32 PROTECTION TOMORROW
If you are keen to grow and want to promote the protection side of your business , there are ways to keep your pipeline healthy that might not at first seem the traditional route . The housing market is moving at a pace as many have taken the decision that this is the time to move for a variety of reasons , whether it ’ s for more room , a growing family , larger outdoor space , and the expectation of a new way of working when we leave the home working scenario , but one area of the property market that has been clearly identified as a much underserved segment , in respect of protection cover , is the less travelled road of the rental sector .
If your first thoughts are how would you get in in touch with this market , there is one quick and easy resource that is equally looking to expand the services offered to clients through referral partners , and that is letting and estate agents . They hold the key to a huge protection marketplace which is rarely serviced .
In a market where rental is increasing , letting agents and property landlords alike are particularly keen not to lose a regular and reliable paying tenant , and that tenant in turn will be keen to retain the property they and their family call home . In times of job and income uncertainty , when many have been placed on furlough , alongside the potential issue and concern of redundancy in sectors that have been hard hit by closure , tenants are crying out for the additional security that protection policies can offer .
The research undertaken by AMI , referenced in this magazine , asked the question whether advisers would actively be interested in supporting tenants through estate agents and the results demonstrated , of those that took part , over 50 % were broadly in favour of supporting this route .
ENCOURAGING
This is encouraging as in first view , it demonstrates clearly that there are very few advisers active in this market with just 3 % saying they were already doing just that – so it ’ s an open opportunity for those looking to enter this sector , as tenants really need your advice and support for critical illness , income protection , contents only policies , in the same way as your landlord clients need landlord , rent guarantee and portfolio insurance . Whether you enter through a letting agent ’ s route or your potential landlord clients , you
In times of job and income uncertainty , when many have been placed on furlough , alongside the potential issue and concern of redundancy in sectors that have been hard hit by closure , tenants are crying out for the additional security that protection policies can offer .
will be aware that on both sides , whether its landlords wanting to retain clients or tenants wanting to retain their homes , support in achieving both is essential . At a time when flexibility has been key , it could be that a landlord might also be open to a small reduction in rent , on the basis that the tenant takes an income protection policy and that reduction would then permit for the payment on the policy , thereby reducing the possibility of them defaulting on their rent should they hit hard times .
In addition , your commitment towards looking after a tenant could reap benefits in the future as they have the potential to be the homeowners of tomorrow , and your future client bank . What we do know is , they can supply an income stream through their protection needs for your business right now .
ADDITIONAL BENEFITS
If you have not yet fully considered landlords as a route for business , remember the additional benefits . Many long-standing property portfolios will have built up strong equity and therefore offer a good opportunity to re-mortgage , thereby raising funding to purchase new properties . Professional landlords are largely in this area of business to purchase more buy-