Welcome back!
Scene One – Providing Entity
Hi Amanda and Chris! Shaun here from Frost Financial Services, presenting to you your personalised video Statement of Advice on the XX of February 2024. 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 as all Scene 1
Scene Two – The Client
Amanda and Chris you are employed as a Pharmacy Technician and Pest controller respectively. You live in the regional city of Clifton Creek and have 3 dependant children.
To obtain Some Life & Disability Insurance for Family protection, as you currently have no Insurance in place
Amanda, you are a Pharmacy Technician, and Chris, you are employed in Pest Control. You both live in the regional city of Clifton Creek and have three dependent children.
You have come to me seeking advice to establish Life and Disability Insurance to ensure that you are both protected, along with your children.
Show Amanda as a 38-year-old Caucasian women and Chris as a 46-year-old Caucasian man, with 3 children.
Show an image of Amanda in a white lab coat holding a box of medicine, and Chris in a chemical HAZMAT suit.
Show the following four images at the same time:
- Life Shield
- TPD Shield
- Trauma Shield
- Income Protection Shield
Scene Three – Scope And Goals
To obtain $ 500,000 of Life & TPD Cover(ANY & OWN Occupation Definition) each
To obtain $ 100,000 of Trauma cover each
To obtain $ 3,208 of Income cover, with a 30 day waiting period and 5 year benefit period (Amanda)
To obtain $ 4,666 of Income cover, with a 30 day waiting period and 5 year benefit period (Chris)
Amanda and Chris, we agreed that this advice will cover Insurance. This will involve me recommending products to you based on quality and cost in line with your specified cover. My focus today will be on ensuring the advice meets your goals to obtain $500,000 of Life and T P D Insurance, $100,000 of Trauma Insurance and Income Protection Insurance of $3,208 per month, and $4,666 per month respectively, with a specified waiting period of 30 days, and a benefit period of 5 Years.
(ANI COMMENT: So the issue here is, as per script checklist rule 6, you cannot be using "our", because Shaun is not plural, it is just him providing the advice)
Scope:
Insurance
Goals
1. Obtain $500k of Life and TPD Insurance
2. Obtain $100k of Trauma Insurance
3. Obtain $3,208pm of IP Insurance for Amanda, with a waiting period of 30 days, and benefit period of 5 years.
4. Obtain $4,666pm of IP Insurance for Chris, with a waiting period of 30 days, and benefit period of 5 years.
Scene Four – The Advice
You currently have no coverage in place and this therefore provides a level of protection for your Family. It also allows for an OWN Occupation TPD rider, to give you the best possible defintion should total permanent disability occur.
The Sum Insured was the minimum level recommended in order to keep premium costs in check
To Purchase $ 100,000 of Trauma cover with NEOS Life (Amanda) and MetLife (Chris)
This covers between up to 1 - 2 times earnings should a critical illness occur. It also provides extra benefits for Chris' MetLife policy and includes a Plus contract for Amanda NEOS policy - both outlined in the attached PDS.
The Sum Insured was the minimum level recommended in order to keep premium costs in check.
To purchase some Income protection of $3,208/month for Amanda with NEOS and $ 4,666/month for Chris with MetLife
This covers up to 70% of your disclosed income, which is the maximum available in the market and is based on an Indemnity contract.
You chose a 5 year benefit period to keep costs in check, meaning a claim would cease after the expiration of this period. An Age 65 benefit period was deemed too expensive, subsequently dismissed and you confirmed you were comfortable with the 5 year period.
We have used your respective Super accounts to fund a portion of the premium, which will benefit from the 15% rollover tax rebate. The non Super component being cash flow funded allows for the Income Protection premiums to be tax deductible.
This improves your cash flow costs, utlising tax benefits to reduce nett costs.
You should consider contributing the Superannuation premiums to your respective Super accounts to negate the erosion on your Super account.
The applicable premiums for Amanda are as follows: $ 1,804.69 p.a. ($ 314.93 p.a. Stepped Premium funded via a rollover from your Super fund & $ 1,489.60* p.a. from personal cash flow). * IP Premium of $1,151.80 per annum is tax deductible.
The applicable premiums for Chris are as follows: $ 3,350.04 p.a. ($ 843.73 p.a. Stepped Premium funded via a rollover from your Super fund & $ 2,506.33* p.a. from personal cash flow). * IP Premium of $1,852.11 per annum is tax deductible.
My first advice to you is to obtain $500,000 of Life and T P D Insurance, with N E O S for Amanda, and with MetLife for Chris. You presently have no insurance in place, and this will therefore provide you with comprehensive insurance for your family. In addition, this will be an OWN Occupation T P D Rider, providing you with the best possible definition, should total permanent disability occur. Please note that the sum insured was the minimum level of insurance recommended in order to keep premium costs down.
My second advice to you is to obtain $100,000 of Trauma insurance, with N E O S for Amanda, and MetLife for Chris. This will provide you with income for 1-2 years, should you suffer a critical illness. Amanda, the recommended policy will provide you with a Plus Contract, and Chris, the recommended policy will provide you with extra benefits too. Please note that the sum insured was the minimum level of insurance recommended in order to keep premium costs down.
Our next advice to you only is to obtain $3,208 per month of Income Protection insurance with N E O S for Amanda, and $4,666 per month of Income Protection insurance with MetLife for Chris. Your insurance coverage will amount to 70% of your income, which is the maximum available in the market and is based on an indemnity contract. Please note that we chose a 5 year benefit period to keep costs down, given you are comfortable with this, and a benefit period of Age 65 was deemed to be too expensive. As such, a claim will cease to be valid after the expiration of the 5 year benefit period.
Our final advice to you is to hold a portion of your insurances via Superannuation and a portion of your insurances via your cash flow. Amanda, $315 of your premiums will be deducted from Super, and $1,490 of your premiums will be deducted from your cash flow. Chris, $844 of your premiums will be deducted from your Super and $2,506 will be deducted from your cashflow. Paying a portion of your premiums via Super will improve your personal cash flow, however, this will also reduce your Superannuation balance. I therefore recommend that you consider making additional contributions to lesson the impact on your superannuation.
In first screen, show TPD shield labelled with NEOS on top and $500k underneath for Amanda, and same thing for Chris - put Amanda's shield on left side and Chris's shield on right side. In the middle, show green tick with label "Own occupation" and again green tick with label "Quality cover and definitions". Then underneath show red exclamation mark (same size as green tick, and same as used in previous video) with label "Minimum level of cover".
In second screen show same setup like first screen. Green tick then "1-2y income covered", green tick then "Quality coverage and benefits", red exclamation mark then "Minimum level of cover".
In third screen, show same setup like first screen. Green tick, then label "70% of income covered", green tick then labbel "indemnity definition", green tick then "5y benefit period"
In final screen, show four shields in the middle then show image of Amanda on left top and Chris on left bottom and superannuation building right top and superannuation building right bottom. Then show arrow towards top right super building labelled $315 then arrow towards Amanda labelled $1,490. Then show arrow towards bottom right super building labelled $844 and then arrow towards Chris labelled $2,506. In next screen, show Cash notes image with arrow next to it pointing up, then show line graph with y-axis labelled "Balance" and red line going down, then show Cash notes with blue arrow pointing to superannuation building with arrow labelled "Contributions".
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 screen, based on a like-for-like comparison of the different insurers we compared, the recommended insurer's N E O S for Amanda, and MetLife for Chris, are significantly cheaper than the alternatives considered.
Amanda and Chris, it is important that you understand how we get paid. Because we recommended N E O S and MetLife products to you, it is N E O S and MetLife who will pay us a commission. In the first year, we will receive from N E O S and MetLife 66% of the annual premiums that you pay, amounting to $1,227 for Amanda and $2,121 for Chris. In all future years until you decide to cancel the N E O S and MetLife products, we will continue to receive 22% of your annual premiums, amounting to $422 for Amanda and $827 for Chris, based on the second year premiums. These are not amounts that you will be charged out of pocket, these amounts are paid by N E O S and MetLife.
Put "$ Upfront" label and put a red cross over it.
Then show the premium comparisons screenshot together on the same screen with label for Amanda and Chris. Circle both NEOS and MetLife with a green circle when voiceover mentions it, then circle the remaining insurance providers in a red circle when the voiceover mentions it.
When voiceover is talking about how the adviser gets paid:
Same as previous insurance videos using Column Grap
For the last sentence of voiceover, show Amanda and Chris standing then show some notes coming out of their pockets and an arrow towards another man standing to represent the adviser Shaun, then put a cross through the arrow and the notes. Then show Super building with NEOS logo, and a Super building with MetLife logo and show the money coming from the building to an arrow towards Shaun - all like previous insurance video.
Scene Six – Disclosures
Amanda and Chris, we have now covered the advice in full and with that, there are a few important points I need to make.
It is important that you are aware, our recommendations have been made based on an Insurance Needs Analysis conducted, which has been provided in your client fact finder.
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.
Secondly, you have 30 days to consider and implement this advice, and if not done within that time, I may need to re-check all the details.
Then, if you decide to implement the advice, there is a 14-day cooling off period in case you wish to change your mind. There are further details about this in the Product Disclosure Statement I emailed you.
Lastly, although N E O S and MetLife are paying me for recommending their product to you, you can be assured that this advice is not conflicted in any way as neither I nor my licensee share any associations with N E O S and MetLife. This advice purely considers your interests only, and is therefore in your best interests.
If you have any questions, let’s discuss at our meeting, including how to proceed forward. See you soon!
Same Visuals as all Scene Six
But the five points to show will be:
1. Advice based on Needs Analysis conducted
Rest of the points are the same as other videos