The Income Protection Task Force has championed the recognition of the need for simple income replacement products in the recent steering group report on simple products.
Peter Le Beau, co-chairman of the Task Force, said: "It is salutary to note that in trying to calculate eligibility for this product the working party suggested a potential market of well over 25m people.
"That illustrates the massive lack of penetration of the more conventional product that sold about 110,000 new policies last year. Income replacement is a fundamental priority for a huge number of families in the UK and we must find a better solution to this need than we have hitherto. We hope this will be a wake-up call for the industry."
The working party behind the report produced a template for an income replacement product with guaranteed premiums and a relaxation on financial underwriting.
Clive Waller, other co-chairman of the Task Force, added the body intended to "fully engage" in the consultation period on the report.
