The VALUE of seeking ADVICE & the importance of regular REVIEWS with your ADVISOR
Trauma Insurance Claim highlights the Importance of regular REVIEWS = Payout was $34,200
Bob and Sarah had been to see a financial planner many years ago and had implemented some personal insurance cover when they took out a loan for their new home. Specifically, they had implemented Life, Total and Permanent Disability and Trauma cover. However, since the initial transaction Bob and Sarah had very little interaction with their existing adviser.
Given that Bob and Sarah were existing Empower Wealth Broking clients I gave them a call just to touch base and organise a review of their situation. Upon review, it was established that they had some cover in place. Naturally, I asked if there had been any changes in health. Bob mentioned that there had been no major changes but he did have a small melanoma cut out, which he did not think much of given it was such a minor operation.
With Bob’s approval, I submitted a claim to the insurance company. Fortunately the trauma policy that was in place allowed for a partial payment. After reviewing the medical reports the insurance company agreed to pay and I was happy to provide a cheque to the client for $34,200.
Imagine, deciding to take up my offer of an initial review and having an outcome of a $34,200 payment, especially when the client had no idea they could even make a claim on their policy. A truly pleasing result.
(Note: Client names have been changed for privacy reasons).
Tax & Redundancy ADVICE = Actual tax saving of $16,800
Fred, an existing client for a number of years, was informed earlier this year that his role at the company was no longer required and that he would finish up with the company he had been working with for over 15 years in September. Knowing this we planned a strategy to minimise the likely tax on his final payment – which included his leave entitlements and bonuses.
When the time finally came Fred emailed me his final pay slip and asked if I could double check the final figures to determine if it was correct. I immediately called him back and told him that he needed to speak to the company accountant/payroll as the tax that was applied had not allowed for concessions that Fred was entitled to. Providing the accountant with my estimates the tax was adjusted to incorporate the concessions and his final tax bill reduced from $27,000 to $10,200 saving the client $16,800.
A quick email from the client ensured that $90,800 was deposited into his bank account the following week, instead of the original amount of $74,000.
Our initial planning also paid off, as Fred was able to save a further $6,100 in taxes that would have been paid on his normal PAYG income as well.
A totally satisfying outcome in ensuring my clients got the benefits they were entitled to and a friendly reminder to all of the benefits of having a professional advisor in your corner.
(Note: Client names have been changed for privacy reasons).
