The Intermediary –- May 2026 - Flipbook - Page 16
P RO T E C T I O N
In focus
Why clients
still don’t buy
T
he protection gap is
not a new concept,
yet it continues to be a
persistent one. Despite a
clear need and growing
financial vulnerability,
many clients still opt not to put the
appropriate cover in place.
The reasons are oen
misunderstood. It’s not simply about
cost or apathy; it’s about perception,
prioritisation and how protection is
positioned within the advice journey,
along with the role of advisers in
supporting this.
Cost barriers
Most clients don’t walk into an advice
meeting with a fixed idea of the price
of protection. Their perception is
shaped in real time, oen by how the
adviser frames the conversation. This
makes positioning critical.
Some leading advisers use a tiered
approach, presenting a comprehensive
“gold” solution first, then working
down to more affordable options
where needed. This helps to ensure
clients leave with some level of
protection, rather than nothing at all.
Crucially, it also creates an
opportunity to revisit and enhance
cover as circumstances change in
the future.
In practice, cost is rarely the true
barrier, but rather how that cost
is contextualised.
Awareness gap
A more significant issue is a general
lack of awareness regarding cover
as a whole.
Many clients don’t understand
what income protection or critical
illness cover is, let alone how it applies
to them. Without this knowledge,
protection can oen be seen as
optional, rather than critical.
The awareness gap is compounded
by optimism bias, with the belief
that serious illness or income loss is
unlikely to happen to me.
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The Intermediary | May 2026
Here, advisers play a vital role
as risk educators. By making
risks tangible, relatable and even
realistic, perhaps through the use
of case studies, they can reframe
protection as an essential component
of financial resilience, rather than a
discretionary add-on.
MIKE FARRELL
is protection sales and
marketing director at LV=
Protection priority
Even when affordable options exist,
protection is oen overlooked in
favour of more immediate spending
choices. Some clients may hesitate
over modest protection premiums but
will comfortably commit to lifestyle
subscriptions, such as streaming
services or discretionary expenses.
This highlights a key challenge:
protection doesn’t deliver instant
gratification. Advisers can open
conversations by highlighting what
happens if their income were to stop.
The aim isn’t to alarm, but to offer
clear information, so clients can make
informed, confident decisions.
A fragile reality
Today’s financial landscape further
amplifies the need for protection.
With housing costs consuming a
larger share of income than ever
before, many households operate with
lile margin for error.
Just one unexpected event, such
as a redundancy, illness or family
change, could quickly lead to
finances destabilising.
Positioning protection alongside
mortgage commitments can be
particularly effective. When framed as
a small percentage of overall housing
costs, it becomes easier for clients to
see its value.
Missed opportunities
Too oen, protection is introduced
too late in the process, aer the
mortgage has been arranged. By
this stage, the client’s focus has
shied, and protection can feel like
an aerthought.
The most effective advisers
introduce protection early on in
their conversations, when they hold
maximum influence and the client
is fully engaged. At that moment,
protection feels like part of the core
financial decision rather than an
optional extra.
Making it personal
Perceived complexity can also deter
clients. When protection is tailored,
whether to a profession, lifestyle,
or family situation, it becomes far
more relatable.
Clients engage when they see
themselves in the solution. It’s no
longer just a policy; it’s directly
relevant to their life, an investment in
their future and that of the people who
depend on them.
A shift in mindset
Younger generations, shaped by
economic uncertainty and perhaps less
reliant on state support, may be more
open to protection than assumed. The
opportunity lies in awareness and
education, not reinvention.
Ultimately, the protection gap
isn’t about products, it’s about
communication – and this is the key
to closing it. Advisers who succeed
are those who position protection
early, frame it effectively and make
it relevant.
Because when clients truly
understand the value, the
conversation changes entirely. ●
