Unit of competency Outline

Date retreived
22/07/2026 5:54 AM AWST

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Prepare advice in life insurance

Prepare advice in life insurance

Unit of competency
National Code
FNSFPL619
State Code
OCI60
TGA Status
Current
DTWD Status
Approved
Current Release Number
1.00
Current Release Date
04/11/2020
View on TGA
State Implementation and Classification
Approved Date
11/03/2021
Field of Education
081103 - Insurance And Actuarial Studies
Original Release Date
11/03/2021
Nominal Hours
45
Description
This unit describes the skills and knowledge required to analyse client needs in life insurance; and prepare advice ethically, professionally and in compliance with industry regulations and codes of practice.The unit applies to those who use well-developed interpersonal, communication and self-management skills when performing a specialist advisory role in life insurance. The requirement to prepare advice may come from authorised representatives, including financial advisers, shareholders, financial organisations, stockbrokers, trustees, agents and intermediaries.Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Users are advised to check with the relevant state and territory regulatory authorities to confirm those requirements.
Notes
Elements and Performance Criteria
1. Analyse client needs and risk profile
  • 1.1 Analyse client needs using all information gathered from authorised representative and considering client product expectations
  • 1.2 Consult with authorised representative throughout analysis for further clarification where necessary according to organisational procedures
  • 1.3 Identify need for specialist advice and ensure client is referred to appropriate adviser if required
  • 1.4 Assess and confirm client’s product risk profile according to expectations of cash flow and relevant taxation obligations
2. Develop life insurance strategies and solutions that meet client needs and risk profile
  • 2.1 Identify legislative, regulatory and code of practice requirements relevant to products being offered
  • 2.2 Determine required life insurance strategy based on analysis of life insurance products, client risk profile and client’s needs
  • 2.3 Conduct required research, analysis and product modelling and apply stress tests for changes in market conditions
3. Provide strategies and solutions to authorised representative
  • 3.1 Draft required solution, plan, policy or transaction and provide to authorised representative
  • 3.2 Explain proposed solution, plan, policy or transaction to authorised representative
  • 3.3 Confirm details, terms and conditions of product and service
  • 3.4 Disclose impacts and possible risks of proposed solution, plan, policy or transaction and offer alternative solutions to authorised representative
  • 3.5 Provide supporting written documentation and guide authorised representative through key aspects of documentation
  • 3.6 Discuss and clarify concerns and issues that authorised representative has regarding proposed solution, plan, policy or transaction
  • 3.7 Confirm with authorised representative client’s understanding of proposed solution, plan, policy or transaction
4. Establish agreement and complete documentation
  • 4.1 Obtain formal agreement from authorised representative and obtain their sign-off on proposed solution, plan, policy or transaction
  • 4.2 Document fees, cost structures and timeframes for execution and processing of agreed solution, plan, policy or transaction
  • 4.3 Ensure proposal and required statutory and transactional documents are completed and signed off by client
  • 4.4 Provide draft agreement and other required documentation to authorised representative
5. Agree to arrangements for providing ongoing services
  • 5.1 Prepare documentation of fees and costs for ongoing and specifically defined services according to organisational policies and procedures
  • 5.2 Agree to type and form of ongoing service to be provided
  • 5.3 Provide documented service arrangements to authorised representative for confirmation
  • 5.4 Implement procedures for agreed ongoing service according to organisational policies and procedures
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State Code National Code Title Type
BFX2 FNS60920 Advanced Diploma of Paraplanning Qualification