Your client, Sarah, has just received the premium for her life insurance policy, which amounts to $3,600 annually. She is satisfied with the coverage provided but is looking for ways to reduce the premium.

Provide Sarah with two suggestions that she could discuss with her insurance company that may reduce the amount of the premium payable.

Q: A systematic risk management process has five steps:

1. The identification of risk, 
2. The evaluation of risk
3. The control of risk
4. The financing of risk
5. The periodic review of the risk management program

Your client Emma is 32 years old, earns about $120,000 per year, and is married with one toddler. Her husband Mark works full-time and earns $80,000 per annum. They have a mortgage ($500,000) secured against the family home. Emma has a history of medical issues in her family and likes to participate in extreme sports during her vacations. Emma has income protection insurance in place, but the coverage amount is only 50% of her income. Their financial planner has identified a low level of income protection insurance as a risk.

Advise Emma on how steps 2 to 5 of the systematic risk management process can be used to assist her in managing the risks associated with her income protection insurance.

Q: Your client, James, is a 45-year-old business owner earning $180,000 per annum. He has life insurance and income protection insurance in place but has not considered the possibility of a critical illness or a long-term disability impacting his ability to work and generate income.

Explain to James the importance of trauma insurance and total and permanent disability (TPD) insurance in his overall risk management strategy. Discuss how each type of insurance coverage can benefit him in case of unforeseen health events.