Protection is not the poor man of advice

First, consider where we have been forced to concentrate our business models. Then, and only then, will you see why there is such a disparity in the amount of protection being sold. With an average age of 58, how many IFAs have young clients in reasonably good health just embarking on life’s well-travelled journey from newly married and starting a family to retirement into poverty, or not, as the case may be.

My own client bank has an average age of 63, which includes a number of younger clients in group pensions. I am heavily into relevant life, business protection and critical illness for company directors and the like, but do not have many clients who require protection policies who have not already addressed this issue.

The first life cover I had myself was sold to me by a ‘man from the Pru’, who used to be a butcher before joining Prudential. Was I miss-sold because he was not highly qualified? I bought it, paid the premiums and did not die, so that was a waste of money.

My wife at the time did not think so – it was, and is, all about peace of mind. You would think it should be compulsory – sold along with your marriage licence or at the antenatal clinic. However, protection is virtually always sold and rarely bought, and there is not a lightly qualified and regulated sales force out there doing the job any more.

John Phillips

Partner,

John Phillips Financial Planning,

Swansea, West Glamorgan