Employees want more financial protection through work

Author:
AIG

Thursday 4 February 2021

 

• Coronavirus is driving employee demand for group risk insurance
• But more than half of employees worry that individual protection is too expensive

 

Research¹ from UK life insurer AIG Life Limited shows the pandemic is generating demand for protection insurance through work but customers are concerned about the costs of buying cover themselves.

Nearly two out of five (37%) of employees said the health crisis has prompted them to think they want their employer to offer more protection insurance such as life insurance, income protection and critical illness.

The ongoing pandemic is encouraging another 30% to find out more about the protection insurance available from their employer, the nationwide study found.

It is younger workers who are most focused on protection insurance from their employers – around 58% of under-25s want more protection insurance available through work while 61% are planning to find out more about what is already on offer.

However, the research from AIG Life, the UK life insurance arm of global insurer AIG, shows part of the reason is that customers fear they cannot afford to buy protection cover on their own. Around 55% said they believe individual cover is too expensive.

 

Lee Lovett, Managing Director, Group Protection at AIG Life, commented:

'The coronavirus crisis has brought into sharp focus for millions of us the need to have a financial safety net in case illness prevents us from working or, in the worst case scenario, where coronavirus leads to the death of a breadwinner.'

'Employers cover around 13.1 million people in the UK by providing group risk insurance, including life, critical illness and income protection, ² so it makes sense for employees to better understand the cover that is available through work.'

'It is a concern that so many people believe individual protection insurance is too expensive for them. That is not the case and we would urge them to use online services such as The Money Advice Service or speak to a financial adviser to find out what is available.'

 

Views around the country

People in London and the North East are the most likely to want more protection insurance from employers while employees in Northern Ireland as well as those in London and the North East the most likely to find out more about protection insurance already available through work.