More than half (53%) of 18–40-year-olds do not understand what critical illness cover is for, and one third (29%) have never heard of the product.
This is according to research of 2,000 UK adults aged between 18 and 40 conducted by insurer Beagle Street, which is part of the OneFamily Group.
Researchers found 73% of young adults do not have critical illness cover to support their family and four in five may or would definitely consider taking out critical illness cover once the product had been explained.
The primary reason (61%) young adults have or would consider taking out critical illness cover is to give themselves and their family peace of mind.
This was followed by 42% saying they would use it to pay for private medical treatment if needed, and one in three (33%) would use the money to keep on top of bills.
Around one fifth (21%) of young adults surveyed said they did not want to think about how their family would cope if they became seriously ill and couldn’t work.
One in 10 (10%) said that their family would not cope as they are the main wage earner, and the same number did not know what they would do.
The most important aspect people consider when taking out cover is cost (63%), followed by a wide range of conditions being covered (49%).
Access to healthcare advice and support was also cited as a top priority by 40% of young adults.
Ryan Griffin, executive director responsible for protection products at OneFamily, said: “With such a large number of young adults considering critical illness cover once they understand the benefits, it’s clear that there is a need for this product to be more accessible.
“We see every day the safety net that critical illness cover creates for families that are hit by serious illness.
“For many people, being diagnosed with a serious condition would create worrying financial problems. Critical illness cover can be a lifeline for families in difficult times to keep on top of their bills, pay off part of a mortgage or even pay for rehabilitation support.”