How repositioning protection can improve client and business outcomes

In our latest research report, The Secrets of Protection Success, top advisers revealed that repositioning protection as a financial necessity is what ultimately wins clients over.  

A central belief from top advisers in our new research report, The Secrets of Protection Success, is that they feel it’s their mission to educate clients about the value of protection.  

It turns out this education piece is fundamental to unlocking greater protection outcomes for both you and your clients. Essentially, it’s the idea of presenting protection as part of your client’s bigger financial picture, rather than as an addendum. 

On 31 July, the Financial Conduct Authority's (FCA) Consumer Duty regulation will come into effect. The new Duty sets higher and clearer standards of consumer protection across financial services and requires firms to put their customers’ needs first but comes at a challenging time for consumers and the wider economy. 

The rising cost of living is being acutely felt by millions of households who are facing a real income decline in 2023. And so it’s unsurprising that protection is in the crosshairs for families cutting back. Repositioning protection as a pillar that supports every financial aspect of your client’s life has become more important than ever. 

With this in mind, we asked top protection advisers to share the secrets of their success. Below we delve deeper into one of their five secrets, revealing how reframing protection can be an integral part of financial planning. 

How can repositioning help improve client outcomes? 

Top advisers say the following two approaches ensure clients view protection as something that’s integral to their broader financial plans. The techniques also support the Consumer Duty regulations that implore advisers to consistently focus on client outcomes.  

Reframing the conversation around protecting the individual and family

Top advisers discuss protection in terms of the outcomes it delivers, rather than the cost it incurs, for example, it ensures clients can still achieve their goals regardless of what life throws at them. 

Crucially, advisers involve their clients in suggesting, considering and rejecting different solutions, and use informal visual aids to illustrate where clients are now versus their situation if their income dropped. 

This challenges the client to think about what they want so that protection becomes something that underpins and protects their plans. Nicola Crosbie, Moran Wealth Management, told us: "It's taking the time to get to know your client. You're not just selling them a product; you're finding something that suits them.” 

Reframing the conversation around lifetime value 

Top advisers reframe their client’s earning ability over their working life as a quantifiable asset. To do this, advisers show clients their total earnings potential and compare it with the value of their other assets. They see their lifetime earnings potential as their most valuable asset, as the key to realising their plans, and as something worth protecting.  

The earnings asset is also seen as integral to maintaining the client’s financial commitments now and in future. This transforms the client’s earnings potential into the cornerstone of all their financial planning. Priyesh Patel of Ablestoke Financial Planning told us, "When you explain it in a logical fashion, they understand it, but logic is not enough – it needs the emotional factor too."  

Protecting what’s important 

With 8 in 10 households concerned about at least one issue affecting ability to work, this can invert the traditional hierarchy of products and turn income protection into a priority for clients above life and critical illness. It can also give advisers scope to offer a suite of protection products that truly meet their client’s immediate and long-term financial needs and goals. 

We’re here to support you on your path to protection success by providing you with tools, resources and insights backed up by top protection adviser insights. Visit the research homepage to download the report and browse our expert toolkits and sales aids.