In this online web series for IFA Magazine, Legal & General highlights 5 key ways they are helping advisers support clients during today’s challenging economic and market conditions.
In the fourth instalment of this series, Legal & General highlights how advisers can achieve better customer outcomes by ensuring clients fully understand their financial resilience and the advice they receive.
Better client outcomes:
What does the new Consumer Duty mean for advisers?
The Financial Conduct Authority’s (FCA) new Consumer Duty sets clear standards on consumer protection, requiring firms to put their client’s financial interests first.
With the FCA having confirmed its plans for a new Consumer Duty, it’s crucial that clients understand the advice given to them, and the financial risks they may face.
Therefore, advisers should have a robust process in place to ensure every client understands how financially resilient they are.
Helping clients educate themselves
Using sales aids and tools before appointments can save time as it helps clients understand the true reality of their situation (not just their perception of it).
This means you’re both entering the appointment with their real financial situation in mind; increasing their chances of understanding of the importance of any recommendation.
Legal & General has created the following sales aids and tools to support your client conversations:
This helps clients review their employee benefits – including life cover (death in service benefit) and company sick pay. It also includes a brief guide detailing what state benefits clients could receive if they became ill.
This helps clients to have a clear understanding of their finances, including how much their monthly bills and other outgoings are, and how much they’re spending on non-essentials.
Clients can calculate how long their income and savings would last if they were to lose their income due to a longer-term illness or injury.
Clients can calculate the likelihood of certain life events happening to them based on their age and certain lifestyle factors.
This report explores financial resilience, security and engagement of working households across the UK – making it a valuable aid in advisers conversations.
By reading these resources, advisers and their clients can gain a better understanding of their financial situation while also understanding and recognising the value protection can bring to them.
A lack of knowledge is a key reason for clients overseeing the benefits of their policy – and therefore allowing it to lapse. Advisers can find more support on client retention via Legal & General’s free Distribution Quality Management programme and podcasts – and in our previous article addressing this issue.
Finally, Legal & General has also released their Just Covered podcast series. The second episode demonstrates the importance of focusing on the type of client you feel you can work best with, including visualising their risks and needs. Check it out here.
Stay tuned for the final article in this series – and check out the previous three articles below: