Hot topic of the week…

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The issue of how to offer child trauma cover as part of a client’s life insurance was furiously discussed this week after a Wealth Professional article asserted that many advisers avoid the cover altogether due to its sensitivity.

In the article Richard Dunkerley from Zurich highlighted the results of a survey that indicated that almost a quarter of advisers never or hardly ever offer child cover because they perceive it to be too sensitive.

However, many advisers recognise how vital the cover is for clients who have children, and Wealth Professional readers were no exception.

There was strong debate about whether or not it’s valid excuse to feel uncomfortable offering the cover because of its perceived sensitivity.

Paul couldn’t understand how in an industry that requires so much formal education and compliance there is an apparent lack of communication, empathy and positioning skills.

“Do they really need videos for people to understand the financial consequences of the high risk behaviour of our younger generations? Heaven help us if this is accurate,” he said.

GT put it a bit more bluntly, saying: “What a bunch of sooks. Scared of a hard conversation. Then why are they advisers?”

However, Mark Thompson said that he used to feel uncomfortable discussing child trauma cover until he attended a two day seminar on trauma/dread diseases. He said he came away with a new way of explaining “time with mum” insurance by highlighting that it's not about making money out of a child's illness, it’s about providing quality time for the parents.

“I managed to overcome this discomfort,” he said. “I think it's a bit tough to label adviser sooks when a tough guy like me feels the same way.”

Steve Greatrex said that child trauma cover is a great feature – the only problem being that it doesn’t incept until age three.

Thanks to all of our contributors this week. Read more comments and the story here.