Welcome back!
Scene One – Providing Entity
Hi Wayne! Shaun here from Frost Financial Services, presenting to you your personalised video Statement of Advice on the XX of January 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 as all Scene 1
Scene Two – The Client
Wayne you are currently self employed as a concretor, married to Angela living in Mansfiled Victoria
Ange contacted us via email on 15th january, to source a more affordable Life & Disability Insurance for Wayne. We provided you with a couple of options and you chose to proceed with the quote noted in the SOA
Wayne, you are self employed as a concretor, and are married to Angela, living in Mansfield Victoria.
You have come to me seeking advice to source a more affordable Life and Trauma Insurance policy.
Show Wayne as a 54-year-old caucasian male, and Angela as a similar aged woman. Show Wayne dressed in high vis construction work clothing and wearing a hard hat.
Show an image of Wayne with a Shield to the right of him with label "Insurance" in the shield. Then show a Line Graph with green line going down and y axis labelled "Commissions"
Scene Three – Scope And Goals
To reduce Life & Disability premiums as they are becoming unaffordable with your current Clearview policy
To retain $ 500,000 of Life Insurance
To retain $ 100,000 of Trauma Insurance
To retain $ 3,000 per month of Income protection insurance, with a 30 day waiting period and 5 year benefit period
Wayne, we agreed that this advice will cover Insurance.
We have agreed to review your Life and trauma insurance held with ClearView. Our focus today will be on reducing the premiums, whilst retaining your specified level of cover, amounting to $500,000 for Life, $100,000 for Trauma and $3,000 per month for Income Protection Insurance. Lastly, you have expressed a preference that you would like to maintain a waiting period of 30 days and a benefit period of 5 years for your Income Protection policy.
Scope:
Insurance
Goals:
1. Reduce Premiums
3. Maintain existing benefits
4. Maintain a waiting period of 30 days and benefit period of 5 years for Income Protection Insurance
Scene Four – The Advice
Purchase a new Life & Disability Insurance policy with TAL Life
Your premiums will reduce from $ 767.59 per month to $ 608.55 per month, saving $ 159.04 per month
You will need to be fully underwritten again with the new Insurer and complete an updated personal helath statement
We will allocate $ 93.76 per month (Life cover premium) as a Superannuation contribution.
This will allow this premium to become tax deductible, further reducing the nett cost.
Please ensure that your Concessional contribution cap ($30,000 p.a.) is not breached by this contribution, as otherwise penalty tax may apply.
New Insurer in TAL Life
This is a highly rated insurer in terms of feature, definitions and benefits covered. As such we do not beleive there are any significant benefits lost by using this Insurer.
NIL
If we obtain acceptable terms from TAL Life, we will arrange cancellation of the Clearview policy.
Please do not cancel the Clearview policy until we receive acceptable terms from TAL.
Wayne, my first advice to you is to obtain a new Life and trauma Insurance Policy with T A L, maintaining your existing levels of cover in line with your request. Based on my research your total insurance premiums will amount to $7,302 per year and will result in a total savings of $1,908 per year. Just so that you are aware, this will require your insurance to be underwritten, and therefore, there is a risk your insurance may have exclusions or loadings, and you will need to complete an updated personal health statement.
Our second advice to you is to make contributions into your superannuation account of $1,125 per year, to cover the cost of your Life insurance premiums being deducted from super. Your premium will therefore be tax deductible, and this will reduce the net cost. It is important to note that a concessional contribution cap of $30,000 per year will apply, and that breaching this maximum cap, will result in a tax penalty being applied.
Finally, I would like to note, that replacing your existing Insurance held with T A L will not lead to a significant loss of benefits, and you will continue to hold comprehensive Insurance with a highly rated insurer.
It is important to know, that if we obtain acceptable terms from T A L Life, we will arrange for the cancellation of your existing Insurance policy held with ClearView. Please ensure you do not cancel your current insurance policy, until these terms are received.
1. Show a Life Shield, Trauma Shield and Income Protection Shield with the T A L Life Logo. Also show an image of Wayne's head with a speech bubble with "Same level of cover and terms please".
Show a line graph with a green arrow going down the graph and the word "Premiums" on y axis. Also show a happy face next to the graph and label "$1,908pa per year saved" with a green tick next to it.
Show an image of a doctor holding a clipboard then show label "Exclusions?" and under that "Loading?" in red font.
2. Show an image of Wayne with a blue arrow pointing to a Standard Building, with a label above the arrow of $1,125 per year. Above the blue arrow, label with "FY24/25 - $30,000 CC cap" in red font.
3. Include the following diagram (Replacement Symbol - https://www.iconfinder.com/icons/2579393/change_exchange_replace_replacement_icon), in the first box write ClearView and in the second box write TAL
Show an Insurance Shield with the T A L Logo and a green tick beside this.
Then show an Insurance shield with the ClearView Logo and to the right, write 'Do not cancel, until you receive confirmation from us' in red font.
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 T A L is cheaper than ClearView and OnePath.
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 $4,020. In all future years until you decide to cancel your insurance products, we will continue to receive 22% of your annual premiums amounting to $1,690 from year two and slowly increasing over time.
Please note that these payments we receive are not out of pocket costs to you. These payments are paid by the insurers directly to us.
Put ""$ Upfront"" label and put a red cross over it.
When voiceover is talking about comparison, show the Like-For-Like Comparison image, with a green circle around T A L, and a red circle around both ClearView and OnePath when the voiceover mentions it.
When voiceover is talking about how the adviser gets paid:
Same visuals as Brendon and Katarina video
Scene Six – Disclosures
Right, we have now covered the advice in full and with that, there are a few important points I need to make.
Wayne, 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 since you had declined an insurance needs analysis, our recommendations have been based on the same sums as your existing ClearView Insurance Policy.
Secondly, please note that the advice in this SoA video is intended for you only, as it takes into account your circumstances and therefore no one else should implement this advice.
Then, if you decide to implement the advice, there is a 14-day cooling off period in case you wish to change your mind.
Lastly, 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.
If you have any questions, please let me know. Thank you!
Same Visuals as all Scene Six