View more on these topics

Don’t let bad apples tarnish PPI barrel

Geoff Hall
Geoff Hall Managing Director Berkeley Alexander

It’s unusual for consumers to be familiar with the names of specialist insurances, but not when it comes to payment protection insurance.

Because of the bad press this product has received over several years the name PPI is bound to provoke at least a raised eyebrow from most people.

We all know there have been problems with the way PPI has been sold by being tacked onto a loan or credit card. But I object to the fact that some bad apples in the barrel have tarnished the whole concept of PPI.

In particular with mortgage payment protection insurance or standalone income protection there have been few cases of mis-selling.

Advisers are left with a tricky situation to manage. It is generally accepted that unemployment insurance is sold and not bought. And now with these dire economic times, more redundancies and the shrinking welfare state, it is more important than ever that your clients consider their financial position.

How would they cover their outgoings if their income ceased? What costs would you suggest they cut if they asked for your advice?

It’s better to have at least discussed accident, sickness and unemployment cover with the client in case the worst happens.

What it boils down to is that both MPPI and PPI are valuable products for the right clients. Of course they won’t be appropriate for all, but if sold properly after checking suitability and ensuring clients know what they are buying then they can be offered both products with confidence.



January offerings will be the real test

Heading fast towards the Christmas break and the inevitable slowdown of mortgage business, it was good to read some positive press last week. The boss of Tesco announced pretty impressive figures and said customers were weathering the downturn well, with some expensive food ranges significantly ahead of previous years. Unlike some, Tesco saw that the […]


Set your sights on landlords’ GI needs

I am sure all of us will be looking forward to 2011 with the hope that it will begin to fulfil the promise of better times ahead. And if I was a betting man, my money would be on the buy-to-let market beginning to shine. If we leave aside the increasing number of new renters […]


News and expert analysis straight to your inbox

Sign up