With a reported £2.3 trillion protection shortfall, BDS believed brokers should look to their current client base to maximise sale opportunities and understand from a customers point of view the benefits life insurance holds once a mortgage completes.
Speaking at the BDS South Coast exhibition, Bob Hope, network manager for BDS, said: “Selling life assurance is so easy, as long as it’s good advice. Brokers should look after those that look after them. Someone else will sell their clients life insurance later if a broker doesn’t. While it’s difficult to know which protection provider to recommend when the only difference is price, the cheapest premium isn’t always the best for the client. Talking to them will let you know what’s appropriate.”
Asam Raza, director of Alpha Mortgages, said: “It’s good advice because under the Financial Services Authority’s (FSA) rules you have to give best advice and having lifetime insurance means mortgage payments are protected. The biggest asset or investment 95 per cent of the population have is their house, so it’s a good recommendation to protect it in case of illness or death. I always advise on life insurance, critical illness and Accident, Sickness and Unemployment (ASU) to protect the client in any eventuality. Whether they take it is up to them. And even if you don’t want to sell it, you should refer the client to a colleague or network.”
Mark Chilton, managing director of Purely Mortgages, added: “Commercially it would be madness not to sell life insurance, as it’s a big opportunity for income. Plus, there are risk factors involved in not at least having some sort of facility in place to refer the case on, as a high percentage of mortgages need life insurance protection.”
