Background Information

Laura and John are married and are aged 33 and 36 years respectively.

Laura is a chemical engineer and works full-time and John is a freelance journalist.

Laura is 4 months pregnant with their first child and intends to take 6 to 12 months off work.

They have a balanced risk profile from an investment standpoint.

Laura earns a gross salary of $85,000 per annum and John currently earns income of $65,000 per annum. John's income fluctuates due to being a self-employed freelance journalist.

Laura and John own their own home valued at $750,000 and have an associated mortgage of $450,000.

John inherited a portfolio of shares from his grandmother valued at $110,000. He chose to set up a margin lending portfolio 2 years ago. His current margin loan is valued at $50,000 and his current share portfolio is valued at $218,000.

Laura has a car valued at $30,000 and has an associated loan of $22,000.

John and Laura have combined credit card debt of $8,500.

Laura has a superannuation balance of $80,000, which is invested in a balanced fund. Note, Laura has Life Insurance and TPD Insurance (Any Occupation definition) of $120,000 held within superannuation.

John has a superannuation balance of $65,000 which is invested in a balanced fund. John has Life Insurance and TPD Insurance (Any Occupation definition) of $180,000 held within superannuation.

Document "Recommendations" as part of the SOA documentation. Recommendations should be written in paragraph form. Use the following headings (below)

Our insurance recommendations

Use the Insurance Calculator provided on the LMS (instructions and details below) to determine the recommended sums required for each client, based on the information provided. make assumptions in regards to the level of income they may require if either were to pass away and the potential earning rate the clients would be comfortable with. Please include these assumptions.

Insurance types explained

In this area explain each insurance type 'generally'.

That is, explain what each type of insurance provides and some general information about the type of cover. In a SOA this area is general information which is not specific to a client. This information could be used across the board for any client with an insurance recommendation

The basis for our recommendations

Use the information in Module 4 course materials to clearly link the key issues and recommendations back to Laura and John's specific scenario as part of recommendations to demonstrate a sufficient basis.