Advice gives better cover

Research by Protection specialists LifeSearch has revealed the difference taking protection advice makes to the consumer. A recent survey of its advisers revealed that in 76% of cases, clients who call up for protection advice end up buying something significantly better or more comprehensive to that which they would have bought without advice.

There are a number of ways an independent adviser can significantly improve the client's buying decision, including:

• guiding the client to the type of policy they really need, as opposed to the one they originally called up for, which may well have been unsuitable, as well as advising on the correct sum assured and term
• saving the client money by finding them a policy that offers the same, or better benefits, as the policies they already have but at a lower cost.
• advising a couple to buy two single life policies instead of joint life thus doubling the effective cover at minimal extra cost.
• helping the client to avoid a loaded premium by assessing their medical condition before selecting the life office most tolerant of that condition.
• offering advice about Trusts
• making the customer aware of valuable free extras that come with a policy, such as ‘Best Doctors' that is offered through BUPA.

In addition, taking advice means:

• the customer can take their case to the ombudsman and claim against the adviser if they are sold the wrong policy
• a good adviser will help fight a claim if the insurer turns it down
• the adviser may be able to give the customer access to other free benefits such as the Red Arc counselling service

Matt Morris, senior policy adviser at LifeSeach, said: "These new figures highlight the dangers of consumers buying financial protection without first seeking independent advice. Not only is the consumer likely to buy the wrong type of policy because there is no-one to talk them through all the available options, but they will not be able to complain to the Ombudsman unless they have received regulated advice."