Pink to probe new advisers on income protection
Pink wants its members to lead by example to show they understand why clients should protect themselves and their businesses.
Mark Graves, head of Pink, said: “Where better to start than with the advisers who are helping their clients to make the biggest financial commitment of their lives?
“It is inconceivable to me that advisers joining this network haven’t taken care of their own financial situation.
“I’m not only concerned by someone exposing themselves to the risk of being unable to earn an income, but also their ability to sell this type of protection if they themselves have not considered how they would cope.”
Pink said it is ‘encouraging’ existing members to take out protection, although it added that holding an IP policy still isn’t a requirement.
The network said it already checks potential advisers’ business plans and financial viability like when it checks clients’ mortgage applications.
In upcoming roadshows Pink will ask delegates how they can offer IP without having it themselves and whether they can truly empathise with their clients if they don’t hold a policy.
Graves added: “The fact is that currently only 7% of mortgages are sold with income protection.
“This is why we launched our initiative to ensure all our advisers now talk about income protection at the first meeting with their clients.
“The next step was completely logical.
“Initial feedback is good, advisers are agreeing with our stance, and Pink as a network will be stronger because of it.”