Right Mortgage & Protection network Launches Income Shortfall Calculator for Protection Advice
The Right Mortgage & Protection Network has unveiled a new “Shortfall needs Analysis Calculator” designed to help advisors illustrate the financial consequences of income loss to clients considering protection products.
The tool analyzes a client’s committed and discretionary spending to demonstrate potential financial shortfalls resulting from events like illness,bereavement,or redundancy. The network emphasizes the calculator will assist advisors in fulfilling their obligations under the Financial Conduct Authority’s (FCA) Consumer Duty, specifically regarding the prevention of foreseeable harm.
Beyond compliance, the calculator aims to identify scenarios where protection products, such as income protection, would be advantageous.
“The Shortfall Needs Analysis Calculator gives advisers a clearer and faster way to understand a client’s potential financial shortfall and what element of protection they may require based on a detailed analysis of both committed and discretionary expenditure,” explains Keith White, Regulatory Trainer at The Right Mortgage & Protection Network.
White adds the calculator streamlines the often complex and time-consuming process of assessing client income and translating it into potential protection needs. “It removes much of the complexity and time pressure involved in assessing clients’ income levels and how this might translate into a potential shortfall and how this might require a specific protection solution such as income protection.”
The network believes the tool will improve efficiency in identifying client protection needs and provide a visual aid for presenting options. White concludes, “It is indeed a positive step forward in filling the growing protection gap and ensuring clients are adequately covered should they lose their job, get sick or their income drops for any reason.”
