The Financial Planning Association has launched a new life insurance advice guide in a effort to support its members in offering high-quality risk advice to their clients.
Developed with input from members, the association said the life insurance advice guide has been designed to provide practical guidance on how to apply the FPA Code of Professional Practice with risk advice.
FPA chief executive Mark Rantall said the guide also incorporates elements of ASIC's Life Insurance Advice Checklist - which was released in Report 413 - and represents the best practice principles that all FPA members should apply in this area.
"The recent discussions on the life insurance reforms have largely focused on remuneration, with little emphasis on the consumer and the quality of the actual life insurance advice provided to them," Mr Rantall said.
"The quality of advice is the primary objective of all FPA members when dealing with the financial futures of Australians. For this reason, we have produced this guide to help members identify and address common omissions and errors in the provision of advice relating to life insurance.
"A better advice process, well-structured advice, improved client servicing, and a well-defined value proposition will help build public trust and confidence in life insurance advice, and ultimately the profession as a whole," he said.
The new guide has 10 principles and is divided into eight sections, concluding with a risk advice checklist. The insight offered applies whether risk advice is given as limited or comprehensive advice, the FPA said.
A workshop session at the FPA Professional Congress in November will explore the guide in more detail with members, the association added.
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