Case study: 'I helped her through her divorce. Then she told me she had a brain tumour'

Adviser name: Jeremy Coltman

Firm name: Jeremy Coltman Wealth Management 

Firm size: 1

Client life stage: Young, with a daughter

The problem: The client had been a young mum when I first met her years ago. She and her then husband had wanted life insurance to cover the mortgage and I encouraged them to do critical illness cover and income protection. A couple of years later, the couple got divorced. She was worried about meeting costs at the time, and wanted to ditch the CI cover. I persuaded her to keep it. Then she got a brain tumour.

Coltman says: I will never forget getting an email from a client that I first met many years ago. Originally, I had helped her and her husband with a mortgage, income protection and critical illness cover. I later helped her through a divorce. Then she told me she had a brain tumour.

How did you react to this situation?

Obviously my first reaction on getting such an email is shock and sadness. But I had to move quickly and think about what I could do to save her the hassle of going through all the paperwork and chasing providers. 

Immediately she wanted to know what she could do, and what she was covered for. I looked into her plans and the CI cover, spoke to the insurers and the CI cover paid out. The IP was set to pay out once she was no longer able to work.

She had been such a young mum when I first saw her. At the time they only wanted life insurance for the mortgage but I persuaded them to do CI.

You need to make people aware they are more likely to have a critical illness during the span of the mortgage plan.

Most people know they need some form of insurance and think about life cover, but you need to make people aware they are more likely to have a critical illness during the span of the mortgage plan.

It can be more expensive than other insurances, but I believe it is the most valuable.

A few years later, after she got divorced, she asked if I could help her with her finances. She wanted to stop the CI cover, and was paying about £80 a month into a personal pension at the time.

I said to her that she should make sure that she kept up the CI, especially as she had a daughter. A saving is a luxury; protection is a necessity.

As her financial situation improved, we spoke each year and I did some investments with her. 

Then she started to get a lot of headaches. She was diagnosed with a brain tumour.

What did you do?

After reassuring the client, I contacted the insurance company that had her CI, and they rang her and they paid out on the CI quickly, which enabled her to pay off her mortgage. 

The providers were great. The insurer paid out without delay, and there were no issues.

It is a bit of a myth that people do not get payouts. Insurers want to pay out and they are continually enhancing their plans to make it easier, and to cover more conditions. 

I also looked at her overall finances. We've done investments over the years and each year we look at her financial plan. 

Apart from the physical trauma of the tumour and the divorce that she went through, we checked over her investments and I could reassure her that she and her daughter would be secure.

What was the outcome for the client's family?

I was pleased with the speedy payout. It gives you confidence in selling protection.

For me, cover is the foundation of everything - if that is in place, everything is secure. If you have £100,000 in investments but cannot work for three years, that’s the money gone. 

Miraculously she is still with us, and her daughter - who is now about 20 - is doing well. My client's tumour hasn't grown, although she still suffers from headaches.

She has a secure family background, owns he property outright, and has a strong network of friends. She is in a much better position financially, physically and emotionally.

It gives me confidence that these plans work. Over the years I have similar cases pop up and it is good to know companies are there to support and look after clients. 

She has no CI now, as it is almost impossible to get once you have had a brain tumour. But she does have some protection, pensions and investments and is set for a sizeable inheritance. 

In fact, she has over the years recommended her friends and family to me. I've even met with her parents.

What would be your top tip for someone starting out on their journey to become an adviser?

I would say first of all, you need to listen. You need to treat all your customers as if they are your own mum and dad.

Don’t go for what will earn you the most money. Be contactable. Be personable. Be prepared to have people phone you up.

Make yourself accessible, be honest, trustworthy, help the client, listen to them - and you will be alright.

You don’t need a flashy car or a swish suit.

This is the basics really. It’s hard to build up the client book but these are the basics.  

This is what I tell my son. You don't need a posh office - you can work from home, and go visit your clients.

You don’t need a flashy car or a swish suit. Sometimes I go in jeans and T-shirts to visit clients. I pat their dogs, I stroke their cats. People relate to you and don’t always like or trust a suit and tie. 

Hold up - you tell this to your son?

Yes. One of my twin sons is going to be a financial adviser. He started off with an internship in Bristol and has been working as a paraplanner in an office in Cirencester.

He is currently doing an eight-week course at the St James's Place Academy to learn those soft skills that are so important as an adviser.

Anyone can do the exams - but it is the people skills that really matter in this business. 

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