Asteron has partnered with Colonial First State’s (CFS’s) FirstChoice platform to help advisers continue to offer clients life insurance cover through their superannuation – even if a proposed ban on risk commissions through super is legislated.
Despite the ban outlined in the Government’s Future of Financial Advice (FOFA) reforms, clients will still need advice and the trend for insurance to be taken out through super will continue, according to Asteron executive general manager Jordan Hawke (pictured).
“As a life risk specialist, this partnership allows us to complete our offer for both risk and wealth advisers who wish to write retail insurance through platforms,” he said.
“Asteron offers advisers more flexibility and choice by allowing them to offer clients the convenience of paying premiums through the Colonial First State platforms, FirstChoice and FirstWrap,” Hawke added.
The deal allows clients to draw on their super account to pay for the insurance, and Asteron then sends a notice to CFS each month outlining the accounts that have been drawn on.
The facility of paying through an accumulated benefit has always been an option in the marketplace, but Asteron haven’t had a master trust to do that with previously, Hawke said.
As a manufacturer Asteron will need to work out how advisers will continue to get paid for providing advice if proposed FOFA reforms are passed, he said.
“We’ll work with FirstChoice to ensure clients still get good advice and access to a good product, and we’ll make sure that adviser gets paid in some shape or form,” Hawke said.