Generating much reader interest this week was our report on advisers delivering a clear message to their industry peers about what works at the coal face when it comes to finding the right TPD solution for clients, especially during times of heightened cost of living pressures…
TPD products in the Australian market provide good coverage, but significant affordability challenges – especially in recent years – mean it is critical for there to be as much flexibility as possible for advisers to allow them to arrive at an acceptable solution for their client.
This is one of a number of key issues emanating from last month’s TPD Round Table, at which advisers delivered a clear message to their industry peers about what works at the coal face.
Flowing from a conversation about the challenges presented by the emergence of mental health-related TPD claims (see: ‘Normalisation’ of Mental Illness Causing TPD Conflict), the licensee and adviser voices on the TPD Round Table panel offered a very pragmatic view as to how the industry can better support their advice conversations with clients.
In looking at win/win outcomes, the message from advisers to industry was that more options and more flexibility in TPD product offers can make all the difference in finding the compromise needed to ensure the client can obtain the cover they need, based on their individual circumstances.
…graded TPD cover options …might engage better with clients in today’s environment
The example used in the conversation related in part to mental health exclusions, would see a range of solutions offered to clients that may include their ability to opt for a scaled-down cover proposition which may exclude, say, mental health-related and chronic fatigue conditions. The advisers suggested that such graded TPD cover options (eg full cover or cover against a reduced number of events or conditions), which may not normally resonate with prospective policy owners, might engage better with clients in today’s environment where affordability and the general cost of living is at such a heightened level of concern for the consumer.
According to risk specialist adviser and business owner, Guy Mankey, offering the client the ability to select from a range of solutions also reduces the chances of potential future litigation around the recommendation of a specific solution if such options were not available.
The ability, then, to offer a range of different TPD cover options at different price points serves to both broaden the scope for clients to find a workable solution for their circumstances while also allowing the adviser to seek a compromise direction from the client rather than only tabling and recommending a single solution.
Take this link or click the image below to listen to Part 4 of our TPD Round Table, which addresses these issues of affordability and flexibility around the TPD product offer.