Products director Roger Edwards says if people are not buying houses, the last thing they ought to be looking at is taking on additional risk.
He says: “Protection has to underpin financial solutions. If people have money to invest, where is that money coming from? Surely, in a time of inc-reased redundancies and when facing a recession, you have got to ensure your basic security. You will only have to use the investment to pay for the family home if things go wrong. They used to talk about investments as the golden future but if you do not get the basics right, there might not be any future at all.
He says advisers are often put off recommending more comprehensive protection plans than basic life insurance for fear it will increase clients’ premiums too dramatically but this is not always the case.
Edwards says: “Many go as far as explaining standard decreasing term assurance but they should be looking at more than that. They think, if I add on critical-illness cover, then premiums might leap from 10 a month to 60, which is offputting. But you do not need to do that – you can do something in between and still leave clients better protected.”