Survey reveals almost half of respondents believe that affordability issues are the primary barrier to Income Protection cover.
Caledonian Life the leading Life assurance company , has undertaken a survey of Brokers throughout the country, to get an insight into the purchasing patterns of the public when it comes to Specified Serious Illness protection policies (a product which pays out a lump sum if you suffer one of the illnesses covered under the policy). Findings from the survey reveal that between self-employed, private sector workers and public sector workers, 63% of Brokers believe it is those who are self-employed, are the most likely to be underinsured.
According to Greg Dyer Head of Sales and Marketing at Caledonian Life, “It’s no secret that people in Ireland are very seriously underinsured when it comes to Specified Critical Illness cover. In fact, our survey showed that the majority of Brokers thought that over 60 to 80+% of adults did not have appropriate levels of cover.
The findings were also very enlightening, in that they showed the grouping that are probably the most likely to underinsure themselves are paradoxically, the self-employed – Individuals that would be most at risk financially if they were to fall seriously ill and were unable to continue to work.”
Greg continued, “Almost half of our respondents (47%) said that they believe affordability to be the primary barrier to people taking Specified Critical Illness cover and in this climate, we are not surprised people may think this. Affordability is playing a crucial role in the decision making process of households throughout Ireland. However, the reality of the matter is that if they are not covered financially for the potential serious illness of the primary earner in the family, then their financial affairs could undoubtedly get a whole lot worse
should that person fall ill.”
He went on to say, “Thankfully and particularly in the current economic environment, cover is at its cheapest in over a decade. Bearing in the mind the importance of having cover in place and the challenges many people face, Caledonian Life will also now refund clients their first two months Specified Critical Illness
premiums and they can also get up to three months free Life Cover.*”
Caledonian Life stated that the survey results support something that they have felt was needed for some time now, which is the importance of independent, impartial advice to inform people as to why specified serious illness cover is necessary and its role in the financial planning of a family.
Greg stated, “31% said a lack of understanding of the needs and benefits of Specified Critical Illness Cover was the reason for people not taking out this form of protection, while a further 13% of Brokers cited lack of awareness as the reason. This highlights the need to educate people about this vital form of financial protection, so that they can make informed decisions as to whether or not they want/ need it and what level of cover they should have in place. This is a service the Insurance Doctor will be more than happy to help provide.”