The government and financial services must work together to ensure customers get the important information they need to put protection high up on the financial planning process,
That’s according to insurance giant Aviva, who has published a report outlining proposals to help raise awareness of protection and encourage UK families to plan ahead.
Only four in ten families have life cover while the number of families with critical illness or income protection is around 12% and 8% respectively, Aviva highlighted in their ‘Rethinking Protection’ report.
Aviva also called for:
- an official process to provide parents with information about financial protection as just one in five families review their insurance needs when a new baby is born.
- Mortgage advisers should also be required to discuss protection needs when carrying out a mortgage sale, as part of a duty of care to new homeowners.
- the government to support the reform of bereavement payments with an engagement campaign for families to understand the financial implications of death.
The insurer has also advised that protection should be a key module in personal financial education which is to become part of the national curriculum in secondary schools from September 2014.
Louise Colley, protection director at Aviva said: “Protection is the bedrock of financial planning and gives families the confidence that they can build their futures without fear of the unknown.
“We believe every family deserves to understand the financial risks they face and the importance of protection. By working together, the government and the industry can make sure that families have the stability they need.”