A recent survey of 2,053 UK consumers by Pacific Life Re has explored people’s attitudes towards life insurance – what they would prefer to buy and how they would most like to buy it.
According to the research, 30% of consumers would consider buying life insurance through their bank and 44% said that they would most likely purchase ‘death by accident’ insurance.
Interestingly, the second most popular choice was cancer (36%), which implies that there is an opportunity to offer cancer as an add-on to life insurance, Pacific Life Repointed out.
Only 29% of 25 to 44-year-olds would consider a policy covering unemployment ‘despite the fact that these are typically the most financially important years of a person’s life; the average age of first-time buyers being 30 years old, and the average age of first time mothers being 27.8 years old’, said the report.
The survey also found that 81% of consumers would be happy to answer between one to 20 questions on an application form and 35% would choose to pay more to have a shorter application process.
Interestingly, when it comes to smoking disclosure, 26% of consumers would not count someone who smokes up to three cigarettes a day as a smoker, while 39% of consumers would expect full payment if the cause of their claim was a heart attack even when there was smoking representation.
‘We know that smoking is a risk factor for heart disease, so why do more than twice the number of consumers expect a full payment when the cause of death is a heart attack as opposed to lung cancer?’ said the report. ‘Perhaps there is less public awareness of the risks of smoking in relation to heart attacks, than there is of the link between smoking and lung cancer, in spite of numerous public health awareness campaigns highlighting the effect smoking has on the general health of the population.’
Also according to the research, 83% of consumers believe that no more than 80% of life claims are paid. In reality it is well in excess of 90%, however, only 6% of respondents believed this is the case.