The firm said increased scrutiny on a borrower’s ability to pay will lead to consumers taking out more insurance against unemployment and ill health.
LifeQuote said brokers needed to provide further advice on protection products, with a particular focus on older borrowers who are more likely to suffer from health issues.
Its research found one-in-four men and one-in-five women will suffer from a critical illness before they reach age 65.
Neil McCarthy, sales and marketing director of LifeQuote, said: “Post-MMR I foresee a day when lenders, if not the FCA, make it mandatory to have a conversation about appropriate protection cover being in place.
“While this will require more work, the financial rewards will make this worthwhile as the average protection product purchased through us pays circa £900 – £1,000 in commission. This is normally for clients buying multi-product solutions linked to their mortgage or personal protection requirements, with modest sums assured providing benefits of typically £150,000-£300,000.”
