What made you decide to offer your clients loan protection?
I really believe in it. I think it is vitally important to have your clients covered. I have the discussion with everybody; every one of my clients knows about it, and most of them take it up.
How have you embedded LPP into your loan process?
I discuss loan protection in full at every sign up. It does get brought up initially, but it is not until the sign up stage that I really drill down into it.
This is where I have a five minute discussion with my client. I tell them I have got a product call loan protection that will provide cover should something unforeseen happen to them. I have the brochure in front of me and I discuss what events they are actually covered for.
I tell them they are under no obligation to take out the policy, but the first month is free. I then have a checklist that I get my client to sign. This checklist is for the client to confirm they have taken the policy, they have been given all the information on it, they understand that there are exclusions and that the first month is free.
If my clients says “no I am fully covered, I’m with a financial planner” then on the same checklist it also says “no I don’t want it for these reasons..." I get them to sign the checklist regardless of whether they take it or not. It’s a part of my process each and every single time.
What do you say to start the conversation on loan protection?
I start the conversation along the lines of “Now that we have arranged your finance, we probably need to have a discussion about the ‘what if’s’ just in case something should happen to you".
I explain I can put cover in place for the loan amount. I read through the brochure to show them what it covers them for and I work out how much it will cost them.
I ask them to read though the policy, especially the exclusions. If they have got any questions I circle the 1800 number that they can call as I am well aware that I cannot give advice.
What would you say to a colleague or broker considering offering their clients ALI loan protection?
You have got to believe in it. If you genuinely care about your clients and you think it’s a good thing, then you will come across as sincere.
I always use life experiences as unfortunately I have had clients in those situations where they have been covered and clients that were not . I know which I prefer; I would prefer that all my clients were covered as I have seen firsthand the benefit of having loan protection and the difference it can make.