Welcome back!
Scene One – Providing Entity
Hi Michelle and Anthony! Shaun here from Frost Financial Services, presenting to you your personalised video Statement of Advice on the 17 of April 2025. My authorising licensee and contact details are on the screen now, should you wish to reach out to me at any time. Okay, lets get right into it.
Same
Scene Two – The Client
Michelle & Anthony, you are both self employed via the Concrete inc business located North West of the Melbourne CBD
You would like to consider some options for reducing your Life & Disability Insurance premiums, currently held with NEOS Life. You confirmed that the cover levels in place continue to meet your Life Insurance needs.
You are both in your early 50s and are self-employed via your concreting business in Melbourne, Concrete Inc. You have come to me seeking a reduction in your Life and disability insurance premiums, currently held with N E O S.
Show a middle aged couple standing together holding hands. Then show them wearing construction outfit (vest and hard hat) and next to them show a concrete truck.
Scene Three – Scope And Goals
To Replace $1,106,700 of Life cover for Michelle & $ 1,085,620 for Anthony
To Replace $1,106,700 of TPD cover (ANY & OWN Definition) for Michelle & $ 1,085,620 for Anthony
To Replace $ 5,418 per month of Income Protection cover for Michelle & $ 5,294 per month for Anthony
To maintain a 90 day waiting period and 5 Year benefit period for your Income Protection needs.
You have chosen to to predominantly fund your premiums using Super, to alleviate further cash flow costs.
We agreed that this advice will cover insurance.
Our focus today will be on reducing your life insurance premiums, while maintaining your current levels of cover in line with your preferences. You have also indicated that you wish to hold your insurances predominantly within super.
Scope:
Insurance
Goals:
1. Reduce life insurance premiums
2. Maintain existing benefits
3. Hold insurances within super
Scene Four – The Advice
Purchase Life & TPD Cover with MetLife Australia
This will ensure continuity of cover at the level required
We have not completed an updated needs analysis, as you felt that the levels in place were adequate.
Purchase Income Protection Cover with MetLife Australia
This will ensure your Income is fully protected for accident or illness that stops you from working in your occupation.
You will only be covered for a period of 5 years post claim, as requested, and you need to ensure you would access to sufficient assets to fund loss of income post the 5 year period.
I recommended that you consider some Trauma Insurance.
To cover you against a critical illness event
This has be declined by you both as you did not wish to increase your cash flow costs.
I would also recommend holding the Income Protection personally in order to obtain a tax deduction at your marginal rate.
This has been declined based on the fact you did not wish to increase your cash flow costs.
The applicable premiums for Michelle will be : $ 2,677.24 p.a. ($2,148.67 p.a. Funded via a Super rollover + $ 528.57 p.a. Funded from cash flow)
This will provide a potential saving of $ 1,066.65 p.a. over the current NEOS premiums.
The applicable premiums for Anthony will be :$ 7,658.25 p.a. ($6,408.08 p.a. Funded via a Super rollover + $ 1,250.17 p.a. Funded from cash flow)
This will provide a potential saving of $ $ 2,115.40 p.a. over the current NEOS premiums.
My first advice to you both is to replace your existing life, T P D and income protection insurances that you hold with N E O S, to new policies with Metlife. I recommend that you retain the same levels of cover as your previous insurances. With Metlife, your total annual premiums will be $2,677 for Michelle and $7,658 for Anthony, resulting in an overall annual premium saving of $1,067 for Michelle and $2,115 for Anthony. Please note that your income protection policy will have a benefit period of 5 years, meaning that you will need to have sufficient savings after this period in the event you have an accident that stops you from working.
My second advice is for both of you to take out trauma insurances. This would mean you have the full suite of life insurance coverage and specifically, will receive a payout to cover medical costs in the event of a trauma claim. However, I note that you have declined this strategy as you did not wish to increase your insurance premiums via cash flow.
My final advice is to hold the income protection personally in your own names. Doing so will result in tax benefits and more control over the benefit payout in the event of a claim. However, I note that you have declined this strategy as you do not wish to adversely impact your personal cash flows.
Show Life, TPD and IP shields along the middle of the screen evenly spaced. Show NEOS label above each one (show together), then show red cross over all of them (show together), then show Metlife logo above each one (show together). Then show small picture of Michelle on left and next to her and under each shield, show label $1,106,700 under Life shield, $1,106,700 under TPD shield and $5,418pm under IP shield in same row. Then under this row, show Anthony's face and show same thing, but $1,085,620 for life, $1,085,620 for TPD and $5,294pm for IP. Then at the very bottom, show red exclamation mark with label "Income protection insurance benefit is only for a period of 5 years".
Show trauma shield on left side of screen, then show image of hospital and medicine tablets. Then underneath in middle, show red exclamation mark and label "You declined this"
Show IP shield in middle and Michelle on left and Anthony on right and blue arrow from shield to each person. Then show green dollar sign next to each person. Then on bottom middle, show red exclamation mark with label "You declined this".
Scene Five – Fees And Costs
Product fees
Okay, this section is full of good news. First of all, you do not have to pay any upfront fees to us for preparing this advice for you. Secondly, as you can see on the tables below, based on a like for like comparison of the different insurers we compared, the annual premiums you wil be paying for the recommended insurer MetLife is cheaper than other comparable insurers on the market.
It is important that you understand how we get paid. In the first year, we will receive 66% of the annual premiums that you pay, amounting to $2,031 for Michelle and $5,480 for Anthony. In all future years until you decide to cancel your insurance products, we will continue to receive 22% of your annual premiums amounting to $838 for Michelle and $2,290 for Anthony from year two and slowly increasing over time. Please note that these payments we receive are not out of pocket costs to you. These payments are paid by the insurers directly to us.
Same as other Shaun video visuals (use Amanda and Chris - 20250206005 or James and Shanley - 20250221005)
Scene Six – Disclosures
Okay, we have now covered the advice in full and with that, there are a few important points I need to make. Please be aware that we have based our cover recommendations on the 2025 renewal notices and Sums insured, as a Needs analysis was declined as you confirmed the sums were adequate for your needs.
Secondly, please note that the advice in this video is intended for you only, as it takes into account your circumstances and therefore no one else should implement this advice.
If you decide to implement the advice, there is a 14-day cooling off period in case you wish to change your mind.
Although I receive insurance commissions for recommending you the insurance products, you can be assured that these commissions have not resulted in my advice to you being conflicted. This advice purely considers your interests only, and is therefore in your best interests.
Lastly, the advice in this video is valid for 30 days only from the provision of this advice.
Michelle and Anthony, this advice purely considers your interests only, and is therefore in your best interests. Please sign the authority to proceed if you wish to proceed with my advice. Otherwise, if you have any questions, please let me know. Thank you!
Same as previous Shaun videos