Scottish Provident has released a report based upon survey responses from Independent Financial Advisors. The survey was conducted with the primary purpose of determining what the reasons are behind clients seeking protection insurance.
The prevailing theme of all responses indicated that almost all clients were seeking insurance because of major life changes, such as purchasing a home or property, or having children.
A report released recently by Scottish Provident, called the Financial Safety Net survey, indicated that 92% of IFAs, also known as Independent Financial Advisers, said that purchasing property was the primary reason that clients seek a new protection policy. These could be life insurance, income or payment protection, critical illness protection and/or mortgage protection.
The report was compiled using responses from 900 IFAs and it further indicated that the second most common trigger, at 80%, for client insistence on new policies providing protection was because they have had new additions to the family. Further, 3 out of 5 IFAs indicated that clients simply want peace of mind concerning their financial futures.
Out of the IFAs surveyed, around 25 percent responded by saying that their client had inquired about job loss protection and that only 1 out of 16 said that prior financial difficulties was one of the reasons why their clients sought products that offered protection. The report also indicated that, of the 900 IFAs surveyed, 3 out of 4 of them state that the most common policy inquired about, without being prompted, was life insurance (including life insurance for mortgage protection).
Scottish Provident’s head of marketing, Susan Barclay, said that their research confirmed that buying a home, having children or experiencing other huge life changes are the primary catalysts behind IFAs prompting of clients to take out protection products. She further stated that consumers will often need protection when they least expect it and that preparation for the future is vital regardless of a client’s current situation.
The most common insurances available, and sought after, are life insurance, income protection, payment protection, critical illness protection and mortgage protection plans.
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