As research shows two in five IFAs believe clients do not understand protection, Scottish Provident has called for advisers to support its education campaign.
According to a survey conducted as part of Scottish Provident's Financial Safety Net report, questioning IFAs on their views of protection products and how they are perceived by consumers, protection is rated as ‘essential' for consumers to have as part of their overall financial planning by 94% of IFAs.
Yet, despite this, only between 1% and 20% of their clients ask about protection products. A third of IFAs said their clients believe that state benefits will provide the necessary financial support should they need it.
Susan Barclay, Head of Marketing, Scottish Provident, said: "Our Financial Safety Net Campaign is designed to help IFAs educate their clients on the benefits of life assurance and other protection products, which are at the heart of financial planning and will provide a robust safety net should they need something to fall back on in times of need."
Life assurance (48%) was listed by IFAs as the most essential if consumers could only take out one product. This was followed by income protection (36%), critical illness cover (16%) and finally unemployment benefit.
Barclay commented: "Whilst IFAs are adamant about the importance of protection products, and in particular life assurance as part of their clients' overall financial planning, it is worrying that the majority of clients remain inert when it comes to enquiring about protection. It is clear that many haven't contemplated the financial hardship of having to cope without the main breadwinner".
Scottish Provident is asking all financial advisers to pledge their support to the Financial Safety Net Campaign at www.afinancialsafetynet.co.uk
