A partnership between Asteron and Colonial First State (CFS) means clients will be able to continue to pay for life insurance through their superannuation, even if Future of Financial Advice (FOFA) reforms are passed.
A range of Asteron life products will be available through the CFS FirstChoice platform, allowing clients to pay upfront or stepped commissions, or draw on their accumulated benefit to pay the advice fees, according to Asteron executive general manager Jordan Hawke.
Despite the proposed ban on risk commissions through superannuation outlined in the Government’s FOFA reforms, clients will still need advice and the trend for insurance to be taken out through super will continue, he said.
“As a life risk specialist, this partnership allows us to complete our offer for both risk and wealth advisers who wish to write retail insurance through platforms,” he said.
The deal allows clients to draw on their super account to pay for the insurance and Asteron then sends a notice to CFS each month outlining the accounts that have been drawn on.
The facility of paying through an accumulated benefit has always been an option in the marketplace, but Asteron haven’t had a master trust to do that with previously, he said.
As a manufacturer Asteron will need to work out how advisers will continue to get paid for providing advice if proposed FOFA reforms are passed, Hawke said.
“We’ll work with FirstChoice to ensure clients still get good advice and access to a good product and we’ll make sure that adviser gets paid in some shape or form.”
