Getting advice

Why do I need financial advice on life insurance?

Life insurance is a very personal product. There’s only one of you. And your cover needs to be tailored to your circumstances, and your budget.

The amount of cover you need, and the types of cover you need, can vary greatly depending on your individual circumstances.

Besides, not all insurance policies are created equal – some have additional, and included, benefits and features.

An adviser can also help you make your insurance more affordable by recommending strategies including:

taking advantage of the tax-effectiveness of insurance inside super
combining your cover with a family member to reduce your premiums
choosing the right combination of benefits and extra options.

By looking at your income, your debts, and your family’s circumstances, a financial adviser can help you get the right cover – and the right structure – to meet your needs and your budget.

How does the financial advice process work?

Once you’ve been put in touch with a qualified financial adviser in your area, they will contact you to arrange a time to meet.

This is what normally happens next:

Step 1

You meet with an adviser, and they give you their Financial Services Guide (FSG).

Step 2

Your adviser gets to know you and your circumstances – including income, debt levels, medical history.

Step 3

Your adviser presents you with a Statement of Advice – incorporating their recommendations and the expected costs.

Step 4

You decide whether or not to apply for life insurance.

What does a Financial Services Guide (FSG) tell you?

A Financial Services Guide – or FSG – is a document that a financial planner is required to give you when you first meet with them. It gives you information about the advice process and outlines their experience and credentials, including:

whether the financial planner is licensed
who they work for
how they will charge you
the range of services they offer
their associations with investment companies
what to do if you have a complaint.

What does a Statement of Advice tell you?

A Statement of Advice is a document that an adviser is required to give you when it comes to recommending an insurance solution to meet your individual needs. It provides detailed information on:

the advice they’ve provided
the information it’s based on
how they get paid
any interests, associations or relationships they hold that could have influenced their advice to you.

This is general advice and does not take into account your objectives, financial situation or needs. Before acting on this general advice you should consider the Product Disclosure Statement and the appropriateness of the advice having regard to your situation and consult your financial adviser.

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