CLIENT SOLUTIONS
Each Case outlines the individual client’s GOALS & OBJECTIVES, along with the SOLUTIONS provided by BDM.
Retirement Plan * Home Loan * Life Insurance * Superannuation
In each case, part of our initial discussion is to establish an understanding of the clients current financial position.
To ascertain “J&J” intentions for the future, we need to complete a Fact Finder.
Goals and Objectives from fact finder:
- We discussed their intentions to retire in the next 18 months to 4 years.
- Build a new home and increasing their current liabilities by $400,000.
- Review the asset division between their company, discretionary trust and joint names.
- Evaluate their division 7a Loan against their company to the value of $200,000+.
- Review the worthiness of joint directors and shareholders of their company.
- Review the family home and investment property portfolio.
“J&J” were nearing retirement so it was essential to consider their forthcoming retirement and how best to boost their superannuation balance. As a result of the information contained in the Fact Finder (Assets, Liabilities, Objectives and Goals) we were able to propose a restructuring of ownership of certain entities and assets, combined with a change to how the income from these entities were distributed.
We worked with “J&J” to allow them to maximise their contribution to superannuation and to minimise their tax liabilities. The sale of one of their properties was proposed to enable a sizable non-concessional contribution to superannuation, to enable them to take advantage of the tax free earning environment within a pension fund.
We restructured their lending, to ensure the relevant debt to each individual and entity was clearly defined and in turn provided them with very sharp interest rates. This allowed a clear paper trail of the debt associated with their new home, investment property and business structures.
As part of their contingency planning we reviewed their Income Protection, Trauma, Life and TPD (Total and Permanent Disability) cover, by reducing some of their cover and altering other policies. “J&J” implemented 13 of the 14 points, we proposed.
Self Managed Super Fund * Commercial Property * Investment Loans * Asset Protection
In each case, part of our initial discussion is to establish an understanding of the clients current financial position.
To ascertain “D&S” intentions for the future, we need to complete a Fact Finder.
Goals and Objectives from fact finder:
- Benefits and liabilities of a Self-Managed Superannuation Fund (SMSF).
- Purchase new business premises through their SMSF.
- Increasing their superannuation funds to have sufficient funds for a 35% deposit of the commercial property.
- Increase their Superannuation in the most tax effective way.
- Review the loan and structure of the Investment Property and Family home.
- Establish a contingency plan to protect their assets and future income in the event of a sickness or accident.
“D&S” had established a Self-Managed Superannuation Fund through their accountant, to purchase a commercial property for their business, we then developed the strategy and loan structure in order purchase their business premises through their SMSF.
In addition, we helped them navigate through the complex rules and regulations relating to superannuation contributions and investments. We devised a strategy to utilise their business equity and restructure their mortgage facilities with a new bank to achieve the most tax efficient outcome. This strategy was outlined to their accountant to ensure it was tax compliant and in the client’s best interest. Upon acceptance we arranged their home loan, investment loan and commercial loan for their SMSF, achieving competitive interest rates and an ideal loan structure.
As part of their contingency planning we arranged “D&S” to set up their income protection, trauma, life and total and permanent disability cover, as a result of their substantial debt increase. This means that the client can have peace of mind that their investments for the future are safe.
Self Managed Super Fund * Investment Property * Estate Planning * Life Insurance
In each case, part of our initial discussion is to establish an understanding of the clients current financial position.
To ascertain “S&C” intentions for the future, we need to complete a Fact Finder.
Goals and Objectives from fact finder:
- Establish a Self-Managed Superannuation Fund (SMSF).
- Evaluate the benefits and issues with a SMSF.
- Protecting her income and assets in the event of an illness or injury or death.
- Review her Estate Planning and review the contingency planning required to address the needs of a disabled child.
- Protect her assets against potential liability claims from their business, investments and extended family.
It was important “S&C” understood the rules and regulations regarding Self-Managed Superannuation Funds. We worked together with her accountant to ensure that she understood all of the responsibilities of being a Trustee.
We explained to her what options she had for investing within the SMSF and assisted her by providing an investment strategy to meet her objections. We discussed her assets outlined in the Fact Finder and how a Will applies to these assets, plus we outlined her wishes regarding her beneficiaries and disabled child. We provided her sufficient information and documentation to see a solicitor to draw up her Will according to her wishes.
Our contingency and estate planning strategy was review “S&C” life insurance policies to ensure her assets are protected in the event an accident, sickness, disability or death. The measures were made to ensure her disabled child was cared for now and into the future.
Divorce Proceedings * Home & Investment Loans * Buying New Home * Life Insurance
In each case, part of our initial discussion is to establish an understanding of the clients current financial position.
To ascertain “CO” intentions for the future, we need to complete a Fact Finder.
Goals and Objectives from fact finder:
- Buying a new home.
- Propose a Property Settlement for his impending divorce.
- Wish to retain his 2 investment property from the settlement.
- Review loan and structure for investment properties.
- Protecting his income and assets in the event of an illness or injury.
- Review his Estate Planning needs and protection for his remaining children.
- Review his superannuation and establish a new investment portfolio.
We worked with the client to create a list of assets and liabilities and then proposed an asset split to “CO” and his solicitor, that enabled him to retain his investment property and purchase a new home with a 20% deposit. “CO” former wife accepted the proposal, as she still received the same amount of assets, just in a slightly different arrangement.
After nearly a year of uncertainty, Orders were prepared and signed by the parties. We arranged the mortgage/loans for each property and enabled the property settlement to finalise. Using the information from the Fact Finder, we discussed whether or not a Will has authority of these assets, plus outlining his wishes regarding his beneficiaries, which were solely his children, in this case. From the information obtained in our discussion we prepared a documentation for “CO” to take to his solicitor. This prepared “CO“ for his meeting and gave his solicitor specific information to draw up “CO” will in according with his wishes.
As part of their contingency planning we arranged “CO” to set up their income protection, trauma, life and total and permanent disability cover, as a result of their substantial debt increase. This means that the client can have peace of mind that their investments for the future are safe.
We reviewed his superannuation policy and made sure that his investment portfolio was in line with his risk profile to enable him to achieve a suitable market risk return.
INCOME PROTECTION under SUPERANNUATION
Is your Income Protection plan under Superannuation, then you should consider the following potential ’RISKS’:
Please consider the following RISKS under superannuation:
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- Income Protection is only tax deductible to a maximum of 15%.
• Outside of Superannuation these premiums are fully tax deductible to your marginal tax rate of 19% to 45%. - Income Protection is generally not transferable from one super to another.
- Claims are generally limited to 2 years before benefit payments stop.
- If your insurance policy is not fully underwritten, then you have a greater chance of your claim being DENIED.
- Work/Industry claims are determined under the definition of temporary incapacity. Therefore your first payment is only made after you have exhausted all your sick and holiday leave. In addition, you need to have ceased all work, as a result of your sickness or accident and are not expected to return to work, before your waiting period in your policy has expired.• If judged to be permanently incapacitated (not expected to return to work again), then your ongoing payments will cease before your 2 year benefit period has expired. Why, because incapacity status has changed.
- Income Protection is only tax deductible to a maximum of 15%.
- Policy definitions under Superannuation are restricted by the SIS Act.• Under SIS your income is determined at the time (day) of disablement
• This is not the case with policies outside of Superannuation. - Your claim may not be paid for a pre-existing health condition, even though you were unaware of the condition when the policy commenced.
- Under super your policy is an indemnity contract rather than Agreed Value.
• Meaning you may not be paid your full monthly benefit on claim.
Please Take Note:
* Your policy is a contract between you and the insurer. The terms of the contract determine whether your claim will be successful or not.
– So let’s not leave this to chance.
** Medical Insurance is not Income Protection, Medical Insurance does not provide you an “Ongoing Income” to cover your living expenses.
Irrespective of whether you DO or DON’T have Income Protection, please CONTACT US today for a review:
INCOME PROTECTION CASES
The cases below are circumstances where clients “claimed“ against their Income Protection policy.
Dennis’s story: Income Protection, Major Depression, Paid $10,000 / Month
Who is Dennis?
Dennis is a 48 year old self employed real-estate agent. He is recently divorced and has two adult children.
What happened to Dennis?
Following a number of negative episodes, Dennis was diagnosed with a major depressive disorder and was unable to continue working. When Dennis started his business many years ago, he had the forethought to see a financial adviser who guided him through taking out a range of insurance cover, which he continued to maintain. Under his Income Protection policy, he was able to make a claim so that he could cover the bills while he was unable to work.
Where is Dennis Now?
The Medical Services team approached Dennis to see if he would be interested in assistance with returning to work. Dennis was keen to embark on the road to recovery, so they engaged a rehabilitation consultant with a background in psychology to help. The consultant developed a return to work plan in consultation with Dennis and his psychiatrist, and Dennis has since returned to part time work.
Irrespective of whether you DO or DON’T have Income Protection, please CONTACT US today for a review:
Without the professional assistance of our Life Insurance Broker, these claims may not have been successful.
* Provided by TAL in 2017
Fiona’s Story: Chronic Fatigue Syndrome, Paid $10,000 / Month
Who is Fiona?
Fiona, 39, works in sales and lives with her young family.
What happened to Fiona?
Fiona had an outgoing personality and was usually full of life. However she began to suffer persistent fatigue and depression, so bad that she couldn’t get out of bed in the morning to face the day. With her family’s support, Fiona visited her doctor who diagnosed her symptoms as Chronic Fatigue Syndrome. Through her adviser, she claimed against her Income Protection cover via her super fund to replace her income as she would need to take an indefinite time off work.
Where is Fiona Now?
Fiona used her Income Protection payment to pay her regular bills and also take her family on a short holiday to help with recovery. She has eased her way back into her job by working part-time.
Irrespective of whether you DO or DON’T have Income Protection, please CONTACT US today for a review:
Without the professional assistance of our Life Insurance Broker, these claims may not have been successful.
* Provided by TAL in 2017
* Case Studies TAL & Zurich.
TOTAL and PERMANENT DISABILITY CASES
The cases below are circumstances where clients “claimed” against their Total and Permanent Disability policy.
Sarah’s story: Life Insurance, Accident, Paid $1.5m
Who is John?
John is 56 and a successful surgeon. He is married with two university-aged children still living at home.
What happened to John?
Over a recent period of time, John developed some concerning symptoms which eventually led to a diagnosis of Parkinson’s disease. As a surgeon, a steady hand is imperative, so this diagnosis has meant John can no longer work in his field of expertise. Thankfully John had a Total and Permanent Disability (TPD) policy, which specified that in the event that he could no longer work in his occupation he would receive a lump sum payment.
Where is John now?
John was able to use his TPD payment to relocate with his wife and their two sons to a single-story house that would be more suitable as his condition progressed. The payment also meant their lifestyle would be protected so they could focus on quality of life.
Irrespective of whether you DO or DON’T have Total and Permanent Disability, please CONTACT US today for a review:
Without the professional assistance of our Life Insurance Broker, these claims may not have been successful.
* Provided by TAL in 2017
Eloise’s Story: Myositis, Paid $630,000
Who is Eloise?
Eloise is a 49 year old woman who owns and runs a café with her husband Paul on Sydney’s northern beaches.
What happened to Eloise?
Eloise had been experiencing tiredness and muscle pain for several weeks, and was finding it harder to get through a long day working at her café. As a precaution Eloise decided to visit her GP to make sure it was nothing serious. Eloise was referred to a specialist who ran some tests and diagnosed her with Myositis. Due to the nature of her illness the doctor advised Eloise that she would not be able to return to work in her usual capacity. Thankfully Eloise also had a Total and Permanent Disability (TPD) policy, providing her with a lump-sum payment to cover her expenses in the event that she was unable to return to work.
Where is Eloise Now?
Eloise and Paul were able to use the TPD payments to make some changes to their house so that it would be more comfortable for Eloise as her condition progressed. Eloise is managing her illness and is positive about the future.
Irrespective of whether you DO or DON’T have Total and Permanent Disability, please CONTACT US today for a review:
Without the professional assistance of our Life Insurance Broker, these claims may not have been successful.
* Provided by TAL in 2017
* Case Studies TAL & Zurich.
LIFE INSURANCE CASES
The cases below are circumstances where clients “claimed” against their Life Insurance policy.
Sarah’s story: Life Insurance, Accident, Paid $1.5m
Who is Sarah?
At 37, Sarah was happily married to 38 year old farmer Craig, with two young children.
What happened to Sarah?
Sarah and her children were left devastated when Craig lost his life in a farming accident. Craig had primary responsibility for the day-to-day running of the farm, which left Sarah with limited income options. Thankfully, Craig had taken out a Life Insurance policy when Sarah was pregnant with their first child.
Where is Sarah now?
The lump sum from Craig’s Life Insurance policy enabled Sarah to relocate with her children to be near extended family. While life without Craig is hard, they have managed to start afresh without financial worry.
Irrespective of whether you DO or DON’T have Life Insurance, please CONTACT US today for a review:
Without the professional assistance of our Life Insurance Broker, these claims may not have been successful.
* Provided by TAL in 2017
Mark’s story: Life Insurance, Stroke, Paid $300,000
Who is Mark?
Mark and Emelia, both 54, have worked in management positions for a large bank. Married for twenty years, they have two teenage children.
What happened to Mark?
Mark came home from work one afternoon to find Emelia still in bed. Unable to rouse her, he found she had passed away after suffering a stroke in her sleep. While both earned good salaries, the couple’s mortgage repayments relied on both incomes. Thankfully they had both been very pragmatic with money early on in their relationship, and had made sure their home and savings would be protected if one of their incomes was no longer available. Emelia’s Life Insurance policy meant Mark was able to pay off the remainder of his mortgage.
Where is Mark Now?
While devastated by the loss of Emelia, Mark is now able to comfortably support his two children without any financial pressures.
Irrespective of whether you DO or DON’T have Life Insurance, please CONTACT US today for a review:
Without the professional assistance of our Life Insurance Broker, these claims may not have been successful.
* Provided by TAL in 2017
* Case Studies TAL & Zurich.
TRAUMA INSURANCE CASES
The cases below are circumstances where clients “claimed” against their Trauma Insurance policy.
Sean’s story: Critical Illness, Heart attack, Paid $50,000
Who is Sean?
Sean is a 51 year old systems analyst and married to Simone. They have two daughters both in high school.
What happened to Sean?
Sean’s busy work schedule meant he didn’t watch his diet or exercise regularly, resulting in him putting on weight the last few years. One day in the office, Sean felt a pain and heaviness in his chest and collapsed from a heart attack. He was rushed to hospital and was quickly revived in the ER. Because of his previous unhealthy lifestyle, his recovery took longer than expected and needed 9 months to return to full health. Fortunately, Sean applied for a Critical Illness policy. The benefit payment was released within weeks meaning his medical costs, as well as general living expenses were taken care of.
Where is Sean now?
Sean overhauled his lifestyle, started to eat healthily and do more exercise. He has returned to work and is enjoying spending more time with his family.
Irrespective of whether you DO or DON’T have Trauma Insurance, please CONTACT US today for a review:
Without the professional assistance of our Life Insurance Broker, these claims may not have been successful.
* Provided by TAL in 2017
Tina’s story: Critical Illness, Cancer, Paid $105,000
Who is Tina?
Tina is a 55 year old teacher from Adelaide. She is a single mother of two children.
What happened to Tina?
Tina was a high school biology teacher who had always been concerned about her health. When she began to have abnormal bleeding she was quick to see her doctor. Her concerning symptoms were eventually diagnosed as cancer of the uterus. As a single mother living away from her extended family, it made the news even more devastating. Thankfully Tina had applied for a Critical Illness policy 15 months earlier. She received a lump sum payment which she used to fund her medical treatment, pay for travel expenses for her mum and dad to visit her, as well as the day to day costs of looking after her family.
Where is Tina Now?
Tina has finished her last course of chemotherapy and is recuperating at home. While there’s a long road to recovery ahead, being diagnosed early gives her the best chance of getting back to full health.
Irrespective of whether you DO or DON’T have Trauma Insurance, please CONTACT US today for a review:
Without the professional assistance of our Life Insurance Broker, these claims may not have been successful.
* Provided by TAL in 2017
Jess’s story: Critical Illness, Melanoma Paid $300,000
Who is Jess?
Jess is a 27 year old from Brisbane who has spent the last 8 years loving her job in the insurance industry.
What happened to Jess?
Being young and healthy, Jess never expected to have to need her life insurance plan. However, after she was diagnosed with a melanoma at a young age, she was grateful she had taken the time to use a financial adviser. Her adviser helped lodge her claim so she had one less thing to worry about while recovering.
Where is Jess Now?
By being proactive and taking out her Trauma insurance policy, Jess was able to undergo surgery and have the cancer removed without worrying about any of the financial burden that situation often lands people in. She is now cancer-free and living her life to the fuliest.
Irrespective of whether you DO or DON’T have Trauma Insurance, please CONTACT US today for a review:
Without the professional assistance of our Life Insurance Broker, these claims may not have been successful.
* Provided by TAL in 2017
* Case Studies TAL & Zurich.
General Advice Warning:
The information contained in this website is for general information purposes only. The information is provided by BDM Financial Services and while we endeavor to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
Before investing in any product BDM Financial Services recommends that you first obtain a copy of the relevant Product Disclosure Document before making any decision regarding the purchase of or investment in that product or service in order to ensure that it is suitable for your own personal financial needs and circumstances.