As advisers know, cost plays an important, if not overriding, part of many clients’ decision-making process with respect to their protection needs. With cost of housing continuing to rise, many home buyers, who represent between 35% to 50% of all first time protection sales, are understandably short of disposable income; with generation rent having the same affordability issues. 

While affordability has always been an issue, it’s been the continual advances in technology and the symbiotic relationship with multi benefit protection plans that have helped resolve the problem. 

Using technology as an enabler, an adviser can identify the overall protection needs and, with a client’s budgetary estimates, design a protection portfolio tailored to meet the solution. But the important point is that this portfolio can be created in a single client meeting and be as simple or complex as necessary. 

Using a specific example, you can now model the attractiveness to the client of a joint life first death policy versus a pay-out under income protection or critical illness policy. 

Similarly, while a large sum assured always looks good to a client, by using multi benefit product modelling they can see how a modest monthly income that pays the bills might be better; or a combination might be viewed as even better. 

Typically, we now see a combination of joint and individual policies with an element of critical illness, some income protection and some term to cover liability: a combination that would have taken an adviser many hours to pull together previously. It’s often possible to add FIB plans into these models at little cost. 

Additionally, there are usually financial discounts for multiple sales within the same plan, with most insurers deducting expensive monthly plan fees for combination policies. 

A well designed multi benefit plan stands the test of time with good persistency and a number of reasons to regularly re-visit the customer. 

[Sponsored article by LifeQuote]