Frost Financial Planning

27/03/2025

If ever there was an example of the value of financial advice, this article highlights it.
https://www.abc.net.au/news/2025-03-27/default-superannuation-insurance-tpd-income-protection-claims/105075110
I've read lots of these stories in the media over the years.

While the topic is complex, I've never read anything in the articles covering the key point - the difference between Group Insurance and Personal Insurance.

We recommend that clients purchase Personal Insurance policies rather than Group Insurance policies.

Personal Policies
You enter into a contract with the insurer.
You provide extensive details of your health, occupation and pastimes, and they assess this information. This is called Underwriting.
Then they make an informed decision to offer you a policy.
Provided that you pay your premiums on time, the insurer is obliged to continue to provide your policy.
The terms of the policy cannot be altered by the insurer to your detriment.
These policies provide you with the maximum possibility of having a claim paid.
The premiums are typically, but not always, higher than for Group Insurance.

Group Policies
The insurer enters into a contract with an organization like a superannuation fund – not you.
The insurer typically does not undertake much or any underwriting when you apply for a policy.
They will undertake this when you lodge a claim, and you could find out at that point that you were not insured.
The terms of the policy can be changed to your detriment.
The insurer is not obliged to offer you cover in the future.
We feel that these are unacceptable risks for our clients.

A lot of people who have "insurance in their super" are really just paying premiums. They are not adequately insured - as Lyndal Jordan sadly found out.

Determining someone's insurance needs is complex and the only way to do it properly is to seek professional advice. We should all stop pretending that cover determined by a formula by a super fund will ever be adequate. It won't be, no matter how much tinkering we do to the system.

Despite Australians paying almost $7 billion for group insurance within super annually, new research shows more than a quarter aren't aware if they have cover or the details of their policies.

19/03/2025

ASIC, the SMSF Association and others have recently expressed concerns about tele-marketers cold-calling consumers and putting them in touch with financial advisers with a view to having them commence a self-managed super fund. While SMSFs are a great vehicle for some people, they are not right for everyone. Here's a link to one of our most viewed videos on this topic - it runs for under 5 minutes.

https://www.youtube.com/watch?v=pshRNlQ25AM

Some other topics covered by our videos include:

Buying an Investment Property?
Is fiatvisions a scam?
Franking Credits Explained
Should you buy your own shares?

Self-Managed Superannuation Funds are a popular retirement savings vehicle in Australia. While they provide flexibility and control, they are not for everyo...

01/01/2025

Made any exciting New Year's Resolutions? Sticking to them?
Here's a boring but vital thing to do if you haven't already done it. And best to do it before something happens.

Watch this 2 minute video to find out if you should insure your income, and how best to go about it.

02/09/2024

Visit the post for more.

31/08/2024

Voting is now open for the Financial Standard top 50 most influential advisers for 2024. Our own David Smith has made it onto the shortlist and we would invite you to cast your vote via the link below. Voting closes on 8 September.

https://lnkd.in/gDAWypew

16/07/2024

A client who is a business owner recently asked me an intriguing question:
"What's my magic number?"
If you are a business owner and don't want to be working at age 65 because you have to, you need to know your Magic Number.

Don't want to be working in the business at age 65? If not, you need to know your Magic Number.

21/05/2024

If there was ever a time to learn more about your superannuation, it is the end of a financial year. Do you have 3 spare minutes?
https://www.youtube.com/watch?v=8annV1HE2EI

Superannuation in Australia can be complex and frustrating. But if you understand it, you can use it to your advantage. This video shows you how.

26/03/2024

Ever wondered what clients value in a relationship with a financial planner? This 3 minute video shares insights from a comprehensive survey of over 11,000 clients.
Video link
https://youtu.be/mcscZhnYlD0

Ever wondered why people retain the services of a financial planner? The results of this extensive client survey sheds some light on that.

10/03/2024

Is fiatvisions a scam? You be the judge.
https://youtu.be/Ir5OasoiGjU

Is this online trading platform legitimate or dangerous?

28/01/2024

Thinking of buying an investment property? This video might save you some grief. And lots of money.
https://youtu.be/IYmTZCTbOWw

If you have made the decision to purchase an investment property, this video might save you lots of grief - and money. (Whether you should be buying an inve...

13/12/2023

Have you ever wondered what a good financial planner does for their clients? This short video will help.
https://youtu.be/6r6Aj8WtQ8Q

Ever wondered what a good (emphasis on "good") financial planner actually does? This 3 minute vid should help.

20/11/2023

Want to learn some fun facts about superannuation? Here's a quick snapshot.

Visit the post for more.