As the economy begins to show signs of recovery and the housing market returns to growth, it is clear that mortgage advisors are back to being busy again with lending at its highest level since 2008.
In this positive market, a growing concern is that many advisors are neglecting to offer suitable protection advice, leaving themselves and their clients in an extremely vulnerable condition.
It goes without saying that a client's income is vital to their financial security and that the impact of any disruption or changes to that income may have serious consequences for a client and their immediate family.
It could mean having to find alternative employment in order to keep up repayments on the mortgage, which continues to present serious challenges; even in a growing and buoyant economy.
In the worst case scenario, their income may be at risk as a result of long term ill health or sudden and unexpected death. Both present unpalatable sets of circumstances that we all prefer to try to ignore.
Whilst state benefit may offer some short term relief, it is most likely that the majority of people would be forced into a position where their property will be at risk of being repossessed, the last thing you want on your plate.
We are fundamentally concerned that many others in our industry are neglecting to offer advice on protection products when times are good.
Our role is to protect our clients by helping them understand the need for financial protection. Even when budgets are tight, we can still help clients acquire adequate insurance.
By working to what they can afford, we can arrange protection policies that offer some bespoke cover in all areas, rather than just a standard policy.
Mortgage and protection advice are of equal importance and should always go hand in hand- even when times are rough.
That is why we are calling on the industry to maintain standards of best practice by ensuring that clients are well equipped with adequate financial protection; even though the outlook is rosier now than it has been for a number of years.'
Ian McGrail is managing director of broker FirstMortgage
