Experience of hindsight

We’ve all had moments where hindsight makes us wish we’d done things differently. Think about booking a hotel or trying a restaurant based on someone’s recommendation, only to find it wasn’t what you expected. Chances are, you wouldn’t go back – or take their advice again.

Now imagine how that feels for a customer when the advice they relied on doesn’t deliver the outcome they hoped for at the most critical time: making a claim.

We talk a lot about Consumer Duty and delivering good outcomes. But what does that really mean when it comes to protection advice?

Looking beyond the mortgage

Take mortgage advice. Most of us agree that people taking out a mortgage should have the right protection in place to keep repayments going if illness or injury stops them working. Traditionally, the go-to solution is life and critical illness cover aligned to the mortgage term and amount, paying out as a lump sum.

But here’s the reality: according to CIExpert, 76% of adviser engagement is linked to new mortgages. Yet only 19% of claimants actually use their critical illness payout to clear some or all of their mortgage.¹

This gap suggests that clients’ priorities may vary, and exploring these early can ensure the cover remains suitable.

The hindsight moment

Picture this: a couple with young children, buying their first home. Their adviser recommends a joint life policy to cover the mortgage. Sensible advice, right?

Fast forward. One partner is diagnosed with cancer. The policy pays out. But instead of clearing the mortgage, they use the money to replace lost income and cover unexpected costs like hospital parking, special diets, and warmer clothes.

They still have the mortgage. And now, one partner has no cover left. Is that the best outcome?

With hindsight, could a different conversation at the start have led to better protection for both partners and their family?

This example illustrates how needs can change and why broader conversation is helpful, not that the original advice was unsuitable.

Better questions, better outcomes

Advice isn’t just about products – it’s about understanding priorities. Asking the right questions early can make all the difference:

• If you needed to claim, would repaying your mortgage be your top priority?
• Would you value a lump sum to clear mortgage debt, or monthly income to keep up with living costs?
• If one of you claimed, would the other still want cover for themselves and the children?

These aren’t just tick-box questions – they open up conversations that lead to advice aligned with real needs.

Protection is a journey, not a one-off

Among other factors, protection typically aims to repay debts and maintain lifestyle. But life changes and so do priorities. That’s why regular reviews matter. They keep cover fit for purpose and make sure advice continues to deliver good outcomes.

Because hindsight is a powerful thing. And the best way to avoid it? Ask the right questions from the start.

Sources

1. 1. CIExpert, Critical Thinking Report, 2024