Prioritising Personal Protection Cover Amidst a Cost-of-Living Squeeze

Monday, November 27th, 2023

A recent study by the Association of Mortgage Intermediaries (AMI) has suggested that many more mortgage advisers are having meaningful conversations with their customers in relation to personal protection for themselves and their families. *

Despite many people feeling the “cost-of-living squeeze,” it is thought that this is in part due to changes made by the industry regulator around ‘consumer duty’ which includes the necessity to discuss and signpost various financial and protection products. 

Using Personal Protection Cover to Increase Financial Resilience

On this point, the advisers here at Caboodle Finance record that once customers discover that they may not have the financial resilience to cope financially if the unexpected were to happen, many are keen to explore the options available to them.

Although most people are aware of life insurance, many people do not know where to start with a ‘personal protection’ conversation or even what can be protected, which is why many choose to discuss the options and their requirements with a suitably qualified mortgage and protection adviser.

What Personal Protection Options Are Available? 

In general, the personal protection policies that are usually the most suitable and which are therefore recommended to many customers, depending on their individual needs, requirements, and budget, are one or a combination of the following:

Clearly a comprehensive ‘protection conversation’ would cover all the relevant policy options based on the individual circumstances and the adviser would then recommend a solution based on the requirements, priorities, and budget available.

Closing the ‘Protection Gap’ by Addressing Some Misconceptions

This is set against the background that the UK still has a significant ‘protection gap.’ Although many mortgage and protection advisers are doing their best to address this issue with their clients, it is commonly felt and regularly discussed by industry experts and commentators.

that the problem is in part due to a misconception as to how personal protection products work and that any cash benefits are often much higher and the associated costs and premiums much lower than many people think.

It is for this reason that some people engage the services of a suitably qualified mortgage and protection adviser who will then be able to provide advice as to the most suitable solution in all circumstances.

With that in mind, if you would like to know more about the options that may work best for you, call one of our friendly experts here at Caboodle Finance of Sutton Coldfield, Birmingham on 0121 308 9114, or alternatively, just complete our online enquiry form HERE and we will be in touch.

We very much look forward to speaking with you.

*Source – Mortgage Strategy 31-10-23

The information contained above was correct at the time of publication but is subject to change.

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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. CONSOLIDATING DEBTS MAY INCREASE THE TERM AND TOTAL AMOUNT PAYABLE.

Your initial consultation is free and you are under no obligation to proceed with a mortgage we recommend. There will be a fee for mortgage advice. The exact fee will depend on your circumstances and may be reduced depending on the loan amount and any commission we receive from the lender. It is estimated that the fee will be £595, but it may range from £495 to 1% of the amount you borrow. The fee is only payable on completion and can normally be added to the mortgage. This will be discussed and agreed with you before you make an application. Please ask for a personalised illustration.

Secured loan rates from 3.95% APRC, although we have plans available up to 29.9% APRC which allow us to assist customers with the most severe credit problems. The overall cost for comparison is 7.65% APRC. There will be a fee for secured loan advice and the exact fee will depend on your circumstances. The fee is only payable on completion and can normally be added to the loan. A lender fee may also apply. The actual APRC available will depend on your circumstances. All loans are subject to status. Please ask for a personalised illustration.

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Caboodle Financial Services Ltd, registered in England and Wales at Mere Green House, 46-48 Mere Green Road, Sutton Coldfield, West Midlands B75 5BT (number 08044670).
Caboodle Financial Services Ltd is an appointed representative of PRIMIS Mortgage Network (PRIMIS), a trading name of Advance Mortgage Funding Ltd which is authorised and regulated by the Financial Conduct Authority. PRIMIS is only responsible for the service and quality of advice provided to you in relation to mortgages, protection insurance and general insurance products. Any other product or service offered by Caboodle Financial Services Ltd may not be the responsibility of PRIMIS and may also not be subject to regulation by the Financial Conduct Authority. The Financial Conduct Authority does not regulate some forms of Buy to Let.

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