Course Title: Provide advice in life insurance
Part A: Course Overview
Program: C5343 Diploma of Financial Planning
Course Title: Provide advice in life insurance
Portfolio: BUS Portfolio Office
Nominal Hours: 50Regardless of the mode of delivery, represent a guide to the relative teaching time and student effort required to successfully achieve a particular competency/module. This may include not only scheduled classes or workplace visits but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.
650T Vocational Business Education
Face-to-Face or Internet
Course Contact: Callie Harvey
Course Contact Phone: +61 3 9925 5772
Course Contact Email: firstname.lastname@example.org
This unit describes the skills and knowledge required to analyse client needs and provide advice ethically and professionally in life insurance, in compliance with industry regulations and codes of practice. It addresses the training requirements of current Australian Securities and Investments Commission (ASIC) and Australian financial services (AFS) licensing at Tier 1 level.
It applies to individuals who use well-developed interpersonal skills and excellent communication and self-management skills to perform a specialist advisory role in life insurance. Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or ASIC for specific guidance on requirements.
Pre-requisite Courses and Assumed Knowledge and Capabilities
National Competency Codes and Titles
National Element Code & Title:
FNSASICX503 Provide advice in life insurance
1. Establish relationship with client and identify client’s objectives, needs and financial situation
2. Analyse client’s objectives, needs, financial situation and risk profile to develop appropriate strategies and solutions
3. Present appropriate strategies and solutions to client and negotiate financial plan, policy or transaction
4. Agree to plan, policy or transaction and complete documentation
5. Provide ongoing service where requested by client
Overview of Assessment
In order to achieve competency in this unit, you must provide:
Evidence of the ability to:
- interpret and comply with industry regulations and codes of practice
- analyse client’s needs, financial situation and risk profile, and prepare appropriate strategies or solutions relating to life insurance
- provide accurate and ethical advice on life insurance products and services
- implement the plan, policy or transaction once agreed by the client and complete documentation accurately.
To complete the unit requirements safely and effectively, you must satisfy generic, core and specialist knowledge requirements relevant to the products and activities in which advice is given.
- analyse and provide an overview of the economic environment including:
- characteristics and impact of economic and business cycles
- interest rates and exchange rates
- government monetary and fiscal policy
- analyse and provide a detailed explanation of the operation of financial markets including:
- roles played by intermediaries and issuers
- structure and interrelationships within the financial markets
- interrelationship between industry sectors
- outline financial products including:
- concept of a financial product – general definition, and specific inclusions and exclusions
- types of financial investment products
- types of financial risk products.
Core insurance knowledge
- explain the operation of insurance markets including:
- definition of insurance product
- characteristics and participants of the Australian insurance market
- roles played by intermediaries
- describe types of insurance products including risk insurance products, investment life insurance products and general insurance products
- explain the following aspects of insurance products:
- conditions, exclusions and levels of coverage of risk transfer products
- outline taxation issues in relation to insurance products and markets
- describe advisory functions including:
- role of insurance adviser, broker or agent
- participants in the insurance advisory services market
- range of services provided
- profile and financial information of the client
- appropriateness of a risk assessment
- discuss the legal environment including disclosure and compliance covering:
- role of the representative or adviser
- relevant legal principles relating to the Corporations Act, Australian Securities and Investments Commission (ASIC) Act, Insurance Contracts Act, Life Insurance Act, Privacy Amendment (Private Sector) Act, Financial Services Reform Act (FSRA) and Competition and Consumer Act
- relationship between ethics and regulatory requirements including good faith, faith, utmost good faith, full disclosure of remuneration and fees, and any other conflicts of interest which may influence the adviser’s recommendation
- relevant industry standards and codes of conduct
- regulators’ guidelines including ASIC Regulatory Guide (RG)146 requirements
- complaints resolution procedures (external and internal)
- explain theories of investment, portfolio management and management of investment and risk:
- investment concepts
- investment strategies
- identification of types of risk
- client risk profile.
- outline the following aspects of life insurance:
- types and classes of life insurance products and policies
- standard cover and relevant deviations
- product development
- policy wordings
- insurance claims
- premium rating and risk assessment
- investment strategy
- investment component of life insurance products.
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the financial services and products advice field of work and include access to:
- office equipment, technology, software and consumables
- life insurance product information.
You are advised that you are likely to be asked to personally demonstrate your assessment work to your teacher to ensure that the relevant competency standards are being met.
Feedback will be provided throughout the semester in class and/or online discussions. You are encouraged to ask and answer questions during class time and online sessions so that you can obtain feedback on your understanding of the concepts and issues being discussed. Finally, you can email or arrange an appointment with your teacher to gain more feedback on your progress.
You should take note of all feedback received and use this information to improve your learning outcomes and final performance in the course.