Protection

cahillg81

I'm interested to know peoples opinion of protection and how it is sold and how people buy it.


There are many on here who are in the business and will be able to talk protection to the cows come home and advise the reasons why you should have it and why it is important.


But I am interested to know from the buyers perspective a few things:


1) If you have bought or are considering buying some form of protection what are your reasons?


2) How important is cost? Would you pay more for better cover/additional benefits?

3) How do you feel the conversation should be focussed?


4) Would you prefer to sort your mortgage first and then protection or would you prefer to do it together?


I'm not looking for too much detail, more just trying to understand the mind set. As a mortgage and protection broker I discuss this everyday so to do my colleagues. But my instinct is we could be doing it much better, I guess many of the other advisors on here would say the same

For me protection used to be a secondary consideration once I had sorted the mortgage but recently I lost a friend at a very young age who left behind a wife and kid at 3 years old and it's changed my perspective. I use this as an example when speaking to people but I am aware that it might sound contrived and salesy!

I'd also welcome the thoughts on importance and process other advisors go through when discussing the subject.

ACG

I did some quotes last week for myself as shock horror I do not have any myself. I have not got round to arranging it yet, but it is on my list.

cahillg81 wrote: »

1) If you have bought or are considering buying some form of protection what are your reasons?
I am getting to that age where I need to start growing up and being an adult. And I have realised I am not as invincible as I used to think. Also my step brother who is fit as a butchers dog and solid spent nearly a year in a cancer hospital, he was 30-31...he spent his 30th in there! With 2 young kids looking through the glass window as they were not allowed in the room.

2) How important is cost? Would you pay more for better cover/additional benefits?
Pretty important, but I am paying more for Best Doctors global treatment as its an absolute no brainer in my opinion. As a broker I am seriously debating going single tied with FL.

3) How do you feel the conversation should be focussed?
Ill leave this blank as I did it myself.

4) Would you prefer to sort your mortgage first and then protection or would you prefer to do it together?
And this.

cahillg81

I bet your not alone ACG. I have a policy myself but really want to switch to another provider and despite not claiming on my existing policy I am about 7 stone heavier and 10 year older from when I took out my original Life & CIC policy and think the premiums would be more expensive but the policy I have in mind would, I think encourage me to lose some weight and actually be better off. I'm thinking of doing an IP policy for the min I need to take to get the premium to get the benefits and make the saving and hopefully get my @rse back to a gym. Haha, unlikely though :-)

amnblog

We find that if we do not deal with protection at the application stage it can lead to health issues down the line.


The clients seem to go deaf once they are in the new property.

ACG

I sell more income protection than I do critical illness. Once you explain the difference I think people are more inclined to go for Income Protection. Its not as easy to "sell" but you are more likely to get a payout on it than you are CI and possibly also more in the long run.

amnblog

My Doctor with Cancer had a few days off work.


My other one with MS is still working.


Both got CIC payouts.


CCI v IPP is always a difficult one.

cahillg81

I think as standard we probably all used to go DTA on life and cic but really is that the best option?


Protecting the quality of life is probably more important than repaying the mortgage.

dunstonh

CCI v IPP is always a difficult one.

I would agree.

The financial adviser side of me says PHI over CI. However, the claims rate is higher on CI than PHI. As always, both is the ideal scenario.

cahillg81

Not long after I posted this link arrived in my inbox pretty spooky, well we get loads of industry blurb posted day in day out but this makes a bit of sense.

http://www.covermagazine.co.uk/cover/news/2465051/protection-review-2016-mortgage-and-protection-link-fundamentally-broken?utm_medium=email&utm_campaign=CV.Daily_RL.EU.A.U&utm_source=CV.DCM.Editors_Updates

amnblog

Why is it a brokers 'moral obligation' for someone else to protect themselves and their family?


Not surprised to see Mr Vitality saying 'it's not about simple products'


It is about a simple idea though.


Mr Client 'what do you want to happen if you die tonight'


I don't think it is about brokers being lazy, nor the rewards not being there.


Many just don't have the skill set to handle a product that won't be bought and has to be sold.


No-one is training them to do it.


The Brokers that have the biggest take up on protection most likely have the biggest cojones, and the best skill set when approaching the subject.