Opportunities for protection

Most of the time we talk about protecting families and the mortgage but in these changing times we should also recognise the need to protect those without children. In many ways the recession has made people think more seriously about their financial responsibilities. However young professionals with disposable incomes and with no mortgage to pay may not see the need for protection products. But if they were to become ill and unable to work, experiencing a drop in earnings would have a serious impact on their lifestyle.

The economic downturn has made people think more seriously about their financial responsibilities. We should be making the most of this increased awareness and do all we can to ensure people are financially protected against loss of income due to illness or accident. While many people will not want to make drastic changes to their spending habits, they should ensure they have a financial safety net in place. Reducing their spending by just a small amount and using the money saved to buy a protection product that pays out if they are unable to work due to a serious illness will protect both their lifestyle and finances.

There is talk that we will become like Germany or other European countries where a healthy rental sector sees people only investing in property when they get older. But owning a home is so ingrained in the British psyche that it is hard to imagine this would ever be the case. In the meantime we need to acknowledge a changing shift in lifestyle and look beyond the traditional triggers of marriage, starting a family and buying a first home. There are still opportunities to sell protection and targeting consumers when they are young, fit and healthy means their premiums will be less and they can rest assured that they are protected financially.

They say life begins at 40 but make sure your clients have firm financial foundations in place before then.

Roger Edwards is proposition director of Bright Grey and Scottish Provident