Words by Sat Singh, Contractor Financials
One of the most important conversations that I have with a client often comes after the mortgage application has actually been submitted. It’s not a call to chase documents, ID or even signatures. The elephant in the room is protection planning.
As a responsible broker we have a duty of care to our clients to ensure that, not only can we help to arrange what is in essence a significant debt in order to buy a house or to remortgage, but also that the debt is protected should anything stop that client from working, something that many people still refuse to address.
It can certainly be an awkward conversation. I appreciate that my clients don’t want to discuss the impact of them dying or contracting a serious illness at the best of times, especially not in an open office. The alternative, however, does not bear thinking about.
Many of the clients that we help are the ‘main’ earner in the household, and often have families at home that rely almost entirely on their income. Just what would the impact be on taking that income away? Unsurprisingly, few people have discussed this before, let alone with the person who’s just helped them take the main step in buying a house.
The reality, however, is that in many cases, failing to adequately protect oneself could be catastrophic. If a family’s sole income was removed, just where would the money come from to maintain the mortgage that we’d just helped arrange?
Indeed, for many of us there would likely be a problem in this scenario, even with employee benefits that PAYE staff receive. If your income was taken away tomorrow, how would you cope?
Thankfully, our consultants endeavour to have this difficult conversation with clients, and help secure the financial future of many people in the event of something awful happening.
The easiest way to protect you and your family is to allocate some time to look at this, before it is too late to act. After all, how much would you pay for home insurance if your house was on fire?