Price is only half the story when it comes to protection
For adviser use only
It’s often difficult for clients to look past the premium and see that you’re offering a solution that’s tailored to their individual needs. As an adviser it’s imperative you demonstrate the value of a well-structured, bespoke protection plan.
Most of your clients are probably financially savvy enough to realise that major life events like marriage, buying a house, and the birth of children will change their financial needs and responsibilities. But just how much do they know about protection?
Tailoring a protection plan to fit specific needs
All of your clients will have heard about life insurance - but do they realise it can be tailored to meet their circumstances and budgets?
For example, if they’re married, many will assume they need a joint-life policy. But do they realise this generally only pays out after the first person dies, leaving the other spouse without cover? This could be a problem if the surviving spouse still has dependent children or outstanding debt.
But if both partners take single-life policies, they can effectively double their cover. You know this won’t cost double the premium - but do they?
If working to a tight budget, they might not know that decreasing cover is available - helping to minimise their outlay while still ensuring their mortgage debt’s covered. They could also cost-effectively protect their family’s income with family income benefit which provides a monthly payout rather than a lump sum – and can also include critical illness cover.
Designing a protection plan instead of buying protection policies
Speaking to clients about protection plans, rather than policies, can help them think about protection as a menu-based insurance that provides the level of cover they need, in a way that best suits their overall circumstances and budgets.
Our menu-based approach lets you access the various types of cover available, enabling you to conveniently structure something that’s unique to them; while your clients can take advantage of the multi-benefit discounts available. Our underwriting approach is designed to deliver the best outcome for your client – in 2015 we were able to offer terms to 96% of clients, and were named Underwriter of the Year at the Protection Review awards. We also won Best Service provider at the 2016 Cover Excellence awards.
But when it comes to protection, the customer experience at claims stage is arguably the most important. This is when the value of protection is at its greatest - providing your clients with a financial safety net when they need it most.
In 2015 we paid:
• 98% of life protection claims;
• 97% of terminal illness claims; and
• 97% of critical illness claims (the highest in the market).
Our protection products can help to bring peace of mind at a time when your clients need it most. But sometimes, financial security is only part of the solution. That’s why we launched a new health and wellbeing service with our partner, Health Assured. It gives our protection customers and those closest to them, access to confidential support and guidance on a wide range of issues whenever they need it. If they need to make a claim, this service can provide them and their family with impartial help and support during an already difficult time. But it’s not just available at claims stage – they can use the service throughout the lifetime of their policy.
Price may always be a headline factor in your clients’ decisions - the challenge is to get them to understand just how much of the protection story lies beyond the premium. By doing so, you can make sure your clients are better informed and end up with a protection plan that matches their needs and budget. It will also help them see the value they get for the premium they pay and the services you provide.