Sell protection deals while prices are low

ED STUART-BROWN, HEAD OF PROTECTION, FRIENDS PROVIDENT
ED STUART-BROWN, HEAD OF PROTECTION, FRIENDS PROVIDENT

One of the most commonly cited objections to selling protection products is its affordability for consumers.

But the fact is that the cost of life cover is lower than ever, with premiums as much as a third cheaper than a decade ago.

With this downward spiral in pricing unsustainable in the longer term, now is a great for financial advisers to promote protection and counter the affordability objection.

Recession veterans should also be more receptive to the need for protection. Individuals are more financially savvy and risk-adverse as a result of the downturn.

We have already seen consumers’ inclination to save grow as they appreciate the importance of having a financial safety net in place, and protection should form a part of this net.

Although it’s clear that individuals are still reluctant to splash the cash they should be prepared to fork out once they realise the importance of protection.

For those still paying £40 a month for their satellite television subscriptions insurance is not a matter of affordability but rather one of priorities.

With term assurance at its cheapest for a decade, this is the time to educate consumers so we ensure financial protection takes its rightful place at the top of their list of priorities.