About 17 million people with traditional life policies would not consider switching to pension term assurance policies and advisers are to blame for the lack of education surrounding PTA according to moneysupermarket.com.
Research from the price comparison website shows that people are confused by PTA and, while 31 per cent say they would not consider it at all, 41 per cent admit they do not know if it is something they should consider.
Only 21 per cent of people would switch to PTA and moneysupermarket.com says this is because providers and advisers are not explaining the product to customers clearly enough.
Over half of UK adults who have some form of life insurance but only 9 per cent of these are PTA policies and the website says the survey revealed “widespread ignorance and misconceptions” about PTA.
Protection manager Emma Walker says: “We believe that if providers and advisers explained this new product more clearly to customers, far more would consider switching to PTA to save money on their life insurance.
“Lack of awareness could be stopping them however, as our findings suggest that people are not properly made aware of the options available to them. Despite PTA coming into force seven months ago there is still a huge number of people who know nothing about it, and many are under the impression they need a pension in order to qualify. The name alone is clearly putting some people off applying.”