Financial Advisor Role Play Transcript and Analysis Report

The assignment presents a transcript of a role-play scenario between a financial advisor and a client named Elspeth. The dialogue covers various financial concerns, including trauma insurance costs, mortgage protection, and income protection policies. Elspeth expresses worries about cash flow and the need to protect her family in case of illness or death. The advisor addresses these concerns, explaining the benefits of different insurance products and offering solutions to reduce costs, such as extending waiting periods for income protection. The discussion also touches upon superannuation and retirement planning, with the advisor recommending specific strategies and adjusting insurance coverage based on individual circumstances. The transcript highlights the advisor's role in clarifying doubts, providing tailored financial advice, and guiding clients toward informed decisions regarding their financial well-being.

Transcript of the role play
Financial Advisor Elspeth Expected Time
Hi Elspeth, Good to see you
again; how is the netball
training going?’
I am fine, thank you for asking,
how are you?
2 minutes
I am fine. ‘How did you find
the time for training?’
Well, I had to manage time for
the training
‘You’re looking better now
that your cold has gone. Is
Harry over it too?’
Yes, he is fine as well.
‘I want to be sure you get what
you want from this meeting.
Am I right in saying that you
are concerned about Cost of
trauma policies’
Yes, I am very concerned about
our lifestyle. “The cost of the
trauma policies seems very
high”
So could you please help me
out regarding your recent
financial objectives?
Yes, I and John have identified
few concerns. Firstly, Do we
really need to pay off the
mortgage if we experience a
short-term traumatic illness or
accident?

Don’t worry, nothing of that
sort will happen to you. Yes,
paying of the mortgage is
important.
If either of us died or suffered a
prolonged illness. We would
like to make sure that if
anything were to happen to us,
Harry would be well taken care
of’.
2mins
‘I can understand why you feel
that way.’ ‘So the real problem
is the cost of the policy? ‘You
are worried about the impact on
your cash flow?’
Yes, I am worried about the
cash flow management. The
cost of trauma is really on a
higher side.
That’s a good point. However,
there are several advantages to
use the product. Like, it will
provide for unexpected medical
expenses ($50,000) and to
make modifications to the
home or car ($50,000
Still, the cost is on the higher
side and our current condition
would not suit it.
It will suit you as it will cover
unexpected medical expenses
and I feel this can also provide
support for your son Harry.
Ok, I believe, I understood the
reason behind the policy. Still,
there are few doubts and I will
require some clarity over it.
2mins

I have understood that you not
yet concerned with
superannuation and retirement
planning, believing that it is
still a long way off and that
they will have time to address
this part of their financial plan
in the future. Due to this
reason, I have referred this
policy to you and your family.
“Yes, this is the reason why I
would like to know whether
there are any super funds that
offer trauma insurance.
Yes, I would like to add that
super funds are mainly of three
types, life insurance, TPD and
Income protection and all three
are given to you in order to
meet your aims and objectives.
Ok, I understood, but, Why did
you recommend a personal
income protection policy for
John when his super fund offers
that cover?
I understand your concern, but
I have seen that John’s
superannuation fund can
provide income protection
cover with a 30 to 90-day
waiting period, and a two-year
to age 65 benefit period. He has
So, is there any way to reduce
the cost of the income
protection policies whilst
retaining the same benefit?
2mins

not taken out this cover and the
rate of premium can also
increase at an increasing rate,
therefore, a personal income
protection policy and you and
your husband are not planning
for retirement. This policy will
keep your present as well as
your future secured.
Yes, there is. You can extend
your waiting period and you
can also reduce premiums up to
40 percent. I believe that a
short waiting period is
desirable, however, since you
want to decrease the cost and
premium of income protection,
then, I will recommend that
you opt for a higher waiting
period income protection
policy. The benefit will remain
the same. Therefore, you
suggest what waiting period
Ok, please extend my waiting
period to 45 days or maybe 60
days, so that the cost of the
policy is somewhat reduced.