CommInsure launches FOFA insurance
CommInsure has launched a new insurance offering to help advisers meet fiduciary duties required under the Future of Financial Advice (FOFA) reforms.
The new “flexi-linking” option allows insurance to be bundled inside and outside of superannuation, giving advisers an additional insurance option for clients worried about the price of premiums.
“With FOFA, it is vital that an adviser is acting in a client’s best interest and we have designed these enhancements with that fiduciary duty in mind,” CommInsure’s general manager of retail advice Tim Browne said.
“Our launch of flexi-linking is anchored in helping advisers develop the most appropriate advice strategies for their clients.”
The enhancements give clients the option to hold Life cover and Total and Permanent Disability (TPD) cover as applicable, inside their super, with lined Trauma and or TPD riders sitting o0utside of super.
Mr Browne said it means clients can fund all of or part of their cover through super or outside of it, providing a more cost effective premium.
“Because rider premiums are on average approximately 15-20 per cent cheaper than stand-alone premiums, with flexi-linking adviser can offer their clients more affordable cover,” Mr Browne said.
“On top of the affordability improvements, clients also have the ability to improve cash flow by having their superannuation fund pay for all or part of their cover, depending upon their individual needs. This makes insurance more affordable and more obtainable.”
As a result of adviser feedback indicating that one of the most difficult cover types to raise with clients is Child Cover, CommInsure have said that clients who have a policy which sits outside of super are able to add this cover type.
Currently, CommInsure are offering first year free child Cover for new clients until the end of the year.
‘Our launch of flexi-linking is anchored in helping adviser develop the most appropriate advice strategies for their clients,” Mr Browne said.
“Child Cove should form part of every client’s risk strategy and we believe free cover will make it easier for advisers to start the conversation.”
Regulators lose again to major institutions
The prudential regulator has been unsuccessful in its attempt to take legal acti...
Sunsuper names new CEO
Industry fund Sunsuper has appointed a new chief executive to lead the fund thr...
Aussie investment banking revenue plunged 27.9%
Activities in Australian investment banking generated US$1.4 billion in the firs...