"I would urge anyone who has considered buying a health insurance product in the past, but hasn’t, to look at the options available to them."
- Steve Bryan, director of distribution and marketing at The Exeter
Of those surveyed (2,000), 33% think protection insurance products that payout for private hospital and medical treatment costs are essential. And yet, only 8% have purchased a product in the last two years.
Products that pay a lump sum in the event of death are highly valued, with 33% of respondents selecting it as the second most important non-compulsory product. 32% also value insurance that would pay a monthly proportion of income if someone were unable to work due to ill-health or injury.
Furthermore, 30% of respondents said products that pay a lump sum in the event of a serious illness, such as cancer or a heart attack, are important.
Despite these findings, The Exeter has identified discrepancies between consumer values and actual purchasing behaviour. The most purchased non-compulsory insurance product was home insurance, with 34% of consumers saying they had bought building or contents cover in the last two years. Travel insurance had been purchased by 33% of respondents.
Meanwhile, only 7% have purchased Income Protection (IP) despite 32% recognising it as an important financial product. Just 12% have bought a Critical Illness (CI) policy, and Private Medical Insurance (PMI) uptake is similarly low (8% for individual and 8% for group).
“The gap between consumers recognising the importance of PMI, IP, and life products, compared to the actual number of purchases, is worrying. It’s natural to want to protect your assets, such as your home and belongings, but it’s equally as important to look after your health and income – things that we can often take for granted,” explained Steve Bryan, director of distribution and marketing at The Exeter.
He said: “I would urge anyone who has considered buying a health insurance product in the past, but hasn’t, to look at the options available to them. A conversation with a financial adviser is also hugely important to see what options best meet their needs.
“There is also more to be done to increase awareness. This is something that will take time to achieve, but advisers and insurers will continue to work together to ensure products are more accessible and become an important part of everyday financial planning conversations.”
