The new Consumer Duty rules boil down to a requirement to prioritise the wellbeing of clients through good service, clear communications and value-for-money. Personal finances are at the heart of that, particularly right now, as the cost of living crisis has left nearly 14 million people financially vulnerable. With that in mind, should advisors prioritise promoting protection to clients?
Research has found that 15% of people in the UK have heavy credit and living cost burdens and millions would face real hardship if anything happened to change their ability to earn. Those are alarming figures but making clients aware of the way that protection policies can give them greater security could help to prevent disaster striking for them while also ensuring that advisors fulfil their Consumer Duty obligations.
Protection is a part of the CeMAP mortgage advisor course needed to legally offer professional advice, so there is no reason for qualified advisors to neglect it. There are a range of policies that can provide much-needed security for clients; from life insurance to critical illness and income protection cover. These will help them to meet mortgage payments should sickness or injury prevent them from working and will therefore give them peace of mind that they will not lose their homes due to issues that are beyond their control.
In an economic climate as volatile as the current one, taking out relevant protection will help vulnerable clients feel more confident about the future. Furthermore, it will open up potential new business and revenue streams for mortgage advisors too.