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Consumers are failing to pick suitable protection

Seventy-one per cent of consumers do not choose the protection insurance most suitable for their circumstances and only 13 per cent select the product offering the best level of cover.

Research from Lifesearch, which surveyed 1,001 people, found that in the 18-29 age group, only 12 per cent of respondents buy the product which best suits them.

But nearly half of people aged 65 and over are most influenced by the suitability of the product for their needs.

One in four who bought critical-illness cover say suitability is less important than price and convenience.

Sixty per cent of people say they got advice as part of the sales process but only 27 per cent say they had spoken to someone who talked them through the wide range of products and recommended the most appropriate one for their needs.

Head of protection strategy Kevin Carr says: “We need a better informed consumer, regardless of how they buy, whether it is with or without advice. We also need a level playing field between advised and non-advised markets. The research shows the very rapid swing of younger consumers towards the internet without advice and driven by price.”

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