to find the right product/s to meet the Hahns requirements, and to calculate
your service fees.
Submitting the assignment

You must submit your completed assignment as a Microsoft Office compatible Word
document. You need to save and submit this entire document.
Do not remove any sections of the document.
Do not save your completed assignment as a PDF.
The assignment must be completed before submitting it to Kaplan Professional Education
(KPE). Incomplete assignments will be returned to you unmarked.
The maximum file size is 5MB. Once you submit your assignment for marking you will be
unable to make any further changes to it.
You may submit your assignment earlier than the deadline if you are confident you have
completed all parts and have prepared a quality submission.
The assignment marking process

You have 12 weeks from the date of your enrolment in this subject to submit your completed
assignment.
Your assessor will mark your assignment and return it to your subject room in KapLearn at
the Assessment tab.
Not yet competent and resubmissions

If sections of your assignment are graded as not yet competent you will be given an
additional opportunity to amend your responses so that you can demonstrate your
competency to the required level.
You must address the assessors feedback in your amended responses. You only need to
amend those sections where the assessor has determined you are not yet competent.
Make changes to your original submission. Use a different text colour for your resubmission.
Your assessor will be in a better position to gauge the quality and nature of your changes.
Ensure you leave your first assessors comments in your assignment, so your second
assessor can see the instructions that were originally provided for you. Do not change any
comments made by a Kaplan assessor.
Units of competency
This assignment is your opportunity to demonstrate your competency against these units:
FNSASICX503A
Provide advice in Life Insurance
FNSINC501A
Conduct product research to support recommendations
FNSIAD501A
Provide appropriate services, advice and products to clients
FNSCUS506A
Record and implement client instructions
FNSCUS505A
Determine client requirements and expectations
We are here to help

If you have any questions about this assignment you can post your query at the Ask your
tutor forum in KapLearn subject room. You can expect an answer within 24 hours of your
posting from one of our technical advisers or student support staff.
The case study
Page 7 of 76
The case study

Section 1 Meeting your client
The first phone call
Joseph and Julie Hahn are a young married couple with one child. Recently John, a
business associate of Julie, who also has a young family, was seriously injured in a vehicle
accident that has resulted in uncertainty about his ability to return to work. Joseph and Julie
have also learned that, due to inadequate insurance cover, the family of the injured work
colleague are now under financial stress. They do have some insurance cover themselves,
but are now unsure if it is adequate or suitable for their needs. Recalling a positive
experience Julie had with you a few years ago on another financial matter, she asks Joseph
to give you a call to see if you can help them with their insurance needs.
You explain to Joseph and Julie the financial planning process and why you will need to ask
the couple for certain types of financial information. You stress that any information they give
you will be treated confidentially and will only be used to help you recommend appropriate
courses of action that the Hahns should consider to ultimately meet their needs. You tell
them information concerning privacy, you and your firms capability, and other disclosure
issues is in their firms financial services guide (FSG) that you will send to them.
You go on to explain that part of the information gathering will include the need to complete a
financial profile. This means that they will need to tell you what they own, what they owe,
what they earn and their living expenses. All this information will be recorded in a fact-finder
form you will compile.
You arrange a date and time for them to come to your office. You ask them to bring along to the
meeting as much financial information as they can, including income details, expenses,
insurance details, superannuation, investments, etc. You also ask them to think about what
specific financial goals they want achieved and any issues they wish to ask about at the meeting.
When you have concluded the call, you make a file note about the conversation including the
date, the potential clients names, and any other items that were discussed. This is the start
of your paper trail. You also complete some of the initial details in the data collection form as
shown in Table 1. Finally you write to Julie and Joseph, as promised during your initial
conversation, and include the FSG and a checklist of the information they need to bring to
the meeting.
The case study
Table 1
Page 8 of 76
Personal details
Client
Client 2
Title
Mrs
Mr
Surname
Hahn (ne Smeg)
Hahn
Given and preferred names
Julie
Joseph
Home address
42 Amazon St
42 Amazon St
Geelong Vic 3220
Geelong Vic 3220
Business address
n.a.
n.a.
Contact phone
(03) 5544 7766
(03) 5544 7766
Age
32
35
Sex
Male
Female
Male
Female
Smoker
Yes
No
Yes
No
Expected retirement age
Probably around the same time as Joseph

retires
Probably around age 65
The first meeting

Joseph and Julie arrive at your office for the meeting as arranged. After making them
comfortable you go through the key elements of your FSG and explain your role and capacity
to assist them with their insurance needs.
Collecting the data
You gather the following information about Joseph and Julie through a process of thorough
and polite questioning. From time to time, one or the other provides you with a relevant
document to confirm their financial situation. You confirm the details in the fact finder as you
proceed.
The case study
Page 9 of 76
Joseph and Julies current situation

Joseph, age 35, is married to Julie, who is 32. Julie follows netball and is a keen weekend
player in a local competition. Julie and Joseph have one child, a boy named Harry, who was
born 12 months ago.
Joseph and Julie purchased their home about two years ago for $675,000 and they have a
mortgage of $400,000. The mortgage is a variable interest loan with an interest rate of
5.81% p.a. which is linked to a bank offset account (Note: An offset account is one that
allows the credit balance of the offset account to offset the interest owing on an outstanding
loan or mortgage, reducing the interest payable.) The mortgage has 23 years remaining and
their minimum mortgage repayment is $2530 per month. Any excess income they have is
paid into the offset account. The current amount available in their offset account is $30,000.
Joseph works full-time as a chemical engineer for an agricultural supplies company that sells
agricultural chemicals, seed and fertilisers and takes regular interstate business trips to rural
and regional Australia. He has worked full-time for his employer for ten years and earns
$135,000 p.a. with additional superannuation guarantee (SG) contributions from his
employer paid into the employers default fund.
Julie has recently returned to work on a part-time basis following maternity leave. She is a
marketing manager for a local engineering company and has been with the same firm for ten
years as well. She earns $55,000 p.a. with additional SG contributions from her employer
paid into the employers default fund. Julie advises during the meeting that she feels she
would like to change her current employment, and is considering starting up her own
consulting business from home. This would enable her to spend more time with their son.
They currently use a child care centre to look after Harry when Julie is at work. The fees are
$86 per day, which Julie utilises two days per week for 48 weeks per year. These expenses
are not included in their day-to-day living expenses. Once Harry starts school, Julie and
Joseph hope to send him to the local independent school at a total cost of $65,000 for his
whole school life.
Other than their cash in the bank, superannuation holdings and house contents, the only
other assets they have are their motor vehicles. A 2010 Ford Focus, currently valued at
$11,000, is used by Julie and Joseph drives a 2009 Holden HSV performance vehicle,
currently valued at $33,000. Both cars are fully paid off and are comprehensively insured.
All motor vehicle expenses (except insurance) are included in the clients living expenses.
Superannuation
Joseph has $280,000 in his employers default superannuation fund, the ASSF Super Fund,
and is invested in a balanced portfolio. He joined the fund on 1 February 2004.
Julie has $124,000 in her employers default superannuation fund, the CISF Super Fund and
is invested in a balanced portfolio. Julie joined the fund on 19 January 2004.
The case study
Page 10 of 76
Neither Julie nor Joseph make any additional contributions to their superannuation funds.
Insurance
Josephs default superannuation fund provides a death and total and permanent disability
(TPD) benefit which is currently equal to his annual income (excluding SG contributions).
The premium for this cover is $0.90 p.a. for each $1000 of cover or part thereof, and is
deducted from his superannuation contributions. The ASSF Super Fund will allow a member
to increase their benefit to twice the members annual salary at this premium rate. The fund
will allow a further increase in cover to a maximum of $750,000. However, the premium will
increase to $1.00 per $1000 for any amount of cover that is over twice the members annual
salary. Although Josephs superannuation fund can provide income protection cover, he has
not taken out this cover.
Julies default superannuation fund also provides a death and TPD benefit and she currently
has cover of $120,000 for each of life and TPD. The premium for this level of cover is $2.75
per week deducted from her superannuation contributions. The CISF Super Fund allows for
members to further increase their cover to a maximum of $2 million and on the following
premium scale:
$500,000 $2.75 p.w. premium
$500,001 to $1 million $3.75 p.w.
$1 million to $2 million $5.50 p.w.
Julie and Joseph have no other personal insurance cover.
They have full comprehensive insurance on their vehicles with a total annual premium of
$2800 p.a.
Julie and Joseph also have combined home building and contents insurance cover of:
$100,000 home contents
$750,000 home building.
Their home was built under an earlier version of the local building code. Additionally, the
home was purchased in a market much lower than the current one and is estimated to cost
much more than the $675,000 purchase price to replace. The policy has a contents excess
of $500 and a building excess of $1100. The policy also includes legal liability cover of up to
$20 million. Julie and Joseph pay $145 per month for this insurance.
The Hahns have adequate private health insurance cover, including hospital cover with a
$500 excess, except for Harry, and pay a premium of $110 per month. This premium
includes the private health insurance rebate. The above vehicle, home and contents and
health insurance payments are not included in their general living expenses.
The case study
Page 11 of 76
Other information
Joseph and Julie have a credit card with a monthly limit of $15,000 that they use for all their
general expenses and entertainment. However, they never spend up to their limit and always
repay within the interest free period. They estimate their average monthly living expenses are
$6700 per month.
Joseph and Julie used to go on regular annual holidays and spend over $10,000 per trip.
However, since the start of their mortgage and the birth of Harry they now plan to take a
holiday every two years spending about $5000, in addition to their general living expenses.
Joseph advises he is quite healthy and has accumulated 78 days sick leave.
However, he advises that he was diagnosed with asthma symptoms in the past for which he
was prescribed medication. He has not experienced a return of these symptoms during the
past couple of years. Julie took all her accumulated annual and long service leave as part of
her maternity leave.
Other expenses include a donation by Julie to the National Breast Cancer Foundation of
$50 per month and Joseph makes a tax deductible donation to Plan B of $50 per month.
They each make tax deductible bucket donations of $10 p.a. to disaster relief funds, and
accountants expenses come to $150 p.a. each. These expenses are also in addition to their
general living expenses.
Needs and objectives

During your conversation with Joseph and Julie it becomes apparent that their main
objective is to protect their home and to provide for their son Harry.
Julie commented that she is very concerned that they may not be able to maintain their
lifestyle if either of them died or suffered a prolonged illness. She would like to make sure
that if anything were to happen to them that Harry would be well taken care of.
At this time they are not yet concerned with superannuation and retirement planning,
believing that it is still a long way off and that they will have time to address this part of their
financial plan in the future.
Julie and Joseph have a full and comprehensive estate plan that Joseph insisted on when
they were married, and was updated when they purchased their house and on the birth of
Harry.
The case study
Page 12 of 76
Closing the interview

Prior to closing the interview, you review the information provided by Julie and Joseph to
check whether it is complete. You answer some additional questions they have about what
happens next and what your likely costs will be, and explain that with their agreement you
will now prepare a written financial plan, called a statement of advice or SOA, based on the
information collected and their stated objectives. The SOA will describe possible risk
management strategies and insurances they should consider, and the reasons behind your
recommendations.
Joseph and Julie agree to proceed to the next stage of the financial planning process, and
you make an appointment to present the SOA in a fortnight.
Section 2 The fact finder

The first step is to complete the fact finder for Joseph and Julie. This is in your assignment at
Insurance and risk protection assignment questions fact finder Joseph and Julie Hahn.
Note to completing the fact finder: As this is a risk assignment, you must complete the
Risk needs section. However, where information has not been provided in the case study
background, you may leave other sections blank.
The case study
Page 13 of 76
Section 3 Analysing the data

The next step in the financial planning process is to analyse the collected data. You do this
so that you can fully understand your clients needs and therefore design a financial plan that
addresses their goals and objectives.
By analysing the data provided under the following headings you can start preparing a
financial planning strategy that will meet your clients needs:
Review the fact-finding stage
Current position
Debt management
Risk/protection
Savings
Present and future taxation issues
There is a series of questions relating to section 3 in the assignment that you must answer.
Use your answers for section 3 to help you decide on your recommendations for Joseph and
Julie. Your answers to these questions are your opportunity to demonstrate your ability to
analyse clients needs in preparation for developing a strategy that aligns with their
requirements.
Section 4 The strategy

Now that you have analysed the data, you are in a position to think about appropriate
strategy options and start drafting appropriate strategies for them. This should include levels
of cover and researching possible products that can support the implementation of those
strategies. All this information you will use in your SOA for the couple.
You will use your answers for section 4 to help you decide on your recommendations for
Joseph and Julie. Your answers to these questions are your opportunity to demonstrate your
ability to analysis your clients needs and develop a strategy that aligns with their
requirements.
The case study
Page 14 of 76
Section 5 Completing the SOA

When you have determined the financial planning recommendations you believe will meet
the couples needs, then you can move on to preparing their SOA. Use the SOA template
provided in this assignment.
TIP: The assessor is looking for an SOA that is of a professional standard and is suitable for
presentation to a client. This means your spelling and grammar must be correct and that you
have written your recommendations so the client can understand them.
Remember: the SOA is an important communication tool you can use to engage your client.
A hastily written and poorly presented SOA does not engender client trust or confidence in
your expertise or professionalism.
Important instructions for completing the SOA

a.
Use the SOA template provided.

SOA preparation software: The use of financial planning software and dealer
templates to prepare your SOA is not permitted. Submissions that exhibit excessive
reliance on SOA templates may be considered a case of plagiarism or collusion and
may not be considered to be a reasonable attempt at the assessment.
b.
Your SOA must include strategy recommendations for personal insurances.
c.
You must prepare an implementation schedule detailing all of the recommendations

in the SOA and provide the details in the implementation schedule within the SOA.
d.
List any assumptions you made to complete your SOA at the end of the SOA
template under the heading Assumptions. Assumptions will generally include:
e.
missing background information on the clients
cost of premiums
factors which influence future income calculations
fees relating to the products you have recommended.
While you are not required to provide advice on the following areas, you will need to
discuss them in the Things you need to consider section of your SOA and include:
debt management
personal investment
superannuation
estate planning.
The case study
f.
Page 15 of 76
Your insurance product recommendations will need to be based on the research you
conducted in section 4 Part B. Please do not include any product disclosure
statements (PDS) with your assignment submission.
The case study
Page 16 of 76
Section 6 Presenting the SOA

You meet with Joseph and Julie as arranged to present the SOA. You take the time you need
to reiterate their financial situation and stated objectives and to explain the proposed
strategies and recommendations, confirming regularly that both Joseph and Julie understand
each component of the plan and how it meets their needs.
Even though satisfied with your explanation of the SOA and responses to each of their
questions, they have a key concern about one of the products you have selected with
regards to the cost of premiums. Before they agree to your recommendations you have to
negotiate this part of the plan with your clients.
Your answers to these questions are your opportunity to demonstrate your ability to continue
to engage your clients.
Page 17 of 76
Insurance and risk protection assignment

Fact finder Joseph and Julie Hahn
Use the data collected in the interviews to complete the fact-finder template on the following pages.
Note: As investment strategies are not required for this project, it is not necessary to
complete the risk profile section of the fact finder.
Important notice to customers

Your planner must have reasonable grounds for making investment or insurance
recommendations.
Before making a recommendation, the planner must ask you about your investment
objectives, financial situation and your particular needs.
The information requested in this form will be used strictly for that purpose.
Warning
The planner could make inappropriate recommendations or give inappropriate advice if you
fail to fully and accurately complete this form.
Personal details
Client 1
Client 2
Title
Answer here
Answer here
Surname
Answer here
Answer here
Given & preferred names
Answer here
Answer here
Home address
Answer here
Answer here
Business address
Answer here
Answer here
Contact phone
Answer here
Answer here
Date of birth
Answer here
Answer here
Sex
Male
Female
Male
Female
Smoker
Yes
No
Yes
No
Expected retirement age
Answer here
Answer here
Dependants (children or other)

Name
Date of birth
Sex
School
Occupation
Answer here
Answer here
Answer here
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Page 18 of 76
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Employment details
Name
Answer here
Answer here
Occupation
Answer here
Answer here
Employment status
Business status
Self employed
Employee
Self employed
Employee
Not employed
Pensioner
Not employed
Pensioner
Permanent
Part time
Permanent
Part time
Casual
Contractor
Casual
Contractor
Other
Government
Other
Government
Sole proprietor
Partnership
Sole proprietor
Partnership
Private
company
Trust
Private
company
Trust
Notes
Any other person to be contacted? E.g. accountant, banker, solicitor, etc.
Answer here
Page 19 of 76
Income, tax and cash flow

Tax calculation
Client 1
Client 2
Combined
Comments
Salary
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Salary sacrifice
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Salary after salary sacrifice
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Rental income
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Unfranked dividends
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Franked dividends
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Franking (imputation) credits
Answer here
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Interest
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Other income (e.g. taxable benefits, trust income,

investment income)
Answer here
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Capital gains < 1 yr
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Capital gains > 1 yr
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Tax-free component of capital gains
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Assessable income
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Deductible expenses
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Donations
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Other
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Taxable income
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Tax on taxable income
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Non-refundable tax offsets (e.g. LITO/SAPTO)
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Medicare levy
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Medicare levy surcharge
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Franking rebate
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Refundable rebates and offsets
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Total tax
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Income from employment
Cash flow
Page 20 of 76
Client 1
Client 2
Combined
Comment
Salary less any salary sacrificed amount
Answer here
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Non-taxable income
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Rental income
Answer here
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Unfranked dividends received
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Franked dividends received
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Interest
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Other income (e.g. taxable benefits, trust income,

investment income)
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Total income received before tax
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Investment expenses
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Mortgage
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School fees
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Utilities
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Personal insurance
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Car insurance
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Home Building/Contents Insurance
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Health Insurance
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Living expenses
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Holidays
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House maintenance
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Motor vehicle
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Motor vehicle
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Other
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Child care
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Donations
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Accountants fees
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Total expenses
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Total income received before tax less total

expenses
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Total tax payable from tax table above
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Total net cash flow
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Expenses
Page 21 of 76
Assets and liabilities

Asset
Owner
Value
Liabilities
Net value
Notes
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Investment property
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Savings account
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Term deposit
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Shares
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Total
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Net worth
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Personal assets
Superannuation
Other Assets
Liabilities
Loan
Current debt
Percentage tax deductible
Interest only
Repayment
Home loan
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Investment property
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Investment loan
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Personal loan
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Other
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Total
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Page 22 of 76
Needs and objectives

Details
Comments
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Estate planning
Estate planning
Do you have a will?
When was it last updated:
Yes
No
Yes
No
Date
Do you have powers of attorney?
Current superannuation, rollovers, insurances & investments

Superannuation
Member
Answer here
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Fund name
Answer here
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Date of joining fund
Answer here
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Type of fund
Accumulati
on
Defined
benefit
Accumulati
on
Defined
benefit
Pension
Pensioner
Pension
Pensioner
By
employer
By self
By
employer
By self
Contribution
(9.50% of salary)
SG
Current value of
your
superannuation
fund
Answer here
Answer here
Amount of death
and disability cover
Answer here
Answer here
Is there provision
for you to top up or
salary sacrifice?
Yes
Not
sure
No
SG
Yes
Not
sure
No
Page 23 of 76
Superannuation Taxation Details

Name
Answer here
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Current value
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Tax free component
Answer here
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Taxed element
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Untaxed element
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Preserved
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Unrestricted non-preserved
Answer here
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Restricted non-preserved
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Year 1
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Year 2
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Year 3
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Year 4
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Year 1
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Year 2
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Answer here
Year 3
Answer here
Answer here
Year 4
Answer here
Answer here
Taxable Component:
Preservation:
Contributions:
Non-concessional contributions:
Concessional contributions:
Page 24 of 76
Nominated Beneficiaries:
Name
Binding
Non-Binding
Trustee discretion
(Yes/No)
(Yes/No)
Yes/No
Amount
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Yes/No
Answer here
Is there any current flags or splits on a superannuation

benefit of yours following a marriage breakdown?
Details
Answer here
Answer here
Answer here
Answer here
Are you a beneficiary of any current flags or splits of a

superannuation benefit following a marriage breakdown?
Yes/No
Details
Answer here
Answer here
Answer here
Answer here
Answer here
Life insurance details

Life
insured
Owner
Policy type
Company
Policy
number
Death
benefit
Comments
Annual
premium
Answer
here
Answer here
Answer
here
Answer here
Answer
here
Answer
here
Answer here
Answer here
Answer
here
Answer here
Answer
here
Answer here
Answer
here
Answer
here
Answer here
Answer here
Disability insurance details

Life
insured
Owner
Policy type
Company
Policy
number
Death
benefit
Comments
Annual
premium
Answer
here
Answer here
Answer
here
Answer here
Answer
here
Answer
here
Answer here
Answer here
Answer
here
Answer here
Answer
here
Answer here
Answer
here
Answer
here
Answer here
Answer here
Page 25 of 76
Income protection insurance details

Life
insured
Owner
Policy
type
Company
Policy
number
Benefit
Amount
Waiting
Period
Benefit
Payment
Period
Annual
premium
Answer
here
Answer
here
Answer
here
Answer
here
Answer
here
Answer
here
Answer
here
Answer
here
Answer
here
Answer
here
Answer
here
Answer
here
Answer
here
Answer
here
Answer
here
Answer
here
Answer
here
Answer
here
General insurance details

Item
covered
Owner
Policy type
Company
Combined
Policy
number
Cover
Amount
Other
benefit
Total
Annual
premium
Answer here
Answer
here
Answer here
Answer here
Answer here
Answer here
Answer
here
Answer here
Answer here
Answer
here
Answer here
Answer here
Answer here
Answer here
Answer
here
Answer here
Answer here
Answer
here
Answer here
Answer here
Answer here
Answer here
Answer
here
Answer here
Answer here
Answer
here
Answer here
Answer here
Answer here
Answer here
Answer
here
Answer here
Answer here
Answer
here
Answer here
Answer here
Answer here
Answer here
Answer
here
Answer here
Investment details
Investment type
Company
Purchase date
Units
held/fixed
rate
Current
value
Owner
Answer here
Answer here
Answer here
Answer here
Answer
here
Answer
here
Answer here
Answer here
Answer here
Answer here
Answer
here
Answer
here
Answer here
Answer here
Answer here
Answer here
Answer
here
Answer
here
Answer here
Answer here
Answer here
Answer here
Answer
here
Answer
here
Answer here
Answer here
Answer here
Answer here
Answer
here
Answer
here
Page 26 of 76
Risk needs
Insurance Needs life
Name
C
Answer here
Answer here
Clean-up fund
Settle all outstanding accounts, including credit cards, bills and funeral costs
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Income fund
The lump sum required to produce a level of regular income that maintains the familys
living standard for a defined period
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Mortgage fund
The amount necessary to discharge any existing mortgages
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Education fund
Lump sum determined by calculating each childs education costs and multiplying by
the number of years of school and/or university remaining
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Retirement fund
The lump sum necessary to provide adequate funding for retirement
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
less value of realisable assets
Answer here
Answer here
less existing life insurance cover
Answer here
Answer here
Recommended sum insured
Answer here
Answer here
Recommended sum insured (rounded up to the nearest $10,000)
Answer here
Answer here
Page 27 of 76
Insurance Needs TPD

Name
C
Answer here
Answer here
Clean-up fund
Settle all outstanding accounts, including credit cards, bills and funeral costs
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Income fund
The lump sum required to produce a level of regular income that maintains the familys
living standard for a defined period
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Mortgage fund
The amount necessary to discharge any existing mortgages
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Education fund
Lump sum determined by calculating each childs education costs and multiplying by
the number of years of school and/or university remaining
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Retirement fund
The lump sum necessary to provide adequate funding for retirement
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
less value of realisable assets
Answer here
Answer here
less existing life insurance cover
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Page 28 of 76
Insurance needs Trauma

Name
Answer here
Answer here
Funds required to pay out home mortgage
Answer here
Answer here
Estimated medical and rehabilitation costs (including cover out-of-pocket health

costs)
Answer here
Answer here
Other debts
Answer here
Answer here
Other expenses
Answer here
Answer here
Less existing realisable assets
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Name
Answer here
Answer here
Gross annual income
Answer here
Answer here
Superannuation Guarantee
Answer here
Answer here
Total insurable income
Answer here
Answer here
Monthly income (i.e. Total insurable income / 12)
Answer here
Answer here
Recommended monthly benefit (i.e. 75% of total monthly insurable amount)
Answer here
Answer here
Benefit payment period
Answer here
Answer here
Waiting period to be served
Answer here
Answer here
Insurance needs Income Protection

Income Protection
Acknowledgment
The information provided in this financial fact finder is complete and accurate to the best of my knowledge.
I understand that a policy purchased without the completion of a fact finder, or following a partial or inaccurate
completion, may not be appropriate to my needs. I also understand that a policy purchased that differs from that
recommended by the planner may not be appropriate to my needs. I acknowledge that planner has provided me with the
completed financial fact finder, signed by me.
Customer(s) signature(s)
Planners name
Planners signature
Date
Page 29 of 76
Note: An investment needs analysis is not required for this assignment. These investment attitude details tables have
been included to provide a realistic example of the fact-finder process.
Page 30 of 76
Investment attitude details

Please answer the following questions regarding your attitude to financial issues.
Are you concerned about the amount of tax that you are paying?
Why?
I think that I should be able to structure things better to pay less tax like other
people seem to do.
How important is liquidity (i.e. funds available) to you?
Why?
Yes/No
Very/Moderately/Not
R
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I would like the money available so I can buy a property in the future.
If you had funds available for investing, how would you choose to invest them? Why?
Term deposits, but dont know what else is available or how it works.
Are there certain sorts of investment that you wish to avoid?
Which ones?
Yes/No
I dont know really know.
Risk profile
Determining your investor risk profile
Points
This investor risk profile questionnaire has been designed to help you understand the type of investor you are, so that
with the help of your planner, you can choose the investments that best match your financial objectives.
Which of the following best describes your current stage of life?
Single with few financial commitments: You are keen to accumulate wealth for the
future. Some funds must be kept available for enjoyment, such as cars, clothes, travel
and entertainment.
50
A couple without children: You may be preparing for the future by establishing and
furnishing a home. There are a lot of things you need to buy. You are probably better off
financially now than you may be in the future.
40
Young family: This is the peak home purchasing stage. You have a mortgage and a
very small amount of savings. Probably dissatisfied with your financial position and the
amount of money saved.
35
Mature family: You are in your peak earning years and have got the mortgage under
control. Many partners also work and any children are growing up and have either left
home or require less supervision. You are starting to think about retirement, although it
may be many years away.
30
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T
Page 31 of 76
Preparing for retirement: You probably own your own home and have few financial
commitments, however, you want to ensure that you can afford a comfortable
retirement. Interested in travel, recreation and self-education.
20
Retired: No longer working you must rely on existing funds and investments to maintain
your lifestyle. You may be receiving the pension and are keen to enjoy life and maintain
your health.
10
What return do you reasonably expect to achieve from your investments?

A return without losing any capital
10
37% p.a.
20
812% p.a.
30
1315% p.a.
40
Over 15% p.a.
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NO
S
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T
50
If you did not need your capital for more than 10 years, for how long would you be prepared to see your
investment performing below your expectations before you cashed it in?
You would cash it in if there were any loss in value
10
Less than 1 year
20
Up to 3 years
30
Page 32 of 76
Up to 5 years
40
Up to 7 years
45
Up to 10 years
50
How familiar are you with investment markets?
Very little understanding or interest
10
Not very familiar
20
Would like to know more.
Have had enough experience to understand the importance of diversification
30
Understand that markets may fluctuate and that different market sectors offer different
income, growth and taxation characteristics
40
Experienced with all investment sectors and understand the various factors that may
influence performance
50
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NO
S
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I
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If you can only get greater tax efficiency from more volatile investments, which balance would you be most
comfortable with?
Preferably guaranteed returns, before tax savings
10
Stable, reliable returns, minimal tax savings
20
Some variability in returns, some tax savings
30
Page 33 of 76
Moderate variability in returns, reasonable tax savings
40
Unstable, but potentially higher returns, maximising tax savings
50
Page 34 of 76
Six months after placing your investment you discover that your portfolio has decreased in value by 20%,
what would be your reaction?
Horror. Security of capital is critical and you did not intend to take risks
10
You would cut your losses and transfer your money into more secure investment sectors
20
You would be concerned, but would wait to see if the investments improve
30
This was a calculated risk and you would leave the investments in place, expecting
performance to improve
40
You would invest more funds to lower your average investment price, expecting future
growth
50
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NO
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Which of the following best describes your purpose for investing?
You want to invest for longer than five years, probably to the age of 5560. You are
mainly investing for growth to accumulate long-term wealth
50
You are not nearing retirement, have surplus funds to invest and you are aiming to
accumulate long-term wealth from a balanced fund
40
You have a lump sum (e.g. an inheritance or an eligible termination payment from your
employer) and you are uncertain about what secure investment alternatives are
available
30
You are nearing retirement and you are investing to ensure that you have sufficient
funds available to enjoy retirement
20
You have some specific objectives within the next five years for which you want to save
enough money
20
You want a regular income and/or totally protect the value of your savings
10
Investor profile total points
Page 35 of 76
Investor risk profile summary

070
Conservative 70% Defensive and 30% Growth
You are a conservative investor. Risk must be very low and you are prepared to accept lower returns to
protect capital. The negative effects of tax and inflation will not concern you, provided that your initial
investment is protected.
71130
Moderately Conservative 55% Defensive and 56% Growth
You are a cautious investor seeking better than basic returns, but risk must be low. Typically an older
investor seeking to protect the wealth that you have accumulated, you may be prepared to consider less
aggressive growth investments.
131210
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S
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Balanced 40% Defensive and 60% Growth
You are a prudent investor who wants a balanced portfolio to work towards medium to long-term financial
goals. You require an investment strategy that will cope with the effects of tax and inflation. Calculated
risks will be acceptable to you to achieve good returns.
211300
Growth 30% Defensive and 70% Growth
You are an assertive investor, probably earning sufficient income to invest most funds for capital growth.
Prepared to accept higher volatility and moderate risks, your main concern is to accumulate assets over
the medium to long term. You require a balanced portfolio, but more aggressive investment strategies may
be included.
301350
High growth 10% Defensive and 90% Growth
You are an aggressive investor prepared to compromise portfolio balance to pursue potentially greater
long-term returns. Your investment choices are diverse, but carry with them a higher level of risk.
Security of capital is secondary to the potential for wealth accumulation.

Answer the following questions in the spaces provided. The questions are your
opportunity to demonstrate your ability to analyse a clients needs in preparation for
developing a strategy that aligns with their requirements.
Section 3 Questions Analysing the data
Section 3 Part A
List what you understand to be the couples goals, needs and objectives. Categorise them
into short, medium and long-term time frames. They should be specific, measurable and
have a nominated dollar value where possible. (250 words)
Goals/need/objectives
Timeframe
Dollar value
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Notes
Assessor feedback:
Section 3 Part B
Analyse the data provided by the couple by answering the following questions.
Think carefully about your responses and do not assume that you are in a position to provide
answers to everything.
You may not have enough information, it may be outside of your licensees designated
authority for this case study (i.e. the matter needs to be referred to a specialist adviser) or it
is not a goal or objective of your clients. Where this might be the case, make sure you make
a comment to that effect where relevant.
Make sure you constantly refer to the data you have on Joseph and Julie so your responses
accurately reflect the information provided to you.
a.
The questions
Your response
Do Julie and Joseph need a debt

management solution?
Answer here
If yes, why?
Answer here
If no, why not?

b.
Do Julie and Joseph currently have

adequate life and TPD cover?
Answer here
If yes, why/how?
Answer here
If not, how much should they have,

and why that much?
c.
Is their current Life and TPD cover

provided through superannuation the
best alternate?
Answer here
If yes, why?
Answer here
If not, why? What could be the

alternative?
d.
Do Julie and Joseph require any

other insurance cover?
Answer here
If yes, what type of cover? How

much do they need? How should it be
provided?
Answer here
If no, why?
e.
Is there anything that could impact on

Josephs and Julies ability to obtain
insurance cover?
Answer here
If yes, which cover(s)/why?
Answer here
If no, why not?

f.
If Julie commences work from home,

will this have any impact on her
current or your recommended
insurance cover(s)?
Answer here
The assessors feedback
If yes, which cover(s)/why?

If no, why?
Answer here
g.
If Julie commences work from home,

would she require any further
insurance cover?
Answer here
If yes, why and what would she

require?
Answer here
If no, why not?

h.
Are there any present and/or

anticipated future taxation issues
associated with your
recommendations?
Answer here
If yes, why and what are they?
Answer here
If no, why not?

i.
j.
Has any provision been made for

estate planning?
Answer here
What could be put in place now for

any anticipated requirements?
Answer here
Are there any present and/or

anticipated future cash flow
implications associated with your
recommendations?
Answer here
If yes, why and what are they?
Answer here
If no, why not?

Answer the following questions in the spaces provided. The questions are your opportunity
to demonstrate your ability to analysis a clients needs and develop a strategy that aligns with
their requirements.
Section 4 Questions Developing a strategy

Section 4 Part A
Based on your analysis of the data, describe in general terms the strategy you think will best
meet Julie and Josephs needs and why. Include what other specialist advice they will need
to source so they can have access to a comprehensive financial plan (up to 500 words).
Note: Students who may need assistance determining the approximate premium costs of
particular recommendations may refer to website <https:www.ratesonline.com.au> and use
the calculations and comparisons provided there as a guide when answering assignment
questions.
Answer here
Assessor feedback:
Section 4 Part B
Following your conclusions developed in section 4 part A, you are now in a position to
research products to meet your clients risk management needs. Information on different
products and providers is readily available on the internet, or if you are already working for a
licensee you may be able to use those from your approved product list.
The website at <https:www.ratesonline.com.au> may be of assistance in determining the
likely premium cost of a recommendation.
Research and compare three (3) insurance products of each cover type. List them here, and
indicate why you think these may, or may not, be the best fit for Julie and Joseph. At the
conclusion of this process you will need to have selected the product(s) that you think will
meet their needs. (Please add rows as required, or leave rows blank that are not needed.)
The product
(name and url link)
Why you think it may or may not be the best fit for the
couple.
Answer here
Answer here
Yes
No
Answer here
Answer here
Yes
No
Answer here
Answer here
Yes
No
Answer here
Answer here
Yes
No
Answer here
Answer here
Yes
No
Answer here
Answer here
Yes
No
Answer here
Answer here
Yes
No
Answer here
Answer here
Yes
No
Answer here
Answer here
Yes
No
Answer here
Answer here
Yes
No
Answer here
Answer here
Yes
No
Answer here
Answer here
Yes
No
Indicate which product/s

you will use in your plan
Section 6 Questions Presenting the SOA

Answer the following questions in the spaces provided. The questions are your opportunity
to demonstrate your ability to negotiate aspects of a plan a client is dissatisfied with, and
then to gain their consent to proceed with your recommendations.
Section 6 Part A
In the space provided, write a script for how would you explain to your clients the rationale for
the choice of one product selection over another (200 words).
Answer here
Assessor feedback:
Section 6 Part B
Your clients reluctantly agree with your choice but it is clear they are not 100% satisfied. How
will you proceed with the conversation from this point on? Think about what you aim to
achieve from both a client engagement and compliance perspective. (200 words)
Answer here
Assessor feedback:
Section 6 Part C
Describe how you will conclude this conversation so that you have met all your compliance
requirements. (100 words)
Answer here
Assessor feedback:
Statement of advice template
Page 44 of 76
The Statement of Advice Template

The following Statement of Advice template must be used to record your advice for your
clients Josephy and Julie Hahn. Remember, this is document is the one you will use to
communicate to your clients your advice so it must be well written and professionally
presented. Apart from not meeting professional standards, a carelessly compiled SOA does
not inspire a clients confidence or trust in your skills as a financial planner.
Page 45 of 76
Statement of advice
Prepared for
Delete this box

when you have
inserted your name
here.
Joseph and Julie Hahn

Prepared by
Authorised Representative
Authorised Representative Number: 66666
AR Address
AR contact details
Authorised Representative of
KeyPlan Financial Planning

ABN: 1010101010
Australian Financial Services Licensee
Licence No. 101010
Head office: 88 Money Lane, Accumulation.
You are entitled to receive a statement of advice (SOA) whenever we provide you with any personal financial advice. Personal
financial advice is advice that takes into account any one or more of your objectives, financial situation and needs.
This SOA is a record of the personal financial advice provided to you and includes information on the basis on which this advice
is given, information about fees and commissions and any interests or associations which might influence the advice.
If this advice includes a recommendation to you to acquire a particular financial product, other than securities, or an offer to
issue or arrange the issue of a financial product to you, we will also provide you with a product disclosure statement containing
information about the particular product to help you make an informed decision about that product.
Be aware that the advice contained in the following SOA is valid for a period of 30 days only. If the plan is not implemented
within this time, it will need to be reviewed for accuracy.
Kaplan Professional Education
Page 46 of 76
Contents
Statement of advice
39
Executive summary..........................................................42
Important information about you
44
Present position................................................................44
Strategy recommendations
48
Recommended insurance cover........................................51
Insurance product recommendations
52
Disclosure of remunerations, commissions and other benefits 53

How are we paid?..............................................................53
Ongoing services..............................................................54
Implementation schedule.................................................55
Authority to proceed.........................................................56
Cash flow tables
58
Financial position before implementation of strategy......58

Financial position after implementation of strategy.........61
Assumptions
64
Page 47 of 76
Executive summary
In this section, you need to provide your client with a concise summary of:
their situation
their objectives
your recommended strategy to achieve the objectives
the outcomes your clients can expect from adopting the strategy.
The clients should be able to read this executive summary and understand the advice you
are giving, the reason/s underpinning the advice, and be able to determine whether or not
their goals have been achieved. There should be sufficient detail to allow the clients to
make a decision, taking into account any risk/s involved and your fees. It should be written
in clear, unambiguous language, without jargon and be appropriate to their level of financial
understanding.
Your situation
This where you need to summarise your clients current situation.
Answer here
Assessor feedback:
Your objectives
This where you need to list your clients objectives: i.e. their financial goals.
Answer here
Assessor feedback:
Summary of our strategy and recommendations

This where you need to summarise your recommendations for your clients.
Answer here
Page 48 of 76
Assessor feedback:
Page 49 of 76
Summary of expected outcomes if you implement our advice

For example:
If you proceed with the recommendations contained within this report, we estimate that:
You will reduce your debt by $XYZ and/or save $ABC.
You will build wealth in non-superannuation assets through regular contribution of $X.
Answer here
Assessor feedback:
Risks in our advice

Detail the issues clients need to be aware of when following advice.
Answer here
Assessor feedback:
Summary of our fees and commissions

Detail charges that the clients will incur.
Answer here
Assessor feedback:
Your next steps

Outline what your clients will need to do next to decide whether or not to follow the advice.
Answer here
Page 50 of 76
Assessor feedback:
Page 51 of 76
Body
While this section contains similar headings to the executive summary, the information
provided is at a greater level of detail and supports the recommendations made. As with the
executive summary, it should be written in clear, unambiguous language, without jargon and
be appropriate to your clients level of financial understanding.
Important information about you

This section contains information about you that we used in preparing our advice, such as:
your reasons for seeking advice
what you would like to achieve
your personal and financial information.
Present position
Your reasons for seeking advice
Outline why the client sought advice.
Answer here
Assessor feedback:
What you would like to achieve

Summarise here what you understand to be your clients main objectives.
Following our discussions, here is what I/we understand to be your main objectives and
needs:
Answer here
Assessor feedback:
Page 52 of 76
Page 53 of 76
Your personal and financial information

Listed below is a summary of your relevant personal and financial details that you have
provided.
Personal information
Personal details
Client 1
Client 2
First name(s)
Answer here
Answer here
Surname
Answer here
Answer here
Date of birth
Answer here
Answer here
Current age
Answer here
Answer here
Marital status
Answer here
Answer here
Health status
Answer here
Answer here
Smoker status
Answer here
Answer here
Employment status
Answer here
Answer here
Employer name
Answer here
Answer here
Occupation
Answer here
Answer here
Annual salary
Answer here
Answer here
Relevant notes (add any information that is not included elsewhere)

Answer here
Assessor feedback:
Children and dependant details

Answer here
Your existing insurance
Personal insurance
Answer here
Car insurance
Answer here
Page 54 of 76
Home Contents Insurance
Answer here
Health Insurance
Answer here
Page 55 of 76
Your existing estate planning

Summarise the clients existing estate planning provisions here.
Answer here
Assessor feedback:
Financial information
Current income and expense details
Income and expenses
Client 1
Client 2
Total
Answer here
Answer here
Answer here
Net tax payable
Answer here
Answer here
Answer here
Yearly expenses
Answer here
Answer here
Answer here
Estimated surplus/deficit
Answer here
Answer here
Answer here
Discussion points:
Summarise the discussion points that could/need to be raised here.
Answer here
Assessor feedback:
Page 56 of 76

Value
Liability
Net value
Home
Answer here
Answer here
Answer here
Home contents
Answer here
Answer here
Answer here
Motor vehicles
Answer here
Answer here
Answer here
Personal assets
Answer here
Answer here
Answer here
Employer superannuation
Answer here
Answer here
Answer here
Savings account
Answer here
Answer here
Answer here
Term deposit
Answer here
Answer here
Answer here
Other
Answer here
Answer here
Answer here
Investment assets
Answer here
Answer here
Answer here
Shares
Answer here
Answer here
Answer here
Net worth
Answer here
Answer here
Answer here
Discussion points:
Summarise the discussion points that could/need to be raised here.
Answer here
Assessor feedback:
Incomplete and/or inaccurate information warning

Note that if, for any reason, the information on which our advice is based is incomplete or
inaccurate, then it may not be appropriate and you should, before acting on the advice
consider its appropriateness, in light of your particular circumstances, needs and objectives.
Page 57 of 76
Strategy recommendations
This section tells you:
what our advice is and why it is appropriate for you
reasons for our recommendations
things you should consider and risks of our advice.
Read this section carefully and ask me if you have any questions.
Recommended action
Note to students: You will use your findings from the analysis you did in Section 4 of the
assignment above as the basis for the information you will need to provide in this section.
For each recommendation below, discuss the reasons, risks, advantages and
disadvantages. (Please add or delete Recommendation boxes as applicable.)
All insurance recommendations should be listed here.
Recommendation 1
Answer here
Assessor feedback:
Recommendation 2
Answer here
Assessor feedback:
Page 58 of 76
Recommendation 3
Answer here
Assessor feedback:
Recommendation 4
Answer here
Assessor feedback:
Recommendation 5
Answer here
Assessor feedback:
Things you need to consider

In addition to the insurance recommendations you are making above, there may be
additional information your clients should know about this plan and their financial situation
and goals. Use the space below to record that information.
Debt management
Answer here
Assessor feedback:
Page 59 of 76
Personal investment
Answer here
Assessor feedback:
Superannuation
Answer here
Assessor feedback:
Estate planning
Answer here
Assessor feedback:
Alternative strategies considered

Your clients are going to want to know that you have carefully considered their situation and
in this process rejected some potential strategies that were not the most suitable for their
needs.
Insert details of any relevant alternate strategies that you considered and the reasons that
they were rejected.
Answer here
Assessor feedback:
Page 60 of 76
Page 61 of 76
Recommended insurance cover

Provide details of the recommended types of insurance, the sums insured, and the
ownership structure. In addition, you must justify your recommendations by explaining why
these recommendations are applicable to your clients.
Answer here
Assessor feedback:
Page 62 of 76
Insurance product recommendations

Product recommendations
Note that I can only recommend products on our recommended list, which have been
approved by my licensee.
Use the space below to list the products that you are recommending Joseph and Julie use.
Joseph and Julie Hahn, following our insurance strategy, we recommend that you purchase
the following products:
Answer here
Relevant research material and product disclosure statements (PDSs) are attached for your
attention. It is important that you read these documents carefully and contact us should you
have any questions or if there are areas of the document that you do not fully understand.
All of these products are on our approved recommended list.
Note: You do not need to include these PDSs as part of your assignment. The above
statement is a standard inclusion in a statement of advice.
Assessor feedback:
Cooling-off period
Details on the cooling-off period for each product are provided in the PDS.
Page 63 of 76
Disclosure of remunerations, commissions and

other benefits
How are we paid?
Commissions and fees upfront, ongoing commissions and financial planning
advice fees
If you are charging SOA preparation fees, implementation fees, ongoing advice fees, or
any other non-product related fees, you must provide the details here. You may need to
source information outside of the subject notes to complete this requirement. However, you
can use the examples of how fees are shared between advisers and licensees from the
sample SOA if needed.
If you are not charging these fees fill in the table with $0 as the fee charged so the client
understands there are no charges.
Fee type
Initial fee
Initial fee paid to licensee
Initial fee paid to adviser
SOA fee
Answer here
Answer here
Answer here
Implementation fee
Answer here
Answer here
Answer here
Ongoing advice fee*
Answer here
Answer here
Answer here
Total
Answer here
Answer here
Answer here
*If you are charging a flat fee, or an hourly fee it should be included in this table. If an initial
and/or ongoing service fee is charged as a percentage of the product(s) you have
recommended, it should be included in the table below.
Insurance recommendations
You will need to source information from your selected product PDS, outside of the subject
notes, to complete this table.
If you wish to implement the products I have recommended, I will receive commission for
some of the insurance products I have recommended. I believe that those are the best
products for you; however, there may be other suitable products that pay a lower
commission.
Product
Premium
Initial commission
paid to dealer
Initial commission
paid to adviser
Ongoing
commission paid
to dealer
Ongoing
commission paid
to adviser
Page 64 of 76
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Total
Answer here
Answer here
Answer here
Answer here
Answer here
The amount of ongoing commission receive by my licensee will depend on the premiums
you pay.
Assessor feedback:
Other fees and benefits

My licensee and I may also receive additional benefits. Where the benefits received are
greater than $300 in value, they will be recorded in a register that meets the requirements of
the Financial Planning Association (FPA) Code of Practice on alternative forms of
remuneration. A copy of the register for my licensee is publicly available and can be provided
upon your request.
Ongoing services
You need to make sure that your client fully understands what you are offering in terms of
ongoing service.
Use the space below to record the details of how you will manage this process.
Answer here (refer to the sample SOA for the sorts of services you could include here).
Assessor feedback:
Page 65 of 76
Implementation schedule
In order to ensure that your recommendations will be implemented efficiently, you need to
make sure that all tasks that need to be completed, both by the client and yourself, are
itemised in the schedule. The schedule should highlight the priority of each task, as well as
the order of completion. The time frame should be as specific as possible.
Joseph and Julie Hahn, in order to proceed with our recommendations, you will need to
complete the steps below:
Action
By who
By when
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Note: The recommendations contained in this SOA are current for 30 days only. Please
contact me for further discussion if you are unable to act on our recommendation
within this time frame.
Assessor feedback:
Page 66 of 76
Authority to proceed
By signing this authority to proceed, I/we <Joseph and Julie Hahn> acknowledge the
following:
I/We acknowledge that the information I provided in the financial needs analysis has been
used to arrive at the recommendations contained in this SOA.
I/We have read, understood and retained a copy of the SOA prepared by <Your name>
dated <Date>. This document contains information which accurately summarises our
current situation, investments and financial objectives.
I/We have been provided with an KeyPlan Financial Planning Financial Services Guide.
I/We have read and understood the PDSs for the recommended products.
Please note that a cooling-off period may apply to your initial investment or insurance
policy. Refer to the PDS.
I/We acknowledge that the product(s) listed in the table below are to be implemented in
my/our name/s:
Product(s)
Amount
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
I/We wish to make the following change/s to the recommendations within the SOA
Product(s)
Amount
Answer here
Answer here
Answer here
Answer here
Signed______________________________
Date _____/_____/_____
Client Name
Signed______________________________
Date _____/_____/_____
Client Name
Signed______________________________
Date _____/_____/_____
Financial Planner
Page 67 of 76
Consent to ongoing contact

I/We consent to being contacted by our adviser on an ongoing basis, in line with the agreed
ongoing service review structure detailed within this recommendation. My/our preferred
hours of contact are between ____ and ____.
Signed______________________________
Date _____/_____/_____
Client Name
Signed______________________________
Date _____/_____/_____
Client Name
Cash flow tables

Financial position before implementation of strategy
Note: The items listed in this template are indicative only and must be adapted to your
clients personal circumstances. There may be other relevant income or expense items that
are not included in this template. You should add, delete or substitute items where
appropriate.
Accurately completed cash flows are essential in the financial planning process to support
recommendations. They are key to demonstrating your competency.
Tax calculations
Client 1
Client 2
Notes
Salary
Answer here
Answer here
Answer here
Salary sacrifice
Answer here
Answer here
(state % if applicable)
Answer here
Answer here
Answer here
Bank account interest
Answer here
Answer here
(state % return if
applicable)
Interest from other investments
Answer here
Answer here
(state % return if
applicable)
Share dividends
Answer here
Answer here
(state % return if
applicable
Imputation credits
Answer here
Answer here
(state % return if
applicable
Other income liable for tax

(e.g. rental income)
Answer here
Answer here
Answer here
Assessable capital gains
Answer here
Answer here
Answer here
Total assessable income
Answer here
Answer here
Answer here
Deductable expenses (e.g. rental repairs)
Answer here
Answer here
Answer here
Taxable income
Answer here
Answer here
Answer here
Income tax on taxable income
Answer here
Answer here
(state tax rates and year

applied)
less tax offsets (e.g. LITO/SAPTO)
Answer here
Answer here
Answer here
plus Medicare levy
Answer here
Answer here
Answer here
Other income
plus Medicare levy surcharge
Answer here
Answer here
Answer here
less Imputation credits
Answer here
Answer here
Answer here
less refundable tax offsets
Answer here
Answer here
Answer here
Net tax payable
Answer here
Answer here
Answer here
Cash flow tables: Clients financial position before implementation
70
Cash flow calculation

Family cash flow
Client 1
Client 2
Combined
Comment
Answer here
Answer here
Answer here
Answer here
Non-taxable income (e.g. income from a

superannuation pension for a person aged over
60, Family Tax Benefits, etc.)
Answer here
Answer here
Answer here
Answer here
Interest income
Answer here
Answer here
Answer here
Answer here
Dividends received (excluding franking credits)
Answer here
Answer here
Answer here
Answer here
Other income
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Investment expenses
Answer here
Answer here
Answer here
Answer here
Living expenses
Answer here
Answer here
Answer here
Answer here
Other expenses
Answer here
Answer here
Answer here
Answer here
Total expenses
Answer here
Answer here
Answer here
Answer here
Total income received before tax less

expenses
Answer here
Answer here
Answer here
Answer here
Net tax payable from tax table above
Answer here
Answer here
Answer here
Answer here
Total net cash flow
Answer here
Answer here
Answer here
Answer here

Asset
Owner
Value
Liabilities
Net value
Notes
Family home
Answer here
Answer here
Answer here
Answer here
Answer here
Home contents
Answer here
Answer here
Answer here
Answer here
Answer here
Car 1
Answer here
Answer here
Answer here
Answer here
Answer here
Car 2
Answer here
Answer here
Answer here
Answer here
Answer here
Other
Answer here
Answer here
Answer here
Answer here
Answer here
Total
Answer here
Answer here
Answer here
Answer here
Answer here
Client 1 superannuation
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Total
Answer here
Answer here
Answer here
Answer here
Answer here
Personal assets
Superannuation
Cash flow tables: Clients financial position before implementation
71

Investment assets
Investment property
Answer here
Answer here
Answer here
Answer here
Answer here
Savings account
Answer here
Answer here
Answer here
Answer here
Answer here
Term deposit
Answer here
Answer here
Answer here
Answer here
Answer here
Shares
Answer here
Answer here
Answer here
Answer here
Answer here
Other
Answer here
Answer here
Answer here
Answer here
Answer here
Total
Answer here
Answer here
Answer here
Answer here
Answer here
Net worth
Answer here
Answer here
Answer here
Answer here
Answer here
Liabilities
Loan
Current debt
Percentage deductible
Interest only
Repayment
Home loan
Answer here
Answer here
Answer here
Answer here
Investment property
Answer here
Answer here
Answer here
Answer here
Other
Answer here
Answer here
Answer here
Answer here
Total
Answer here
Answer here
Answer here
Answer here
Cash flow tables: Clients financial position after implementation
72
Financial position after implementation of strategy

Note: The items listed in this template are indicative only and must be adapted to your
clients personal circumstances. There may be other relevant income or expense items that
are not included in this template. You should add, delete or substitute items where
appropriate.
Accurately completed cash flows are essential in the financial planning process to support
recommendations. They are key to demonstrating your competency.
Tax calculations
Client 1
Client 2
Notes
Salary
Answer here
Answer here
Answer here
Salary sacrifice
Answer here
Answer here
(state % if applicable)
Answer here
Answer here
Answer here
Bank account interest
Answer here
Answer here
(state % return if
applicable)
Interest from other investments
Answer here
Answer here
(state % return if
applicable)
Share dividends
Answer here
Answer here
(state % return if
applicable
Imputation credits
Answer here
Answer here
(state % return if
applicable
Other income liable for tax

(e.g. rental income)
Answer here
Answer here
Answer here
Assessable capital gains
Answer here
Answer here
Answer here
Total assessable income
Answer here
Answer here
Answer here
Deductable expenses (e.g. rental repairs)
Answer here
Answer here
Answer here
Taxable income
Answer here
Answer here
Answer here
Income tax on taxable income
Answer here
Answer here
(state tax rates and

year applied)
less tax offsets (e.g. LITO/SAPTO)
Answer here
Answer here
Answer here
plus Medicare levy
Answer here
Answer here
Answer here
plus Medicare levy surcharge
Answer here
Answer here
Answer here
less Imputation credits
Answer here
Answer here
Answer here
less refundable tax offsets
Answer here
Answer here
Answer here
Other income
Net tax payable
Answer here
73
Answer here
Answer here
74
Cash flow calculation

Family cash flow
Client 1
Client 2
Combined
Comment
Answer here
Answer here
Answer here
Answer here
Non-taxable income (e.g. income from a

superannuation pension for a person aged
over 60, Family Tax Benefits, etc.)
Answer here
Answer here
Answer here
Answer here
Interest income
Answer here
Answer here
Answer here
Answer here
Dividends received (excluding franking credits)
Answer here
Answer here
Answer here
Answer here
Other income
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Investment expenses
Answer here
Answer here
Answer here
Answer here
Living expenses
Answer here
Answer here
Answer here
Answer here
Other expenses
Answer here
Answer here
Answer here
Answer here
Total expenses
Answer here
Answer here
Answer here
Answer here
Total income received before tax less

expenses
Answer here
Answer here
Answer here
Answer here
Net tax payable from tax table above
Answer here
Answer here
Answer here
Answer here
Total net cash flow
Answer here
Answer here
Answer here
Answer here
75

Asset
Owner
Value
Liabilities
Net value
Notes
Family home
Answer here
Answer here
Answer here
Answer here
Answer here
Home contents
Answer here
Answer here
Answer here
Answer here
Answer here
Car 1
Answer here
Answer here
Answer here
Answer here
Answer here
Car 2
Answer here
Answer here
Answer here
Answer here
Answer here
Other
Answer here
Answer here
Answer here
Answer here
Answer here
Total
Answer here
Answer here
Answer here
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Answer here
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Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Total
Answer here
Answer here
Answer here
Answer here
Answer here
Investment property
Answer here
Answer here
Answer here
Answer here
Answer here
Savings account
Answer here
Answer here
Answer here
Answer here
Answer here
Term deposit
Answer here
Answer here
Answer here
Answer here
Answer here
Personal assets
Superannuation
Investment assets
Investment assets continued

Shares
Answer here
Answer here
Answer here
Answer here
Answer here
Other
Answer here
Answer here
Answer here
Answer here
Answer here
Total
Answer here
Answer here
Answer here
Answer here
Answer here
Net worth
Answer here
Answer here
Answer here
Answer here
Answer here
Liabilities
Loan
Current debt
Percentage deductible
Interest only
Repayment
Home loan
Answer here
Answer here
Answer here
Answer here
Investment property
Answer here
Answer here
Answer here
Answer here
Other
Answer here
Answer here
Answer here
Answer here
Total
Answer here
Answer here
Answer here
Answer here
Assumptions
76
Assumptions
As stated in the instructions for section 5 in the case study (part (d) on page 12), please list
all your assumptions here:
Value
Current situation
Proposed strategy
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
Answer here
List any other assumptions here:

Assumptions

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Assignment

DFP2-1v2.1 Insurance and Risk Protection

Student identification (student to complete)

Assignment result (assessor to complete)

Result summary (assessor to complete)

Resubmission (if required)

Not yet demonstrated

Not yet demonstrated

Not yet demonstrated

Not yet demonstrated

Not yet demonstrated

Not yet demonstrated

Not yet demonstrated

Not yet demonstrated

Not yet demonstrated

Not yet demonstrated

Cash flow tables

Not yet demonstrated

Not yet demonstrated

Feedback (assessor to complete)

Before you begin

About this document

Saving your work

How to use the study plan

Instructions for completing and submitting this

The Joseph and Julie Hahn case study

Submitting the assignment

The assignment marking process

Not yet competent and resubmissions

Provide advice in Life Insurance

Conduct product research to support recommendations

Provide appropriate services, advice and products to clients

Record and implement client instructions

Determine client requirements and expectations

We are here to help

The case study

The case study

The case study

Hahn (ne Smeg)

Given and preferred names

Geelong Vic 3220

Geelong Vic 3220

(03) 5544 7766

(03) 5544 7766

Expected retirement age

Probably around the same time as Joseph

Probably around age 65

The first meeting

The case study

Joseph and Julies current situation

The case study

The case study

Needs and objectives

The case study

Closing the interview

Section 2 The fact finder

The case study

Section 3 Analysing the data

Section 4 The strategy

The case study

Section 5 Completing the SOA

Important instructions for completing the SOA

Use the SOA template provided.

Your SOA must include strategy recommendations for personal insurances.