ProtectionMar 14 2022

Overcoming the top 10 most common protection barriers

  • Describe some of the objections to getting protection policies
  • Identify ways of getting over these objections
  • Explain how the protection industry can help in dealing with these issues
  • Describe some of the objections to getting protection policies
  • Identify ways of getting over these objections
  • Explain how the protection industry can help in dealing with these issues
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Overcoming the top 10 most common protection barriers
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“For customers who feel like they won’t be eligible for life insurance, ensuring they understand the value of advice attached to such an important product is arguably the most important barrier to overcome.”

Value represents a key theme across all our commentators. Katy Davies, protection adviser at Hanbury Wealth, says that it is important to help clients figure out what costs are essential and how they would cover such costs if they lost their income, while also ring-fencing their savings. “As an adviser, I don’t believe I am selling a policy. Rather, I am providing peace of mind,” adds Davies.

Meanwhile, both Naomi Greatorex, managing director of Heath Protection Solutions, and David Mead, founder Future Proof Insurance, agree that when it comes to protection purchasing, something is better than nothing. 

Mead says the starting place should be based on the full cover needed by a client. And if this is more than they are willing – or can afford – to pay then discuss alternatives, for example, shorter benefit periods or reducing the sum assured. “If there is a need, and the client has bought into that need, there is usually a way to help them get (some) cover in place,” he says.

Greatorex adds that cost is a real concern, especially as the cost of living is rapidly rising and household incomes are being stretched. She says that family income benefit, budget income protection or age-costed income protection are all worth investigating. “Some protection is always better than nothing,” she says. “Lots of the work we do is helping people understand the value behind the cost.”

2. I do not have the time

Time represents another age-old barrier. And not just from a customer’s perspective. Advisers also find protection business way too time-consuming, it seems. 

“Advisers tell us that having to call multiple insurers in order to find out which one can provide the most favourable underwriting terms can be really time-consuming,” says Chris Monaghan, senior marketing manager at UnderwriteMe. “And if the client discloses anything extra during the application, then the adviser may have to go through the entire process again.”

Of course, technology has helped to solve this problem to a certain extent, allowing “advisers to concentrate more on the quality of sale and less on cumbersome administration,” adds Monaghan. This includes providing a platform for both advisers and customers to complete one application form and obtain fully underwritten premiums from multiple insurers.”

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