Mortgage advisers play a vital role in helping reduce the UK protection gap. In fact, I would go as far as saying, there is no bigger cohort who could have an impact. So, here are my seven top tips to help advisers who are turning their hand to protection advice.
1. Start early
The earlier we introduce the idea of protection, the more seamlessly it integrates into the journey. For me, this means it should be presented as part of the package. Position protection (and GI) as a routine part of the mortgage process rather than an optional add-on. A good way to gauge client awareness is also to use open-ended questions to assess whether clients already have policies or an understand its importance. For instance, asking, “Have you considered how you would manage your mortgage payments if you were unable to work due to illness?”. By framing protection at outset, we can normalise the discussion and set the stage for deeper engagement later.
2. Highlight risks without fearmongering
While discussing protection, it’s crucial to strike a balance between emphasising its importance and avoiding putting people off. Using relatable scenarios and leveraging statistics that underline the need for protection can help. For instance, mention that nearly 1 in 2 people will be diagnosed with cancer in their lifetime or simply utilise the risk reality tools that provide personalised data. By making the risks tangible, clients are more likely to understand why taking protection is a sensible decision.
3. Connect protection to their mortgage goals
Helping clients see how protection directly supports their goal of owning a home by safeguarding their financial stability is incredibly important. By focusing on the peace of mind it can bring and showing how a protection policy ensures their home remains secure for their family, even in challenging times. When clients understand the direct link between their mortgage and protection, they’re more likely to see its value.
4. Incorporate protection into the budget discussion
The perfect opportunity for discussion is during affordability and budgeting for mortgage repayments. By breaking down costs we can present protection premiums in a relatable context, such as, “For just £20 a month — less than a coffee a day — you can ensure your mortgage payments are covered if the unexpected happens.” We can also show long-term value by comparing the cost of premiums to the potential financial struggles of losing income without protection. This shifts the focus from short-term expenses to long-term benefits. By framing protection as an affordable part of their mortgage package, clients are less likely to perceive it as an unnecessary expense.
5. Leverage milestone discussion moments
Certain points in the mortgage journey naturally lend themselves to discussing protection insurance, so it makes sense to focus on these as well. For example, after an agreement in principle is set out, the client knows their borrowing capacity, so discussing how secure their ability to repay is a logical discussion point. Equally when finalising the mortgage, we can emphasise the importance of safeguarding their commitment. By integrating protection into key moments, we continue to keep that door open for them.
6. Handle objections with empathy
Clients may have reservations about purchasing protection, often citing the cost or believing they won’t need it, or it won’t pay out. Address these objections with empathy and understanding. If there are cost concerns then highlight flexible options, such as starting with basic cover and enhancing later. For those clients who believe they’re unlikely to need protection, we can share claims statistics and examples that they may not have thought of. By framing it as a safety net, empathising with their concerns and providing tailored solutions, clients can overcome hesitations.
7. Follow up after the sale
Even after the mortgage process is complete, continue discussing protection insurance with your clients. There are ample opportunities to do this, such as annual reviews where you can revisit what their protection needs are, as circumstances can change. You can also share educational content such as articles or videos explaining the benefits of insurance to keep it top of mind.
Final thoughts
Where protection is positioned throughout the journey, the buy-in from the client is significantly higher and when that call comes in from the client with dreaded news – you’ll look back glad that protection was taken out.
