Clients unclear about how much insurance cover needed
By Kirsten Hastings, 28 Jun 16
Perception and reality differ significantly when it comes to how families around the world think they will be impacted if the main earner suffers from critical illness, disability or worse without appropriate cover, says Zurich.
People seriously underestimate the risk of being unable to work due to illness or disability.
Of those surveyed, 42% stated that they knew a family who suffered a premature death, and more than half (54%) also knew someone who could not work due to a serious illness/disability.
However, 38% of those surveyed believe that their risk in this area is less than 10%. This mirrors a Zurich survey conducted in Europe last year, in which respondents said they didn’t realise that the risk is actually as high as 25%.
Seven-out-of-10 respondents said they know little or nothing about how they can protect their income. And four-out-of-10 respondents claim to know little to nothing about term life insurance.
Respondents in Hong Kong and Malaysia clearly felt they were well informed. This could be because Malaysia has a mandatory national provident fund and Hong Kong introduced a mandatory, privately run equivalent in 2000.
A similar pattern emerges with regard to knowledge about life insurance.
Tags: Zurich
