Demystifing Financial Planning Series by Ciaran Davis

April 15, 2014
Maureen Johnson

Our Clients Can Relax Any Day of the Week

Recent research by the AFA indicates that many Australians have no idea what a financial planner actually does. Over the next few months I hope to clarify my role in a series of blogs beginning with what I can do when you decide you need protection.

While it’s true that Australia continues to have an underinsurance problem, the 2013 AFA white paper “The Value of Protection” looks in some detail at consumer views of protection among those who are advised.

Researchers posed the question, why did you first take out personal insurance?

Responses indicated four main triggers:

Trigger 1. Starting a family or having young children – 62%

• “Having kids and we felt we needed to be covered in case anything happened.”

• “Purely for my family. I wanted to make sure they were provided for.“

• “It was family security, to protect my kids. I would never have taken it out if I was single. 
Now I think completely differently.”

Trigger 2. Mortgage and High Debt – 46%

• “Having our first child made us start thinking about it. Then we got a mortgage and fell pregnant with our second child and decided to act.”

• “Getting into debt with the mortgage.”

• “We bought a house so we figured that we needed to be protected.”                     

Trigger 3. Knowing someone who had an accident or died. -23%

• “There was a sudden death in our family. My cousin died and had a wife and two children. He had life insurance. We were already aware that we needed to do it and had been thinking about doing it for some time. “

• “The husband of a lady we were working with fell off a roof and he was covered. This was a wake-up call.”

Trigger 4. Part of employment package – 15%

• “It was part of my employment package.”

• “I got it through work. “

These reasons are typical for our clients at Mortgage Choice at Sutherland. That’s why it’s my job to stress test the numbers involved in what is likely to be the biggest spend of our clients' lives. At the end of that process our clients understand that their largest financial asset is not their new property, but the incomes that enable them to hold on to it for their families.  With advice given on income protection and life insurances our clients leave with peace of mind, ready to enjoy their purchases to the full. They can relax any day of the week.

If you find yourself relating to one of these trigger factors and want to know more, call me on 9521 1611 or email




Posted in: Financial planning

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