As households up and down the country face greater uncertainty and difficult decisions on how best to spend their money, it’s often the case that protection policies are among the first things to get cut.
This will come as no great surprise to brokers who regularly face challenging conversations around protection, especially as the cost-of-living crisis continues to bite.
In truth, there’s long been a disconnect between the general public and the importance of protection.
Brokers have a tremendous opportunity to not only educate their clients but to add value, protecting the financial security of their families.
No one can say this isn’t a priority after the challenges of the previous few years.
We’ve been actively encouraging our brokers across the country to put plans in place to approach borrowers.
Investing in outreach programmes via social media and local marketing will create opportunities to check protection cover and identify potential gaps.
After all, many borrowers lack knowledge on the range of protection products that would be suitable for them, especially in the current climate.
With the help of sound financial advice, brokers can help clients decide which types of cover best suit their needs and circumstances, ensuring that these fit within household budgets.
Selling on benefit, not on price
While it may feel like a busy diary doesn’t always allow for it, actually making time to have those higher quality conversations around protection is an important first step.
If it’s treated like an afterthought, it should come as no surprise to see clients thinking the same.
The focus needs to shift from the product itself or the cost to the tangible value it can provide.
Drawing on lived experiences and role-playing ‘worst case scenarios’ with clients are important tools in showing the value proposition and increasing understanding.
For many clients, the memories of the pandemic are still very clear, whether it’s the challenges of reduced income or being off work due to illness.
In fact, data suggests more than 400,000 people in the UK are currently off work with long-term sickness, whether it’s long-COVID or NHS log jams delaying a return to work.
Nevertheless, in a volatile labour market with inflationary pressures and rising costs for businesses, the case for income protection has never been so clear.
It’s having the confidence to explore these topics with clients.
Maximising opportunities for brokers
It’s also important to note that this is a real opportunity for brokers to boost their earning potential in the coming 12 months.
In challenging times, the ability to maximise every opportunity and stay connected with clients are key traits of successful brokers.
In fact, many of our brokers across the country reported some of their best months in the second half of 2022 – even with the mini-Budget and the cost-of-living crisis.
A big part of this was investing time and effort with clients to explore protection and really sell the benefits.
Just as important is re-visiting those existing clients to ensure their needs are being properly met.
Protection is all too often a poor relation to mortgage advice, but it is increasingly significant, and the provision of protection needs to be built into all client relationships.
It’s not just for the sake of clients and their health and financial wellbeing, but for the future prospects of brokers too.
Ben Allkins is head of mortgages and protection at Just Mortgages
