Bankhall Conference 2009 - Friends Provident

Bankhall Conference

5 Issues For Tackling Protection ShortfallsTim Williams

National Accounts L&D Manager

October 2009

UK Sales Learning & Development

For professional advisers only, not intended for customers


Agenda

• 5 issues for discussion!


1. Size Of The Problem

• Individual life assurance – c£2.3 trillion*• IP -c£190 billion per annum*

• Corporate protection – c£1.1 trillion**• Corporate debt - £300 billion

• Shareholder protection - £400 billion• Key person protection - £400 billion

*Swiss Re Term and Health watch report 2008

** L&G SME Research 2009


A Thought To Ponder

£12,000 £300,000

£1.8 Million


Why Millions?

A 25 year old, earning £25,000 a year, and getting a 3% pay rise each year will, by the

time they are 65, have earned…

£1,885,031

Source: Tim Williams and his CASIO calculator 2009

These figures are gross


2. Back To Basics

Protection

Mortgage

Pension

Savings

Inv


Back To Basics

Protection

Mortgage

Pension

Savings

Inv


3. Challenge The Client!

• Challenge on budget• Challenge on expenditure


Creating A Budget

Now Off Sick

£368.74pw*

£350.00pw

**Long term incapacity benefit / Employment support allowance as at April 6th 2009

*Take home pay on earnings of £25,000 per annum – 09/10 tax rates

***Maximum benefit on FP rates

£89.80pw**

£307pw***


Protection Product Ownership

• Life Insurance 45%• MPPI 18%• Critical Illness Cover 15%• Private Medical Insurance 11%• Dental Plan 6%

• Income Protection 6%• None of these 42%

Source: IPSOS MORI/Mintel Survey: November 2008


4. Look To Add Value

• Consider the competition• Put your unique proposition forward• Make trusts the norm, not the exception!


Protection Sales In The UK

0

500000

1000000

1500000

2000000

2500000

2003 2004 2005 2006 2007

TermCICIP

Source – (Graph) Swiss Re Term & Health Watch 2008

Source – (Statistics) Department of Work & Pensions 2007

1 in 13

1 in 5

1 in 8


So, What Can We Do?

• Become familiar with the product• Believe in the product!• Talk about it!• Remember, protection is sold, not bought• Pro-active skills

• Get client to explore needs• It’s all about “ownership”


Specific Ideas!

• Be prepared to use concepts• Be creative with budgets• Challenge client’s assumptions• Talk about it!• Believe in it!

• Support available for marketing campaigns


Summary

• The shortfalls are vast!• To treat customers fairly we MUST do the full job• Reliance on the state is NOT an option• It is a “sold” product – • Selling skills are the skills of the true professional


This presentation is based on Friends Provident's understanding of current law and HM Revenue and Customs practice which may change at any time.

The value of any tax relief depends on the financial circumstances of the investor.

FRIENDS PROVIDENT LIFE & PENSIONS LIMITED IS A MEMBER OF THE FRIENDS PROVIDENT MARKETING GROUP AND IS AUTHORISED AND REGULATED BY THE FINANCIAL SERVICES AUTHORITY

www.friendsprovident.com

Bankhall Conference 2009 - Friends Provident

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