Everyone is desperate for a bargain in this age of austerity and as long as money is being saved many don’t mind what that bargain is.
Of course all these offers really do is to encourage people to spend more money on items and services they probably don’t really need and in reality don’t really want. But the colourful photos showing happy hair free people and the belief that they’re getting an amazing special offer means that before bargain hunters have time to think they’ve hit the buy button.
So at a time when everyone wants a bargain how can we promote protection as a real value for money purchase? Should we be focussing more on the ‘hidden’ benefits of protection insurance?
For example, some plans go further than providing money following someone’s death or critical illness. They also offer features that are designed to complement the financial benefits of insurance by offering emotional and practical support.
These services can include bereavement counselling, complementary therapies and access to medical, career, legal and personal helplines. For those who have had cause to use them, they can sometimes offer more of a lifeline than the financial payout.
Several income protection products take these services further and provide a rehabilitation service for their customers. If someone has been away from work for a long time recovering from an illness or accident, it can be difficult to get back into a daily routine.
A rehabilitation case manager will work with claimants to tailor a plan that will get them back to work and help them regain their independence.
Many view life insurance, critical illness cover or income protection as something that is not of real value and fail to appreciate that it will offer a valuable lifeline if things should go wrong.
This lack of concern can mean people are extremely price sensitive and look for the cheapest, most basic cover. But this may not result in best value for money or the best financial planning.
The lure of a special offer can be too tempting for some people. But rather than buying another discount meal or a teeth whitening kit let’s try and encourage them to put that money towards something far more valuable – protection.
Roger Edwards is managing director at Bright Grey & Scottish Provident
