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Calculating clients’ protection needs

Finding the right balance between need and affordability is particularly relevant in terms of mortgage insurance.

If consumers have already stretched themselves to buy their homes, they may have a limited amount of money to spend on cover.

Therefore, it’s important to create packages that not only meet customers’ needs but are affordable too.

Many protection providers with menu-based plans offer an interactive cover calculator that provides consumers with a straightforward method to create bespoke, affordable packages that meet their requirements.

Cover calculators allow brokers to show the different types of protection available to clients. Once the various options are presented, brokers can mix and match elements from different policies to find the most suitable approach.

For example, this can be done by reducing assured sums or increasing deferred periods for income protection payouts.

Brokers can keep changing the details until clients have tailored protection packages at monthly premiums they can afford.

This works particularly well with income protection, a policy sometimes overlooked by clients because of the cost.

While these are tough times for the mortgage market, cover calculators can help brokers make protection sales by matching clients’ needs with the right cover.


Government announces HIP shake-up

Housing minister Margaret Beckett has announced an overhaul of home information packs which will force sellers to compile a HIP before the property is marketed.

MSPs join fight to save HBOS

Scottish MPs are supporting the Merger Action Group in its efforts to block the takeover of HBOS by Lloyds TSB, citing a threat to competition.

Old joke

Last week Mole asked a well known equity release pundit whether there was a market for his firm setting up its own retirement homes to look after elderly guys and gals.

Fiddling while market burns

Chancellor Alistair Darling has so far failed to put out the fire engulfing the mortgage market. The Bank of England has cut rates in the hope of stimulating some sort of recovery but as lenders hoard capital and bemoan the price of funding, the base rate could fall to zero for all the respite it would offer. As for the Financial Services Authority, creative thinking to get us out of this mess is beyond the regulator’s remit.


Pension over-taxing

800,000 people are at risk of being over-taxed on their pensions, writes Steve Webb, director of policy at Royal London Hundreds of thousands of people receiving company and personal pensions should check their tax code to make sure that they are not being over-taxed, according to a leading pensions firm. Mutual insurer Royal London has […]


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