Research by Defaqto on income protection suggests that people cannot envisage themselves being sick for any length of time; and that, if they are, there is a belief that the state will provide – while others think that they would have enough money to tide themselves over.
The take up of income protection insurance remains low despite the fact that it is one of the most important protection products on the market.
Part of the problem is the reluctance of advisors to sell the product although they generally accept that income protection is important to have, they say that many people find it unaffordable and some have concerns about whether policies will pay out.
But if intermediaries are reluctant to sell it, there is an alternative, buy direct. Many insurers who mostly sell via intermediaries are reluctant to make products understandable, easier to buy, cover the key needs and be very clear about what is and what is not covered.
But other insurers, who see the future as selling direct to consumers, are offering simple products, simply priced and easy to understand.
Income protection insurance news: 19 June 2012
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