According to the survey, which was conducted amongst over 900 IFAs, the second most common trigger for clients taking out a new protection policy is because they have had children (80%), while nearly three in five (57%) say it is because their client simply wants peace of mind about the future.
While a quarter of all IFAs surveyed (26%) stated that their client enquired about protection when they had just lost their job, only a sixteenth (6%) responded that previous financial difficulties was the reason why their client sought protection products.
When asked about the enquiries they receive on protection products, three quarters (76%) of IFAs state life insurance is the most common policy that clients ask about without being prompted. Only one in ten (10%) said their clients ask about unemployment benefit, while just 9% said it was critical illness. Just one in twenty of those surveyed (5%) said income protection was the product they received the most enquiries about.
In terms of which protection products clients go on to take out, over four fifths (82%) of IFAs said that their clients are most likely to take a life insurance policy. Just 3% of IFAs said that unemployment benefit is their most popular policy for sales, with critical illness (9%) and income protection (6%) faring slightly better.
Susan Barclay, head of marketing, Scottish Provident, said: “Our research confirms that IFAs’ clients are mainly prompted to take out protection products when they experience huge life changes such as buying a property or having children. However, while we all hope the worst won’t happen, consumers often need protection when they least expect it so it’s vital they are prepared for the future regardless of their current situation. By building their own financial safety net Britons can safeguard themselves financially for the future, and by speaking to an IFA they can get the right plans in place for their individual needs.”