For Intermediary Use Only Mortgage Network Mortgage Club Company Inspiration Jobs Contact Log in 0345 130 7446 Free cover: the moment of truth May 18, 2021 Angela Davidson Protection Free cover during application or underwriting is something that most providers offer for life, critical illness and income protection policies. But this feature often goes unappreciated, with many clients and advisers not realising just how beneficial free cover can be. So, we asked our head of protection, Angela Davidson, to share her memory of a time free cover truly came into its own: “Several years ago, when I was working in Business Development for Royal London, I received a phone call from one of my advisers who was really distressed. As it turned out, he was upset because he had just called his client to ask if they had a date yet for signing contracts, so he could put their life and critical illness policy on risk the same day. In theory, it should have been a routine phone call and a chance to congratulate the client on their successful house purchase. However, on the phone the client revealed that he had suffered a stroke a few days earlier. Obviously, this was the reason the adviser was so distressed. The client still wanted to be protected and was unsure how the stroke, or any consequential issues, would impact his ability to work. The adviser knew he would have to inform Royal London about the stroke and, as a result, they would likely withdraw the terms. It was also very unlikely that other providers would offer cover, at least for a significant period of time. Thankfully, I knew Royal London offered free cover during application, which the adviser had forgotten about. So, because the adviser had arranged the client’s protection at the same time as his mortgage and submitted the protection application in readiness for the mortgage completion, the client could claim on the policy. As a result, the client moved into the house completely mortgage free! Even though the policy had never gone on risk and the client hadn’t paid a single penny towards the policy. Safe to say, both the adviser, and his client, were delighted. The adviser may not have received any commission or a proc fee because the policy never went on risk, but he walked away from that situation with a fantastic reputation and gained near ‘hero’ status amongst his fellow advisers. Although the provider’s free cover allowed the client to receive a pay out, ultimately, it was the adviser handling the client’s protection and mortgage at the same time that meant the client could make use of the free cover. The situation could have played out completely differently had the adviser left the protection to a later date to sort out, that wouldn’t have been a happy ending. Safe to say, it’s so important to talk about protection and mortgages together, always. You never know what may happen tomorrow.” Currently, the majority of providers on our panel offer free cover during either application, underwriting or both. However, it would be wise to check that the provider you have in mind does offer this very valuable option. If you’d like to know about the free cover offered in more detail, speak to our broker support team today at 0345 130 7446. Angela Davidson Search Search Archive November 2021 June 2021 May 2021 April 2021 March 2021 February 2021 January 2021 December 2020 November 2020 October 2020 February 2020 January 2020 November 2019 October 2019 September 2019 August 2019 June 2019 April 2019 March 2019 February 2019 January 2019 December 2018 November 2018 October 2018 September 2018 July 2018 June 2018 May 2018 April 2018 March 2018 February 2018 January 2018 December 2017 November 2017 October 2017 September 2017 August 2017 July 2017 June 2017 May 2017 March 2017 February 2017 January 2017 December 2016 November 2016 October 2016 September 2016 August 2016 July 2016 June 2016 May 2016 April 2016 March 2016 February 2016 January 2016 December 2015 November 2015 October 2015 September 2015 August 2015 July 2015 June 2015 May 2015 April 2015 March 2015 February 2015 January 2015 December 2014 November 2014 October 2014 September 2014 August 2014 July 2014 Categories appointed representative Business Quality buy to let buy to let buy to let Compliance housing Insurance Marketing Mental Health Mortgage Payments Pensions Press Protection Uncategorized Mortgage Intelligence is commited to providing an award winning service and support to all our members. Terms of Use | Privacy Policy | Cookie Policy Network News Mental Health Protection – Angela’s Advice November 5, 2021 Get the most out of your social media marketing June 30, 2021 Free cover: the moment of truth May 18, 2021 Information Roddis House 12 Old Christchurch Road Bournemouth Dorset BH1 1LG Email: enquiries@experiencemi.co.uk Call: 0345 130 7446 Contact Us Your Message Your Email (required) Your Contact Number (required) Please tick to opt in for relevant communications Copyright © 2019 Mortgage Intelligence. All Rights Reserved. Website by Fireworx. Resources Jobs Contact Log in