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The power of your client’s savings might be less than they think

25/07/2017 Jeremy Duncombe, Director, Legal & General Mortgage Club

When it comes to protection, there is often no better opportunity to talk to clients about this vital product than when they apply for a mortgage. After all, it’s much easier to picture the potential impact if there is a home at risk should they lose their main source of income and can’t keep up their mortgage repayments.

However, protection has always been a hard sell. Nobody wants to think about becoming ill or passing away. Even if you’re raising the protection conversation with a natural prompt like a client’s first mortgage, lengthy applications can leave advisers little time to have this important conversation.

Every day, families across Britain face tragedies that they are sadly financially unprepared for. Whether it’s a job-loss, accident, critical illness or the death of a loved one, the resulting loss of an income can have a devastating impact on a family’s financial wellbeing. Yet, despite the severity of this risk, the UK continues to suffer from a ‘protection gap’ - thousands of people across the UK lacking the savings or protection they need to help them overcome the financial impact of a critical event.

In many cases, it can take a life-changing event, such as serious accident or critical illness, for an individual to realise the value of protection. However, advisers have a better chance of talking to their clients about these important solutions, if they can help them visualise the impact of losing their income.

At Legal & General, we are passionate about addressing the protection gap, and to help advisers in raising awareness about the potentially damaging impact a loss of income could have on an individual and their family, we recently published our 2017 Deadline to the Breadline report. The results speak for themselves:

  • The average employee in the UK has enough savings to last just 32 days. In Wales the figure is just 26 days.
  • Worryingly, more than a quarter (26%) of UK workers said that their current savings would last just one week or less.
  • Even if respondents reined in their expenses, more than a fifth (21%) say their savings would be gone in seven days, and the average only increases to 36 days. 

Without insurance, workers are continuing to leave themselves at significant financial risk, should they suffer from a critical event. Less than a third (31%) have a life insurance policy, whilst fewer still have cover in place to help them meet monthly mortgage repayments (9.7%). Less than one in 10 (9.3%) had an income protection policy to support them if they lost their job.


Even with the natural prompt of a mortgage application, selling protection can still be a challenge. By using our Deadline to the Breadline research to reinforce the reality how a loss of income could impact your clients’ finances, we hope that advisers face a much less challenging task closing the protection gap.

Find out more and use our Deadline to Breadline calculator.

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