"Last year, intermediaries were behind 70% of the sales in the income protection market alone"
Over a third (34%) of consumers who purchased their mortgage direct from a lender have no protection policy in place, research from Legal & General shows.
Just over half of those surveyed (51%) had taken out a life insurance policy, but the figures for critical illness were even lower.
Despite figures from Cancer Research showing that one in two people in the UK will be diagnosed with cancer in their lifetime, only 17% of homeowners who didn't take advice have a critical illness policy and just 17% have an income protection policy.
Worryingly, 5% of respondents who didn't use an adviser don’t know if they have a policy, which means they would be unlikely to claim in the future if they need to.
Despite this, the homeowners surveyed were acutely aware of the risks. More than a third (35%) of respondents who went direct to a lender with their mortgage said that the most important thing to protect when taking out a large financial commitment was their family’s financial security if they died. This was followed by 29% who said their biggest concern was their own or family’s financial security if they couldn’t work.
Kevin Roberts, director at Legal & General Mortgage Club, commented: “Good advice doesn’t just help borrowers to find the right mortgage, it’s also vital in recommending homeowners have the protection they really need to keep a roof over their heads should a loved one fall ill or die. Last year, intermediaries were behind 70% of the sales in the income protection market alone and our research certainly shows that advisers are championing cover by having the important conversations that are so vital when it comes to this type of insurance.
“At Legal & General, through our Mortgage Club and our protection business, we continue to work closely to support these ‘heroes in the middle’. We think advisers are absolutely critical when it comes to buying a home, whether it’s for a first-time buyer, a home mover or someone who wants to downsize. From helping borrowers to navigate the thousands of products on the mortgage market to making sure they have protection in place to avoid a financial crisis in their time of need, good advice really can and is helping borrowers every step of the way.”