A study carried out by Scottish Provident has revealed that many consumers consider protection insurance, such as life insurance, critical illness cover and income protection, as nice-to-have rather than a necessity.

The findings revealed that nearly 75 per cent of those consumers without insurance considered that they were less likely to be affected by a serious illness than those who had cover.  Nearly two thirds of consumers said that in the event they suffered a long-term illness that they would return to work within six months.

Specialist protection adviser, Lifesearch, commented that Scottish Provident’s findings were not surprising.  It said that many Britons tend to perceive financial protection as not being overly important.  For instance, more people have mobile phone insurance than critical illness or income protection insurance.  However, when the unexpected does happen it can severely harm the finances of those consumers’ that don’t have adequate protection cover.

Many in the industry have been saying that more needs to be done by the Government and employers in promoting the benefits to consumers and employees of having adequate protection cover in place to protect income and families.

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© UKfinancemarket.co.uk

The UK’s biggest life insurance company, Aviva, is offering new parents life cover of £10,000 completely free.  The insurer is currently running a TV advert campaign showing a father cradling his new born daughter to highlight the offer.

While life cover of £10,000 is unlikely to provide sufficient protection for the majority of consumers, Aviva hopes its campaign will highlight to consumers, particularly those with young financially dependent children, of the importance of having sufficient life cover in place to protect their loved ones should they die.

Aviva says that 52 per cent of adults in the UK do not have any life cover at all.  This is a surprising statistic and highlights the need for consumers to ask themselves how those financially dependent on them would cope financially if they died without any or insufficient life cover.

Life cover is important not just for protecting liabilities, such as a mortgage, but also for providing financial security for loved ones. 

© UKfinancemarket.co.uk