Analysis: The cheap way to lose clients

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Why is it that so many advisers recommend the cheapest critical-illness plan? It might be because it is the easiest plan to sell because presenting a table showing competing insurers with the cheapest at the top enables an adviser to highlight a known advantage which, unlike quality comparisons, is solid and easily recognisable.

However, the title ‘financial adviser’ signifies just that: using skills and knowledge most consumers do not possess to arrive at a measured and advised solution.

A degree of hard work is required to make a comprehensive assessment based on the client’s circumstances. Some advisers are concerned about creating a fully compliant report to support their recommendation. It might be they cannot adequately relate the differences between contracts and cannot accurately gauge whether an included condition carries any real value.

Advisers can undertake this time-consuming task themselves or use specialist websites. Altern-atively, they can continue to advise that the cheapest option is best and then find other, more savvy, advisers are capturing their clients.