Life insurance isn’t just about protecting your mortgage. It’s about making sure you and the people who depend on you have financial protection if the unexpected happens.
We spoke to Richard Le Ruez, Mortgage and Life Director at Cherry Godfrey in Jersey, who brings over 28 years’ experience as a broker. We asked Richard to share his expertise and answer some of the most common questions about life insurance and financial protection.
How does Cherry Godfrey approach life insurance?
A lot of the time, customers initially come to us to understand how much they might be able to borrow for a mortgage. We’ll look at their savings, income and outgoings and build up a picture of their overall financial position. That wider understanding can then be really useful when we start looking at protection.
We’re with our customers throughout the whole process. Once a mortgage in principle has been agreed, that’s often when we’ll start talking about life insurance and what level of cover might be appropriate.
There are different levels and types of protection available. At one end, you might have straightforward life cover designed to help repay a mortgage. At the other, you could have more comprehensive protection incorporating critical illness cover and income protection. The important thing is that it doesn’t have to be an all-or-nothing decision.
Our approach is always bespoke. We take the time to understand each customer’s individual circumstances, priorities and the level of protection they need, alongside what is realistically affordable. The aim is to put the right protection in place, balancing appropriate levels of cover with the customer’s budget. Where circumstances or budgets mean the ideal level of cover isn’t immediately achievable, we can explore the available options and help customers make an informed decision about the protection that matters most.
Who needs life insurance?
In simple terms, life insurance is something everyone should at least consider.
It’s not just for people with mortgages or for people later in life. Your need for protection can change as your circumstances change.
Perhaps you’ve left a job where you previously had employee benefits and now need to consider replacing some of that protection. Perhaps you’re buying a home, getting married or starting a family and want to make sure your loved ones would be financially supported if something unexpected happened.
Even if you’re single, it can be worth thinking about what would happen to your financial commitments if you were no longer around. The key question is really: who would be financially affected if something happened to you?
It’s important to remember that life insurance isn’t the only form of protection worth considering. Depending on your circumstances, critical illness cover or income protection could also play an important role.
Is buying life insurance through a comparison website a good idea?
Not every insurer or policy shown online will necessarily be available or suitable in every jurisdiction, and eligibility or policy conditions may not always be obvious from the outset. It’s therefore important to look beyond the headline price and understand exactly what you’re buying.
There’s also an important difference between simply comparing prices and getting advice. A broker can take a wider view of your circumstances, looking at your lifestyle, existing benefits, financial commitments and budget to help you consider the type and level of protection that may be appropriate for you.
Life insurance applications can also require a significant amount of information, and it’s important to give the insurer a complete and accurate picture of your circumstances. Something that may seem insignificant at the time could potentially cause problems later if relevant information hasn’t been disclosed correctly.
We can also consider protection you may already have in place. For example, you might have death-in-service benefits or income protection through your employer. However, that doesn’t necessarily mean you have all the protection you need, particularly as those benefits may change if you move jobs in the future.
By looking at the overall picture, we can help identify potential gaps in your protection and explore whether additional cover may be appropriate, giving you greater confidence that you and your family have the right protection in place.
What are the main benefits of life insurance?
Ultimately, it’s about protecting the people and commitments that matter to you.
If you have a mortgage or other significant financial commitments, life insurance can help ensure your family isn’t left struggling financially if you die.
For parents, for example, the financial impact can extend well beyond the mortgage. There could be childcare costs, household bills and everyday living expenses to consider at a time when the family is already dealing with a difficult situation.
But life insurance isn’t necessarily the right answer for everyone.
It’s important to consider who would actually be in a financial loss position if you died. Depending on your circumstances, income protection or critical illness cover might be more relevant, or you may need a combination of different types of protection.
That’s why reviewing your cover is so important as your needs can change significantly over time. For example, when you buy a property, get married, have children, change jobs or experience other major life events, for example.
What makes Cherry Godfrey’s approach different?
One of the things that’s particularly important to us is that Cherry Godfrey employees are salaried rather than commission based.
That means our recommendations aren’t driven by the commission we might receive from a particular product. We can focus on what is appropriate for the customer - including being honest when a particular type or level of cover isn’t suitable or affordable.
That’s something we’ve always been proud of. We’ve built our reputation by supporting our customers and our local communities, and by developing relationships that last.
I now have customers coming into the office and telling me that we provided the same service to their parents years ago, which is a great compliment.
Another benefit is that we have a range of expertise under one roof. If a customer needs help in another area, we can introduce them to the relevant colleague and make sure they’re getting the support they need.
For me, it ultimately comes down to understanding the customer.
I want to know what their circumstances are, what matters to them and what they can afford, and then give them an honest picture of the options available.
Transparency is incredibly important. We want our customers to feel confident that they’re getting advice that is genuinely based on their needs - not on what someone else might gain from the recommendation.
