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Chris' client objection handling tips

Chris offers his tips on how to handle common client objections, including advice for cost-conscious customers and why you can’t rely on state benefits.

Chris is also an LV= customer and claimed on his Income Protection policy following a motorbike accident. Find out more about his story and how income protection covered Chris and his family during the long road to recovery.

Video transcript

If you’ve not got Income Protection, take it! It really is the most important thing.

Well I’m Chris Nicolaou. I’m a Managing Director of a mortgage brokers in Hampshire.

You know things can go wrong, and they go wrong really quickly. There’s no lead up of it will happen tomorrow or next week – it just happens and it happens in a flash and all of a sudden your life is upside down. So talk to your clients about it.

One thing you don’t this is that it’s going to happen to you so you always think it’s other people, and ‘I don’t get ill’, ‘I’m not going to have an accident’, ‘what’s the chances are?’ and I think the same, I thought the same. You know it’s one these policies I left and I thought, ‘shall I keep it going?’ ‘I thought, oh well, it’s not overly expensive, we’ll leave it there.’ And blimey! It was such a life saver to have it.

I’ve ridden a motorbike, it’s just for fun, it’s a toy, and I’ve had them for years, done hundreds of thousands of miles on these things and we were out on a Wednesday evening. Beautiful summers day with friends and it was one of those days that all of a sudden change your life.

It does happen, things do go wrong and when they go wrong the first thing that gets hit, apart from obviously the family life, is the income. It needs protecting!

And when I actually took the Income Protection out, one of the things that I did really, was that I took out just enough – so I didn’t take out as much as I could, but I took out enough to see me through. But it paid the bills and it kept the family unit safe.

So all insurance comes with a cost but sometimes I think ‘well it’s maybe easier to find a few pounds a month for an Income Protection policy than trying to find a mortgage payment when you’re not earning.

Had I taken out the budget Income Protection that would have paid me for two years, well I claimed on mine for 18 months, so it would have fitted that. However, if my operation had gone slightly the wrong way, I could have claimed on it to the age of 65, but it’s worth having quotes on both.

I wasn’t surprised I didn’t get any state benefits because the state benefits are really non-existent and if they are there, it’s such a small amount of money.

If you’re employed, I think it’s normally three months or six months full pay, then half pay – it will stop after a time. One of the LV= obviously you can always use the deferred periods to match that and then it’s down to company discretion. I don’t know many employers that will actually pay when they don’t have too.

One of the things with any Income Protection, one of the myths are they don’t pay out, they do! And over 90% of the time. I know that because I’m in the industry. But you do still have that little bit of worry when you put a claim in, ‘I wonder?’ But LV= did, they did what they said they would do and they continue to do that.

When you start to recover, a lot of people said to me in the past, ‘well as long as I can pick up the phone, I can run my business’. I thought that myself. I can still speak to my clients, so long as I have a use of an arm and talk, everything will be well. That’s just so not the case. When you’re on a huge amount of painkillers, morphine, such like, just to keep the pain at ease, you’re in a position where you can’t actually focus that well.

My wife ended up taking some time off to look after me. I had to get different things in the house because I was in a wheelchair for several months. So by the time you get a hospital bed downstairs, that was about £1000 to hire, and then about £200 a week to hire. And then plus all the other bits: I had to buy a wheelchair, ramps to be able to get outside in the case of emergencies. All these extra costs and the impact that has when you’re not earning any money, the impact that has on the business as well as your savings - you know the bit you actually get from somebody like LV= is an absolute lifesaver because it just tops up, it makes up that bit where you would really eat into your savings and so quickly.

I still look back at the policies we’ve sold and it’s so heavily weighted towards the Life and Critical Illness side of things and really talk about Income Protection as almost like an add on to that. Almost to a degree that it’s almost an afterthought. Actually it should be so the other way around. In an ideal position like I was, I had the Life and Critical Illness and the Income Protection was to run alongside that. Because, as I say, if you pay of your mortgage, if you heaven forbid, you had a critical illness or diagnosed with a critical illness and that paid off, you’ve still got to replace that income. That’s done its job with no mortgage, the bills will still keep coming in: you will still have your food bill; still have the on-going utility bills to pay for, you’ll still need to run the car. None of that goes away so what can happen without the Income Protection is that you don’t actually use all that money to pay off your mortgage with the Critical Illness. You tend to pay maybe part of it off and then use some, which will eventually run out in time, to actually keep you going on a monthly basis. Whereas a policy with LV= took me to age 65 so, well even I’m you know it takes me to retirement well the mortgage will be gone by then.

The impact of not having any cash is an horrendous thing because it actually stops you getting better as well because you start to worry about money, how much things are going to cost; the impact it has on your family and your children - so it’s an incredibly important policy and something that I think would be, almost an injustice really, not to actually talk to our clients about this policy and make them aware, really make them aware, of how serious this can be. It certainly changed my thinking.

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