How we help our customers

We recently had two clients in a very strained cash flow situations who are paying for life insurance policies for each other via their business.

The existing policies had been open for more than twenty years and one client has developed a high BMI in the meantime, whilst the other underwent a triple bypass. Clients desperately needed cashflow relief without cancelling the policies altogether.

We established that utilising superannuation as a structure to hold, as well as fund the policy, was a possible option. This approach however would mean the beneficiary could not be the business partner and this would need to be addressed in their partnership agreement.  As it turned out the timing of a structural change for the clients was perfect as they were looking to amend their insurance arrangements such that the benefit was directed to spouse / family rather than to each other as part of their partnership.

We investigated a range of options and had our clients pre assessed with four alternative insurance providers as well as their existing provider. In the case of one existing policy, due to the fact the policy was over ten years old we were faced with full reassessment of the clients medical circumstances. Despite some insurability issues we were able to get a borderline standard assessment with the existing insurer which was proved to be the most cost effective offering.

Both clients are insured without a loss or reduction in cover and not only are their policies within the super environment and no longer hurting their pocket, the overall position is also more cost effective than the original.

This also underlines the importance of regularly reviewing your investment and insurance situation to ensure you are both structured the most effectively and laso to ensure you are not holding out dated policies and products.

If you have not reviewed your full financial situation for sometime please give one of our office a call to discuss an obligation free consultation.

Kristen Ham / Financial Planner / Altitude Wealth Solutions Emerald.


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