Extras that can be valuable to clients

15 March 2010

Protection is the bedrock of financial planning but unfortunately consumers don’t often see it that way.

Providers work hard to make products appealing but while consumers are happy to buy travel insurance and even pet insurance they remain reluctant to plan for their financial future.

But look at the media at the moment and the relevance of protection is clear. So how can advisers encourage their clients to take it out?

The main message surrounding protection products is that they provide enough money to repay debts and let families keep up their standard of living should the income tap run dry.

But money worries are unlikely be at the forefront of someone’s mind if, say, they have just been diagnosed with a critical illness. While the NHS provides medical care it can’t always give emotional or practical support.

It’s important to remind clients that protection products don’t just pay out lump sums or income these days. Some include useful add-ons from firms such as independent care advisory service RED ARC.

The services that companies like this provide are often included within the protection product at no extra cost. They are designed to complement the financial benefits of insurance by offering practical support.

Services can include bereavement counselling, complementary therapies and access to helplines. For those who have cause to use them, they can sometimes be more of a lifeline than the financial payout.