“Some will offer short-term benefit and premium reductions with no underwriting to increase cover to the original level. Again, depending on clients’ circumstances this could be useful as at least some cover remains in place.
“As these offerings are not contractual, unfortunately there is no guarantee that a client will be eligible. Each insurer or friendly will assess a client’s circumstance on a case-by-case basis to determine the extent of their need.”
Flexibility is key, adds Edwards, who says that as well as the potential for premium reductions, where a client is deemed vulnerable, DeadHappy will offer to pay their monthly premium while they sort things through. “This might be for up to three months,” says Edwards.
Industry best practice
Everyone we spoke with for the purposes of this column asserted that if a client is struggling, they should be encouraged to contact their provider, regardless of what is stated in the company’s official documentation. They all agreed that insurers and mutuals will always try to help clients keep their cover in place.
“It is important to remind clients about the value of their protection cover at times like this to avoid them cancelling such important lifelines,” says iPipeline's Yates. “There are technology solutions available that can help deliver continual client engagement, delivering regular communication and checkpoints for cover and support.”
Also, to encourage clients not to cancel, both providers and advisers need to highlight the reasons they took out the contract at the start, notes Andy Peters, interim director of distribution and sales at Cirencester Friendly. “Remind them of the added-value benefits available within the contracts too.”
Robyn Allen of Robyn Allen Solutions agrees. She says: “Protection is the foundation of financial planning; if the financial safety net isn’t in place and something goes wrong, outgoings and mortgage payments may not be kept up.
“We need to be careful that our own unconscious bias around the inflationary pressure doesn’t impact the way we interact with clients. With so much being said about inflation, I wonder if some advisers might just assume people won’t want to pay for protection.”
Some suggest having more frequent client reviews; perhaps a 6-month review, remote or face-to-face, instead of just an annual review.
Paul Roberts, propositions and distribution director at CIExpert, adds that it is positive to see insurers and research platforms working alongside each other to ensure that advisers can source independent and impartial information quickly and easily.
“Providing an in-depth level of independent analysis and research, drilled down to a personal client level, is essential. Making clients aware of the flexibility that already exists in most insurers’ plans means that clients can reduce and/or remove some of the benefits within their plans as seamlessly as possible and without cancelling the plan altogether.
