Q: I am struggling to make time for the protection sale alongside the lengthier sales process and high volumes of enquiries in the run up to MMR. I am willing to outsource the sale but I am worried about the compliance risk and loss of income. How do I find the right balance?
A: Although buying property is one of the life stages that can prompt people to take out protection, some advisers admit that they are struggling to find the time to sell protection in conjunction with the mortgage transaction.
Many, having streamlined their operation are currently overwhelmed by the increased demand for mortgages. As a result, some are finding it difficult to make the time to discuss protection with their clients.
This situation is likely to be compounded by the MMR which is set to impact the mortgage process. The challenge here being that clients may be less receptive to spending any more time with their advisers or dealing with additional paperwork, making it harder for them to sell protection.
Discussing protection is important for advisers as clients will not necessarily think about how to manage the risks to their new home. It can act as a great proof point, illustrating how professional financial advice can remove risk from a client’s life, even if they don’t proceed with the house purchase.
Income protection, it could be argued, should be the cornerstone of any financial plan, but there is a misconception that it takes a long time to get these policies on risk.
However, recent investments the industry has made mean there are income protection products on the market that complement the mortgage sales process and enable advisers to complete and submit an client’s application for tele-underwriting within minutes.
Using tele-underwriters, most of whom come from a medical background, can reduce the incidence of requesting a GP report allowing policies to be placed on risk faster. Splitting the protection sales process in this way not only saves adviser time, it also removes any risk of non-disclosure from them.
