The Devon-based firm, which specialises in advice for gay people, revealed that only 19 per cent of its customers bought a critical illness policy in the past year, down from 22 per cent in 2011.
The average value of a gay client’s CI policy was also £60,000 lower than that of their life insurance policy, typically valued at £242,578.
Chris Morgan, marketing manager at Compass, said CI policies were as relevant to “fiercely independent” gay clients as to straight clients.
He added: “The benefits are paid out on diagnosis of a serious illness, so could be particularly useful to couples taking out mortgages or people without any dependents.”
He added that the low take up of CI policies among gay clients was “surprising”, given the rising demand for life assurance in this demographic.
The number of customers taking out income protection cover last year stood at 20 per cent.
Previous research from Compass in 2010 also revealed that only four out of the top 12 insurers offered HIV life assurance, with just two undertaking a full pre-sales quotation procedure.
Adviser view
Ruth Whitehead, director of London-based Whitehead Securities, said: “Not enough people have CI cover, full stop. This research is headline grabbing but flawed, because there is no evidence that gay people are more reluctant or find it more difficult to take out CI cover. Sadly, it is the first expense that is eliminated when wages remain stagnant or there are issues with finding steady employment. But everyone should protect themselves against illness, irrespective of their sexuality.”
