Complexity putting people off protection

Published on

Aegon

New research, commissioned by Aegon UK and carried out by NMG Consulting in June this year, has looked at the reasons why people don’t buy protection products.

The findings, which came from a survey of 500 sole/joint household financial decision makers aged between 25 and 60, identified four key barriers stopping people from buying protection – price, complicated products, a complex application process and lack of confidence in providers to pay claims.

Only 35% of respondents currently held protection policies. A further 35% who don’t currently hold protection would consider taking it out, which indicates an acknowledgement of the need for protection. The remaining 30% of respondents don’t hold and wouldn’t consider a protection policy.

Of those who would consider protection policies, 66% highlighted expense as a barrier, 63% were concerned by whether or how much they would pay out and 41% said they were too complicated with too much small print.

The reasons given by those who would not consider protection policies were similar with 48% identifying expense, 41% not trusting them to pay out and 16% saying they were too complex.

And, despite some good experiences, these barriers to consideration generally outweighed the perceived benefits of protection.

John Wilkinson, Aegon UK protection director, said: “These barriers are preventing people from actively ‘wanting’ protection forcing the protection gap to continue to widen, but our story doesn’t end here.

“It’s easy to identify the protection need, but the conversion of a customer ‘need’ to a ‘want’ for protection has always been difficult. The role of an adviser in helping a client see the value of protection is pivotal. We believe our Simply Life product can help, and advisers like our solution.”

John Wilkinson continued: “It’s time to stop talking about the protection gap and start embracing the solutions out there. There are unprotected people out there with a clean bill of health and simple protection needs looking for a simple solution.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Iress UK lifts underlying earnings as costs fall

Iress UK increased underlying adjusted earnings by 43% in the first half of 2026...

Modern auction house sales rise by 14.5%

House purchases through modern method auctions increased by 14.5% year on year as buyers...

The West Brom widens mortgage access for foreign nationals

West Brom Building Society has launched a mortgage range for foreign nationals living and...

Wealthy borrowers favour liquidity as specialist lending grows

High-net-worth borrowers are increasingly using finance to preserve liquidity and manage their wider wealth...

MIMHC extends mental health survey after record industry response

Mortgage professionals have been given an extra week to contribute to the Mortgage Industry...

Latest publication

Other news

Iress UK lifts underlying earnings as costs fall

Iress UK increased underlying adjusted earnings by 43% in the first half of 2026...

Modern auction house sales rise by 14.5%

House purchases through modern method auctions increased by 14.5% year on year as buyers...

The West Brom widens mortgage access for foreign nationals

West Brom Building Society has launched a mortgage range for foreign nationals living and...