Course Title: Insurance and Estate Planning

Part A: Course Overview

Course Title: Insurance and Estate Planning

Credit Points: 12

Course Code




Learning Mode

Teaching Period(s)


City Campus


625H Economics, Finance & Marketing

Distance / Correspondence

Sem 2 2006,
Sem 2 2007,
Sem 2 2008

Course Coordinator: Sam Tabit

Course Coordinator Phone: +61 3 9925 5858

Course Coordinator

Pre-requisite Courses and Assumed Knowledge and Capabilities

Students must have completed BAFI 1096 Financial Planning Process or equivalent and JUST 1076 Legal and Professional Framework or equivalent.

Course Description

The course deals firstly with the general principles and the importance of risk profiling and personal risk management; and secondly, the course deals with matters of estate planning including aspects of trusts, wills, intestacy, powers of attorney; superannuation death benefits and taxation issues.
The course will include a comprehensive study of the purposes of estate planning and the role of personal risk management including the various insurance policies that individuals can use to protect their wealth. Current issues in estate matters and insurance policies will be covered in the course.

Objectives/Learning Outcomes/Capability Development

At the conclusion of this course, students should be able to:· Outline the risk management process and the selection of appropriate techniques in treating loss exposures;· Understand the basic legal principles governing insurance contracts;· Define the types of general insurance products in personal risk insurance;· Understand the basic legal principles and the distinct characteristics governing insurance contracts;· Explain the wordings and the various elements in an insurance contract;· Define the classes of life insurance products· Explain the need for insurance in personal financial planning and the application of three approaches used in insurance planning· Analyse client’s need for insurance and provide written recommendation;· Explain the regulation governing the insurance industry and the conduct of insurance intermediaries;· Understand the compliance issues for the advisory, selling, claims and compliant handling of retail insurance products;· Identify the basic concepts and components of estate planning· Outline the role and importance of estate planning as part of the financial plan construction process· Understand the specific terminology, basic regulations and strategies of estate planning· Display an understanding of the importance and implications of making a will and the role of the executor· Discuss the rights of beneficiaries and impact of their rights on estate planning· Demonstrate an understanding of the operation of trusts and their role in estate planning· Understand how a deceased’s assets, including superannuation assets, to minimise the effect of tax on those assets.

Overview of Learning Activities

This course has been prepared for independent study, and uses methodology appropriate for distance learning. Students are encouraged to use the Discussion Board to discuss ideas with other students. This approach is designed to develop both research and presentation skills, as well as equip students for the practice of financial planning.The learning activities will consist of:· Guided reading and evaluation of referred articles· Problem solving based on tutorial exercise· Application of learning in analysis of case study exercises.

Overview of Learning Resources

· Distributed Learning System (DLS), RMIT· RMIT Library Electronic ResourcesPrescribed Text:Students are strongly advised to obtain access to one of the following:· Master Financial Planning Guide, CCH Australia, latest edition· Financial Planning in Australia, Taylor, S., et al., LexisNexis Butterworths, 2005· Australian Financial Planning Handbook 2004, Bannister, P., et al., Thomson ATP, 2004

Overview of Assessment

The assessment tasks students are required to complete are:

· Assessment Task 1 – Personal risk assessment and recommendations.

 · Assessment Task 2 - Comparative analysis of alternative choices for distribution of an estate to beneficiaries in most tax effective manner and consideration of protection of assets.

· Assessment Task 3 - Case study assignment combining the two areas of study in the course.