A 26-page report by think tank Demos, entitled Opting Up, warned that public awareness about the likely financial exposure many people would experience if they were unable to work through illness or injury, and the sort of protection products available, was “worryingly low”.
The study, published in conjunction with protection provider Unum, called for employers to take a greater role in educating workers about financial risks and facilitating access to protection products.
Peter O’Donnell, chief executive of Unum, said: “There are clear benefits for businesses to help staff with protection planning. Income protection provides security of income for staff, and payback for the employer.”
The study also revealed that many employers were reluctant to engage with employees on the matter owing to fears of additional bureaucracy.
Citing a poll of 2,000 adults that revealed that 47 per cent of workers would welcome their employer discussing protection products with them, the study suggested a link-up with employers, Nest and other pension providers could lead to an increase in the use of protection products.
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Adviser view
Craig Harrison (pictured), adviser for London-based Creative Benefits, said: “Anything that raises the profile of protection products has to be positive, as it is a hugely undersold product which isn’t widely understood.”
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