The managing director of Legal & General Network said research carried out by the company revealed there was a “large disparity” between the number of mortgages arranged by advisers and the number of protection policies to accompany them.
He said: “Every time a mortgage is advised on the adviser has a moral duty to explore his client’s protection needs as well. Sadly statistics suggest this isn’t happening as often as it should.
“Mortgage sales are rising and protection sales have fallen this year. In the first half of 2013 mortgage applications have grown by 11 per cent. However protection applications have not followed suit and have shrunk by 9 per cent year on year.”
He said that the industry performed a “vital social purpose” and that providers and advisers should “feel bad about leaving a client after a mortgage interview if protection needs have not at least been discussed”.
Meanwhile, PruHealth unveiled its improved health insurance proposition after announcing a £100m growth in cumulative new business since its flagship Vitality programme was launched in 2011.
Chief executive officer Neville Koopowitz said figures for new business had “broken all previous records”, with the success proving that traditional private medical insurance belongs to “yesterday”.
He revealed that an app would be launched in the new year for members to track their progress on the Vitality programme, and unveiled a new partnership with WeightWatchers.
Adviser view
John Bean, financial planner for County Durham-based Eldon Financial Planning, said: “Protection should be one of the first places you look at when meeting a new client as the potential loss of earnings for the main breadwinner in a family really needs consideration. Most clients haven’t thought about what would happen in the event of a heart attack or cancer diagnosis, so protection does need more pushing.”
Key stats
In 2012 there were 294,116 mortgage applications and 412,993 protection applications
In 2013 there were 326.630 mortgage applications and 378,532 protection applications.
Mortgage applications grew by 11 per cent in 2013 and protection applications shrunk by 9 per cent.
Source: Touchstone
