Insurance options for wary clients

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Advisers can now help cautious clients fund some of their insurance cover via super, and some outside super.

CommInsure has enhanced flexi-linking in an attempt to make insurance more affordable. General manager of Retail Advice Tim Browne said clients could hold life cover and Total and Permanent Disability (TPD) cover, as applicable, inside their super, with linked Trauma and/or TPD riders sitting outside of super.

“On top of the affordability improvement, 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.”

He said the timing of the launch of flexi-linking was critical, as it coincided with the arrival of the new Future of Financial Advice (FOFA) legislation.

“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,” he said.

Clients who have a policy which sits outside super, can also add child cover. Browne said after speaking with advisers, one of the most difficult cover types to rise with clients is child cover.

“At CommInsure we want to make this conversation easier for advisers and clients,” he said. “We are running a campaign offering first year free Child Cover for new clients. This offer will be available up to 31 December 2013.”

He said child cover can provide up to $250,000 in benefits, and when the child turns 18, the cover can be converted to an adult life and trauma policy.