David Mead, director at Flexible-mortgage.net, said he had experienced a noticeable jump in the number of consumer enquires he had received regarding protection products.
Mead explained: “There clearly seems to be an increasing demand for mortgage protection policies. I don’t know if this is reflecting people’s perceived views that the wider economic outlook is more uncertain but we are selling more critical illness cover, general income protection policies and, especially, PTA.”
This view was echoed by other financial advisers.
Michael Brill, director at Baronworth Investment Services, admitted borrowers were increasingly looking at income protection. He said: “We have seen a lot of people interested in PTA. People are asking for more true income protection policy, like what used to be called permanent health insurance. It is a good thing to have and it’s getting more popular now.”
The upturn in sales comes at a time when organisations such as the Association of Mortgage Intermediaries (AMI) are highlighting the potential business opportunities in selling PTA.
Mead concurred with this, especially as his clients were looking towards brokers for this product.
Mead added: “I don’t know why but one of the first things people are asking is for independent advice, which shows they aren’t just going to their bank for such policies. This is good news as there are plenty of products out there and we need to get the right one for them.
“Therefore, I don’t understand why brokers aren’t offering it to their clients. It benefits the client and when all things are equal, brokers should be offering it.”
