One in four buyers say price is a top priority when buying protection
One in four people buying critical illness (CI) insurance believe price is more important than the cover's features and suitability, according to recent consumer research.
The independent study, conducted on behalf of protection specialist LifeSearch, revealed that 25% of consumers who bought CI over the past 12 months said that price and convenience came before choosing product features and suitability.
Kevin Carr, head of protection at LifeSearch, said the result raised a number of concerns. He commented: "The research highlights a worrying level of consumer ignorance regarding their options and priorities when it comes to buying protection products.
"When protecting a family's financial well-being, some cover may be better than nothing, but it most certainly isn't if it doesn't pay out. And unlike other areas of financial services, once you are ill you cannot turn back the clock and buy the right type of protection," he added.
More than half of the respondents to the survey bought their protection policies without first seeking advice.
With this in mind, Carr argued: "What this research emphasises is the importance of good protection advice - while price is a feature of value, advisers selling protection on price alone aren't advising."
The findings also showed that one in six sales were internet-only, and that across all ages, consumers without dependants were 10 times more likely to buy life cover than income protection.
Peter Chadborn, principal of CBK, said he was not surprised by the findings. He said: "My view is that it proves what many of us have suspected for a long time. It is simple; consumers don't know what they don't know. I wouldn't mind betting that those consumers who think price is more important than product features haven't actually seen the difference between their policies and more comprehensive ones.
"Being an IFA, we have many clients coming to us to review their overall finances, and when we tell them about the improvements they could make to their protection policies they usually change their mind about paying a little bit extra," he added.
The survey questioned more than 1,000 consumers.
