Financial Mortgage Advisers | At Connect Mortgage Network, we understand the important role protection insurance plays in supporting long-term financial well-being. Many clients still hold common insurance misconceptions that can affect their financial decisions. This article explains the most frequent misconceptions using recent data and industry reports. It gives financial mortgage advisers clear guidance to help clients understand insurance and its value.

Protection insurance acts as a vital safety net in an unpredictable economic climate. Sudden events can disrupt income and reduce financial security. Misunderstanding insurance increases risk for clients and their families.  Our aim is to highlight why protection policies matter and correct myths that may limit informed choices. Clear information helps advisers explain how protection supports financial stability.

Clients often raise concerns about affordability, policy details or the need for cover. Explaining real protection costs helps advisers show that insurance can be affordable and flexible for many households.

We address key concerns and present factual, simple information about available protection options. This knowledge helps clients make confident decisions that support their financial well-being and protect loved ones. By improving understanding, we help advisers strengthen individuals’ and families’ overall financial resilience.

Misconception 1: “I Don’t Need Insurance”

Many clients believe they do not need insurance because they are young, single or mortgage-free. They often ask what they need to protect. Life can change quickly. A new partner, marriage, home purchase or starting a family can create new financial responsibilities.

Insurance is cheaper when clients are young and healthy. Locking in low premiums early can protect them as they age. Many stay-at-home parents overlook insurance because they are not primary earners. Their death can still create major financial pressure due to childcare costs. Insurance can support the surviving parent and protect family income.

Some clients rely only on death-in-service benefits from their employer. This protection can vanish the moment they change jobs. Personal insurance provides consistent cover, regardless of employment changes.

Insurance is not only about payouts after death. Critical illness cover and income protection can provide vital support during illness or injury. These policies protect income, stability and recovery.

For these reasons, seeking advice from financial mortgage advisers is essential. Advisers explain protection options and help clients choose the right cover for their circumstances.

Misconception 2: Insurance Companies Do Not Pay Out

Many clients believe insurance companies avoid paying claims, which can discourage them from taking out protection cover.  Recent data from the Association of British Insurers shows a much more positive picture.
In 2022, insurers paid £6.85 billion in group and individual protection claims to families facing illness, injury, or bereavement. This figure confirms that most valid claims are paid without dispute. Only 2% of claims were unpaid, mainly due to missing medical information or policy exclusions.

Clients should understand that insurers honour valid claims when applications contain accurate information. Advisers can highlight this and guide clients through the process to ensure clarity and correct disclosure. This support reduces risk and builds confidence in protection policies.

Misconception 3: Insurance Is Too Expensive

Many people think insurance is costly, which prevents them from exploring protection options.  Premiums vary by age, health, lifestyle, and medical history, so each client’s profile shapes the final cost.
This knowledge can encourage positive lifestyle changes, such as quitting smoking or improving overall health.  Protection policies can be surprisingly affordable, with cover available from £5 per month.
When clients see how little protection can cost, the value of having a policy becomes clear. Understanding the financial risk of being underinsured helps clients make informed decisions about long-term protection.

How Do Financial Mortgage Advisers Talk to Clients About Life Insurance?

Financial mortgage advisers sometimes feel uneasy when discussing life insurance with clients. Many people avoid talking about mortality, even though the conversation protects their families. Clients often need reassurance because they are safeguarding the people they value most.

This is where a strong client rapport becomes essential. Insights from our guide, Client Rapport For Mortgage Advisers, can help advisers improve these conversations. A good rapport helps clients feel safe and understood.

When introducing protection insurance, advisers must handle the subject with care. You need to explain how life insurance supports their loved ones when finances are tight after a loss. Clear, gentle language helps clients process a difficult but necessary discussion.

Even experienced advisers must build trust before clients engage with life insurance advice. Your tone and phrasing should calm their worries and encourage them to listen without fear. Trust makes the conversation easier and increases the client’s confidence in your guidance.

After the discussion, clients should feel they made a strong financial decision. They should understand that your goal is to support their long-term financial stability and protect their families in the worst situations. A well-handled conversation creates clarity, comfort and lasting value for your clients.

Why Should Financial Mortgage Advisers Introduce Protection to Their Clients?

Financial mortgage advisers should introduce protection because the Consumer Duty places customer outcomes at the centre of every recommendation. This duty means advisers must consider a client’s long-term financial security alongside their mortgage needs. Offering protection advice also strengthens client relationships and increases trust. Clients value advisers who highlight risks and provide clear solutions that secure their home and income. Advisers who discuss protection needs build deeper and more loyal relationships with their customers.

Mortgage protection matters because clients take on significant debt when buying a home. Advisers have a moral duty to ensure their clients are protected against serious illness, loss of income or death. Protection advice helps clients stay financially secure in the worst situations.

Consumer awareness of protection remains low. Research by the Association of Mortgage Intermediaries shows many clients do not fully understand the protection products they may need.
The same research reveals that 2 in 5 advisers report more protection conversations since Consumer Duty took effect. This shift shows that clients welcome clear, simple protection advice delivered at the right time. Financial mortgage advisers who integrate protection advice add value, support Consumer Duty and create stronger long-term client relationships.

The Benefits of Protection Policies

Protection policies play a vital role in supporting clients’ long-term financial security. Financial mortgage advisers can add real value by explaining how these policies work and why they matter. Clear information helps clients make confident decisions and removes common misconceptions about protection products.

Consumer Duty ensures advisers place clients’ needs first. It also encourages transparent conversations about the risks clients face when taking a mortgage. Protection advice supports this duty by helping clients safeguard their financial future.

Protection should form part of every mortgage discussion. Mortgages create long commitments, and protection can shield clients from financial shocks during that period. Exploring suitable products helps secure stability for clients and their families.

Financial mortgage advisers should understand the main protection products available:

Life Insurance

Life insurance gives financial support to the client’s family after their death. It can repay a mortgage, settle debts, or cover funeral costs. It can also help create an inheritance for loved ones.

Over-50s Life Insurance

Over-50s life insurance offers cover for older clients. It can pay for funeral costs or leave a small gift for family members. It usually offers an affordable premium and avoids medical questions at application.

Critical Illness Cover

Critical illness cover pays a lump sum when clients face a serious medical condition. It can support living costs or fund home adjustments. Combined with life insurance, it offers strong, comprehensive protection.

Income Protection

Income protection is essential for self-employed clients. It provides regular income during illness or injury. It protects their household budget and reduces the need to use personal savings.

Protection advice helps clients understand the real impact of illness, injury, or loss of income. The aim is not to pressure clients into buying insurance. The goal is to start honest conversations about life events that affect financial stability. These discussions help clients protect their family, income, and long-term plans.

Financial mortgage advisers seeking a new mortgage network or improved support are welcome to explore our community. We offer guidance, resources, and a strong environment for advisers who want to grow.

You can read more about the benefits of joining our mortgage network in our additional articles.

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