Of the two million-odd businesses in Australia, the majority are small operations which underpin the various owners? family lifestyles. As such, business owners who fail to protect themselves against risks they have no control over risk exposing their business and family to burdensome debt. This is where business life insurance comes in.
At CANSTAR we have researched and rated 31 business life insurance policies across 13 insurers, assessing each on both price and features to determine which policies offer outstanding value for businesses. Our research encompasses Key Person Insurance, Business Partner Insurance and Business Expenses Insurance.
In 2015 OnePath (ANZ?s insurance arm) has triumphed again, making it three years in a row. Winning the CANSTAR award for outstanding value in the overall Business Life Insurance category is a notable achievement and proof of consistency in its product offerings.
CANSTAR caught up with ANZ Wealth National Product Manager – Retail Insurance, Andrew Casperson, to find out more about OnePath?s focus on business life insurance.
Q: CANSTAR?s assessment process looks for an outstanding combination of price and features. What types of research do you do with your customers and/or business owners in general to help you achieve that right mix of price and features?
A: When clients insure with OneCare, they can be confident they?re getting comprehensive protection that?s outstanding value for money.
Over the last six years our flagship insurance range OneCare has won a number of major awards including CANSTAR which we are immensely proud of.
Such accolades reflect our commitment to delivering on the promise of insurance. In fact in 2014 alone, we paid over $638 million in claims for more than 9,000 Australians.
OneCare provides a comprehensive range of award-winning insurance covers to suits our client?s financial circumstances. OneCare is designed to be flexible to meet the needs of customers from business owners to home-makers; the flexible nature of OneCare allows you to deliver a tailored insurance solution.
We are always exploring opportunities to improve our OneCare to ensure we continue to remain competitive. Feedback from our clients and adviser is pivotal and supports our mandate to improve our product proposition and service experience.
Q: Business life insurance can be a confusing area for business owners. Do you have some tips on what paperwork they should get together and what questions they should think about before sitting down with their financial adviser to discuss business life insurance?
A: When it comes to business succession planning, advice is provided by three or more professionals. This is usually offered by an accountant, lawyer and financial planner.
There may be others involved as well. But broadly, there are three types of clients and each will have their own mix of documents and information to collate to review during the planning process given that each client is at different stages of the advice process:
— Referred by accountant – Bring business documents, loan documents, shareholder agreements, trust documents etc. In addition it is also recommended to bring business financials. Ask for client to see lawyer about business succession legal documents.
— Referred by lawyer – Bring business documents, loan documents, shareholder agreements, and trust documents. Also bring proposed business succession legal documents. Ask for client to see accountant about business financials and a business valuation (where appropriate).
— Other – Bring business documents, loan documents, shareholder agreements, trust documents etc….. the client is probably not going to have all financials and proposed business succession legal documents handy, in most circumstances the adviser will determine most of these gaps at the first interview, next steps is to refer the client on to accountant and/or lawyer to obtain other required items. It is also important to remember, that the adviser?s role is to provide advice on the strategy as well as establishing the right policies/covers to help facilitate the strategy.
Q: When it comes to the different types of business life insurance are there some types of cover that are more important at different stages of a business life cycle?
A: Business expenses, buy/sell and keyperson debt (i.e. capital coverage) to begin with. Once the business is in its growth cycle, then next steps are to look at the keyperson revenue. In any case forward underwriting should be considered where relevant to cater for future business growth.
CANSTAR congratulates OnePath on its win; readers can download the Business Life Insurance Star Ratings report here.