Four in 10 people in the UK believe protection insurance has grown in importance since the pandemic but almost a third have not taken out cover as they cannot afford to pay the premiums.
This is according to exclusive data Health & Protection received from Scottish Widows based on research of more than 2,000 UK adults by Yonder for the insurer.
The research shows that while respondents see the increasing importance of protection cover, affordability and a perceived lack of need for protection insurance are driving people to avoid taking it out.
It showed that two in five (40%) respondents believed protection insurance has become more important since Covid. This rose to more than half of 18–34-year-olds (51%), young families (52%) and financially vulnerable (54%)
Around one in seven of 34-44-year-olds (14%), young families (17%) and financially vulnerable (15%) have taken out a new protection policy since the pandemic.
Three in five (61%) Britons felt concerned about not being able to get a GP appointment when needed.
Older and vulnerable people were particularly concerned (67% of 55-64-year-olds and 70% of those health vulnerable or vulnerable due to a life event).
Almost two in five (39%) of people said that since 2020 they have experienced new or unusual symptoms but chose not to see a doctor.
One in five (20%) reported that they chose not to see a doctor because they did not think their symptoms were serious enough (rising to one in four 18-34-year-olds and vulnerable).
One in seven (14%) respondents reported that they chose not to see a doctor about their new or unusual symptoms because the wait to see a GP was too long.
One in 10 (11%) did not want to add to the pressure the health service is already under (this rose to 18% of young people and health vulnerable).
Almost half of respondents (47%) were comfortable with digital appointments (video and via an app).
One in four (27%) Britons have some form of protection insurance, with people three times more likely to have life insurance than critical illness.
Key objections
When it comes to key objections to taking out cover, affordability and a perceived lack of need for protection insurance were cited as the main reasons. A total of 32% said they do not have protection because they cannot afford to pay the premiums.
More than a quarter (27%) did not think they need it, one in five (20%) never thought about it, almost one in 10 (9%) did not understand how it works at all, or do not think they could get it all due to existing medical conditions (8%).
Triggers to taking out protection
Conversely, turning to triggers for people to take out protection, decisions requiring large financial investment, such as buying a house (33%) or starting a family (15%) were cited as key drivers.
Lifestyle changes like moving in with a partner (6%) or getting married (7%) also prompted some to take out insurance.
Medical issues affecting family/ friends (10%) or themselves (5%) had a smaller impact on triggering the need for protection insurance.
Almost three in four (72%) thought getting financial advice was important but less than a half (46%) felt confident putting financial advice they have been given into practice. Only two in five (41%) felt more comfortable about their financial position after they have received financial advice.
Of those with a protection policy in place, 35% have never had it reviewed since inception, with this rising to 43% for those over 55 years old.
Unique opportunity
Commenting on the findings, Rose St Louis, protection director at the insurer told Health & Protection advisers have a “unique” opportunity to tap into those deeper health conversations with their clients.
“Many have admitted to ignoring new or unusual symptoms due to current pressures our health service is facing and this is a worrying trend which can often lead to delayed diagnosis,” St Louis continued.
“Some providers offer additional benefits, including digital GP services such as Square Health’s Clinic in the Pocket available to Scottish Widows customers, which are likely to be of particular value to those who hesitate to seek face to face appointments.
“For those worried about costs of a new policy while household budgets continue to feel the squeeze, it’s the value-added services offered by protection insurers that may prove to be the conversation changers and offer additional confidence and peace of mind to customers when they need it the most.”
Macmillan Cancer Support partnership extension
In a separate announcement Scottish Widows revealed it is extending its partnership with Macmillan Cancer Support until 2028 to continue helping customers living with or affected by cancer.
Since the start of the partnership in October 2021, the insurer has referred more than 600 customers to Macmillan for cancer support.