Don't get bullied into the wrong insurance

Some salesmen will paint an extreme picture to get you to take out life insurance which may not meet your needs.

“You have had a car crash and your partner is DEAD!”

That’s a typical ‘disturbance’ technique that some brokers like to use, a way of scaring the hell out of you in order to convince you to buy some life insurance.

I know, because I am a broker myself! My name is Tim Wilson and I am the manager of lovemoney.com Financial Services. My job involves speaking to a lot of people about their mortgages - and the protection they need for those mortgages and for their loved ones – and (hopefully) helping them to make the right decisions.

And I get very annoyed when an applicant says “I have to take life insurance out with a mortgage”. I’m not annoyed with the applicant themselves, but annoyed with the salesman who has told them this in the first place. It’s just not true!

It’s not for everyone

Is life insurance a mandatory requirement with a mortgage? Contrary to what some say, no. It is absolutely not mandatory.

Now, I don’t want to undermine just how important it can be to have life insurance. If you have dependants or someone who will be financially worse off if the worst happened to you, then there is absolutely a need to protect them in the form of life cover. That doesn’t make it mandatory though.

Besides, that doesn’t account for everyone. If you do not have financial dependents, then generally you may not need life insurance. If you’re not sure whether life insurance is necessary in your situation, have a read of 5 people who need life cover.

Shock tactics

I started this article with a very emotive and shocking statement. But it’s not such a shocking statement for many who work in sales, as they will rely on using such shock tactics in order to close sales.

Years ago, I worked for a very big PLC company who would train their staff to employ this exact ‘disturbance’ technique. They would get us to take part in role plays, and teach us how to get the customer to envision themselves in a scenario where they have just lost someone close to them.

We’d then have to ask them what they would do in that situation, how they would cope.

A personal question

It actually grates me now to think about this.

What I don’t want you to think is that I am having a go at all brokers, or detracting from how important life insurance is. In fact, I’d argue the complete opposite – not only is life insurance vitally important for many people, but a broker can play an important role, helping you find the right policy for your circumstances.

What you should look out for and think about is your OWN scenario, not the horrendous picture that these sales techniques like to paint.

Related how-to guide

Get the right type of life insurance

Get the peace of mind that comes with buying the right life insurance policy at the right price.

See the guide

Ask yourself this: what is important to you? Who is important to you? Do you need cover? What cover would you want? What cover can you afford?

The right insurance for you

By thinking about your specific needs, and who you want to protect, a broker can then tell you about the exact products that can help you meet those needs. They will have the expertise and knowledge to let you know how these products work, what they cover and also find the most comprehensive products.

After all, life insurance comes in many different shapes and sizes, so it can be very difficult working out exactly which policy type is best for you.

Free advice

I guess my tip for life insurance is to make sure you are protecting what YOU want to protect – not what a salesman tells you to protect - and ensure you know exactly what would happen with the insurance you take out, should you need to make a claim.

Of course you can do that yourself, by making use of articles like How to pick the right life insurance policy and using our life insurance quote engine.

But if you want some free advice about what life insurance policy to go for, or even if you just want to check that your existing policy meets your actual needs, then don’t hesitate to get in touch with the fee-free team of advisers we have at lovemoney.com. We have a freephone number, 0800 804 8045, or if you prefer you could send any questions to me direct at tim@lovemoney.com

I promise open and honest advice without the need to (hypothetically) kill any of you off!

More: Get a market-leading mortgage | Life insurance cheapest for nine years | The best savings accounts for the new tax year