More than half (53 per cent) of 18-40 year olds do not understand what critical illness cover is for, research from insurance company Beagle Street has revealed.
The insurance company, which is part of the OneFamily Group, reported that an additional 29 per cent have never even heard of critical illness.
However, the research found that four in five young adults would consider taking out critical illness cover once the product had been explained.
OneFamily executive director responsible for protection products, Ryan Griffin, said: “With such a large number of young adults considering critical illness cover once they understand the benefits, it’s clear that there is a need for this product to be more accessible.”
He added every day he sees the safety net that critical illness cover creates for families that are hit by serious illness.
“Critical illness cover can be a lifeline for families in difficult times to keep on top of their bills, pay off part of a mortgage or even pay for rehabilitation support,” he said.
Beagle Street’s research found the main reason young adults have or would consider taking out critical illness cover is to give themselves and their family peace of mind.
This was followed by 42 per cent saying they would use it to pay for private medical treatment if needed and 33 per cent saying they would use the money to keep on top of bills.
Cost-of-living crisis
However, the research acknowledged the cost-of-living crisis means families have less savings to fall back on in times of need.
Some 21 per cent of young adults surveyed said they did not want to think about how their family would cope if they became seriously ill and could not work.
Additionally, 10 per cent said their family would not cope as they are the main wage earners,.
The research also provided insight into the most important aspect people consider when taking out cover with the most commonly referenced reason being the cost, mentioned by 63 per cent.
This was followed by a wide range of conditions being covered, mentioned by 49 per cent of respondents, and access to healthcare and advice and support, mentioned by 40 per cent.
tom.dunstan@ft.com
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