Understand the under-insurance problem
Most clients will be under-insured, in the sense that the sums insured under their various risk insurance policies will be less than the text book, or life office preferred, sum insured.
Rice Warner estimate that current life insurance is on average only 64% of the fully insured amount, and that income protection insurance is even less than this.
Under-insurance represents a potential cost to the government on the premature death of the insured or the disability or illness of the insured.
Under-insurance is your client’s problem, not your problem.
Most clients cannot afford fully insured premiums. They have too many other claims on the already strained household budgets.
Sensible strategic risk insurance advice understands and accepts this phenomena, and compromises the sum insured so the client can afford it.
This is discussed with the client and then recorded prominently in the SOA as part of your record of your advice to your client to enable your client to decide whether to accept your advice. This places the responsibility for under-insurance on the (now informed) client, where it belongs.
(Dover SOAs automatically include explanation of, and warnings about, under-insurance and clients are informed of the risks they have accepted. Clients accept this, and so the difficult issue of chronic under-insurance is dealt with sensibly and professionally.)