Another year has started and your clients are probably following through on their financial New Year’s resolutions, which are generally about saving money. In their bid to save a few quid, consumers may make some rash decisions that may get them into trouble. It’s up to brokers and financial advisors to provide them with advice and ensure products offer the cover that suits their needs. Based on recent trends and figures this is what you should be telling clients to heed and watch out for at the start of the year.
Lack of travel insurance
With the UK going through a bit of a chilly snap, it’s understandable that your clients may want to pursue sunnier weather. But they may not be covered if they go. Financial information business Defaqto found today that only 591 (61%) out of 964 annual travel policies on the market offer cruise cover as standard. Some insurers only offer cruise cover as a named additional benefit while some don’t offer any cover at all so travelers have to check their policies before travel.
Financial ruin after divorce
National family law specialist Co-op Legal Services says its preparing for a busy time as it expects a surge in divorce enquiries in the first three months of 2018. Each year 100,000 divorces are granted and your clients may be ready to call it quits now that the formalities of family festivities are over. Women often get a bad deal. According to research by Scottish Widows seven out of 10 couples don’t consider pensions during divorce proceedings, leaving women short-changed by £5bn every year. It may even be safe to say that other forms of financial planning, including insurance, may not be considered either. So make sure you’re there to guide clients during this difficult time.
Ditching New Year’s resolutions
This year only one in six (16%) of Brits are set to make New Years resolutions for 2018 according to the Swinton Group. Of those who said they plan to make resolutions, 43% said they wanted to save money and 26% are pledging to organise their personal finances. But Swinton says only a quarter (25%) of Brits have ever kept to a resolution with almost one in ten failing and giving up after four months. It’s probably best then to give clients a call around March/April to give them a boost to stick to their guns.
Why critical illness cover is essential
According to Scottish Widows, one in five (21%) of people in the UK admit their household would not be financially secure for any length of time if it lost its main breadwinner due to serious illness. Almost half admit their savings would last just six months or less. If they do have critical illness cover make sure that their policies match their needs, particularly if they took them out a long time ago.
Checking contents insurance for duplications
If your clients have taken out separate gadget insurance, which they may have done over Christmas with all their white good purchases, now may be the time to check if they’re actually covered elsewhere for the same item. According to research by comparethemarket.com 1 in 10 (10%) revealed they had taken out separate gadget insurance on items already covered by their contents policy, because they simply didn’t have either the time or inclination to check whether they were already covered. Finding a better deal for the same premium is always a win. But so is finding that a client is over insured and doesn’t need to pay the extra premiums.