The findings from new research suggest that the majority of IFAs think that there is a growing threat of people not having enough life insurance and critical illness cover.
Over 70% of IFAs believe this to be the case says new specialist life and protection advisory firm Specialists4Protection.co.uk.
The figures also revealed that since 2011, 8% of IFAs say they have stopped selling life insurance to their clients and a further 3% plan to do this within the next 12 months. What’s more, another 5% intend to stop selling this at some stage in the future. When it comes to critical illness cover, the equivalent figures are 8%, 5% and 11% respectively.
Why IFAs have stopped selling such polices comes down to them wanting to focus more on selling investment products (a more effective way of strengthening their client relationships) and 19% said there was not enough money to be made.
Managing Director of Specialists4Protection.co.uk Paul Litster (pictured above) said: “The intermediary market is responsible for a huge level of sales of life and critical illness cover, but as fewer intermediaries are selling this, the problem of people having no cover here or inadequate insurance increases.
“With 42% of people with life insurance claiming that they only have life insurance to cover up to two years of their salary for example, this is already a huge problem and I fear it will only get worse as access to professional advise dwindles.”