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J-P Hale

Interesting stuff.

Without seeing the whole case the "too expensive" comment is far to subjective to take a reglatory position on. That's an opinion and based on the individual investigator or the client opinion, not regulation.

The client may be quite risk intollerant therefore a higher level of cover and a higher premium results.

Again this comes back to record keeping and risk tolerance. However, whether risk tollerant or risk adverse the risk problem is the risk problem, this should always be stated, because it's expensive it doesn't make it go away.

The other point that I have a challenge with, and thankfully it's not an option here, is parking your insurance in your super to eat up your super fund.

I find this approach somewhat underhanded and misleading. I've done the Aussie RG146/dip FS papers and some of their approaches aren't in the best interests of their clients.

Yes, there are some subtle tax advantages to the super approach, but it needs to be with an increased contribution and close management to ensure the intended saving goals for retirement are achieved.

The reality is clients don't volentarily increase their super contributions and end up sacraficing the growth of their super for the payment of insurance premiums.

However, the regulator is the regulator, and right or wrong you're playing in their sand pit.

I hope we see a more pragmatic approach to some of these areas as international practice isn't always best practice for cleints.

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