• Unclear rationale for sum assured and term. Example: £ 100k life cover recommended with no link to mortgage, income, or family needs, and no explanation of how the figure was derived.
• Limited exploration of all protection needs. Example: Life cover recommended, but no discussion or evidence of considering income protection or critical illness for the same client.
• Lack of affordability discussion. Example: Monthly premium selected without evidence of client budget or discussion of what is sustainable long term.
• Client-led decisions without challenge. Example: Client requests minimal cover to keep costs down, but no documented explanation of risks or alternative options provided.
Good practice:
• Detailed and relevant factfinding. Example: Clear capture of income, outgoings, dependants, liabilities, and future plans to support tailored advice.
• Strong product knowledge and research. Example: Recommendation shows comparison of providers, product features, and underwriting considerations.
• Holistic protection approach. Example: Life, critical illness, and income protection all considered and discussed, even if not all taken up.
• Recognition of vulnerability. Example: Extra care in explanation and pacing, with clear documentation of support provided. because they directly affect who receives the money, how quickly, and how efficiently.
t should not be assumed that clients fully understand trusts, and poor explanation can lead to confusion or disengagement. Trusts should be viewed as a core part of structuring protection correctly.
Holistic advice
Within wealth advice, protection is sometimes positioned separately from other areas of planning, with a stronger focus placed on investment growth, tax efficiency, and wealth accumulation. However, bringing protection into the centre of these conversations can further strengthen overall client outcomes.
A well-structured protection strategy plays an important role in supporting financial plans, helping to ensure they remain resilient in the event of death, illness, or loss of income. This is increasingly relevant alongside considerations such as inheritance tax( IHT) planning and evolving pension rules. With greater focus on IHT liabilities and upcoming pension changes from 2027, protection can support liquidity planning by providing funds without impacting long-term investments.
There is also a clear commercial opportunity. Meaningful protection conversations can enhance client value, generate additional revenue, and strengthen long-term relationships. Where advisers do not specialise in protection, referral solutions provide a practical way to ensure clients still receive appropriate advice, while maintaining oversight of the overall client relationship.
• Early understanding of health and lifestyle. Example: Medical and lifestyle questions explored early, helping manage expectations and suitable product selection.
Why does using trusts matter?
One area recently highlighted in output from the Protection Market Study is the importance of going further at the point of sale to support customers if / when they eventually come to claim, such as placing policies in trust.
This is often signposted but not seen as completed. Trusts are particularly important for protection
If you would like to talk to us about having files reviewed by our experienced Advice Quality Unit, please Click here, or call the team on 0141 616 4161, option 3.
June 2026 | 11