Rising costs push homeowners to cancel protection despite growing awareness
More than three-quarters of advisers – 77% – have seen clients reduce or cancel protection policies despite showing more interest in cover, an insurer has found.
According to a report from MetLife UK, 75% of advisers have seen more concern about mortgage protection over the last year, with 22% saying clients were ‘much more concerned’ and 53% describing them as ‘slightly more concerned’.
Just 18% of advisers said their clients’ interest in mortgage protection had not changed in the last 12 months.
Of the 77% of advisers who said clients were cancelling policies or reducing their level of protection, a quarter said there had been a significant increase in this activity, while 52% said this had only gone up slightly.
A further 16% noted no change in the number of clients cancelling or reducing cover.
More than two-fifths – 43% – of advisers said clients often told them they wanted to take out mortgage protection but failed to follow through, while 24% said this always happened.
EPC planning: act now or risk the rush later
Sponsored by BM Solutions
MetLife UK said this highlighted the short-term affordability pressures people faced despite recognising the importance of protection.
Phil Jeynes, head of individual protection at MetLife UK, said: “Households across the UK continue to face difficult financial decisions, and our research highlights a worrying contradiction: people are increasingly aware of the need for protection, but some are having to make difficult choices as budgets remain under pressure. We get it. We understand that families are making difficult choices about where their money goes, and that protection has to compete with many other household priorities.
“That is why advisers play such an important role in helping customers understand the value of cover and make decisions that are right for their circumstances.”
