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54% opt for critical illness cover over income protection

More than a half of all protection policies sold through IFAs include

a critical-Illness element, according to research by Liverpool

Victoria Friendly Society.

Fifty-four per cent of IFA-distributed protection policies have some

degree of CI but the research also shows that 23 per cent include

income protection.

Liverpool Victoria says it expects the balance to tip more towards

critical-illness cover primarily for reasons of economics.

As the two products are complementary and people are increasingly

reluctant to take out both kinds of cover, the friendly society says

individ-uals and employers are opting for CI cover.

This is despite the prospect of CI premiums increasing as reinsurers

stop underwriting guarantees for providers.

Continental Research carried out the survey for the friendly society

among 999 people between November 27 and December 2.

Intermediary division director Rye Mills says: “Although

critical-illness cover and inc-ome protection are clearly

complementary, the latter is usually lower down the pecking order and

will lose out where increased costs are a consideration or where it

is covered by the client&#39s employer.”

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