Pink’s advisers will now document their meetings, with the customer signing an insurance declaration if they decide against taking out protection.
Peter Le Beau, chairman of the IPTF, said: “We would like to congratulate Pink on a very responsible and much needed approach to assessing the financial vulnerability of its clients.
“This has been missing in the process for helping people to take out home loans in many circumstances.
“Pink’s approach is enlightened and socially responsible.
“We applaud it and urge other mortgage advisers to make this standard industry practice.”
Pink made the decision after speaking to a host of advisers in a series of workshops around the country.
Roy Mcloughlin, leading protection adviser and a member of the IPTF executive, added: “I am delighted with the approach Pink is taking to assess customer need, and the rightful emphasis it is placing on financial vulnerability should a client suffer ill-health.
“Every adviser must take this into account when assessing the options for those wanting a mortgage. It is good practice and should be followed throughout the industry.”
