WA AMP financial planner Paul Carter had long ago put in place a comprehensive buy sell agreement along with keyperson protection based around insurances for his clients company.

In 2011 the clients did a large cost assessment and were looking to make the business more efficient and to reduce costs.

One of the partners had reached 63 years of age and the premiums associated with that age had more than doubled in the 12 years that it had been in place.

“The clients thought the insurance had served its purpose and they were looking to reduce or end it,” says Paul.

Before cancelling the policies though, the adviser suggested that each of the four directors should know the entire story of their position and recommended they all have detailed medical examinations.

“It is the only sensible thing to do before getting rid of, or even reducing, any type of insurance which can never be bought again at that age, or is so expensive or seriously restricted that its value may be questionable,” he says.

The result of the medical for one of the directors was profound. It revealed an undiagnosed, untreatable terminal illness.

“The doctors found that my client had a cognitive disorder that is degenerative so eventually he will be unable to look after himself in the most basic way. It was a terrible diagnosis,” says Paul.

Known as Corticobasal, the condition is as rare as it is appalling. It is a progressive neurodegenerative disorder that involves the cerebral cortex and symptoms include movement and cognitive dysfunction similar to Parkinson’s disease. It is terminal because other illnesses such as Pneumonia step in and become the cause of death. Treating this condition often intensifies the symptoms while not improving outcome in any way.

“When the diagnoses became known my client was immediately in a position to make a claim. We entered into that process and are currently organising a keyperson payment to the company,” says Paul.

The keyperson insurance will cover the loss of income from having a director suddenly extracted from the business as well as the cost of replacing him. The payment will also assist the exiting director as a payout.

“That money is helping the client and his family while protecting the business, which has lost a man with amazing abilities and historical knowledge,” says Paul.

The buy sell, which is the larger of the two insurances, will see about $2.1 million change hands to the exiting director and his family.

“The company does not need to go into debt and borrow money from the bank to come up with this payout. Banks are very tight in their lending practices at the moment and such a debt could well have had a negative affect on the business,” says the Nedlands-based planner of 25 years’ experience.

The thoughtful and well considered advice from Mr Carter has allowed his client to manage his affairs long before this degenerative disease takes over. Mr Carter has also helped set up the financial plan for the next generation of this client.

“I’m just doing my job while this poor man has to deal with a terrible illness. I feel very relieved when I know that they do not have a massive financial burden to worry them.

“We negotiate with insurance companies and are really very lucky to be in such a trusted position to make things happen at a time when your client seriously needs help,” he says.

Mr Carters firm – Provident Financial Services – has a vision to “Plan, Help, Achieve”

“This is a time when our vision really has happened.“

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Being diagnosed with cancer is not the time that a person wants to have to come to a complete and clear understanding of their financial position. However, financial issues are a huge concern for cancer patients.

Pioneered and piloted by AMP Financial Planning, the partnership with the Cancer Council has been an enormous success with nearly 500 patients taking pro bono advice from professional planners. The program has been active in NSW since June 2010 and it is now being rolled out nationally.

Louisa Fitzgerald, the Cancer Council’s national pro bono manager, says the program is a wild success.

“One social worker told us that the program is the best thing that the Cancer Council has ever done.  Financial worries really take a patients attention which is better spent elsewhere,” Ms Fitzgerald says.

The value of sound financial advice cannot be underestimated at a time when many dual income households become half income households.

According to AMP’s Rajesh Govindan, financial advisers are in a unique position to offer help to terminally ill patients.

“We advise on cash flow budgeting and how to consolidate several superannuation plans and how to get early access to the funds as well as various insurance policies. Our advisers are trained to discover what is available to patients in terms government pensions and benefits and how to get it,” says Mr Govindan.

In one case a young family, where the husband had terminal cancer, believed they had a single insurance policy worth $77,000. However, investigations by an AMP adviser found the family had policies worth more than $400,000. These unexpected funds literally ended some very serious financial burdens for a young widow and her small child.

“It is not unusual for superfunds to have a life insurance policy attached but most people are not aware of this. Financial advisers are highly trained to get to this information, which is incredibly life changing at such a vulnerable time,” he says.

Another planner spent more than 70 hours chasing the Polish government as well as a stalling insurance company. He successfully forced these institutions to pay up and allowed a person to pass away in peace.

Other advisors have helped children to open bank accounts and even made Christmas hampers for families in financial trouble.

“Cases are referred to AMP by social workers within the hospital systems. We assess the case and aim to help those least able to pay for financial services. Our planners decide how many hours they can give to the case and AMP underwrites all of the para planning. It is a very structured program,” says Mr Govindan.

Financial advisers from AXA and Hillross have now joined AMP Financial Planning/Cancer Council. Advisers swat-up through an e-training module that was tailored for bereavement.

“Having these financial advisers helping patients brings extraordinary value for people since unresolved financial matters are a terrible weight. This program has been much more successful than we ever could have anticipated and the sheer number of professional planners putting up their hands is overwhelming. It’s heroic,” Ms Fitzgerald says.

AMP nominated the Cancer Council for this program because of the organisation’s relationship with the legal profession.  Already many lawyers are recommending the planners to take over the budgeting of estate planning once they have done their legal work with a patient.

“This has been a wonderful pairing of two professions and brings such peace of mind to patients and their families that it is an invaluable service,” says Ms Fitzgerald.

The generosity of the industry does not stop at organised pro bono programs.  Sydney-based adviser Tony Virtue works at a soup kitchen in Manly every Monday night and has a history of philanthropy. In fact, his doctorate was on micro finance.

“The idea of giving advice for free is not new to our profession. We have a long tradition of generosity within the community and I would be hard pressed to think of any adviser that does not have a pro bono project. It could be with a surf club or helping a client through the maze of Centrelink,” says Dr Virtue.

Financial advisers are often the first port of call for help when circumstances take a turn for the worst.  “It is not a huge leap from giving advice to a client to helping someone out for free. It is great that the big guys are creating large structured pro bono programs. Meanwhile, there are hundreds of advisers out there looking after locals within their own communities,” he says.

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