Covid-19 is resulting in financial difficulty for many and may lead to clients cancelling their protection insurance direct debits. Whilst the current crisis is not directly comparable to the financial crisis of 2007/08, many advisers who were working in the industry at that time will recall the same happening and recognise the need to be proactive.
Advisers are well placed to engage and educate their clients about the benefits of their existing policies, as well as discussing alternative options to cancellation. It is important that clients make an informed decision and not one that is in haste, without due consideration given to how injury and illnesses are still a threat to everyday life.
To assist advisers, the Association of Mortgage Intermediaries (AMI), the Protection Distributors Group (PDG) and the Income Protection Taskforce (IPTF) have, in collaboration, created a guide to suggest ways that advisers can offer support and guidance to their clients to ensure that cover is maintained.
The guide, which is being made widely available, can be found attached to this press release.
Robert Sinclair, Chief Executive of AMI said:
“Before Covid-19 hit, income protection policies sales were increasing and the ‘Access to Insurance’ sign posting agreement made positive strides to help clients with disabilities and medical conditions find suitable cover.
It is important that this momentum is not lost, as protection needs continue to exist. The value that intermediaries add is crucial to ensuring clients realise the far-reaching effects that cancelling cover could have on their lives.
Many intermediaries are already contacting clients and generating discussion, but AMI, PDG and IPTF hope that this guide will be a useful tool. It was important for AMI to collaborate with the PDG and IPTF during these difficult times and to make sure as many people as possible benefit from the content.”