According to Matthew Chapman, commercial director for Plus Financial, "dispelling myths [about insurance] and getting the clients to see the true value in having cover can be a major obstacle. I do this by using practical and simple examples of how things can go wrong and where protection can make a significant difference in their lives should something untoward happen," he says.
"Another obstacle," he says, "is explaining why the client ought to consider having multiple types of cover to meet specific risks and needs, and to allow for flexibility and changes to their circumstances both now and in the future [in case they change]."
"Helping clients understand the differences between types of protection can certainly be challenging and often the terminology doesn't help," explains Rob Harvey, head of protection at Drewberry. Most advisers agree that it is important to explain the different types of policy available by talking about the benefit they provide as opposed to product names, using plain English rather than jargon.
According to Chapman, "most clients approach their protection needs back-to-front". "Many have heard about or understand life insurance and so tend to mistakenly begin there," he says. "I get round this by explaining the likelihood of various scenarios and by helping them to see the importance of protecting their income first and foremost, often by getting them to question how they will even pay for the premiums for their other plans without one!"
Ria Wotherspoon, an adviser for City Finance Brokers, argues that it is up to the adviser to make sure they are up to date with product changes and offer regular reviews. "They should know which products are right for the client and comparison tools are fundamental in final checks to make sure they are getting the best cover at the best cost," she says. "I'm the adviser, not the decision maker! All my clients know the end choice is theirs."
Click here for more tips on improving protection conversations - and to learn about a new menu tool from Royal London.
The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial Services Register, registration number 117672. It provides life assurance and pensions. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL. Royal London Marketing Limited is authorised and regulated by the Financial Conduct Authority and introduces Royal London's customers to other insurance companies. The firm is on the Financial Services Register, registration number 302391. Registered in England and Wales number 4414137. Registered office: 55 Gracechurch Street, London, EC3V 0RL.