Don’t put off to tomorrow what you can do today

3 August 2016
The additional requirements introduced by the Mortgage Market Review (MMR) mean putting a mortgage in place for your clients is more time consuming than ever.

So is it really any surprise that 59% of UK mortgage holders don’t have life insurance in place to cover their mortgage should the worst happen? *

Have you ever found yourself thinking ‘I’m too busy on the mortgage side at the moment’ or ‘I’ll go back to that later’ only for ‘later’ never to happen? By not putting the proper protection in place for your clients are you treating them fairly or are you even potentially exposing your business to additional risks such as compensation claims?

A case study

I was speaking to one of my sales colleagues the other day who told me a rather sad story she had heard recently. It was about a mortgage adviser who went to review one of his clients at the end of last year. He asked how things were going to which the client responded that they weren’t going very well. When the adviser asked why, the client said that they had been told that they have 10 weeks left to live.

Firstly, the adviser felt terrible – was there something he could have done?

The answer of course is yes – he could have discussed protection at the time he was selling the mortgage.

Secondly, is the client going to try and sue him or get compensation because he should have offered cover?

Thankfully in this case no, as the client said he had only ever asked the adviser about mortgages so wouldn’t have expected him to do anything else. But that might not always be the case and not everyone is as nice as this client.

Because of what has happened to this client, the adviser has contacted all of his other clients to review their protection needs. As a result, his protection business spiked dramatically in January and February showing that the need was there and he was providing better quality advice by covering this.

How we can help

We have a range of support material to help you have the protection conversation with your mortgage clients, from sample approach letters to help you reconnect with your mortgage clients to tools and calculators to help you overcome client objections. And don’t forget, our tailored marketing solutions site has a suite of sales aid and posters specifically aimed at mortgage clients.

So next time you find yourself thinking ‘I’ll go back to the protection needs later’ make sure you book in that follow-up appointment. Even if your clients don’t take out any cover I’m sure you’ll sleep better at night knowing you’ve provided good quality advice to them.

*Source: Mintel.Critical Illness Cover report, February 2016

About the author

Ross Jackson

Senior Protection Marketing Manager

Ross joined Royal London in May 2014 as Senior Protection Marketing Manager bringing with him 16 years’ experience in financial services. He has held various marketing roles during his career and has experience working across a number of markets including savings and investments, individual pensions, workplace pensions, platforms and most recently protection. He has a keen interest in behavioural economics and how this can be applied practically to change consumer behaviour in financial planning.

Last updated: 03 Aug 2016
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This website is intended for financial advisers only and shouldn't be relied upon by any other person. If you are not an adviser please visit royallondon.com.

The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial Services Register, registration number 117672. It provides life assurance and pensions. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL.