The Income Protection Task Force (IPTF) hosted a podcast today as part of Income Protection Action Week (IPAW).
The discussion aimed to raise awareness and improve income protection sales.
The session highlighted the need for effective conversations about reliable plans and the risks clients face.
Reports from IPTF members and LV Reaching Resilience Research revealed that 71% of the working population have some form of debt, with 10% unable to make monthly payments on debts other than mortgages.
One in 10 parents borrowed money from family or friends for support, and many believed they did not need professional advice because of family support.
Alarmingly, one in 10 people had no savings at all, while a quarter of UK workers were unsure of their sick pay entitlements.
Income protection was described as a critical safeguard for those relying on their income.
Jo Miller, co-chair of IPTF, discussed these issues with Matthew Chapman, known as ‘The Protection Coach’, and host of the Let’s Talk IP podcast.
Chapman said: “A lot of the coaching work that I do often is based around a lot of the mistakes that advisors are making.
“This is where advisors tend to be product focused or detail oriented.
“Unfortunately, when that happens early in the conversation, without first doing the groundwork to create intent or value around the protection, you’re bamboozling them with information.”
Chapman pointed out that advisers often lack conviction, which can come across as a sales pitch rather than genuine concern for the client’s needs.
The IPTF demonstrated exaggerated role-plays to show the pitfalls in advisor-client interactions; one scenario highlighted how overwhelming clients with information leads to resistance.
Chapman added: “The customer needs to understand the concept, the why first. Keep the language simple.”
Another role-play depicted a dull presentation where the advisor simply read information without engaging the client.
Chapman said: “Humanising the conversation is what gets customers bought into the concept because you are really demonstrating why it is important and trying to do what you can in the client’s best interest rather than just going through a monotone presentation.”
The session concluded that it is essential to avoid overly dramatic approaches, which can scare potential clients.
Advisers should start with a clear understanding of income protection, relate it to the client’s goals, and emphasise the value of protecting income as an essential and cost-effective strategy.
