POWERED BY MOMENTUM MEDIA
Rebate commissions to build trust
Insurance advisers who can provide rebated commissions to clients are engaging in a trust building exercise, according to Omniwealth.
The non-aligned wealth advisory group said after clients had been flogged with a suite of insurance products, income protection was often the first policy clients thought they could do without.
Omniwealth senior financial planner, Andrew Zbik, said only 31 per cent of Australians had income protection insurance, and added it should be part of a greater strategy rather than just a product.
"Using a fee-for-service model that can rebate commissions takes out the sales factor for clients. Quite often I find when clients are giving a suite of insurances I think that's the complexity of that too," he said.
"By the time you throw in death, TPD [total and permanent disability], trauma, and income protection, the clients have been flogged with a suite of products.
"When I state to the client I earn no income from this and it would be negligent for me to create a greater financial strategy for them without protecting their income producing asset they understand it's one small piece of the jigsaw."
He said to ensure a client could completely replace their income if they could not work for months due to injury or illness, they needed to spend three to five per cent of their income to protect themselves.
"When we show clients that relative equation all of a sudden cost isn't an issue," he said.
"So as we know income protection covers you for 75 per cent of your income and that's where we need a suite of trauma or TPD for the gap and the lump sum policies will discharge debt.
"Clients can then see how those policies interact with each other in a situation where we've replaced 100 per cent of their income and all of a sudden cost isn't an issue."
Recommended for you
The insurance company has joined this year’s awards as a principal partner.
The $135 billion fund has transitioned away from TAL Life Insurance following an “extensive tender process”.
The $80 billion fund is facing legal action over allegedly signing up new members to income protection insurance by default without active member consent.
In a Senate submission, the Financial Services Council has once again called for further clarification that the government will assess the consumer outcomes of group insurance against the enshrined objective of superannuation.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
93.34 3 y p.a(%)
2
Global X GlobalX FANG+ ETF
36.96 3 y p.a(%)
3
GAM LSA Private Shares AU I
34.22 3 y p.a(%)
4
VanEck Video Gaming and eSports ETF (AU)
28.89 3 y p.a(%)
5
Plato Global Alpha A
28.83 3 y p.a(%)
