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How often do you conduct protection policy reviews?

Journalist: Shekina Tuahene, Mortgage Solutions

ended 12. September 2024

I’m writing a story about how frequently advisers carry out client reviews for protection policies and what the interaction with clients is like.

  • How often do you do these? Annually or otherwise? 
  • What is the response like i.e are clients engaged and willing to review their policy or do they tend to stick with what they have? Or are they not very responsive?
  • When you conduct reviews, do clients say they’re considering cancelling their policy? Is this quite common? 
  • When this happens, how do you convince clients not to cancel their policy?

1 responses from the Newspage community

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Editor
David Stirling
Independent Financial Advisor at Mint Wealth
When initially advising on a protection plan for a client we tend to make sure that the plan will be "fit for purpose" as far as we can foresee for at least 2-5 years. This is also dependent on what the protection for - so mortgage protection could be for 20-30 years, family protection for 18 years and so forth.

We tend to touch base with clients on a regular basis to check if they have started a family, changed jobs, anything pertinent that may need an alteration or a change of structure in the way their insurance is set up. This can occur at anytime though, so planning must have some element of fluidity and flexibility to allow for changes, especially health changes in one person of a couple.

If a client feels involved in the advice process, understands what each product they are buying into does and feels that they are good value for money, then lapsed plans should occur rarely. It is the job of the advisor to educate, explain and probe for needs, priorities and solutions.