Case Study 1

Jason is 41 years old and recently divorced and without children. He is a non smoker and has a small mortgage but no other significant debts. Jason has $337,000 in Death and $313,000 in Total Permanent Disability (TPD) benefits. Working as a call centre supervisor he also has $4,700 per month in Income Protection to provide income over two years. There is a 90 day waiting period for his Income Protection.

Case Study 2

Tony is 30 years old and has just had his first child with his wife Rachael. Tony is a non smoker and has recently bought an apartment near the university where he works as a lecturer. He has $800,000 in Death and $800,000 in TPD cover. Tony also has $5,000 per month in Income Protection to provide income over two years with a 90 day waiting period.

Case Study 3

Kathy is 25 years old and has recently graduated from a teaching degree. She has recently started work as a teacher at a local primary school and has a small loan for her car and university studies. Kathy is a smoker and has $500,000 in Death, $500,000 in TPD, and $3,000 per month in Income Protection cover for two years. There is a 90 day waiting period for her Income Protection.

Notes:

1. The funds included in this comparison are the flagship products of the top ten retail providers by superannuation assets under management at 30 June 2012.
2. Total fees include administration and investment fees based on each fund's multi-manager growth option, ie 61-80% growth assets.
3. Fees are at April 2013 and are gross of income tax of 15%. The investment fees include the performance fees for the most recent period over which they were disclosed. Transaction fees have not been included in the comparison.
4. The fees exclude standard commissions paid to financial advisers. The fees for retail funds do not include contribution fees which may be payable in addition to the fees shown above.
5. The minimum initial balance for Macquarie Super Manager is $20,000, so no fees are shown for balances under this amount.
6. The fees for Macquarie Super Manager assume investment in one investment option only. Fees would be higher if more than one option was selected, as the administration fee scale is based on option balance rather than account balance.
7. The insurance offering used for each product are AMP Flexible Lifetime Protection for AMP Flexible Super; AMP Elevate for AMP North; TAL Accelerated Protection for IOOF Pursuit Focus; Futurewise for Macquarie Super Manager; MLC Life Cover for MLC MasterKey Super Fundamentals; OneCare for OnePath OneAnswer Frontier; and the respective group policy option for CFS FirstChoice Wholesale, Perpetual Wealthfocus and Suncorp WealthSmart.
8. Premiums are the stepped premiums in April 2013 and assume the standard level insurance commission applicable for a policy commencing in April 2013. Premiums include policy fees and large cover discounts but exclude any discounts that apply in the early years of a policy. Premiums assume monthly premium payment, any occupation TPD definition, indemnity IP definition and NSW state of residence. BT Protection Plan premiums are those that apply for independent financial advisers.
9. The premium comparison does not take into account differences in features between insurance products.

IMPORTANT INFORMATION

Source: Chant West Pty Limited (www.chantwest.com.au). The Chant West data is based on information provided by third parties that is believed accurate at April 2013. Your objectives, financial situation and needs have not been taken into account by Chant West and you should consider the appropriateness of this information having regard to your objectives, financial situation and needs, and read the relevant Product Disclosure Statement, before making any decisions. Chant West’s Financial Services Guide is available at www.chantwest.com.au.