Life Insurance Blog

Life Insurance Weekly News Roundup

August 13th, 2012 | Posted by Editor in News - (Comments Off on Life Insurance Weekly News Roundup)

Churning: FPA picks holes in FSC plans, fails to rule out clawbacks
FPA CEO Mark Rantall has told Wealth Professional that the FSC shouldn’t penalise financial advisers for acting in their clients’ best interests, but he hasn’t ruled out clawbacks. On the controversial issue of clawbacks, Rantall pointed out that most life insurers already clawback 100% of an adviser’s commission should their client’s policy lapse within 12 months. Whether this provision – and the FSC’s suggested additional 75% clawback for lapses within two years and 50% clawback for lapses within three – are reasonable is another question.

Bidding War for ClearView?
Suncorp Limited (ASX: SUN) is rumoured to be considering a rival bid for ClearView Wealth (ASX: CVW) according to reports in the Australian Financial Review (AFR).

Weekly Life Insurance News Roundup

August 7th, 2012 | Posted by Editor in News - (Comments Off on Weekly Life Insurance News Roundup)

Should conflicted financial advisers be called agents?
If you operate under an institutionally owned dealer group, should you be allowed to call yourself a financial adviser rather than a mere agent? Read on for Paragem managing director Ian Knox’s arguments on the subject.

FSC announces new insurance framework
Financial Services Council (FSC) chief executive John Brogden has announced a new life insurance sales policy revolving around the clawback of commissions if a policy lapses in a certain period.

TAL CEO rejects data indemnities
Australia’s major life insurers need to jointly develop a dictionary of common data terms and descriptors, according to the chief executive of major insurer, TAL Limited, Jim Minto.

Weekly Life Insurance News Roundup

July 30th, 2012 | Posted by Editor in News - (Comments Off on Weekly Life Insurance News Roundup)

Let’s not ignore personal cover
THE National Disability Insurance Scheme is a long-awaited and welcome federal government initiative designed to provide much needed support for those born with or those who later incur a significant disability. Successful passage of this important reform would be significant progress. However, the debate around the NDIS is being framed in a way that largely ignores the broader problem of underinsurance. We believe this represents an opportunity for the life insurance and superannuation industry because by supporting the NDIS we can also raise awareness of the significant protection gap that exists and reinforce the importance of personal insurance.

Fight against new churn regime
Concerns about risk insurance policy churn raised by life insurance companies have presented a challenge for risk-focused dealer groups ever since the topic was publicly debated some years ago.

Weekly Life Insurance News Roundup

July 23rd, 2012 | Posted by Editor in News - (Comments Off on Weekly Life Insurance News Roundup)

Association of Financial Advisers tackles churning
“We congratulate the FSC for inviting industry discussion on current adviser practices and adviser remuneration, and for paving the way towards a bigger picture debate,” he added. When it comes to one of the big issues raised by the FSC Paper, churning, Klipin concedes that the practice does exist, but claims that it is rare “and limited to a few isolated advisers”.

Insurance, superannuation keeps finance recruitment above water
Recruitment in the financial services industry is expected to stabilise over the next 12 months after a year of contraction, according to Michael Page International. According to the survey, stability will be the buzzword in financial services hiring over the next 12 months.

Raiders poised for battle as ClearView rejects bid
THE takeover battle between businesses linked to corporate raider Gary Weiss and his one-time employer, Guinness Peat Group, will be fascinating for the spectacle of Weiss and friends picking apart and outmanoeuvring his alma mater, if not for the outcome of the battle itself.

Weekly Life Insurance News Roundup

July 16th, 2012 | Posted by Editor in News - (Comments Off on Weekly Life Insurance News Roundup)

BT’s life policies to fuel profit
BT Financial Group says growth in life insurance will be second only to superannuation over the next five years as it outlines plans to capture a larger share of Australia’s national wealth pool.

BT flags wealth “land grab”
BT Financial has launched a new aligned dealer brand as part of the group’s broader ambition to grow by securing a larger chunk of superannuation and life insurance assets. The new brand, BT Select, is a business-to-business group targeting multi-partner independent financial adviser practices. The target is 120 practices to be assembled over three years with the key method of recruitment being direct contact.

Life risk insurance defies gloom to post steady growth
In an environment where superannuation and investment funds under management remains stifled, life risk recorded steady growth during 2011, according to new research by DEXX&R.

Life Insurance – Tips and Traps

July 13th, 2012 | Posted by Editor in Articles - (Comments Off on Life Insurance – Tips and Traps)

Life Insurance, Income Protection, Trauma insurance and Total & Permanent Disability insurance (TPD) at some stage could play important role in our lives. If you already have or are in the process of getting some or all of these insurances, the following may be worth considering.

1. Price – Life insurance is generally priced on the products, features and terms of the insurance, the more they offer the more expensive they will be. In this case cheapest is not always the best especially if a claim occurs.

2. Insurance companies actually do pay claims, if they are legitimate and you meet the terms and conditions of the policy and you disclosed correct and accurate information when first taking out the cover.

Weekly Life Insurance News Roundup

July 9th, 2012 | Posted by Editor in News - (Comments Off on Weekly Life Insurance News Roundup)

Restoring the logic to TPD insurance
Col Fullagar suggests that the need for an underlying logic in any risk insurance recommendation, including TPD, is an important component of safe advice. The debate about the merit or otherwise of total and permanent disability (TPD) insurance started when the product was first introduced in the 1970s and it has continued unabated ever since.

Handle churn through dealer groups, don’t target advisers
The Financial Services Council (FSC) should develop standards to force dealer groups and life companies to manage individual advisers churning business rather than punish the entire industry, reveals an opinion survey of independent advisers conducted by Asteron Life.

Life Insurance – What You Need to Know

July 5th, 2012 | Posted by Editor in Articles - (Comments Off on Life Insurance – What You Need to Know)

What is it?

Life insurance is a product used to provide financial compensation to families or business in the event of death or terminal illness.

It is the most commonly known and understood of the range of life insurance products.

The cost of insurance varies due to your age, occupation, health, smoking status and sex.

Income Protection – What You Need to Know

July 5th, 2012 | Posted by Editor in Articles - (Comments Off on Income Protection – What You Need to Know)

What is it?

Income Protection insurance – provides a benefit of generally up to 75% of your taxable earnings if you are unable to work due to illness or injury.

Premiums vary depending on occupation, smoking status and age and are generally tax deductible and benefits received are assessed as income.

Weekly Life Insurance News Roundup

July 2nd, 2012 | Posted by Editor in News - (Comments Off on Weekly Life Insurance News Roundup)

Accountants get green light for AFSLs
The government has finally announced that it is altering exemptions on accountants providing a broader range of financial advice. The minister for financial services and superannuation Bill Shorten announced on the weekend that a new limited Australian Financial Services Licence (AFSL) is expected to see up to 10,000 accountants become licensed and able to increase the range of financial advice they offer.

Ex-Guardian FP adviser pleads guilty
A former Guardian Financial Planning financial adviser has pleaded guilty to falsifying 65 insurance applications between August 2009 and May 2011.