Advisers have a key role to play here in making sure they raise the issue of protection with their clients. However, just 7 per cent of adults in The Exeter’s survey said that an adviser had approached them about their requirements. Other surveys, have also found that even where advisers do promote protection products, conversion rates are still low.
Cost, too, remains an issue. There is still a perception among consumers that the cost of protecting their income is high. However, buyers can choose to cover less of their salary to make it more affordable, so this should not be insurmountable for many.
However, the main barrier, in fact, might not be the product’s price, but rather the way the industry talks about and describes its own products. Indeed, the survey showed widespread confusion and dissatisfaction with the language the industry uses to define, promote and market protection insurance.
Even among those who already had an income protection policy or had considered purchasing one, but had found it difficult to understand the benefit of the cover, almost half (47 per cent) said their lack of understanding was due to too much technical jargon, while 45 per cent blamed unclear explanations of coverage.
Learning a new language
So, how can advisers make sure that the language they are using in protection conversations is hitting the mark?
As a first step, it is important to be open to change. Many advisers have a “tried and tested” method of illustrating the benefits of income protection for clients, whether that is using real-life examples or tools to illustrate the impact of a loss of income on their client.
Whichever way advisers choose to highlight the benefits of income protection, they need to be sure it is passing that test. If not, it needs to be addressed and changed.
Secondly, in all their interactions with clients, advisers should keep in mind some key principles of effective communication. These are proven to help promote understanding and clarity about what’s been said.
For example, using short, direct words and phrases in preference to long, complex or abstract alternatives can help to keep the conversation simple. Instead of saying “additional”, consider saying “more” or using the word “show” instead of “demonstrate”.
Even the very word “advise” could be simplified to “tell”. The Plain English Campaign has many other examples for advisers to consider, and many of its tips for clear writing apply equally to clear speech.
