after qualifying through a strict application process, would that be enough? Only 27% of consumers are aware of the changes made to State benefits in 2008. 81% of consumers expect their financial adviser to understand the levels of State benefits available, yet only 17% of advisers have used the Welfare Reform Act to help sell income protection. In a climate where people are already
under financial strain, the last thing they need to worry about is how they could afford to keep a roof over their heads in the event they are unable to work due to an accident or illness. By taking out some form of protection insurance such as a critical illness or income protection policy, people can have the financial freedom to continue living the lifestyle they are accustomed to and focus on getting better.
Using it as an oPPortUnity A budget planner is an effective way advisers can help their clients monitor their incomings and outgoings. It can be used to show the comparison between the level of Employment and Support Allowance they’d receive and their current income. The shortfall would surprise most clients. There are likely to be many
luxuries and even essentials which clients could not afford if they were reliant on the State. 65% of us wouldn’t be able to maintain our standard of living if we were unable to work and had to rely on State benefits. A further 81% revealed that they wouldn’t be able to survive on just £65.45 a week. Not surprisingly 91% could not afford a holiday abroad if they were living on £65.45 a week. The lack of understanding around
the Welfare Reform Act gives advisers a real opportunity to demonstrate that
Employment and Support Allowance alone would not be enough to cover their clients’ current lifestyle and luxuries, such as holidays. A factfind around other insurances that their clients purchase such as travel insurance can also help clients connect with the need to protect their lifestyle. Advisers can also use consumer rating
websites to support their decisions around particular products. Some people value and rely upon reviews and recommendation websites, such as
tripadvisor.co.uk, even from people they do not know. Although the financial services industry does not have its own version of
tripadvisor.co.uk, there are many rating and recommendation companies that do look at the non tangible products like protection. With such savvy consumers companies such as ‘Which?’ and ‘Defaqto’ have sprung up as online
spaces that consumers can go, to make sure that the protection product they are buying is a Best Buy and/or independently highly rated. ‘Which?’ have been showcasing Best Buys on Income Protection products for the last few years. And ‘Defaqto‘ have been doing a lot of promotion to become a well know identity that consumers are likely to seek in the future. So there are many opportunities for
advisers to use when selling income protection and providers are offering up lots of support for advisers to carry out their own marketing campaigns around these. Whether it is using the topical angle of what would happen when clients return from holiday having suffered an accident or illness or if their objection is that they would rely upon the State if off work through accident or illness, advisers can take full advantage of this and boost their income while they protect their clients’ lifestyle. n
mortgage introducer SEPTEMBER 2010 39
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