A new consumer guide and an updated adviser guide to saving protection insurance have been released.
The guide published by the Association of Mortgage Intermediaries (AMI), Protection Distributors Group (PDG) and Income Protection Taskforce (IPTF) aims to assist advisers in providing support and guidance and to help ensure clients maintain cover. The consumer-facing guide highlights the importance of reviewing cover and the types of support and guidance that may be available.
With the current state of the economy, some consumers may decide to cancel their protection insurance direct debits according to AMI. Advisers are therefore in a good position to engage and educate their customers about the benefits of their current policies, as well as propose cancellation alternatives. It’s critical that clients make an informed decision rather than one based on emotion, especially since injury and illness may wreak havoc on a family’s finances.
AMI senior policy adviser Stacy Reeve says: “With many UK households facing a cost of living crisis, it was important to refresh the guide with updated hints and tips to help advisers have proactive conversations with their clients.
“The new consumer-facing guide can be used by advisers to engage with their clients and prompt discussion about their cover. Crucially it encourages clients to speak to their adviser or insurer as soon as possible if they are struggling financially and need support.”
IPTF co-chair Jo Miller says: “In the 7Families campaign the Clarke family had previously made the decision to review their monthly outgoings and lapse their income protection cover. Sadly this decision had devastating implications for them when Tracey’s eyesight deteriorated and she was no longer able to work. We hope these guides will help advisers remind their clients of the life-changing support protection can offer at the worst of times.”
PDG chair Neil McCarthy says: “This is a great summary reminding advisers of the options available to clients considering cancelling protection policies with a new short consumer-facing guide that can be used with clients. Hopefully, mortgage and protection advisers can use them to help reinforce the broad range of benefits that modern protection policies can add to a family.”
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