Yes; through my SMSF.
A few years ago I wanted to review my policies. I specifically sought out a fee-for-service adviser through my accountants at the time. I was very clear about wanting advice which would not be influenced by payment of commissions.(I wanted any advice to be in my best interests, not the interests of the insurance company or their agent/s.)
I received a voluminous appraisal and recommendations, for which I paid a fee of $3,850. I thought that was quite high at the time, but figured that as I had not done a detailed review for about 10 years, and had not shopped around for other advisers, I would not comment unduly.
My circumstances have changed a little over the past two years, so I contacted the adviser to ask him if he would review my life insurance policies. I felt I no longer needed as much coverâŠ
I was referred on to another adviser in the same firm as the original adviser no longer worked in my geographic area. (I am not sure why that should be an obstacle with todayâs technology.)
I was quoted $3 300 for this review. On querying this I was told: âOur fee for tailored advice and facilitation of all implementation actions was $3,850 (invoiced) + $8,877 insurance commission = $12,727 total remuneration.â (This refers to the amount I paid two years ago.)
I had no knowledge of the commission, and the original adviser knew I had issues with the concept of commission-based advice. (There was very good coverage of the problem on âThe Check-outâ programme on the ABC a few years ago.)
I am now seeking a truly independent financial adviser whose recommendations are not influenced by financial rewards from insurance companies, but I have no idea where to start looking, particularly as I would prefer a face-to-face meeting in the first instance.
Unfortunately neither Financial Advisers nor Insurance Brokers (there may be difficulty distinguishing the two if substantial commissions are paid) feature favorably in the Roy Morgan Image of Professions Survey.
It would also be useful if Choice could provide some clarification about the implications of not having Trauma and/or TPD cover in lay persons terms. (I fail to understand how cancer and a heart attack have come to be classified as trauma.)