Start by asking what the client wants to protect and who relies on their finances—not by assuming they need a particular policy. A useful fact-find maps their responsibilities, income and existing cover, then tests whether any proposed protection fits their needs, budget and the policy’s terms.
What a protection fact-find needs to establish
For a UK adviser, a fact-find is the basis for understanding a client’s financial responsibilities and existing provision before discussing protection. It should identify the risks the client is concerned about, the people or commitments affected, and what resources are already available if something happens.
The FCA requires an insurance firm to specify a client’s demands and needs using information obtained from them before an insurance contract is concluded. The detail should be proportionate to the complexity of the contract and type of client, and the proposed contract must be consistent with those demands and needs. See FCA Handbook ICOBS 5.2.
For advised pure protection, FCA guidance says to use information readily available to the firm and obtain further relevant customer information, including details of existing cover. Advisers should consider the proposed cover level, cost, exclusions, excesses, limitations and conditions, and tell the client about needs the recommendation will not meet. For a personal recommendation, the explanation of why the contract best meets the client’s demands and needs should be personalised. See FCA Handbook ICOBS 5.3. Check the live Handbook when applying the rules, as they can change.
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Begin with the client’s priorities and responsibilities
Ask what they most need to protect
Use an open question such as MoneyHelper’s: “What do you most need to protect?” The answer might be a dependant’s financial security, housing costs, other debts or the client’s own income if illness or injury prevents work. MoneyHelper’s consumer guide, What protection insurance product is right for me?, also highlights providing for children, covering housing payments and maintaining income as considerations.
Identify who depends on the client financially
Record who would be affected by a change in the client’s circumstances and what responsibilities or future plans matter to them. A partner, children or another person may rely on the client’s earnings or contribution to household costs. The relevant need depends on the client’s circumstances and priorities; the question is not whether a typical household would buy cover.
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Map the household’s financial position
Establish take-home pay, essential living costs, debt commitments, and mortgage or rent costs. These figures help clarify which commitments would continue and what the client might struggle to maintain after death, serious illness or inability to work. They also give context for considering how much cover, and for how long, may be relevant.
Record existing provision before identifying a gap
Ask about personal policies, workplace benefits and relevant packaged current accounts. Depending on the client, existing provision may include life cover, sick pay or other benefits. Record what each arrangement covers and any relevant amount or duration; do not treat the existence of a benefit as proof that a particular need is fully met.
Compare existing provision with the client’s responsibilities and stated priorities. This helps distinguish a genuine shortfall from a need already addressed, and avoids treating additional cover as an automatic next step. The FCA specifically identifies existing cover as relevant information for advised pure protection.
Match the need to the event the policy covers
Life insurance, critical illness cover and income protection address different events. Discussing them as interchangeable can leave the client with a mistaken idea of what a policy would do.
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| Cover | Event it broadly addresses | How it may relate to a client’s goal |
|---|---|---|
| Life insurance | Pays broadly on death or terminal illness, subject to the policy’s terms. | May support dependants or a financial objective such as mortgage protection. It does not replace income lost because the insured person is ill or disabled. |
| Critical illness cover | Pays a lump sum if the insured person is diagnosed with a specified serious illness covered by the policy. | May address a client’s concern about the financial impact of a covered diagnosis. The condition definitions and exclusions determine what qualifies. |
| Income protection | Provides regular payments when illness or injury prevents work, subject to the policy’s terms. | Addresses income disruption rather than the one-off specified-condition event associated with critical illness cover. |
These are broad distinctions, not guarantees of payment. The product documents determine the covered events and applicable terms. MoneyHelper’s guide explains these product purposes; the FCA’s guidance requires suitability to be considered in light of the cover level, cost and policy terms.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Test whether proposed cover fits the client
Compare the proposed cover with the stated goal
Relate the type, amount and duration of cover to the particular responsibility or risk the client wants to address. For example, a concern about dependants’ financial security after death is different from a concern about monthly income during an illness or injury. A recommendation should make that connection clear rather than relying on a generic explanation of the product.
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Assess affordability and trade-offs
Ask what the client can afford and discuss the trade-offs between cost, amount and duration of cover. The fact-find should inform whether the proposed arrangement is realistic for the client; a policy that cannot be sustained does not solve the stated problem.
Explain relevant terms and limitations
Consider exclusions, excesses, limitations, conditions and eligibility requirements that matter to the particular client and policy. Ask what the client understands the policy to cover, then address any material misunderstanding. The depth of follow-up should reflect the product and client rather than follow a fixed generic checklist.
State what the proposal will not address
If a relevant need remains unmet, tell the client plainly. Explain whether the gap arises because the proposed cover addresses a different event, is limited by its terms, or does not cover the full responsibility identified. Do not describe a policy as meeting the client’s needs without evaluating its relevant terms.
Keep the process proportionate and client-specific
There is no single universal fact-find questionnaire, coverage formula or recommendation established for every client. The questions are a practical starting point, not a regulator-prescribed exhaustive form. Tailor follow-up to the risks and policy types under consideration, information already available, and the client’s circumstances. Eligibility, definitions, terms and affordability must be established from current product documents and client information.
As context, the FCA’s 2026 findings report that 58% of adults did not hold a pure protection product, and that 59% of adults without one had never considered their protection needs. These are dated market findings, not thresholds for deciding whether an individual needs cover. The FCA also reported that 45% of term-insurance holders surveyed said protecting their mortgage was important; this describes survey responses, not the share of all clients who need mortgage cover.
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