Clients don’t want nasty surprises

Not many of us like it when we\'re taken by surprise, and booking flights with a certain budget airline recently I was astounded to be hit with a £57 credit card fee at the end of the transaction.

This was on top of the additional costs for baggage, tax and using the airline’s check-in services. Suddenly an attractively priced air fare was almost double the cost of the advertised price. Although the airlines view these add-on costs as optional, who would go on a fortnight’s holiday without checking a bag into the hold?

Consumers are often lured in by headline prices but fail to be satisfied when they realise the true cost of their purchases. This begs the question of when is a bargain not a bargain.

So, how can we in the protection industry ensure customers are getting value for money? We know protection isn’t a priority purchase for most people and we know that price can be an obstacle, but should advisers be recommending a product purely on cost?

Surely clients would prefer to pay for a plan that provides best value rather than just being cheap. People want good value for the money they spend, especially in today’s economic climate, and advisers need to be confident the product they are selling meets their customers’ needs and expectations.

Offering clear advice to customers at the start, with literature that lays out all the options in a simple, jargon-free style, will at least go some way to ensuring customers end up with a product with no nasty surprises.