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					                            DONEGAL NEWS
                                                                                                                        WINTER 2009

Inside this issue:
Trauma Claim Paid           1                       Medical Specialist - Trauma Claim Paid
                                                    $500,000 on the 2nd of July 2009
Our Clients Claims for      2   Normally we don’t publicise or discuss our claims with our clients even though we have life insurance
2006 to 2009                    payments made by insurers throughout the year, however I thought it would be a good idea to share
                                this particular claim for one of our male specialist Doctors in his 50’s.

Market Update - Which       3   In April 2008, we reviewed his contracts and upgraded them as part of the review.
way now?
                                The following is a timeline of events:

                                     29th May     - Client diagnosed with cancer;
New Super Rules             3
                                •    5th June     - Phone call to inform us that our client had been diagnosed with cancer;
                                •    11th June    - Meeting with the client to deliver claim forms;
                                •    12th June    - Collected completed claim forms from client, emailed and posted to insurer;
                                •    18th June    - Received treating specialists report, emailed and posted to insurer;
Super Co-Contribution       4   •    19th June    - Claim accepted in-principle by Chief Medical Officer and Head of Claims – referred
Delays                                            to re-insurer late afternoon for approval;
                                •    24th June    - Verbal acceptance of claim from insurer;
                                •    25th June    - Visited client to relay the good news;
Beneficiary Nominations -   4   •    2nd July     - First cheque ($500,000) hand delivered to client at home.
Are you up to date?
                                Of the total payment, the breakdown of benefits were as follows:
                                •    Trauma:               $500,000 lump sum
BT & AFR Masterclass        4   •    Income Protection:    $127,931.75 lump sum (6 months in advance – no waiting period)
                                •    Business Expenses:    $20,000 per month until the client returns to work
                                •    Total                 $647,931.75

                                But wait there's more
                                1.     The client will get $500,000 Life Cover for the rest of his life premium free;
                                2.     As part of the upgrade, the client “Guaranteed” his Income Protection and Business Expenses
                                       which meant the insurer could pay this claim without financials from his accountant –
                                       information which otherwise would have delayed the payment of this claim;
                                3.     The client will retain the Guarantee on his Income Protection and Business Expenses when he
                                       returns to work;
                                4.     12 months from diagnosis (29th May 2010) the client will buy back $500,000 Trauma cover
                                       excluding the claimed condition but he will be covered for all other major traumas.

                                All of the above would not have been possible if the client had not visited us 12 months
                                ago and agreed to upgrade his contracts. The point to stress is that all of our clients, their family,
                                friends and colleagues who have life insurances inside or outside of superannuation should review these
                                contracts, preferably annually. Come and pay us a visit - we would be delighted to assist and provide
                                solutions where possible.
                                As a final point, I’d like to mention the client has over 90% chance of recovery and anticipates he’ll be
                                back to working full-time in 2-3 months but most importantly he has the
                                financial independence to choose.                                                        Hugh O’Donnell

                                 DONEGAL NEWS

Our Clients Claims for 2006 to 2009

PARTICULARS                                                        DATE OF CLAIM                 BENEFIT TO DATE            INSURANCE TYPE *

Male, 50s, Specialist Doctor                                             June 2009                    $657,534.00           TR, IP(o), BE(o)

Female 50s, Doctor                                                      January 2007                   $7,951.00            IP

Male 60s, Specialist Doctor                                            December 2006                  $302,310.00           TPD

Male 60s, Specialist Doctor                                             January 2006                  $899,280.00           L/TPD/TR, IP, BE

Male, 50's, Medical Specialist                                          March 2006                    $441,460.00           TR, IP, BE

Female 30s, Executive                                                   March 2009                     $6,933.00            IP

Male 50s, Lawyer                                                        January 2009                  $126,603.00           L

Male 50s, Lawyer                                                        January 2008                   $10,458.00           IP

Male 50s, Lawyer                                                        January 2007                   $40,309.00           IP

Male 30s, Stockbroker                                                  November 2008                   $30,625.00           IP (o)

Male 50s, Stockbroker                                                  December 2007                   $67,800.00           IP

Male 50s, Stockbroker                                                   March 2007                    $343,080.00           IP(o)

Female 50s, Stockbroker (Financial Planner)                             January 2006                  $926,872.00           IP

Male 40s, Business Manager                                             October 2008                    $15,855.00           IP

Male 40s, IT Professional                                               March 2008                    $719,279.00           L

Male, 30s, IT Professional                                             December 2007                  $312,521.00           L

Female 30s, IT Worker                                                  September 2007                  $26,977.00           IP

Female 30s, Admin                                                      October 2006                   $159,828.00           L

Female 20’s, Admin                                                     September 2008                 $119,633.00           IP (o)

Female 40s, Admin                                                       January 2006                  $393,181.00           L, IP

                                                                           TOTAL =              $5,608,489.00

                                                                             * LEGEND

                                                     L - Life                           TPD – Total and Permanent Disablement

                                                  TR – Trauma                                   IP – Income Protection

                                              BE – Business Expenses                              o– Claim Ongoing

                              DONEGAL NEWS

                                                                                                                              NEW SUPER
           M a r ke t U p d a t e — W h i c h w ay n ow ?                                                                       RULES:
                                                                                                                            Effective 1 July 2009
On March 6 2009, the ASX S&P 200 closed at 3145, it’s lowest level since 13 August 2003. Since then,
            th                                                                  th

the market has risen to over 4000 and now trading around 3800 points.                                          The May budget has delivered
                                                                                                               further changes to our super
Many have questioned whether this represents the beginning of a sustained recovery or if it is a “suckers      system.
rally” before the market returns to its previous lows.                                                         Of major importance are the
                                                                                                               alterations to Concessional
We believe that there is premature optimism at work here and a few key points may have been                    Contribution caps which have
overlooked by some overzealous investors:                                                                      reduced as follows:

• Unemployment is forecast to rise by at least 2% from current levels within the next twelve months;           OVER 55’S
• Major trading partners of Australia (US, Japan and China) are still in either a prolonged recession or       From $100,000 down to $50,000.
substantial reduction in growth and demand; and
                                                                                                               UNDER 55’S
• Whilst credit markets have recovered to an extent, raising finance is still difficult and significantly      From $50,000 down to $25,000.
more costly than in 2007.
                                                                                                               These amounts include any
Australia’s GDP in the latest quarter rose by 0.4% and avoided a technical recession. Nonetheless, this
                                                                                                               contributions made as part of
was strongly influenced by external factors due to our weakened currency, which made our net export
                                                                                                               your regular 9% SG contributions.
position stronger as exports increased and imports decreased. Domestic demand actually fell by 1.0%,
which is the weakest result in 8 years.                                                                        We urge all our clients to review
                                                                                                               their salary sacrifice arrangements,
The Government has marginally boosted retail spending (consumption) with significant cash handouts and         as breaches of the above caps will
also assisted with maintaining housing lending via increased incentives for first home buyers. This has        lead to excessive taxation on the
helped to compensate for the decline in lending by financial institutions and also create stability in house   contributions.
prices (although potentially artificial).
                                                                                                               The Non-Concessional cap on
                                                                                                               contributions will remain at
The main problem is key indicators of confidence and activity in the economy aren’t giving clear direction
of where we are heading and seem to be over-reacting to the positive economic news, no matter how
big, small, good or bad.                                                                                       Also, the Government Co-
                                                                                                               contribution has been temporarily
So where to from here?                                                                                         reduced:

There are arguments either way but we are still maintaining our cautious stance and believe the priority       2009/10 to 2011/12
at the moment should be to preserve capital.                                                                   up to $1 for every $1 contributed
                                                                                                               (i.e. $1,000 maximum Co-
We are not saying that the market will absolutely break through the low of March 2009, however we are          Contribution);
not persuaded that the next golden run has arrived just yet.
                                                                                                               2012/13 to 2013/14
                                                                                           Anthony Isaac       up to $1.25 for every $1
                                                                                                               contributed (i.e. $1,250 maximum

                                                                                                               Eligibility is still subject to the
                                                                                                               lower income threshold which is
                                                                                                               currently $30,342 and tapers out
                                                                                                               for each dollar of income up to a
                                                                                                               maximum income of $60,342.
                                                                                                               These thresholds are subject to
                                                                                                               At this stage, there have been
                                                                                                               no changes to the Transition
                                                                                                               to Retirement (TTR) rules.
                                                                                                               Please contact us on 07 3212
                                                                                                               6111 if you wish to discuss.

                                                                                                                                    Chris Enbom

                               DONEGAL NEWS

            S u p e r C o - C o n t r i b u t i o n D e l ay s
The Australian Tax Office (ATO) has advised that an estimated 200,000 co-contribution payments to superannuation funds were
delayed due to difficulties with the ATO payments systems. They could not be paid prior to the end of the financial year and the ATO
have not specified a payment date. If you have any enquiries, the ATO will place information about the delay on its website at

The ATO has confirmed it will pay interest on the delayed payments at a rate set by the Reserve Bank (currently 3.16% pa).
                                                                                                                            Hassan Moogoey

            B e n e f i c i a r y N o m i n a t i o n s - A re yo u u p t o d a t e ?
Our recent seminar focused part of its attention towards the importance of having a comprehensive and up to date Estate Plan. A key
component of this plan should be the effective use of Beneficiary Nominations for Superannuation and Life insurance.
Beneficiary Nominations allow you to instruct or give direction to the trustees of your fund/policy of how you would like payments made in
the event of your death.
It is important to review these, in conjunction with your wills, if any of the following have occurred:

•   You have a child who has turned 18;
•   You have become a carer or financial supporter of another person;
•   Your relationship or martial situation has changed; or
•   Your assets have changed significantly.
If you need to update your Beneficiary Nomination or any aspect of your current financial situation, please contact us on 07 3212 6111.

                                                                                                                                   Amy Song

              B T & A F R M a s t e rc l a s s - 3 Ye a r s i n a R ow !
For the third year running Anthony Isaac was awarded membership to the exclusive "Master Class" by BT Financial and Australian Financial
Review’s Smart Investor magazine. Certified Financial Planners, members of CPA and the Institute of Chartered Accountants competed in an
examination compiled by academics and industry leaders.
The Top 50 Advisers were listed in the AFR Smart Investor Magazine. The areas of knowledge tested in the exam included financial structures,
tax, superannuation (including self managed super funds), asset allocation, investment strategies and social security.
We congratulate Anthony on his achievement!

                            FINANCIAL PLANNING                   INSURANCE                  SUPERANNUATION

                                                       OUR SUITE OF SERVICES

                                 CORPORATE             CORPORATE             RETIREMENT            INVESTMENT
                              SUPERANNUATION           INSURANCE              PLANNING             PORTFOLIOS

                                   PERSONAL              ESTATE            COMPREHENSIVE          SELF MANAGED
                                  INSURANCE             PLANNING             STRATEGY              SUPER FUNDS

DONEGAL FINANCIAL PLANNING                                                                                                                           AUTUMN SEMINAR

                                                                                                                                             The Queensland
                                                                                                                                               Rugby Club.

                        PROFESSIONAL ADVICE
                         FOR PROFESSIONALS                                                                                                                              Anthony Isaac,
                                                                                                                                                                       Luke Murphy &
                                                                                                                                                                       Hugh O’Donnell.

                                                                                                                                              Hassan Moogoey,
                                                                                                                                             Michael O’Callaghan,
                                                                                                                                              Kevin Vandeleur &
                                                                                                                                                Brad Walker.

  ‘Your referral to friends, family and
colleagues is our greatest compliment’
                                                                                                                                                                           Group Shot.

                                                                                                                                       Hugh O’Donnell           Managing Director
The Silly Side                                                                                                                                                  Dip Fin Serv
                                                                                                                                       Anthony Isaac            CEO
                                                                                                                                                                BAppSc, Dip FP, CFP™
                                                                                                                                       Denise O'Donnell         Director
                                                                                                                                                                Dip Fin Serv
                                                                                                                                       Hassan Moogoey           Financial Planner
                                                                                                                                                                BCom, Mas FP
                                                                                                                                       Chris Enbom              Associate Planner
                                                                                                                                                                BBus, Ad.Dip.FS (FP)
                                                                                                                                       Amy Song                 Associate Planner
                                                                                                                                                                BCom, Mas FP
                                                                                                                                       Tayah McMaster           Administrative Assistant

                                                                                                                                       Street Address           Level 11, 344 Queen Street
                                                                                                                                                                Brisbane QLD 4000
                                                                                                                                       Postal Address           GPO Box 2807
                                                                                                                                                                Brisbane QLD 4001
DISCLAIMER: The information in this document is provided by Donegal Financial Planning Pty Ltd ABN 96 089 846 293,

                                                                                                                                       Phone                    07 3212 6111
Australian Financial Services Licensee No. 230184. This newsletter contains information, including material obtained by third
parties, the accuracy and reliability of which may not have been established by us. Except insofar as liability under any statue is
                                      incapable of being excluded, we give no warranty of accuracy or reliability to any persons
                                      for errors or omissions arising, (including matters arising through negligence by us or any of   Fax                      07 3839 8877
                                      our employees or representatives). Donegal Financial Planning Pty Ltd, its employees, and
                                      their associates may have investments in some of the funds which may be the subject of this
                                      document. Details can be supplied upon request. Any advice given in this document has not
                                      been prepared taking into account your particular investment objectives, financial situation
                                      or needs. You should seek personal financial advice prior to making any decisions.               Website        


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