A new protection adviser has launched aiming to target small and medium sized enterprises.
Specialists4Protection, a trading style of Pi Financial Ltd, is targeting SMEs to help them ensure their staff have adequate life, critical illness and health insurance.
Paul Litster, managing director of Specialists4Protection.co.uk, said his company’s research revealed only 31 per cent of people claim to have life insurance or death in service benefit through work.
Mr Litser said: “It is alarming to see how many people who should have life insurance don’t, but also how underinsured most people with this cover are.
“If you have dependents, having adequate life insurance is one of the most important financial decisions you will ever make, but many people tend to just pluck a figure from the air when deciding on their level of cover without working out what their loved ones would need should they die.
“Many people rely on financial advisers to help ensure they have adequate cover, but with fewer operating in this market the chances of people ending up with the wrong type and level of cover increases.
“One of the best ways to tackle this problem is in the workplace, so we are targeting SMEs who want to help ensure their staff is adequately covered.”
The company warns that of those people with life insurance, the vast majority are hugely under-insured.
Around 23 per cent of those with this cover only have the equivalent of one year’s salary, and a further 19 per cent have two years’ income.