You are here: Home - Insurance - News -

Consumers warned over failing to protect their incomes

0
Written by:
05/11/2012
A lack of awareness and education means many financial advisers are finding Brits do not understand the need for income protection.

A survey by income protection provider Cirencester Friendly, found that 64% of advisers said that their clients find it difficult to understand income protection products while 63% said on the whole their clients aren’t clear on what income protection actually is.

Paul Hudson, chief executive of Cirencester friendly, said: “The responses we have received from financial advisers in this survey show there is a need for more education and awareness for consumers when looking into protection products.

“Some providers have ventured into advertising on television to raise awareness of the need for income protection insurance, which is great but some campaigns suggest that you get income protection from your employer.

“While group income protection is a benefit provided to employees of larger organisations, many workers do not have access to this type of benefit and may not be aware of the individual income protection products available from specialist providers.”

The research also found that 85% of advisers believe income protection is a must have for their clients yet 2011 sales figures published earlier this year show critical illness is being sold more widely than income protection.

Sales of new critical illness policies were almost five times that of income protection contracts in 2011.

Hudson continued: “The danger is that a person with critical illness cover may assume that they do not need income protection.

“Critical illness pays a lump sum if a policy holder contracts an illness from a specified list which can vary from product to product, it will not cover loss of earnings due to an accidental injury or less serious conditions that could stop a person working and earning a living and can be equally damaging financially.”

The survey also highlighted cost (55%) and clients not thinking they needed the cover (60%) as the biggest barriers to recommending income protection for financial advisers.

Many advisers believe that better educated consumers would encourage them to sell more income protection products and over half of those asked (58%) called for the industry and the Government to lead the campaign to raise awareness of the product.

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
2222368-5-arrows-up
Life premiums see hike of 58%

Life premiums for the whole of life insurance have seen a rise of 58% overnight for women over 40, according...

Close