Report about the Financial Advisors

                Independent Financial Advisors (IFA) working in the company are responsible for financial solutions and recommendations to the clients, including families and clients. Trainee Financial advisers are given training workshops for the financial consultancy services. The present report deals with the targeted audience about the independent financial advisor’s services for them along with their families. The information provided in the present report includes guidance about the trainee financial advisers, financial protection products, client circumstances, and considerations for the suitable arrangements for families and individual clients. The other considerations of the work include convertible term assurance, mortgage and lifestyle guidance, serious illness covers, income benefits for both the families and the individuals, cover for accidental incidents, insurance for buildings and construction processes, benefits for the children regarding their future, and inflation protection (West, 2012). The discussion will reveal more benefits associated with income protection and pension problems. Different case studies are also used to analyse real life issues and their solutions. The reader can get more valuable information about investment programs and retirement plans after reading the report keenly. Some valuable recommendations are also suggested on the basis of all the methods and strategies to improve the procedure. In a nutshell, the present report contains necessary and useful information as well about the pension strategies and planning for better and fruitful investment.

Overview of the Company that is solutions provider to financial problems

The company provides solutions to financial problems. The key services include financial consultancy services related to different financial conditions of clients. Independent financial advisors (IFA) has the responsibility in the company to work with the trainees and other colleagues for the identification of the best financial protection products for the clients. Moreover, independent financial advisors (IFA) also provide suggestions and advice to the client for financial arrangement. Company is capable of delivering the best financial consultancy services in the market with the support of experienced and professionally trained staff members. The main targeted audience for the Independent financial advisors (IFA) services is individuals and families.

Objectives  of the Company that is solutions provider to financial problems

        In this section of the document, key objectives are enlisted related to the delivery of financial advisory services. The document is main crafted for the trainee financial advisers to increase their knowledge about offered services and use of these services. After reading this document, trainee would be able to select the best financial protection products for clients. Thus the main objectives of this file are:

To give the proper information to the  apprentices about financial protection products.

To demonstrate various kind of financial arrangements for individuals and families

To discuss suitable arrangements available for different client circumstances

To present example case studies to underpin important considerations

Financial Protection Product and Arrangements

        Financial protection product and arrangement offered by the company are presented below. Each product and arrangement has some specific benefits and disadvantages that are also discussed in detail for trainee financial advisers.

Level Term Assurance and Life Insurance

        The basic and common category of  for individual clients is level term assurance or life insurance, as it is about a life cover intended for a static time duration having the profit of a static premium amount. In this policy, clients have to pay a fixed monthly amount as insurance expense from their income in return they will have a fixed life cover amount (or recognised as ) in excess of a static period of time. The amount of life cover can be received by the relatives of policyholders in case if the  die before the end of the policy time duration (). Level term assurance as a financial protection product is the economical custom of  that only relates to the static duration (Jane King, 2017). Some trust and organizations recommended to avail this service are Aviva and Friends First.

Key benefits:

Help in saving money for future use.

Drawbacks:

It provides a premium for a static duration.

Convertible Term Assurance

        Term assurance and convertible term assurance are both relatively similar products, but convertible term assurance has one additional benefit. The person having this kind of insurance policyholder can get benefit from . During the term, the policyholder can exercise at any time, to  the cover in the fresh procedure related to an extended period of time, devoid of providing evidence for a health condition for the purpose of conversion. The age of the life assured when the  would be used as the base for premium.  In case of not exercising the  choice policyholder, the  will cease at the finale of the term, same as another term of assurances (McGee, 2016).

Benefit:

Remunerations a static regular premium monthly and the amount of  progressively decreases in excess of the policy term.

Clients can also use in combination with a compensation () mortgage.

Drawbacks:

The benefit is merely remunerated on demise earlier than the finale of the policy term.

Mortgage and Lifestyle protection of the Company that is solutions provider to financial problems

        Another financial protection product is mortgage and lifestyle protection policy. Clients who want to have protection from mortgage payments can take this kind of product. Mortgage concerning with this policy can be related to property mortgage and fixed mortgage.

Benefit:

Provide full income protection to the policy holders.

Drawbacks:

No drawbacks.

Serious Illness Cover of the Company that is solutions provider to financial problems

         or acute illness cover is a financial shield product that provides protection from life-changing events with the assistance of either a lump sum or smaller payments. For instance, to help with paying off debts, reducing the mortgage, changes to the home, or acting as an income for the policy holder. There are two options open to the clients from which they can choose the most suitable insurance cover for them. The first option is the level payment. In the stage of payment, the payable amount remnants all the similar during the whole terms. For instance, a payable amount £500,000. While on the other hand, the second option for clients is decreasing cover policy. Policyholders getting this kind of policy pays different amounts with the change in the mortgage amount. As the amount payable reduces for the policyholder in response to the decrease of the amount owed as the mortgage.

*Providers come up with a range of conditions that applies to this policy; however, these lists can vary in response to the change in policy providers.

Benefit:

The decrease in the amount owed as the mortgage reduces the amount payable.

Drawbacks:

The payable amount remains all the same throughout the whole terms

Family Income Benefit of the Company that is solutions provider to financial problems

         as for the name, it relates to the monthly payments of premium as income after the death of policy holder. It is also known as a term policy. Take the example of Jack, who has a fixed income of £26k a year. Jack got take the policy with 20 year term and died during the mid of the 6th year. Jack’s family continue to have Jack’s yearly income for the remaining 16 years of policy life. After reaching at 20 years or finale of the term, the income would stop.

Benefit:

The best policy to benefit a family with fixed income even after death.

Drawbacks:

    The family will have limited benefit in case Jack dies just 2-3 years before the end of the term. Even Jack continuously paid payments for 17-18 years duration.

Accident Cover of the Company that is solutions provider to financial problems

        The accident can happen anytime and anywhere. Accident cover as a financial protection product provides safety from the possible loss of accidents. Accident cover policy covers hospital expenses and provides fixed income during off work days.

Benefit:

Monthly payments will replace the monthly income of policyholder for 2 years in case policy holder unable to work because of accident or weakness after the accident.

Also, provide protection during unemployment with fixed monthly income for 1 year (in case unemployment is caused by accident).

Drawbacks:

In case of policyholder get serious health issues after the accident, he/she would not be able to have monthly income after 2 years.

Buildings and Contents Insurance

        provides financial protection to the policyholders from future expenses of the building. In case of damages building such as roof damages and wall breakages, maintenance cost can upset monthly budgets.  Building insurance requires monthly payments by the policyholder to receive a lump sum amount in case of building damages.

Benefit:

Provide support in home maintenance and reduces stress from policyholders.

Drawbacks:

Require continuous payments that may cost more than the total benefits earned from this product.

Children’s Benefits of the Company that is solutions provider to financial problems

        Taking life cover, hospital cash cover, or specified illness cover policies definitely benefit one’s children. Individual clients who have interest in these policies can have a secure future of their children but at limited age or term. Kids at the age from 1 to 21 years are mechanically protected by most of the insurance cover policies, but sometimes client visits us in search of special covers and benefits for their children after their retirement, illness or death. Children benefit covers provided by insurance agencies and IFC are recommended for these kinds of clients.

Benefit:

The key advantage of the services is the secure future of your children. Policyholder having this policy can save some amount from the future studies of his/her children.

Drawbacks:

No drawbacks.

Inflation Protection of the Company that is solutions provider to financial problems

        In this product, policyholders are given the option to raise their cover each year (to make sure that it lines up with the living cost) devoid of delivering solid proof of healthiness. Policyholders have to recompense the additional cost to avail this option. The additional cost depends upon the age and the term of the policy.

Benefit:

Make the policyholder capable enough to deal with inflation.

Income Protection of the Company that is solutions provider to financial problems

        Client interested in income protection can be suggested this policy. Policyholders of income protection will receive a fixed amount of monthly payments usually around 60% of the actual salary in case of some uncertainty such as an accident or inability to work like normal people in the organization. An income protection policy is also for those who are diagnosed with the condition that prevents them from working, such as mental illness and physical health issues. Some examples are back pain problem, internal damages, depression, and broken bones. The amount is free from taxes. Two options available to policyholders are mentioned here.

Full cover – will last as long as the issue prevents the client (policyholder) from working

Budget cover –only lasts for 2 years.

Benefit:

Provide protection to a person from taking the mortgage and selling the property to meet expenses in case of poor health conditions.

Pension of the Company that is solutions provider to financial problems

        Pension policy is also a life cover policy that provides financial protection to an individual and family. In fact, pension cover pays dependents a guaranteed lump sum amount in case the policyholder dies or get retirement. Regular amount of pension contributes in the future life cover. The advisor can support clients in taking the decision about how much cover they need.

Benefit:

It costs less as if because of this policyholder can claim for tax relief on contributions.

Makes a person capable of having fixed income after retirement.

Case Studies of the Company that is solutions provider to financial problems

        Case studies section is consist of several case studies presented for the trainee advisers with the intention to enhance knowledge of trainee financial advisers. Case studies will make the trainee advisers capable of seeing how some of the arrangements identified, could be used to satisfy clients’ requirements in this area . Case studies are related to different client issues or circumstance, such as family protection, business, and critical illness. Trainees are advised to read these case studies thoroughly for better understanding of relevant financial protection product and arrangement.

Family Protection of the Company that is solutions provider to financial problems

        Five years ago, Mr. and Mrs. J bought their first house in Melbourne. They were not familiar with the financial expenses of purchasing new stuff for the house. Even they did not have an idea about the possible expenses concerning with home maintenance. As completely new to this process, they never realized the extents of all things that they were required for shifting in a new home. The young couple took a mortgage to deal with all expenses at the moment. Somehow, because of their age, the critical illness cover and the cost of living was affordable for them. Mr. and Mrs. Jack said at that time they were independent, so they were capable to shop around for the best cover at the best prices. After 3 years, the couple had a child that increased their expenses. Now the following year Mrs. J visited our office and told us that she was diagnosed with cancer. She was looking for financial advice to deal with this problem. We suggested them to claim on her critical illness policy.

        Moreover, we also provide them with a suggestion to get some insurance policies for a secure future. Our suggested insurance policies include critical health insurance, life insurance, and mortgage insurance policy. After following our advice and selecting the appropriate financial protection product and arrangement, they were capable to completely repay their mortgage.  Now she is investing in her health and have a normal life with no fear of financial problems.

Business that is solutions provider to financial problems

        Tasty Ltd was a small business initiated by an entrepreneur in the town. With the passage of time, business grew to the large business. Presently, it concern with lots of people as their income and interest are dependent upon the financial wellbeing of the business. Concerning the importance of business, Directors of Tasty Ltd visited us and asked for financial advisory services. We gave them advice on how their business would remain to continue in various kind of circumstances. We involved solicitor, accountant, and professional fellows to solve their issues and problems.

            According to the suggested policies, in case a shareholder dies, the spouse of the deceased will inherit the shares and in such situation, the surviving one might able to accept a piece quantity amount of insurance from our suggested insurance policy. Moreover, as the financial solution provider, we also arranged an appropriate trust as well as ensured to draw a legal agreement with the support of a solicitor. According to the agreement Co shareholders (who were to continue to run the business) were given right to buy shares from the widow (but with her permission and personal will only). Another insurance policy was suggested to cover up the possible loss and potential gap in profit as a result of death. In accordance with this insurance policy, a lump sum amount of insurance would be given to the company to plug gaps in profit.

        Tasty Ltd was also looking for a product or service to deal with the employee insurance-related problem. Many years ago, Tasty Ltd introduced a pension scheme for their staff. Recently, insurance service providers contacted them to say that their scheme would not meet the requirements of the new legislation which introduces ‘Auto-enrolment'. In the auto enrolment system, every employer has the responsibility to automatically enrol their employees into the scheme of pension and retirement benefits. Pension scheme currently covers only 20% of the staff. As a small employer, Tasty Ltd was ahead of the game as they only needed to comply by 2018.

        Nevertheless, to show their commitment with employees and staff members, management wanted to introduce a new scheme complying with the requirements of new legislation. Our team of financial advisors managed the scheme very well. The scheme is initiated and running smoothly. Now more than 75% of the employee is taking benefit of our suggested retirement financial policy.

Critical Illness of the Company that is solutions provider to financial problems

        In the present case, after diagnosis, Miss M discussed all the recent scenario with Neil at the Banks wealth. She was diagnosed with MS, and she was well aware of her limited number of policies that were possible for her to have some kind of life cover conditions. One of these possible situations was a critical illness, but, in these circumstances, it was also not sure if it will work or not. She was having accomplished a professional role in society and was listed in a higher and well-rated taxpayer. But after reading all the policies, she claimed that it was very difficult for her to understand all the policies. She was completely unaware of all information related to her financial planning and reinforced all the paperwork that was mainly provided by the company after a series of carrier bags.

        According to her health conditions, we were able to display that she has some critical illness cover. In the whole process, we were able to guide her about the process of claiming and making the sense of her financial position in the situation. Our help and guidance were unconditional for her. The pay-out of a successful claim can be separated into four different policies, and there were two separate services provided for this scenario. MS M was also able to consider all these options regarding her health condition and financial situation. Besides that, she was still able to work for helpful seen able future. The advice and guidance in this process can be about the account number and number of things that indicate her possibility to regain these policies. Under these conditions is she can retire early before her official date. After having a discussion with her, we advised her to make significant support to all possible types of the  plan. The possible contribution was also benefited with a 40% tax relief because of her health conditions and her claim for the relief under these circumstances.

At Retirement and Investment Planning

        Another example is related to investment planning at retirement. In this case, Mr l was recently retired from his job from. During his job years, he had a whole range of investment in different companies including co-op, Barclays and others.   Besides their investments, he had a number of plans about his pension and he was curious to know about the possible pension plans to be considered for his retirement. Before that, he never discussed these plans with any other service providers. He had a little but comprehensive overview of the benefits and cost of these plans. Before having any pension plan, he wanted to make sure about any income requirements and possibilities. He was thinking to consider all the options open for his future for instance if he needed to replace his old car, maybe he will require renovation of the roof or go on a cruise or some other future planning regarding his money. She was also considering the requirement of care and health conditions in the future. Being a single person and having no children, his first priority was to considered care providers to meet the standard conditions of health under affordable unlimited plans. His conditions for having future planning and investment are valuable for a single person.  While considering all his needs, it can be concluded that his attitude towards risk, growth of future needs, the income terms and conditions are different from others.  In this situation, we were able to recommend him to have a balanced portfolio for his right investments according to needs. He may require or prefer an adoptable future plan along with the efficient tax conditions.

Recommended Products and Arrangements

        Recommended products and arrangements for different clients, including individual and families, are presented below. The trainee can recommend and advice products to the clients by following this table.

Reference List of the Company that is solutions provider to financial problems

Jane King, M. C. (2017). Personal Finance. Oxford University Press.

Law, J. (2014). A Dictionary of Finance and Banking. OUP Oxford.

McGee, A. (2016). Life Assurance Contracts. Routledge.

West, H. (2012). Secrets of a Financial Adviser. Summertime Publishing.