Advisers need to focus clients’ minds on life’s essentials and to think about how they might cope should the worst happen.
This is according to Louise Colley, director of retail protection at Zurich (pictured), commenting on research from the insurer showing half of solo mortgage holders (49%) do not have income protection, with nearly one in three (29%) citing cost as the main barrier.
The research also revealed that a quarter of the 2,000 adults polled believed they were unlikely to need protection with 6% believing it is a product for ‘older people’.
Given these findings, Colley stressed the importance of advisers bringing client conversations back to the essentials.
“For most people, everyday costs don’t stop even when life does,” Colley said.
“Advisers can play a vital role in supporting single clients to think about the realities of their day-to-day expenses, from rent or mortgage payments to utilities, subscriptions and travel costs. Making protection practical helps them understand why it matters.”
Back-up plan
But single clients should also be quizzed on their back-up plan, Colley continued.
“Single clients don’t have another person’s income to fall back on. A simple question like, ‘who would pay the bills if you couldn’t work?’ allows clients a moment of reflection.
“Younger clients engage more deeply when risks feel personal. Seeing their own risk profile can shift the conversation from ‘Why do I need this?’ to ‘How do I protect myself?’
“When the focus is on staying in their home and maintaining stability rather than product features, the discussion becomes far more meaningful.”
Differing needs
However, Colley also pointed out that all clients’ goals are different, and advisers need to reflect that when building a financial plan.
“For example, a major diagnosis can change life overnight, but critical illness cover can provide a tax-free lump sum to ease the pressure of mortgage payments, treatment costs or home adjustments,” she continued.
“For many single clients, statutory sick pay is all they would receive if they were unable to work, and that does not stretch far.
“Income protection can bridge that gap with different benefit lengths, deferred periods and options for level or increasing cover. It’s peace of mind that adapts to their needs.”
Planning for the unexpected
According to Colley, many single people assume that life cover does not apply to them.
“Advisers play a crucial role in debunking that,” she continued.
“Life cover can protect the next of kin from inheriting debts, alleviate funeral costs and ensure that any legacy wishes are honoured.
“While employer benefits are a valuable part of the wider financial plan, they may not provide the appropriate amount of protection to meet the clients’ need. Helping them understand this can make a real difference.”
Equally, affordability is a key concern for many single clients, especially first-time buyers who are balancing large upfront costs, Colley continued.
“The most effective protection plans are the ones that can evolve as the circumstances evolve,” she added.
“Advisers should help clients choose cover that supports them now but can grow and adapt as their circumstances change.”