Protection Advice: Confidence is Key
Confident protection advice isn’t about having the perfect response, it’s about knowing how to deal with difficult conversations. When you’re part of a mortgage and protection network, like Mortgage Intelligence, you’re never having those conversations alone. We’ve put together some guidelines to improve your protection advice.
Protection is Part of the Journey
Do you always bring up protection with your clients? For the top advisers in the industry, protection isn’t an optional discussion, it’s a fundamental part of every financial conversation. By positioning protection as a key element of financial planning, you can ensure that your clients understand its importance. Protection should be integrated throughout the entire advice journey, from the first conversation about their finances to the final steps in securing their mortgage.
It’s important to raise difficult topics early in the discussion, even if it means bringing up worst-case scenarios. These types of conversations aren’t about encouraging fear; they’re about preparing clients for the unexpected. By highlighting potential risks and financial gaps, you work with clients to identify areas where they may be vulnerable. Demonstrating a thorough understanding of the client’s situation can provide the opportunity to offer valuable advice on how to address these gaps.
Following a structured process ensures that each conversation stays on track, guiding clients through their options with clear, actionable insights. Sharing real-life examples through storytelling can help clients better relate to the importance of protection. When protection becomes a natural part of your conversations, rather than something that’s tacked on at the end, it builds trust and credibility, strengthening the relationship with your clients.
Budget Ends the Conversation
One of the most common mistakes made in protection discussions is asking about budget too early in the conversation. This is an industry habit, seeing protection as a financial commitment rather than a financial investment in the client’s future security. Many clients don’t have a clear understanding of how much protection should cost or what level of coverage they need. By allowing clients to set a budget before the conversation has even begun, you risk forcing protection solutions into a price-driven plan that often leads to insufficient cover and negative outcomes.
Instead of letting clients dictate the budget, take control of the conversation. It’s important to guide them toward a realistic understanding of what they truly need. By focusing on the value of protection, rather than the cost, you can reframe the conversation. People often default to keeping expenses as low as possible, but they may not realise the long-term consequences of underinsuring themselves. Positioning protection as an investment in their financial resilience helps clients see its true value, rather than viewing it as another cost.
Leading the Conversation Effectively
To lead the conversation effectively, focus on understanding the client’s goals. This allows you to tailor recommendations based on what the client wants to achieve financially. Once goals are established, the next step is to highlight what’s at risk. Clients may not fully grasp the potential consequences of being underinsured, so it’s important to help them see the risks involved and the value of protection.
Instead of allowing the client to set a budget first, frame the discussion around what’s required to provide adequate coverage. This ensures that the protection offered meets the client’s needs and secures their financial future. Rather than focusing on the affordability of protection, the conversation should highlight its importance in safeguarding the client’s long-term stability.
Perceptions of Affordability
You may unintentionally make assumptions about what clients can afford based on your own perceptions of affordability. These assumptions can influence the tone, wording, and overall communication during the conversation, often leading to offering the cheapest option before fully exploring what the client actually needs. To avoid this, remove words like “cheap” or “pricey” from your vocabulary and replace them with terms like “investment” and “stability.” This shift in language helps see the true value of protection and stresses its importance in financial planning.
Adopting a confidence-first approach is crucial in overcoming these communication barriers. Just as a doctor prescribes medication, you should recommend what’s best for the client, regardless of cost. By focusing on value, rather than affordability, you can help clients understand that they can afford the right level of protection, it’s simply a matter of recognising its priority in their finances.
Network Support
Protection conversations can be tough but they’re also the most important. The support from your mortgage and protection network gives you the confidence, knowledge, and structure to lead these conversations effectively and empathetically.
Are you not getting the support you need from your mortgage and protection network? Join our award-winning network today.
