Why is the process of prioritising the protection needs of your client important?

Why is the process of prioritising the protection needs of your client important?
A . To establish the net worth of your client
B . It provides an opportunity to establish a benchmark
C . To protect your firm from risk
D . It allows you and the client to agree on an affordable plan

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Answer: D

Explanation:

Importance of Prioritizing Protection Needs:

The process ensures that the client’s financial risks (e.g., loss of income, health issues) are addressed effectively within their budget.

Affordability is crucial to ensuring the plan can be implemented and sustained long-term.

Elimination of Other Options:

A: Establishing net worth is important but unrelated to prioritizing protection needs.

B: A benchmark is not the focus of protection planning.

C: The primary goal is the client’s protection, not the firm’s risk.

Reference: ICWIM Module 2: Emphasis on understanding client affordability and agreeing on realistic financial plans.