Speaking at the Money Marketing protection round table discussion, Carr said: “We are selling products that are decades out of date.
“Life insurance is an outdated product, it is an 18th century product. People do not tend to pop their clogs early these days but the industry sells 1.5 million life insurance policies and 100,0000 income protection policies.”
However, Sesame product research manager for protection Dale Tranter defended life cover.
He said: “I would not say it is out of date. It is a very old product but people still need to pay back loans. Far more life insurance gets sold than income protection, which is a sad thing, but there is still an overwhelming need for life cover.”
Tenet distribution development director Keith Richards said the problem was usually the premium of the product, not its age.
He said: “I am not sure the product is old fashioned. It is much more challenging, it is lowerpremium and less sexy for advisers to focus on.
“Even though they are goodmargined products and could create good income built into their existing sales process, I think that they have become difficult for advisers to sell and the premium just does not seem to motivate them.”