The first comment came in response to the article: It’s disingenuous for a broker with no personal cover to sell insurance – poll results.
Andrew Ducksbury added to the discussion, saying: “As life insurance is not compulsory, it is easy to see why customers don’t take it out.
“All you can do as an adviser is document the fact that you’ve mentioned, discussed and highlighted it and that the customer has rejected those recommendations. If you’re an adviser that does not mention it then you have left the door wide open for complaints.”
A sensible adage
Responding to the same article, Trying to be a Retired IFA, said: “Believe in it yourself, then advise others is a very sensible adage. It’s not a difficult issue if positioned correctly.
“When a client asks about a mortgage, the good adviser asks for their total budget, including everything from mortgage to insurances. However, a customer may not see the benefits once a mortgage has been discussed if it’s simply seen as added costs.
“If that means the client has to cut back on the mortgage size a bit, then that is the sensible way to go,” they added.
Trying to be a Retired IFA, continued: “It’s a different outcome if the adviser skis uphill, so once the mortgage is sold the adviser then talks about more expense, such as insurances for things the client thinks won’t happen, but the seasoned adviser knows will.
“It’s beggars belief that the regulator requires stress testing for a mortgagor’s ability to pay a higher rate of interest but not if their income stops due to health or death or a partner.”
Ros Edwards reacted to the article: Lenders miss out by not selling interest-only mortgages to low-income borrowers – Star Letter 12/02/2021.
Edwards said: “Interest–only mortgages are great at the start and a nightmare at the end. A huge number of interest–only borrowers have the ‘I’ll worry how I’m going to pay it back nearer the time’ attitude.
“When nearer the time approaches and the nightmare begins, such as falling houses prices or poor performing investments, they then blame the adviser.”