CommInsure has made a call for a renewed focus on estate planning as an essential element in the advice process.
In its latest ‘Strategy’ series release, CommInsure addresses the issue of estate planning, contending that a number of social and demographic factors are contributing to the growing need for advice in this area. These factors include:
- Australia’s increasingly aging population
- The increasing trend in marriage breakdowns and ‘blended’ families
- Rising levels of non real estate assets
CommInsure’s National Technical Manager, Alex Koodrin, suggests that these social and demographic factors frequently include a need for life insurance and for the appropriate ownership structure of assets to be considered.
In the Strategy document, Mr Koodrin outlines the difference between estate and non-estate assets and considers a number of factors in more detail. He also presents a separation/divorce case study that highlights the potential exposure of the adviser to litigation due to lack of estate planning recommendations or advice.
The article summary encapsulates the issue well:
Estate planning, of which life insurance advice is a vital component, is becoming increasingly important due to changes in Australia’s socioeconomic structures and directions.
Life insurance, as well as superannuation death benefits, may either be an estate or non-estate asset, depending on the specific needs and objectives of clients.
Advisers should immediately address their clients’ estate planning needs in view of changed circumstances, such as separation or divorce.
Advisers wishing to access the full article can take the following link: Comminsure ‘Strategy’ Series - Estate Planning and Life Insurance
