Course Title: Provide advice in life insurance
Part B: Course Detail
Teaching Period: Term2 2020
Course Code: BAFI5219C
Course Title: Provide advice in life insurance
School: 650T Vocational Business Education
Campus: City Campus
Program: C5343 - Diploma of Financial Planning
Course Contact: Callie Harvey
Course Contact Phone: +61 3 9925 5772
Course Contact Email: callie.harvey@rmit.edu.au
Name and Contact Details of All Other Relevant Staff
John Calabro
john.calabro@rmit.edu.au
Nominal Hours: 50
Regardless 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.
Pre-requisites and Co-requisites
None
Course Description
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.
National Codes, Titles, Elements and Performance Criteria
National Element Code & Title: |
FNSASICX503 Provide advice in life insurance |
Element: |
1. Establish relationship with client and identify client’s objectives, needs and financial situation |
Performance Criteria: |
1.1 Establish client’s knowledge about financial products and services 1.2 Respond to enquiries about life insurance products and services by explaining range of products and services available and their relevant fee and charging methodology 1.3 Inform client about role of adviser and licensee or principal responsible for adviser's conduct, including procedures for complaints handling and circumstances in which they should be engaged 1.4 Ask client about objectives and goals, and obtain personal, financial and business details to identify client needs 1.5 Establish product risk profile about client, including expectations of cash flow and relevant taxation obligations |
Element: |
2. Analyse client’s objectives, needs, financial situation and risk profile to develop appropriate strategies and solutions |
Performance Criteria: |
2.1 Undertake assessment of client needs using all information gathered, taking into account client’s product expectations and specific needs 2.2 Consult client throughout analysis for further clarification where necessary 2.3 Analyse need for specialist advice and ensure client is referred to appropriate adviser for higher level or specialist advice if required 2.4 Assess and confirm product risk profile of client, demonstrating ASIC identified generic and specialist knowledge relevant to products being offered 2.5 Determine appropriate strategy to provide for identified needs and outcomes based on analysis of products, client risk profile and assessment of client needs 2.6 Conduct relevant research, analysis and product modelling, and draft appropriate solution, plan, policy or transaction for presentation to client |
Element: |
3. Present appropriate strategies and solutions to client and negotiate financial plan, policy or transaction |
Performance Criteria: |
3.1 Apply appropriate knowledge for service or product offeredwhen presenting product 3.2 Clearly and unambiguously explain proposed transaction to client 3.3 Reinforce all relevant details, terms and conditions of product and service 3.4 Disclose impacts and possible risks of solution in clear and concise manner 3.5 Provide supporting written documentation and guide client through key aspects of documentation 3.6 Discuss and clarify any concerns or issues client has regarding proposed plan, policy or transaction 3.7 Confirm that client understands proposed plan, policy or transaction |
Element: |
4. Agree to plan, policy or transaction and complete documentation |
Performance Criteria: |
4.1 Obtain client’s formal agreement to proposed plan, policy or transaction 4.2 Clearly explain and confirm that client understands all associated fees, cost structures and timeframes for execution and processing 4.3 Ensure that proposal and all other statutory and transactional documents are completed and signed off by client 4.4 Exchange copies of signed agreement and other appropriate documentation |
Element: |
5. Provide ongoing service where requested by client |
Performance Criteria: |
5.1 Ensure that type and form of ongoing service, including reporting on performance and review of plan, policy or transaction, is agreed with client 5.2 Clearly explain all fees and costs for ongoing and specifically defined services, and check that client understands these details 5.3 Provide ongoing service as required |
Learning Outcomes
Details of Learning Activities
A range of learning activities are planned for this course including self-paced and collaborative classroom based activities.
The self-paced activities will be delivered thought the Canvas learning management system and include your contribution to discussion threads, project portfolios, quizzes and interactive sessions.
The collaborative classroom based activities will include group discussion, group problem solving activities and opportunities to practice your skills in a simulated/real workplace environment.
We expect you to participate and contribute in all scheduled learning activities.
Remote Learning
This course will be delivered via our existing learning management system, Canvas. This means that, for the foreseeable future, there will be no face-to-face classes in any of the units for which you are enrolled.
Classes in each of your units will still take place in their normal scheduled time-slots, but instead of being conducted in a face-to-face mode, your teachers will utilise the Collaborate Ultra platform to deliver ‘live’ online classes. These classes delivered online will not only provide you with the required learning materials for those sessions, but they will also enable interactions with your teachers and fellow students via forums or discussion boards.
Teaching Schedule
The following courses are delivered together under the title Financial Planning Skills:
- FNSFPL504/BAFI5215C Implement financial plan
- FNSFPL505/BAFI5216C Review financial plans and provide ongoing service
- FNSASICX503/BAFI5219C Provide advice in life insurance
(The following schedule is subject to change)
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Course Schedule: Financial Planning Skills, Semester 2, 2020
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Week Commencing |
Topics |
Readings and Activities |
Assessment |
Unit(s) of Competency |
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Week 1
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Topic 1: Professional Environment |
Course Workbook Life Insurance, Chapter 1,2, & 4 Powerpoint slides on Canvas |
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FNSASICX503 |
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Week 2
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Topic 2: Nature of Risk |
Course Workbook Life Insurance, Chapter 1 &2 Power pointslides on Canvas |
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FNSASICX503 |
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Week 3
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Topic 3: Risk Management |
Course Workbook Life Insurance, Chapter 2 Powerpoint Slides on Canvas |
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FNSASICX503 |
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Week 4
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Topic 4 Life Insurance |
Course Workbook Life Insurance, Chapter 2 |
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FNSFPL505 Review Financial Plans and Services FNSFPL504 Implement Financial Plan FNSASICX503 |
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Week 5
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Topic 5 Disability and Trauma insurance |
Course Workbook Life Insurance, Chapter 2 and 3 Website National Insurance Brokers Death and disability insurance in Australia - is it worth it? What are the benefits? |
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FNSASICX503 |
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Week 6
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Topic 5 Income protection and other insurances |
Course Workbook Life Insurance, Chapter 2 and 3 Life Insurance, Chapter 2 Income protection and other insurances Websites |
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FNSASICX503 |
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Week 7
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Topic 6 The Demand for Life Insurance and Insurance Products |
Course Workbook Life Insurance, Chapter 2 and 3 Website Two Insurance companies websites: |
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FNSASICX503 |
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Week 8
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Topic 7 Death and disability Insurance in Australia - is it worth it? What are the benefits? Pros and Cons around personal risk and the relationship with super |
Course Workbook Life Insurance, Chapter 2 |
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FNSASICX503 |
Monday 1st-Friday 5th September 2020- Mid-Semester Break | ||||
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Week 9
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Topic 8 General insurance |
Assessment 1 - Portfolio of Activities due |
FNSASICX503 |
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Week 10
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Topic 9 - Underwriting, Claims and Taxation within Personal Insurance |
Course Workbook Life Insurance, Chapter 3 and 4 Taxation on Insurance proceeds Class Activity Are proceeds paid under a life insurance contract taxable and do they have to be reported as income? |
FNSASICX503 |
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Week 11
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The Insurance Regulatory Environment |
Life Insurance workbook, Chapter 4 The Insurance Regulatory Environment Websites Financial Services Resources |
FNSASICX503 |
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Week 12
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Implement a Financial Plan/ Presentation of Advice / Authority to proceed |
Course Workbook Manage Client Relationship, Chapter 3 & 4 Financial Planning Advice, All chapters |
FNSFPL505 Review Financial Plans and Services FNSFPL504 Implement Financial Plan |
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Week 13
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Implementation Schedule |
Task 2 Due Friday 7th September 2020 |
Assessment 2 - Workplace Project due |
FNSFPL505 Review Financial Plans and Services FNSFPL504 Implement Financial Plan |
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Week 14
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Review Financial Plans and ongoing Service |
Manage Client Relationship, Chapter 4 & 5 Ongoing Service Packages Website 1 Ongoing Service Packages Website 2 Topic 3 - Why are Reviews important Websites |
FNSFPL505 Review Financial Plans and Services FNSFPL504 Implement Financial Plan FNSASICX503Provide advice in life insurance |
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Week 15
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Assessment 3 - Final Online assessment due |
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Week 16
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Re submissions |
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Week 17
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Grade Entry |
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The nominal hours associated with this are a guide only and represent the total teaching time and student effort required to successfully complete the course. This may include not only scheduled classes but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities including the self - paced activities in the workbooks.
Learning Resources
Prescribed Texts
References
Other Resources
Online learning materials can be accessed by going into the RMIT's Learning Management System, Canvas.
The online learning materials listed may include:
- Course outlines
- Power point Presentations
- Supporting Reading material
- Industry relevant articles
- Activities
Overview of Assessment
In order to achieve competency in this unit, you must provide:
Performance Evidence
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.
Knowledge Evidence
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.
Generic knowledge
- analyse and provide an overview of the economic environment including:
- characteristics and impact of economic and business cycles
- interest rates and exchange rates
- inflation
- 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
- pricing
- 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.
Specialist knowledge
- 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
- underwriting
- insurance claims
- premium rating and risk assessment
- investment strategy
- investment component of life insurance products.
Assessment Conditions
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
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.
Assessment Tasks
You will demonstrate competency by undertaking three assessments. You must successfully complete all assessments to be deemed competent in this unit.
Assessment 1: Portfolio of Activities
Due: Sunday, 13/09/2020 (Week 9)
Summary and Purpose: For this Assessment Task you are required to demonstrate your knowledge by completing a series of eight theory and problem solving activities over the course of the semester from weeks 3 to 14. You will be required to submit each activity as specified in the weekly schedule.
The purpose of the activities is to enhance your understanding and ability to apply the knowledge to practice in the following areas:
a) Holistic vs Scaled advice
b) FOFA Reforms
c) Limitation in giving tax advice as a financial planner
d) Markets and advice in superannuation, investment and insurance
e) Impact of the economy on investments and the stock market
f) Transferring risk and the benefit to the insurer
Assessment Instructions: Students are expected to complete this assessment task outside of class time. You must complete all prescribed tasks as outline in Canvas including the individual requirements of each one as listed in the questions.
You will require access to the course resources on canvas hub, recommended textbooks and the website links prescribed for the program.
You must reference all your work using the Harvard referencing System
Assessment 2: Workplace Project
Due: Sunday, 11/10/2020 (Week 13)
Summary and Purpose: The purpose of the assessment is to enable you to demonstrate a breadth of understanding across the course material from weeks 1 - 12. It assesses the knowledge you have obtained through undertaking the concepts of life insurance, your communication skills in presenting that knowledge and your problem-solving skills in answering the questions posed in a live interview with the simulated client. The main purpose of the assessment is for you to clearly demonstrate analysis of the client’s objectives, needs, financial situation and develop appropriate strategies and solutions in the financial advice prepared and presented to the client.
Assessment Instructions: For this assessment task you are to you are required to complete Part 1 and Part 2.
Part 1 – requires you to prepare a financial plan in life insurance for a simulated client of the Swanston Banking Group (Practice Firm). Gianni and Davina
Part 2 – requires you to conduct to deliver the financial advice as prepared in Part 1 to the client.
The workplace simulated project is linked to a simulated workplace environment “the practice firm”, referred as Swanston Banking Group Ltd. The practice firm has a physical presence in Building 80, level 6, room 7. The Swanston Banking Group Ltd. has been set up as a simulated publicly listed company in the Financial Services (Banking) industry offering a retail banking and customer service experience of the highest level not offered or matched by its competitors.
Assessment 3: Online Assessment
Due: In class week 15
Summary and Purpose: For this Assessment Task you are required to demonstrate your knowledge by completing an open book online assessment comprised of a series of short answer questions. The purpose of this task is to assess your understanding of the concepts and issues included in the topics covered in this course.
Assessment Instructions: The assessment comprises six short answer questions. The duration of the assessment is two hours. This assessment will take place during your normal scheduled class time.
Assessment Matrix
The assessment matrix that maps all the assessment is available on Canvas.
Other Information
Submission Requirements
- Ensure that you submit assessments on or before the due date.
- Always retain a copy of your assessment tasks. (hard copy and soft copy)
- When you submit work for assessment at RMIT University you need to use the Assessment task document that includes a declaration and statement of authorship.
- Each page of your assessment should include a footer with your name, student number, the title of the assessment, unit code and title and page numbers.
Resubmissions (VET Programs)
If you are found to be unsuccessful (Not satisfactory/Unsatisfactory) in a Course Assessment Task you will be allowed one resubmission. Your teacher will provide feedback regarding what you need to do to improve and will set a new deadline for the resubmission.
If you are still not meeting the assessment requirements you must apply to your Program Manager in writing outlining the steps you will take to demonstrate competence in your course. Your submission will be considered by the Program Team and you will be advised of the outcome as soon as possible.
Penalties for Late Submission
Late submissions of assignments without special consideration or extension will automatically be considered a re-submission (see above).
Extensions, Special Consideration and Adjustment to Assessments
Extensions:
Extensions are available for unforeseen circumstances of a short-term nature.
An application form must be submitted to the school at least one working day before the due date of the assessment.
Extensions can be approved for a maximum of one week (seven calendar days) past the due date for an assessment. (Where students need an extension exceeding one week they must instead apply for special consideration.)
Special consideration:
Special consideration is available for unexpected circumstances outside students’ control. These include but are not limited to: unexpected short-term ill health, and unavoidable family, work, cultural or religious commitments.
An application for special consideration is made in advance of an assessment wherever possible but will normally be accepted within five working days after the assessment date
For more information, see the Special Consideration page of the RMIT website.
Adjustments to Assessment:
RMIT provides several adjustments to assessment for students experiencing ongoing or long-term circumstances. Find the right one for your circumstances here.
Changes to the Assessment Scheme
Where a change to assessment approved by the dean/head of school changes an assessment due date, students will be given at least five working days’ notice of the new due date.
Feedback
You can expect to receive marks and feedback on in-course assessment work in time to improve your performance in related assessment tasks later in the course.
Academic Integrity and Misconduct
Students demonstrate academic integrity in their assessment practices by:
- engaging with assessment activities in an honest way;
- providing accountability for the authorship and originality of work submitted;
- acknowledging the work of others and the re-use of original work.
Academic misconduct is addressed in accordance with the Student conduct policy
Assessment involving research with human participants, their information or their tissue, or animal subjects is carried out in accordance with the Staff ethics and integrity policy.
For further information see the Academic Integrity website.
Review and Appeal
A student may request a review of an assessment result or appeal a final course grade in accordance with the Conduct of assessment and appeals section of the Assessment Processes.
Grade Criteria
You must demonstrate that you have all the required skills/knowledge/elements in the unit of competency you are studying.
The following grades are available for this course.
CA - Competency Achieved
NYC - Not Yet Competent
DNS - Did Not Submit for assessment
Course Overview: Access Course Overview