CPDNov 29 2021

How to communicate the importance of protection products to clients

  • Explain why protection is important
  • Identify questions to ask when discussing protection with clients
  • Describe how social media can be used to communicate about protection
  • Explain why protection is important
  • Identify questions to ask when discussing protection with clients
  • Describe how social media can be used to communicate about protection
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How to communicate the importance of protection products to clients
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The core client needs arguably have not changed dramatically. Without protection, customers or their dependants still face the risk of loss of income and an inability to pay rent or mortgage payments or to maintain their lifestyles. 

That said, people’s lives have become more complicated, and careers and relationships are much less linear than 40 years ago.

This means that the need to review a client’s circumstances and the need for flexible products that can cope with changes are more important than ever. 

Annual statements can provide a helpful trigger for a review, to look at what’s changed. For instance, should children’s cover be added to a plan because of a new arrival, or maybe taken away because the child is now too old to claim?

And what about job changes, promotions or house moves?

In the past 40 years, we have seen greater compliance oversight of the sales process, with ‘reasons for recommendation’ reports and increasing and better use of technology (think personalised risk reports and more).

What has not changed is that it is still potentially challenging to encourage customers to reflect on things they would much rather not think about; death and disability, most obviously.

At the heart of a financial review will be an understanding of how the client will cope financially if the worst happens – what will the financial impact be on family and dependants?

The adviser should be opening the client's eyes to the likelihood and potential financial impact of an inability to work, a critical illness or of death itself – confronting issues that may be difficult or uncomfortable, but without inappropriate scare tactics.

Human touch

An Association of Mortgage Intermediaries report on protection, published in November this year, highlights that 57 per cent of advisers say protection discussions with clients have increased in the past 12 months and 42 per cent say their clients are now more open to discussing protection.

It also found that 40 per cent among those aged 18-34 would consider income protection due to Covid-19 when they would not have done previously.  

The report does suggest a perception to be overcome: 42 per cent of people believe protection is brought up only to increase broker commissions, while just 30 per cent say the broker wants to ensure full protection for their client.

The question is: how to change this? 

At an industry level, there will be more we can do. Collectively, we need to continue to fight the misconception that claims are not paid – they are, in very large numbers, and we should be very proud of that.

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