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June 2023 Newsletter
An important newsletter from Dr Christoph Schnelle with news that affects us all, plus a $1,000 referral offer.
Dear All,
A little summary of this important newsletter with full details below:
Did you know that we have had a large number of excess deaths in Australia including people under 55?
At a time when life, income protection, illness and injury insurance is more important and valuable than ever, 80% of risk life insurance advisers have gone out of business – again more details about this below.
Did you know that with an expert life insurance adviser you can often receive insurance that is better and cheaper than what you get in an industry fund?
Dr Christoph Schnelle is an accredited life insurance expert with 17 years’ experience. He also has a Masters in medical statistics and a PhD in health and medicine. His expertise and care allows him to go way beyond numbers and statistics to find the best policy for each client. Christoph has clients Australia wide from all walks of life with different needs and priorities – we love to support them all.
In Your Interest Financial Planning is writing more life, TPD, income protection, business expenses and trauma insurance cover than ever before, with the support of an awesome expanding team.
We are in a position to take on further clients and offer free initial consultations and reviews of existing insurance policies. Have you considered telling your relatives and friends about us?
You will be doing them and their family a great service. In addition, if they take out insurance with us, we will pay you a $1,000 referral fee.
The same applies for any new investment and superannuation clients. If you refer someone and they become a client of ours we also offer a $1,000 referral fee.
Please contact us about our referral program designed to enrich and support our new and existing clients.
You can find testimonials here: https://www.inyourinterest.com.au/client-reviews from our lovely clients.
Please read on for more details prepared by Christoph about what is happening in the insurance world, something that concerns us all.
Insurance companies for many years made a profit on their life insurance products, which meant that there were fewer deaths than premiums collected. That is how it should be as without the ability to make an income, there will be nobody offering life insurance.
However, in the last two years the picture suddenly turned. With more deaths than usual, life insurance companies paid out much more than anticipated.
In 2022 in Australia, 190,000 died which was 25,000 more people than expected. Normally, death rates only fluctuate by 1 or 2 per cent but here we had a surge of 15%.
That is almost 500 more a week, as if a jumbo jet would crash every week. These excess deaths hurt life insurance companies in addition to the hurt to the family and all those concerned.
Here is a graph from the Australian Bureau of Statistics with the most up-to-date data which was as at February, 2023:
You can see that there were a large amount of excess deaths in 2022 and the trend continued in 2023. It is normally very rare that the number of deaths is above or below the blue surface. Usually, the rate of deaths is very stable with slightly higher numbers in winter.
In the UK the situation is even worse. They have data until April this year and the numbers could be described as shocking:
Life insurance companies hurt in other ways – new business, i.e. new life policies are drying up. The reason? About 15 years ago we had a spike in income protection claims and insurance companies made losses for years. One remedy was to cut costs and reduce payments to insurance advisers by paying advisers what seemed to be 40% less, though, if you properly investigated the number it was more like a reduction of 15-20%. That plus the fallout from the royal commission into banking services meant that the number of registered financial advisers dropped from 29,000 in 2013 to under 16,000 now, with only about 13,000 actively working as financial advisers, i.e. numbers dropped by almost half.
However, risk insurance advisers had the double whammy of much more regulation and less income, so some 80% of risk insurance advisers went out of business.
Imagine 80% of lawyers or accountants going out of business!
With the excess deaths of those under 55, there is now a bigger need for life insurance than ever. At the same time the supply of life insurance advisers has dropped like a stone.
What is even more absurd is that for life and TPD (total and permanent disability) insurance, a risk insurance adviser (that is the technical term) can offer you in most cases a cheaper and better quality policy than what you are getting in an industry fund.
In other words, you can receive insurance with expert advice and support cheaper than with no advice. This shows that if people are on their own as they are with industry funds, the temptation to increase prices substantially can be very hard to resist.
We at In Your Interest Financial Planning have gone against the trend. We are doing more life, TPD, income protection, business expenses and trauma insurance cover than ever before. It has meant that we need a lot more staff to manage the complexity but it also means we can provide a service that is more and more needed. Our clients are Australia wide.
I am an accredited Life Risk Specialist Adviser and I find it very helpful that I have a Masters in medical statistics and a PhD in health and medicine. I have 17 years’ experience in risk life insurance, an area where it takes about 10 years to become fully conversant as there is a lot to know and understand.
We are in a position to take on further clients and offer free initial consultations and reviews of existing insurance policies.
Have you considered telling your relatives and friends about us?
You will be doing them and their family a great service. In addition, if they take out insurance with us, we will pay you a $1,000 referral fee.
You can find some testimonials here: https://www.inyourinterest.com.au/client-reviews from our lovely clients.
As always please feel free to contact us about any matter, we always love to hear from you.
With love from the Team at In Your Interest Financial Planning,
Christoph, Nicola, Marian, Deryk, Alvin, Jade, Ann-Marie and Lin
Dr Christoph Schnelle
Financial Adviser and Life Insurance Specialist
In Your Interest Financial Planning
t: 1800 332 225
w: www.inyourinterest.com.au
e: service@inyourinterest.com.au
Insurance ● Investment ● Super ● Retirement ● Aged Care
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Life Risk Specialist | SMSF Specialist Advisor
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