Similar to other sectors, many of us in financial services take it for granted that everyone else understands the language we’re speaking. So, when we talk about ‘protection’ we may assume that our clients know that we’re speaking about mitigating against some of the big risks in life.
It was very interesting, therefore, to read some recent research from Legal & General which showed that the term ‘Protection’ was only associated with life or critical illness cover by 9% of the 2,000 people they questioned. Forty per cent of those surveyed assumed it related to protection against physical harm or protective clothing.
If the Coronavirus pandemic has done nothing else, it has caused many of us to reflect on our own mortality and, perhaps, to think about what would happen if the worst should happen. In particular, many of us worry about our loved ones and our assets if we were to die or suffer from a critical illness.
Yet, in the same Legal & General survey, 54% said they did not have any life insurance or critical illness cover in place. Reasons given for not taking out insurance included clients believing that they couldn’t afford the premiums alongside their mortgage repayments or simply that they didn’t see the value of protection.
As a nation of animal lovers, it’s perhaps not surprising that another survey – this time conducted by Cirencester Friendly – found earlier this year that people were twice as likely to insure their pets as themselves. They were also significantly more likely to take out mobile phone insurance.
Although it is commendable that people are taking out insurance against their pets needing medical care or the loss of an expensive phone, the potential effect of critical illness or the loss of life on homes and loved ones is surely more critical.
Taking out adequate protection need not be expensive and will give you and your family peace of mind, should the worst happen. If you haven’t already got cover in place, or would like to review your existing provision, please do contact me or another of Brunsdon Financial’s advisers to talk you through your options.
As summed up in a recent professionals’ seminar delivered by threesixty services LLP (20 May 2020):
My job is to discuss protection with you. Please don’t make it my job to discuss with your family why you did not have any.
Source 1:
https://www.covermagazine.co.uk/news/3072652/protection-industry-simplify-language
Source 2:
https://www.covermagazine.co.uk/news/4008690/people-%E2%80%98twice-%E2%80%99-insure-pets
Source 3:
https://www.threesixtyservices.co.uk/training-and-events/past-event-videos-and-slides/planning-for-protection/
