Brokers - how open are clients to taking out protection at the moment?

A lot of it comes down to how you discuss a client's protection needs. I have noticed since the increase in rates that clients are more cautious around their expenditure on insurance. However, having the discussion with the client and making them aware that if something happens to them no one is going to pick the pieces up for them if there is no protection in place does make a massive difference.

It is always easiest to sell life insurance but that is the type of policy which is least likely to be needed. Asking the client to set a budget for their insurance needs based on their other expenditure and then building cover around that has often been the best way in my opinion.

There will always be customers who refuse life insurance and with them I will ask them to sign a disclaimer confirming they have had advice as well as providing them with a personalised risk report so they know of the potential consequences.

For the self-employed, income protection is the most important insurance policy to take out in my opinion. Effectively every other insurance policy you have is dependent on it, as it pays a tax-free monthly lump sum which can cover your mortgage, living costs and general expenses if you're too ill to work in your business.

When money's tight, income protection and life cover can be the first thing to go. But it's far better to cancel Netflix and Spotify than sacrifice something that could prevent a bad situation from becoming a terrible one.

Clients agreeing to take on a review of their protection policies at the moment is quite popular not just for any potential monthly cost savings but to ensure that their dependants/family members are afforded an adequate safeguard. Sadly the market shrunk quite considerably in 2023 with providers being merged into each other leaving the competitive edge straggling - although we have a reasonable range of insurance companies it's sad that we are seeing a lack of innovation at the moment. One provider that frequently puts its head above the trenches is Vitality however these plans need some serious handholding to ensure families are afforded the right coverage, terms including any potential cost reviews that might be worked around. Never has life insurance, critical illness cover, income protection, private health cover etc needed a decent financial advice practice to help customers than now - decent analysis makes a huge difference.

At the point of taking on the mortgage commitment many people are, quite rightly, concerned about the challenges of meeting that commitment and the idea of protection insurance sits well with them. Cost can always be a factor, but with so many different options available, as long as a client engages with a conversation and doesn't just ghost you, then a solution can be found that gives them some protection, for a premium they are comfortable with. The bigger issue I am finding is then converting that client engagement into a successful application with an insurer, mostly due to issues within the NHS. That could be waiting for a GP's report for months on end, or the client being on a (very long) waiting list for a minor surgery, test, or investigation; resulting in insurers postponing cover until they have a conclusion to that. The current state of the NHS is having a knock-on effect on the ability of the insurance industry to protect people, which is an issue we don't hear about.

It will always depend how you approach it. If you cant be bothered to even bring it up, they wont take it. If you talk to them and explain what it could mean to not have it, they will understand and take it up. IP is a must, Cic and FIB should be had and then if they really dont want anything, minimum mortgage protection. If they take nothing, either you havent talked about it, or you havent talked about it properly.

We need to be professional and ensure clients are adequately informed in such sensitive matters. I find it best to ask clients a simple and direct question; "One day youre going to die. We all are. The real question is, are you and your family prepared for it?"

Skirting around the subjects of illness, incapacity and death, means the planning often get's kicked down the road. It's always tomorrow's problem until that problem happens today. I've seen it so often it's tragic. People often think it's expensive until they come to realise the cost of not having the right cover. It's not a hard sell, it's an essential service.

Protection continues to be at the forefront of our client journey, with protection take up rates still un impacted at circa 74% of applications taking some form of protection. We are however noticing a reduction in clients available budgets to cover the cost of this due to the reduced disposable income the current cost of living crisis is having. Positioned well, early on and with a focus on the benefits, as opposed to just reeling a list of features, remains key to helping clients see their needs in this area. Income protection is a drastically under utilised product within the protection area and is one which could help clients address their protection requirements in budget due to the great flexibility these type of products can provide in terms of claim period, deferred period and index linking of benefit amounts. The key to retaining these policies is our annual client review process.