Version 3.2
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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Should you require assistance with 
                                                                                                                                                                                                                                                                                                                                 Lump Sum Income Replacement Calculator                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        this calculator email tece@aia.com 
                                                       What is this calculator designed to do?  
                                                       When providing risk advice, there is often a need to bundle in lump sum TPD and Crisis cover alongside an income protection policy to provide additional capital protection in the event the client’s temporary disablement evolves into more of an 
                                                       enduring permanent illness.  This has become ever-so important especially with the more restrictive terms and conditions built into the current on-sale income protection policies.  
                                                       This calculator quantifies the net present value (NPV) of capital, or TPD sum insured required today, in order to provide an income stream based on a set of parameters.  
                                                       For example, the needs analysis may have identified a requirement to provide the client with a gross income stream of $60,000 pa, payable monthly, indexed at 3% pa for 25 years with an assumed annual return of 5% pa net of fees and tax, 
                                                       should they suffer from a permanent illess.  When inputting these variables into the calculator, a NPV TPD capital sum insured of $1.176M would be required.   If the needs analysis has also identified a requirement for the TPD cover to also 
                                                       expunge $500,000 debt, then the NPV figure of $1.176m would be increased by say $550K (grossed up for super taxes - see the TECE Super Life & TPD Tax Calculator) to arrive at a total TPD sum insured of $1,726M.
                                                               Variables                                                                                                                                                                     Edit                                                                                                                                                            Monthly Payments                                                                                                                                                                                                                                               Quarterly Payments                                                                                                                                                                                                                                                   Annual Payments
                                                               Expected Annual Benefit                                                                                                                               $60,000                                                                                                                   Number of Payment Periods                                                                                                                        300                                                                                                             Number of Payment Periods                                                                                                                        100                                                                                                              Number of Payment Periods                                                                                                                       25
                                                               Benefit Indexation (p.a.)                                                                                                                             3.00%                                                                                                                     Rate of Return Per Period                                                                                                                        0.41%                                                                                                           Rate of Return Per Period                                                                                                                        1.23%                                                                                                            Rate of Return Per Period                                                                                                                       5.00%
                                                               Years of Benefit Payments                                                                                                                             25                                                                                                                        Initial Benefit Payment                                                                                                                          $5,000.00                                                                                                       Initial Benefit Payment                                                                                                                          $15,000.00                                                                                                       Initial Benefit Payment                                                                                                                         $60,000.00
                                                               Rate of Return (p.a.)                                                                                                                                 5.00%                                                                                                                     Capital Required                                                                                                                                 $1,175,886.81                                                                                                   Capital Required                                                                                                                                 $1,180,671.01                                                                                                    Capital Required                                                                                                                                $1,202,359.96
                                                     Disclaimer:
                                                     This calculator is intended as a guide only and is not for wider distribution. It does not constitute an offer of insurance. The information provided by this calculator is an estimate and is not intended to be a recommendation or an opinion about a financial product and is not 
                                                     intended to influence a person to acquire any financial product. Any final amount calculated or offered shall be calculated by an Insurance Underwriter of AIA Australia Limited. Any such offer shall be valid when made in conjunction with a fully completed application form, 
                                                     and any other information which may be requested prior to any offer being made. We recommend that you consider the * Product Disclosure Statement before considering whether a benefit under a *Product Plan should be acquired or continue to be held by a person. The 
                                                     normal terms and conditions as explained in the * Product Disclosure Statement apply to these calculations, unless otherwise specified by AIA Australia Limited ABN 79 004 837 861 AFSL 230043. [Where appropriate, include any assumptions as well as any limitations and 
                                                     the impact of the limitations] This calculator is designed to be used by financial advisers and is not for wider distribution. Advisers should exercise their own professional judgement in determining whether this calculator and its output is appropriate for use in their business 
                                                     and with their clients. Advisers remain responsible for determining and adhering to their own obligations, including preparing and giving their clients information and advice in accordance with applicable laws and their licensee's requirements. This calculator is intended for 
                                                     illustrative purposes only and does not constitute an offer of insurance. To apply for cover, a person needs to submit a fully completed application form and provide any other information that AIA Australia requires. This calculator does not constitute a recommendation or 
                                                     statement of opinion about insurance and is not intended to influence a person to acquire any insurance or other financial product. To the maximum extent permitted by law, AIA Australia takes no responsibility for reliance by any person on the information in or relating to this 
                                                     document (including the calculator). This information is general information only and does not consider factors like objectives, financial situations or needs of any individual and is not intended to be financial, legal, tax, accounting, or other advice. Before acting on the 
                                                     information, you should consider the appropriateness of this information having regard to such factors and the relevant Product Disclosure Statement (available at aia.com.au). No impact on you resulting from the use of the calculator is guaranteed. It cannot, and does not 
                                                     try to predict actual insurance benefits, as these are subject to the policy features selected by the customer, the operation of policy terms and conditions (including permissible changes to those terms and conditions) as well as changes to the customer's circumstances, 
                                                     investment earnings, tax, inflation, and applicable law. 
                                                     Copyright © 2022 AIA Australia Limited (ABN 79 004 837 861 AFSL 230043). All rights reserved.
                                                     Assumptions/notes  - 
                                                     Interest is applied prior to each payment however is not applied to the total balance prior to the first payment of the income stream. 
                          #[AIA - CONFIDENTIAL]