Convincing wealth clients (and sometimes their advisers) of the value of using protection, not only to protect themselves and their family, but also their wealth and beneficiaries, may be difficult, but not doing it could be more costly for them and your business…
I’ve been speaking about using protection as part of a wealth strategy for many years now and the adage about protection providing the foundation for sound financial advice (anyone remember PIPSI?) has never been truer, especially at a time when stock markets may be viewed as volatile and uncertain. Protection can help de-risk clients and their assets by providing diversification away from stock market-linked investments, in exchange for mortality risk. At the same time this can protect your adviser income from falling values, or worse still, the critical illness or death of the client resulting in the withdrawal of monies by the family.
With so much speculation ahead of the recent Spring Budget and now the forthcoming general election, contacting your clients and planning for the year ahead may be a great opportunity to not only review their mainstream protection needs, such as Income Protection, Life cover, Critical Illness and Children’s Cover, but also a number of wealth-related protection opportunities.