Advice Services

The Advice Process

We go to a lot of effort to ensure that you receive the best and most appropriate, up-to-date life insurance advice. Even before we meet our team is committed to constantly undertaking development programmes to maintain on ongoing understanding of the legislative environment, economic environment and the range of insurance contracts.  We do this so that when we talk to you about your personal circumstances, we are in the best position to know how these issues will affect you, your family or your business. Advice Preparation is the process that we go through with you to develop the most effective solution. This process involves:

• Collecting data to get an understanding of your situation – we generally achieve this during a face to face interview.
• Working with you to crystalize and quantify your risks
• Establishing a life insurance strategy including funding, ownership of policies and distribution of benefits to ensure the result truly addresses your needs.
• Analysis of tax issues related to your solution and implementation of strategies to minimise the impact of taxation.
• Researching the available products and providers to find the most cost effective solutions.
• Documentation of our recommendations in the form of a Statement of Advice.

Why pay for advice?

Traditionally, many insurance advisers are only paid commission and will try to make the sale of a product as quickly and simply as possible.  This creates a difficulty for the salesman because their only value to you is in the selection and purchase of a product. The most important service to the consumer – you – however, is the process of review and advice.  We engage in a comprehensive fact find, analysis and advice process that provides you with the most appropriate recommendations, in context with your life circumstances.  The advice will be of value to you whether you purchase a product or not. Advice Services are priced according to their complexity and fees are quoted prior to work commencing.

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Implementation

To ensure that your strategy is implemented promptly and accurately we take an extensive hands-on approach.  Our attention to detail and constant monitoring of the process includes:

• Helping you to correctly complete applications
• Prompt lodgement of all applications and secure retention of copies and records
• Liaising with new business departments to ensure successful lodgement and prompt action
• Liaising with underwriters, clients, medical and financial services  to ensure that all the required information to process your application is delivered
• Negotiation, management and advice of acceptance terms or offers on your behalf
• Meeting on completion to explain your policies and the provision of a record keeping file to keep all of your important documents in one place.

The relevant insurer will pay initial commission between 0% and 130% of the first year’s premium. Commissions are paid to us by the product provider and are not a direct cost to you.

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The Process of Ongoing Review

Life is full of change and your situation is no different.  To ensure that your life risk protection plan continues to meet your needs fully, we review it with you at least annually.  This involves:

• Updating your personal and financial details
• Reviewing your strategy and adjusting it as necessary
• Revisiting your levels of cover and policies to ensure that they continue to fully meet your needs

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Personal Services

We offer a full review and planning service incorporating the following cover:

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Business Succession Planning

You have worked hard to build your business, so it makes sense for you to protect yourself against the loss of your premises, inventory, vehicles and equipment; assets that are critical to the day-to-day operation of your business.  What about your human assets?  How would your business survive the loss of an owner or key person due to Death, disability or critical illness. In conjunction with our legal specialists, Bemrose Life can arrange for a structured, funded succession plan to be established to ensure orderly and mutually acceptable business ownership transitions due to the death or permanent disablement of a partner of your business. “Effective Business Succession Planning gives you choice.” The following are some examples of solutions.

Personal Guarantor Insurance

This insurance offers protection for Directors and business people, who have signed guarantees or overdrafts. In particular, it provides protection for your estate against business debts and liabilities or long term leases.

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Asset (Debt) Protection

Asset (Debt) Protection provides your client's business with the ability to satisfy creditors and maintain its credit status through the period that your client is unable to work. Asset (Debt) Protection also protects your client's assets pledged as security for lending. When asked what their most important assets are, most business owners initially think of physical assets. Yes, they are valuable to every business, but it's the intellectual capital provided by the key people that typically makes these assets generate the business' profits.

The Problem

Material things can always be replaced or repaired, but a key person's death or disablement can result in financial loss more disastrous than any loss of, or damage to, physical assets. When a key person dies, or is permanently disabled, they're lost to the business forever, which can create immediate financial problems for the business.

Asset (Debt) Protection

Without the security provided by the key person, the business may be forced to sell assets to maintain cash-flow if creditors press for payment and debtors hold back payment. Customers and suppliers may not feel confident in the trading capacity of the business, and its credit rating could fall if lenders are not prepared to extend credit. Outstanding loans owed by the business to the key person may also be called up for immediate repayment.

The Solution

Asset (Debt) Protection can provide the business with enough cash to preserve its asset base so it can repay debts, free up cash-flow and maintain its credit standing if a business owner or loan guarantor dies or is disabled.

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Revenue Protection (Key Person)

A drop in revenue is often inevitable when a key person is no longer there. This could be someone in your client's organisation who generates significant revenue for their business. Losses may also result: ·     while your client is finding and training a suitable replacement ·     from demand that can't be met ·     from errors of judgement that can happen due to a less experienced replacement, or ·     through the reduced morale of employees.

The Problem

Loss of revenue and replacement costs – if there isn't a suitable replacement within the business, it may take substantial time and financial inducement to find and train a successor, let alone restore any loss of revenue during a very stressful time.

The Solution

Revenue protection can provide your business with enough money to compensate for the loss of revenue and associated replacement costs to replace a key employee or business owner should they die or become disabled.

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Ownership Protection (Business Succession)

What if your number one sales consultant was permanently injured or worse.  Not only do you need to deal with the trauma and interruption to your business, but replacing such an individual can be an expensive process. People don't plan to fail, but they typically fail to plan. This age-old truth has particular relevance to business owners other than husband and wife business co-owners, where the death of an owner can result in the demise of an otherwise viable business simply because of the lack of business succession planning.

The Problem

While the owners are alive, they can at least negotiate a buy-out amongst themselves, for example on an owner's retirement. But what if one of them dies? The remaining owners must now negotiate with the deceased owner's legal personal representative, who may well be more concerned about the needs of the estate rather than the needs of the business. Many business owners mistakenly believe that this contingency has been catered for in the business' constitutional documentation. Often there is no buy-out provision; or if there is, it's usually ineffectually drawn up and inadequately funded.

The Solution

Ownership protection can provide the continuing owners, or their nominee, with sufficient cash for the transfer of the outgoing owner's equity to the continuing owners, if a business owner dies, is disabled or suffers a critical illness.

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Self-Managed Superannuation

Many trustees of their own self-managed superannuation funds either don't understand or neglect insurance within their funds.  Not only do they do themselves and their members a dis-service but may also open themselves up to liability. Bemrose Life can provide you with a review of your life insurance including cover via your Self-Managed Superannuation Fund, nomination of  beneficiaries and alternatives.

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Estate Planning

"Planning your estate is all about making sure the right people get the right amount at the right time."

Having a correctly drafted will is only one part of your estate plan.  Before you have your documents drafted there are a number of issues to consider:

• The distribution of your estate
• Your superannuation entitlements
• Is your estate suitably funded
• What about Tax?
• Who will take over your business?
• Should you have a testamentary trust written into your will?
• Do you have an enduring power of attorney?

Through our alliance with leading estate planning specialists, we can facilitate the preparation and implementation of an effective estate plan.  By establishing your plan before committing to drafting your will and associated documents you can save significant costs.  We also provide the funding solutions for you. “You benefit from the peace of mind that comes with knowing that the right people will get the right amount at the right time.”

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