This is advisers’ biggest mistake when it comes to protection sales
The foundation of any protection sale is positioning it early on. Sounds simple, right? Yet it is a disaster area for so many advisers.
Nobody sells a mortgage. A client phones you up and asks you for that mortgage. It’s very different for protection.
As soon as a client approaches you, they want to know how much they can borrow, how much deposit they need and how fast they can get the funds. More often than not, we pander to this, answering their questions, doing calculations, running decisions in principle.
All we’re doing each time we do this is turning a mortgage and protection interview into a mortgage-only interview.
We haven’t even mentioned protection. Or, if we have, we’ve rushed through it as a compliant duty or mumbled a few words and said we’ll come back to it another day. When you then try to reintroduce the need for insurance, the client has lost interest.
Neglecting to position protection early on not only leaves clients vulnerable but also undermines our role as comprehensive financial advisers.
Imagine a client facing a severe health crisis or unexpected job loss without the safety net of a protection plan. It’s a dire situation; one no adviser wants their client to experience.
The absence of life insurance, critical illness cover or income protection can lead to devastating financial consequences. It’s our responsibility as advisers to ensure our clients are prepared for life’s uncertainties.
Managing expectations
There is an easy way to stop bad outcomes: manage expectations. Clients come to you, a mortgage and protection expert, for mortgage and protection advice.
Just tell them from the start:
“My advice comes in two separate but equally important halves. Today is all about the first half: let’s find you a great mortgage. But as soon as that’s done, I will take care of the second important half: making sure you put the right protection in place to run alongside it.
“We always do it like this, because the mortgage helps you buy the home but the protection will make sure you never lose the home.”
As you can see, I didn’t ask any questions. I didn’t ask if they want to discuss protection. I told them what is going to happen. They will expect both equally important halves of my advice because I told them as soon as I met them.
So, let’s recap the action steps needed to boost your sales:
Set the stage early:
Begin every client interaction by explaining your advice covers both mortgage and protection. Emphasise that both are equally important and that you will address each in turn.
Frame protection as essential:
Use analogies or stories to illustrate how protection is just as critical as the mortgage itself. Explain that, while the mortgage helps the client buy the home, the protection ensures they never lose it.
Be confident and direct:
Take control of the conversation. Don’t ask if they want to discuss protection, tell them it’s part of your comprehensive advice. This sets the expectation that discussing protection is non-negotiable.
The key lesson here is about taking control and setting clear expectations from the outset. By doing this, you establish your expertise and ensure both mortgage and protection advice are seen as integral parts of the service you provide. This approach not only builds trust but also positions you as a reliable and caring adviser.
Remember, the best protection plan is the one you have in place before you need it.
exactly someone should tell the FCA they are always back biting about financial advisers. About time they did something positive for a change
and insist this is written into Mortgage advice