ASIC financial adviser exam, Client profiles, life stages and risk question: baby and a large mortgage

ASIC examClient profiles, life stages and risk

Which client need is MOST typical of a couple in their early 30s with a new baby and a large mortgage?

A Transition-to-retirement pensions and downsizer contributions
B Retirement income streams and estate distribution planning
C Maximising concessional super contributions to build retirement savings early
D Income protection and life cover to protect the family if income stops

Show the answer and explanation

Answer: D. Income protection and life cover to protect the family if income stops

Life-cycle frameworks in ASIC's reading list (for example West 2017 on life cycle phases) link young families with high debt to protection needs: income protection, life and TPD cover to repay debt and support dependants. The other needs belong to later stages. Advice must still be based on the clients' own circumstances (Corporations Act 2001 s961B(2)(f)).

Common mistake

Life-cycle stages are starting points, not substitutes for each client's facts.

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