I’ve been part of the protection industry for more than 20 years and have worked with countless mortgage advice firms during that time.
In the past 10 years — and since starting my own business and giving protection advice directly to clients — I have gained a completely new perspective on the protection advice process and how it integrates with mortgage advice.
Protection discussions and reviews at the point of taking out a mortgage have always been so important. The arrival of the Consumer Duty in 2023 has enhanced this, with mortgage advice firms looking at the protection advice system and how it can be integrated and justified as part of the process.
If protection is left until last, it can feel like an add-on
This was highlighted in the latest Association of Mortgage Intermediaries (Ami) Protection Viewpoint report, published last year.
The survey found that the Consumer Duty had prompted an increase in protection conversations with clients (reported by 41% of advisers), as well as a growing trend for advisers to recommend a wider range of protection products (31%). Meanwhile, 41% of advisers felt that the duty had raised the standard of consumer outcomes.
These are welcome improvements, but there is still work to do on the quality of protection discussions.
The best way for mortgage advisers to integrate the protection conversation is to do so at the outset of the mortgage process. Explaining that protection is a key element of advice helps clients to understand the importance of safeguarding their mortgage debt.
There are so many positive conversations to be had with clients around protection planning
This applies regardless of whether the mortgage adviser gives the protection advice themselves or refers the client to a specialist. If discussion of protection is left until last, it can make the client feel that such advice is an add-on, and can seem ‘sales-y’.
Explaining the need for protection should always be a discussion and not a follow-up point by email.
Understanding existing policies
I find that clients are often misinformed on the level and quality of their employee benefits, particularly around sickness.
It’s useful to clarify this at the start. Making it part of the initial fact-find sets the scene for the protection conversation.
When seeking protection advice, client concern has tended to focus on variations in cover between providers. But there have been huge improvements in the features and benefits offered within protection products as insurers seek new ways to innovate.
Great work is being done in the industry to educate the public and promote IP
This is the case in the critical-illness market particularly, with many insurers now offering standard and enhanced contracts. It can be difficult to explain concisely the differences between these offerings.
We use the CI Expert analysis tool here. It produces an easy-to-understand report for both adviser and customer, highlighting what each policy includes. More importantly, it gives scores on the quality of cover.
You can also compare historical critical-illness plans, which is useful for clients with existing cover and for client reviews. Gone are the days when advisers had to rely on tickbox sales aids produced by the insurers themselves.
Income protection
Ami’s Protection Viewpoint report also touched on income protection (IP). As a former member of the Income Protection Task Force steering committee, I hold this subject close to my heart.
There have been huge improvements in the features and benefits offered within protection products
According to the report, 53% of consumers thought IP was important but only 7% had an IP policy.
Historically, IP has been a less popular form of insurance than life cover and critical illness. Great work is being done in the industry to educate the public and promote IP, and this feels like a good time to reinforce it, given the concerns around changes to disability benefits.
We are seeing more clients show concern around guaranteed income during long-term sickness. Any press coverage linked to this issue shines a light on the need for IP to be part of customers’ financial planning.
This extends to clients searching for IP planning through limited companies, with enquiries about executive and group IP policies.
Explaining the need for protection should always be a discussion and not a follow-up point by email
There are so many positive conversations to be had with clients around protection planning, looking at both mortgage and family protection options to mitigate the risks.
Wider discussions on protection planning have been a hot topic since last year’s Autumn Budget. I have seen a huge increase in enquiries about life cover protecting inheritance tax liabilities for lifetime gifts, and about longer-term intergenerational wealth protection, particularly linked to property.
Naomi Greatorex is managing director at Heath Protection Solutions Ltd
This article featured in the April 2025 edition of Mortgage Strategy.
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