Charlie and Sarah have been in a de facto relationship for 10 years. They are in their late 20s. Charlie works in hospitality and Sarah works as a gardener for the local council. They have both been in their respective jobs for 4 years.

Charlie is about to undergo a medical procedure that will require about 3-4 weeks to recover. He can take the time off on half pay. The medical procedure is not work related.

Sarah has maintained her hours even though there have been various lockdowns imposed by the State Government. Charlie has been working about 10 hours per week which is about a quarter of his normal hours.

Sarah has life and TPD cover under her local government superannuation fund of $100,000.

Charlie has life and TPD cover of $50,000 under the REST superannuation fund.

Both superannuation funds provide guaranteed insurability of $250,000 for Sarah and $150,000 for Charlie.

They have not taken up the income protection policy component in their respective superannuation funds.

They are currently renting and plan to buy a house. They estimate that they could afford a mortgage of $550,000.

They are concerned about their lack of insurance coverage and come to you for advice.

REQUIRED:

What issues would you need to discuss with Charlie and Sarah in relation to their life insurance needs?