Alarming gaps in protection: 70% do not have cover
Research by National Friendly of 2,000 people found that, overall, 7 in 10 UK workers did not have any form of income protection (IP) in place, highlighting the need to educate consumers on the benefits of protecting their income, as well as the different options available within the market.
Over a quarter (26%) of those without cover said they prioritise their spending on other necessities, while 32% said they have never thought about it and 29% believed they would be unable to afford cover.
These figures suggest many UK workers still consider protection an expensive luxury or afterthought, instead of an important part of ensuring their financial freedom in the event of ill health or when accidents strike.
Concerningly, 16% believed their employers would still pay most of their income if they were absent from work, highlighting the lack of understanding and naivety among workers about the role of employers in financing everyday living costs if they are off work long-term due to an accident.
Educating consumers and debunking the myths surrounding protection is much needed. Innovative, alternative product design which starts to make essential cover more affordable is crucial, particularly given the fact that 67% of all UK workers have not protected their income despite playing a huge role in the workforce.
Need for accessible insurance
Insurance should be for everyone, but often those with heavy medical histories or tight budgets get left behind.
Here’s where simple products with no medical underwriting and affordable pricing can make a big difference by opening the doors to protection. This way, most people can get coverage that will make a difference without breaking the bank.
By focusing on these needs, insurers can create products that not only fill these gaps but also make customers happier and more secure. We must understand what people need and deliver solutions that work for them.
This article was originally published on IRESS.
