Insurance: Financial Planning Consultation for Trauma Policies and Income Protection

Running head: INSURANCE
Insurance
Name of the Student:
Name of the University:
Author’s Note:

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INSURANCE
Section 1
Me: hello Mr. and Mrs. Smyth. It has been a while that we last met. Thank you for scheduling
this meeting. It has been a long time that we had a meeting and it is nice to see you again.
John: Yes it has been long and I am happy that we met as we have loads to discuss.
Me: I feel you have various queries with respect to the financial planning consultation that has
been provided to you.
John: Both of us have been having specific problems regarding the advices that have been given
and therefore wanted to meet you in person.
You: I am quite conscious and hence have been looking forward to this meeting. I have
knowledge that you have a travelling job and so have a schedule that is very tiresome and hectic.
John: Yes, I don’t usually get tired as I can mix with people well and have friends to hang out
with.
You: I am quite sure that you have knowledge about cost benefit trade-offs and so you know
about the uncertainties of the market
John: Yes that I do to some extent.
You: It is then better to move into the issues and start our conversation regarding the problems
that you both have and come to conclusion with the help of which these issues can be controlled
and managed. I would like to inform you that after the discussion I would be able to satisfy you
with the advices that are essential with the help of which these problems can be managed. I
would ensure that the policies and plans are prepared in a process so that the future plans are

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INSURANCE
attained. We shall even have a conversation regarding the future income of your wife and her
business plans as well so that a comfortable and better future life can be attained.
Section 2
You: the first issue that you are facing has been the cost related to the trauma policies and you
feel that the policy amount is very high. You even have the query with respect to the fact
whether you can pay the mortgage at the time of short-term traumatic illness or accident. I would
like to inform you that the cost for the trauma product is high so that it can pay out the assets for
both of you. You need to pay off the mortgage at the time of short-term traumatic illness or
accidents as if the mortgages are not paid the amount will rise and penalties will be applicable as
well. Therefore, the value will rise and has to be paid off. Paying the mortgage at this scenario
will the burden of additional payment and the amount can be paid back before the time of
retirement.
John: I feel that you are right but I need to go through certain aspects with the help of which I
can confirm and feel satisfied. I am concerned about the future life of my child and want
sufficient money with the help of which I can provide him with proper education and
comfortable lifestyle.
John: I have another query which is related to the fact whether there are any super funds that
would offer us with trauma insurance.
You: Earlier there were super funds that gave trauma insurance and this helped the clients to
attain benefits from the super. Traditionally, paying premiums by super is attractive as the
premium does not come from disposable income and it does not have an effect on the income tax