Statement of Advice

What my advice is

After completing a life risk needs analysis we have worked out what levels of cover you require and how these policies are to be structured and owned (See below for more details).

I recommend that you apply for insurance cover:

• Life cover: $.
• Linked Total and Permanent Disablement cover: $.
• Income Protection Cover to cover 75% of your income if you are unable to work because of illness, accident or injury. The Amount of IP cover we have recommended is $ per month.

Why my advice is appropriate

• Having appropriate insurance cover will give you and your family protection in the event that either of you die or become sick or injured.
• The advice provides enough cover based on the needs analysis we have completed, to protect you and/or your family in the event of a claim.
• The Insurance cover we have recommended is personal insurance which is underwritten prior to being inforce which is superior to group policy insurance.

Risks in my advice

• If you do not disclose to a life insurance company every matter that you know about yourself (or could reasonably be expected to know about yourself), the life insurance company may avoid paying a claim.
• If your circumstances change your cover may no longer be adequate.
• If you do not proceed with the recommended cover, or choose a lower amount of cover than recommended we believe you will not be adequately insured. If you choose a lower amount of cover than recommended we consider that you will not have adequate protection.
• You may suffer from a health condition that is not covered by the insurance.

What my advice doesn't cover

My advice does not cover:

• Superannuation needs.
• Full taxation implications such as CGT, stamp duty, transfer fees, legal costs if & when policy payout occurs.
• Your general insurance needs (e.g. business, liability, public liability, professional indemnity, car and house insurance etc.).
• Other general tax & insurance issues.

Summary of my advice

Fees and commissions

• myonlineadvisers will be paid upfront and ongoing commissions for your purchase of the insurance products.

Next steps

To decide whether to follow my advice, you should:

• Make sure you understand this advice
• Ask me questions, any question at all, I am more than happy to answer and clarify any questions you may have. If you have received this document electronically, add your questions in the discussion note areas on the bottom of each page.
• Approve this advice. By signing the Authority to Proceed on the last page.

Section 1: Important information about you

This section has information about you that I used in preparing my advice, such as your:

• Goals and objectives.
• Personal and financial information.

Please tell me if you think this information is wrong or incomplete because it will affect my advice.

Summary of our meeting including goals and objectives

We met for the first time. At that meeting, you told me:

• That you wanted your existing insurance held within your current superfunds reviewed and would like advice around replacing the insurance if it did not meet your needs.

Your personal information

Section 1: Important information about you

Your financial information

What you earn and spend each year (approx):

What you own and what you owe:

Section 2: My advice to you

This section tells you:

• what my advice is and why it is appropriate for you
• any disadvantages of my advice
• the consequences of replacing one financial product with another
• the important things my advice does not deal with

Please read this section carefully and ask me if you have any questions.

What is my advice?

Based on the needs analysis we discussed at our last meeting, I recommend the following personal insurance products:

* Please see attached insurance spreadsheet for included benefits and options.
**If you decide to pay yearly, the premiums will be cheaper than quoted above due to the removal of the monthly frequency loading.
*** I have made available a Product Disclosure Statement (PDS) for each of these products. The PDS will explain the cover. (e.g. when you can make a claim).

Why is my advice appropriate for you?

Personal insurance

You need personal insurance to protect your current financial situation and lifestyle should anything happen to you.

Life cover

Based on the information you told me and the fact find we completed, the life insurance cover amount recommended will provide enough funds to pay off all of your debts and provide additional funds to your family.

Section 2: My advice to you

TPD cover

Based on the information provided, the TPD cover will pay you a lump sum payment in the event you become totally disabled. This calculation has taken into consideration your income, debts, replacement income, house improvements and providing funds to provide for your family.

Trauma cover

As you did not want any out of pocket expenses, Trauma has not been recommended in this SOA.

Income Protection cover

Income Protection will cover you in the event you are unable to work for a short period of time. The cover will provide for 75% of your current income.

Child Trauma cover

As you did not want any out of pocket expenses, Trauma has not been recommended in this SOA.

The amounts I have recommended take into account:

• Your current income
• cover under your existing super
• your current assets including your savings, investments and super balance

How this advice is in your best interests

Following this advice should put you in a better position than your current position, as: client:

• There will be benefits available to cover your children’s future education, final expenses, and there will also be provisions for future income for your family should you die.
• There will be benefits available to cover the costs associated with disability, such as medical, rehab, house modifications etc and a large portion of benefit to cover Income Protection shortfall should you become totally and permanently disabled.
• You will receive benefits to cover costs should you be diagnosed with a traumatic condition.
• Your income (up 75%) will continue to be paid should you not be able to work due to illness or injury.

Section 2: My advice to you

As you have indicated your priorities were to make some arrangements to protect yourselves and your family in the event you die, the strategies outlined above will achieve this.

Alternatives considered

In formulating my recommendations, I also considered the alternatives outlined below:

• Other insurance companies – however these companies were more expensive with no additional benefits.

The alternative proposal I considered was maintaining your current situation. This would mean however, you wouldn’t have enough cover for your future needs should something happen to you. I determined that the likely advantages of following the recommended advice outweighed the likely disadvantages. The key advantages I have identified are outlined above.

Replacement Policy Information

Section 2: My advice to you

Does my advice have any disadvantages?

Personal insurance

Cover owned and paid for by your superfund will affect the overall superfund balance you have. It will also mean that in the event if a claim, the funds will be paid to the superfund first and then you will need to meet a condition of release before receiving the funds.

What my advice doesn't deal with at this time

• Personal Investments
• Superannuation Fund Investments.

I can and am authorised to give you advice on the above if you want me to, sometime in the future. This fee will be outlined in future engagement documents.

Whether you have enough of the right insurance

I don’t deal with general insurance (e.g. car and house insurance etc), so my advice does not deal with your general insurance needs. You will need to seek alternative general insurance advice.

Tax Issues

I am not a tax adviser and can only give you limited advice about tax. You may be entitled to a tax deduction for premiums paid on income protection insurance. I can refer you to a qualified tax adviser about this and other tax issues.

Section 3: What else you need to know

This section tells you:

• tells you about fees and any commissions I will get
• explains what product fees you will pay
• answers other questions you might have about my advice.

Please read this section carefully and ask me if you have any questions.

What commissions will I get?

If you follow my advice, the issuers of the personal insurance products I have recommended (life insurance companies) will pay commissions to myonlineadvisers. I will get a share of these commissions. Some products pay a higher commission than other products; however, we have not taken commissions’ payable into account while formulating this advice as all insurance companies pay roughly the same percentage (+/-). Therefore, in my opinion, the products I have recommended are suitable for you.

Remuneration paid by the product issuer: Personal insurance products

Jason Adams is a Director of Sky Financial Pty Ltd, and an Authorised Representative of myonlineadvisers Pty Ltd (Licensee), Australian Financial Services Licence No: 427484. As an Authorised Representative of myonlineadvisers, any commissions and or fees payable from business completed by Jason Adams will be received by myonlineadvisers. Sky Financial is then paid a split as per their agreement on their commissions and fees. Jason Adams then draws wages from this commission split payment.

Section 3: What else you need to know

Referral Fees

Some referral fees may be payable, however, these payments will be our responsibility.

What premiums will you pay?

If you follow my advice, the insurance products I have recommended will charge you premiums (see the PDS for each product for full details).

Personal insurance products

* Premiums can change from year to year.

Yearly Premium Summary

Premium Payment from own account $0.00

Section 4: Other questions you might have

Am I restricted to an approved product list?

Yes. Advisers (like me) have an approved product and investment list. This means that I looked only at products on the approved list when preparing your advice, and did not look at other products available on the market. The myonlineadvisers approved product and investment list is put together by a myonlineadvisers research team and is regularly reviewed. Ask me for a copy of the list if you are interested.

Is myonlineadvisers associated with any recommended products?

No. myonlineadvisers is an independently owned Australian Financial Services Licensee and has no affiliation with any investment or product provider. This means we are free to offer advice that is in your best interests.

Can you change your mind?

Yes. Even after you have paid for the products I have recommended, you might be able to get your money back if you are not happy (this is known as your 'cooling off' rights). Generally, for insurance products, you can do this within 14 days of buying the product. The PDS for each product has more information about this.

Does my advice have a time limit?

Yes. My advice expires 30 days from the date of this SOA. You should not rely on my advice after that time if you haven't acted on it by then.

Is your personal information protected?

Yes. Information about you will not be given to anyone without your written permission unless the law says we must.

Section 5: Authority to proceed

If you want to follow my advice, please approve and return the authority to proceed.

Before you approve this authority

I would like you to check that I have:

If I haven't done all of these things, don't approve the Authority to proceed.

Before you approve this authority, please also make sure that you have:

By approving below, you agree to the following products and investments being purchased on your behalf by representatives of CAR and myonlineadvisers: