How to handle client objections to critical illness cover

We’re all passionate about the things we believe in, and protection advisers are a prime example of this. To a protection adviser, the value of critical illness (CI) cover is so obvious they will want all clients who need it to benefit from it.

Unfortunately, not all clients will share their adviser’s enthusiasm for CI cover – at least initially. Advisers who broach the topic of a potential need for CI cover may hear all the usual objections, from policies being too expensive and insurers unlikely to pay out, to clients thinking they don’t need it because they are too young, don’t have a mortgage and so forth.

So, how can advisers get past these obstacles to ensure clients get the cover they need?

Show and tell

Clients are often resistant to CI cover when they don’t really understand what they’re saying no to.

Protection advisers find being upfront with clients about what CI cover does and how it works dispels a lot of the misconceptions they may have about it.

“They don’t know what they need, what’s out there and they don’t understand the industry,” says Cover My Bubble founder Emma Astley. “To bring down the barriers, people need to know the hoops they are going through at the outset.”

“It’s really complicated to people who don’t understand it,” adds The Protection Parent director Karla Edwards. “Advisers should always keep it simple, do the pre-underwriting first with the client and send them the list of conditions covered from the provider.”

Edwards says giving clients a conditions list and asking them to tell the adviser if they have – or have had – any of the listed conditions clears a lot of confusion.

“They’re seeing it in black and white. It makes loss of faith in the product less likely because it’s not just you talking to them about the conditions – you’re backing up what you’re saying with documentation from the provider,” she says.

Astley suggests talking clients through the insurance implications of having a high body mass index and the medical wording contained in CI policies. Explaining how insurers may decline applications, exclude certain conditions or increase premiums based on medical history can also help people understand why it is important they accurately disclose information about their health when they apply for cover.

Options

One of the difficulties with CI is that people often need a nudge to take out a policy – which is why the industry often talks about protection being sold, not bought. However, clients may not like an approach that comes across as ‘too salesy’. So, what are advisers to do?

Astley’s approach is to do the pre-underwriting and research, then present several options – including decreasing cover – for clients to consider, rather than just relying on a single option or a preferred provider.

This enables advisers to reassure a client who has concerns about affordability – as there will be a spread of options – and pre-empts any objections they may have about using CI cover to protect a mortgage they are paying off.

Another benefit of giving clients several options is that they will be involved in the decision-making process, so will feel they are genuinely getting advice rather than being sold to.

“We never ask clients what their budget is on the first call,” says Astley. “We show them several options – including any possible decline or exclusions – and the variations you get if you reduce the CI cover down.”

If a client cannot obtain CI cover, this is not necessarily the end of the matter. Astley points out there is still a conversation to be had about obtaining life cover for them and adding children’s CI cover, as well as covering children on the partner’s CI policy.

“A lot of advisers are not speaking about children’s CI and bump cover [CI cover for children, babies from 24 weeks gestation and cover for pregnancy complications] but we are seeing more claims on these,” she says.

Real life

One of the most effective ways to deal with client objections to CI cover is to refer to real-life examples of how others have benefited from a claim.

Showing them claims statistics will prove CI policies do pay out but the human-interest element of real-life stories can help to build a client’s trust and bring the purpose of CI to life.

“When I’m explaining CI cover, I always use claims to make the point,” says Edwards. “If a client can’t see the value in it, I explain how other people have used it before and explain the conditions it covers. That squashes a lot of objections, as they can’t object when you tell them everything upfront.”

Explaining why insurers do not pay out on the small percentage of claims denied – due to things like non-disclosure or not meeting the policy definitions – can also help. This will show clients insurers pay most claims, but there are valid reasons why a small percentage are rejected.

Clients may also assume they must have a terminal illness to make a claim, which is not the case. Edwards recalls one case of a client who made a successful claim after having skin cancer removed.

“She didn’t realise she could get paid out if she wasn’t off work,” says Edwards. “She spent one night in hospital and didn’t make me aware until I did my annual review with her.”

Once those medical details were updated, Edwards began the claim and the client was paid £95,000 six weeks later.

“I tell clients this story to make them aware CI covers the living side of life. You do not have to be dying to get paid out,” says Edwards. 

Ultimately, an adviser’s role in dealing with objections to CI cover is to ensure clients and their families are adequately protected. Advisers should not be afraid to signpost or refer to a reputable protection specialist if they feel unable to do this themselves.