The launch of the government’s new Help to Buy 2 scheme is to be welcomed, not only for the mortgage market but also as an opportunity for protection insurance.
It might not be compulsory but there is a compelling argument that says you shouldn’t have a mortgage without having protection. It plays a vital role in helping people to maintain their standard of living should the worst happen.
Income protection is the cornerstone of protection needs with life and critical illness cover coming in a close second, depending on customer need. When discussing protection with clients always:
1) Get clients to consider protection cover whether they are first time buyers, remortgagors or in need of some family protection. People who are renting shouldn’t be forgotten either.
2) Have defences ready for when your clients say it’s too expensive or it will never happen to me. Most providers have dedicated adviser sites that contain support tools and information including selling tips and client-facing sales aids to help with objection handling.
3) The published news is often the bad news and unfortunately this has led consumers to believe that insurance companies will do anything not to pay a claim. Where a claim has been declined, it is usually due to a claim being made for a condition that isn’t covered on the policy or a case of deliberate non-disclosure.
Providers are in the business to pay clams and it is vital that clients understand the importance of disclosing their full medical history when applying for protection insurance.
It is equally important that they are made aware of the key features and any restrictions around the policy at the point of sale. Only then can consumers make an informed decision that what they are buying is right for them.
4) Consider your clients’ needs now and in the future when choosing the right protection plan with the most suitable options and features to recommend. Revisit your client’s protection cover regularly to ensure it is appropriate for their needs and any under insurance is addressed as disposable income permits.
