Protecting your client’s most valuable assets...Perceived Life Insurance Payout Rates ......

Protecting your client’s most valuable assetsProtecting your clients, their families and their homes

Bernadette Mahon

Strategic Partner Specialist

Zurich Intermediary Group

For intermediary use only - not for use with your clients PCMVA v03 08/15

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Important information

This presentation is provided to you by Zurich Intermediary Group in your capacity as a financial services industry professional. It must not be made available or copied or otherwise quoted or referred to in whole or in part in

any way, including orally, to any person without our express written permission, which we may, at our absolute discretion, grant or withhold or

grant subject to conditions, including conditions as to our responsibility.

We accept no duty or responsibility, and we disclaim all liability whether in contract, tort (including negligence) in respect of this material but this

sentence does not exclude any liability which by law cannot be excluded.


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• Establish the impact of not having the right level or type of protection

cover in place

• Consider some practical sales ideas to provoke client thought and

realization – “What Client’s Might Say”

• Discuss ways in which to deal with clients objections for protection

• Consider the importance of Critical Illness cover in today’s protection

planning strategies

Learning objectives


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Your clients’ advice landscapeMortgage and Protection …. A great place to start?

Source9: unbiased.co.uk and Optimum Research, taken from the Zurich Consumer Insights Bulletin February 2014

The table below represents the pattern those who take advice

tend to follow through their life, with mortgages often the first

reason to seek advice, followed by protection and pensions

Mortgage Protection PensionInvesting & Savings

General finance health check / review

Setting financial

goals

IHT/Tax planning

For intermediary use only - not for use with your clients

PIPSIPCMVA v03 08/15

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Your clients could lose their homes

No homeowner likes to think about repossession. But how

many clients realise what would happen if they couldn’t pay

their mortgage, as a result of being critically ill?

What mortgage lenders really mean:

If you can’t keep up your payments for any reason, even if you are

ill, have an accident or lose your job, then that’s a problem for both

of us. We will try to help you for a while but will do whatever it takes

to recover our money – even if that means repossession.

Statement:

Translation:


• James – aged 35

• Sophie – aged 32

• Both non-smokers

• Mortgage amount - £200,000

• Decreasing term assurance

• 25 year term

• Healthy lives

Meet ….. James and Sophie

6For intermediary use only - not for use with your clients PCMVA v03 08/15

https://zurich.tagworldwide.com/Knowhow/assetviewer/index_assetViewer_inline.cfm?action=displayViewer&view=inline&intAssetID=2660226&&categoryID=234409&fromPreview=yes&searchRef=1744781

https://zurich.tagworldwide.com/Knowhow/assetviewer/index_assetViewer_inline.cfm?action=displayViewer&view=inline&intAssetID=2660226&&categoryID=234409&fromPreview=yes&searchRef=1744781

*Source63: British Heart Foundation – www.bhf.org.uk Feb 2015, **Source64: Stroke Association Jan 2015, ***Source62: Cancer Research UK Feb 2015, ****Source 14: Medical News Today/MS Trust ***** Source 69:BHF Feb 2015

What James and Sophie might say …..‘It won’t happen to us’

Just over every 3 minutes someone

in the UK suffering a stroke**

Every 3 minutes someone is having a heart attack in the

UK*

Every 2 minutes in the UK someone is diagnosed with

Cancer***

Symptoms of MS areusually diagnosed between

the ages of 20 - 30****


MS is not a fatal condition –

more than 100,000 people

in the UK are living with MS****

There are approx 1.2m

Stroke survivors in the UK**

Half of all people now diagnosed

with Cancer survive their disease

for at least 10 years***

70% of people who

have a heart attack

will survive it*****

PCMVA v03 08/15

http://www.bhf.org.uk/

A closer look- conditions claimed 2014

84% of claims were for the “big four” conditions:

- heart attack, cancer, stroke and MS

Source 93: Financial peace of mind when you need it most 2014

For intermediary use only - not for use with your clientsWZ4P v8 EXPIRES 31.10.2015

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• Average spend £3.00 a week on

gambling (£156 a year)****

• Happy to take a risk on the

lottery

with little chance of a payout

• More likely to suffer a serious

illness than to win the lottery

It could be you

*Source 17: Moneywatch website, **Source 18: British Heart Foundation – Males dying from Heart Attack, ***Source 19: Cancer Research UK key

facts, ****Source 20: This is Money

Take a Punt

BOOKMAKERS

The Rat Race35 yr old hurdle

Lottery Win*

Heart Attack**

Cancer***

Death

14m/1

6/1

3/1

Odds

On


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What James and Sophie might say …..‘We can’t afford it’

Zurich quote 1 Feb 2015 JLFD

TreatsHow many

each monthCost per treat Total

Bottle of wine/beer

Frothy coffees

Daily snacks

Magazines

Take-away meals/dining out

Beauty treatments

Working lunch

DVDs/cinema/satellite TV

Other

Other


4% interest rate

With life cover and

critical illness plan

Self-cancelling mortgage


3% interest rate

Without life cover

or critical illness

£948 per month

£1056 per month

Based on £200,000 mortgage, capital and interest, 25 years

£108pm ?

Source 66: moneysavingexpert.com mortgage repayment calculator

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What James and Sophie might say …..‘We can’t afford it’

Zurich quote 2 Feb 2015 JLFD

TreatsHow many

each monthCost per treat Total

Bottle of wine/beer

Frothy coffees

Daily snacks

Magazines

Take-away meals/dining out

Beauty treatments

Working lunch

DVDs/cinema/satellite TV

Other

Other


Family Spending 2013


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Every little helps

Zurich Quote 3 Feb 2015 JLFD


£200k life cover with

extra £20,000 accelerated CI

Overall premium cost = £23.73

Extra CI cost = £7.80

Total average weekly household

expenditure in 2013 - £517.30 in 2013

38 weeks x £517.30 = £19657.40

BREATHING SPACE TO RECOVER

PCMVA v03 08/15

4 out of 5

Cancer’s hidden price tag

83% of people with cancer are, on

average, £570 a month worse off

because of their diagnosis.

£570 is comparable to the monthly

mortgage payment most people pay in

the UK

This figure is made up of:-

• reduced income and

• increased costs across the following categories:

– inpatient and outpatient costs

– other healthcare costs

– clothing

– equipment for and modifications to the home

– day-to-day living costs.

Source 31: MacMillan Cancer Support, Cancer’s Hidden Price Tag report 2012


Meet Christian

“A few months ago my life

was fantastic... then out of the

blue I get a cough and then

suddenly get told it's cancer”

What James and Sophie might say…‘We’ll think about it’


20 year term

James is now aged 40

Sophie is now aged 37

Cover

DetailsLife Cover only

Life Cover

and CI

Monthly

Premium £19.24 £103.51

Total

Premiums

paid

£4617.60 £24842.40

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The cost of delay

(Zurich Quotes 4, 5, 6, 7 JLFD, February 2015 JLFD

25 year term

James is age 35

Sophie is age 32

Cover

Details

Life Cover

only

Life Cover

and CI

Monthly

Premium £15.93 £80.53

Total

Premiums

paid

£4779 £24159

25 year term

James is age 40

Sophie is age 37 now

Cover Details Life Cover only Life Cover and CI

Monthly Premium £21.96 £119.84

Total Premiums paid £6588 £35952


What James and Sophie might say ….‘We’ve insured all of our valuables’

Source10 : http://www.drewberryinsurance.co.uk/press-release/health-protection-insurance-survey-2013

Current Insurance Policies


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What James and Sophie might say …..‘Our house is our biggest asset’

£1,4881 Yes

£16,0004 Yes

£27,2193 Yes

£32,4005 Yes

£250,0002 Yes

£1,075,3606

???

• Most people don’t think twice about taking

out insurance to protect holidays, homes,

cars and pets. But not themselves

• Does your client realise their own worth?

• A person aged 25 who earns £517pw,

£26,884pa and plans to retire at 65 will earn

over £1,000,000 during their working life

(ignoring pay increases, promotions and

bonuses)

• Would you insure an asset potentially worth

£1m or more?

Source 22: 1Based on family of 4, 1 week holiday ABI.org.uk April 2011, Source 23: BBC News, ONS, Source 24: 3This is Money, , Source 25: 4This is Money 09/11 based on cost of keeping dog for its lifetime, Source 26: 5The Telegraph, Source 27: 6Based on gross median earnings full time employees April 2013 £517 pw for a person aged 25 working until age 65 ONS


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What James and Sophie might say …..‘We’d each like our own policy’

Sum Assured £200,000

Term 25 years

Male aged – 35 years

Female aged – 32 years

Total of 2 x

SL lifes

added

together

Extra £

compared

to JLFD

Life Cover

only

£10.30 £9.25 £19.55 £3.62

Life and CI £49.51 £40.02 £89.53 £9.00

Total Sum

Assured£400,000

Zurich Quotes 8, 9, 10, 11 Feb 2015 SL


James Sophie

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Perceived Life Insurance Payout Rates

What James and Sophie might say …..‘It won’t pay out’


Source 67: Protection Insurance Survey 2015, Drewberry Insurance Experts

PCMVA v03 08/15

A closer look- Who’s claimed 2014



A closer look- Critical Illness Claims Statistics 2014



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Spouse assurance - the true cost of running the home

What James and Sophie might say …..‘Sophie doesn’t work at the moment’

Source 32: Value of Parent Research 2013 L&G

The Value of a Mum = £31,627 pa


Objection Handling Toolkit


The State will look after me

Objection handling toolkit


I’m covered by my Company pension scheme


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• Be able to discuss and demonstrate to clients the need to de-risk themselves and their families using protection

• Be able to identify those clients needing cover with the knowledge to recognise the preferred type and level of cover

• Articulate the potential financial impact on mortgage holders when someone becomes ill or dies

• Be confident to address any objections a client may have towards protection to cover their personal needs

Learning outcomes


Any questions?

Please keep in touch

Email – [email protected]

Website – www.zurichintermediary.co.uk

Zurich switchboard – FreePhone 0500 546 546


mailto:[email protected]

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This presentation is provided to you by Zurich Intermediary Group in your capacity as a financial services industry professional. It must not be made available or

copied or otherwise quoted or referred to in whole or in part in any way, including orally, to any person without our express written permission, which we may, at our absolute discretion, grant or withhold or grant subject to conditions,

including conditions as to our responsibility.

We accept no duty or responsibility, and we disclaim all liability whether in contract, tort (including negligence) in respect of this material but this sentence does not

exclude any liability which by law cannot be excluded.



Any tax and legislation information is based on Zurich’s current understanding and may change in the future

Protection is provided by Zurich Assurance Ltd.

Zurich Assurance Ltd. Registered in England and Wales under company number 02456671.

Registered Office: The Grange, Bishops Cleeve, Cheltenham, GL52 8XX.

Zurich Intermediary Group Limited. Registered in England and Wales under company number 01909111

Registered Office: The Grange, Bishops Cleeve, Cheltenham, GL52 8XX.

Telephone - 0500 546 546.

We may record or monitor calls to improve service

For use by professional financial advisers only. No other person should rely on, or act on any information in this advertisement when making an investment decision. This advertisement has not

been approved for use with clients

Thank you for listening


Protecting your client’s most valuable assets...Perceived Life Insurance Payout Rates ......

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Transcript of Protecting your client’s most valuable assets...Perceived Life Insurance Payout Rates ......