Although 42% of adults who own a protection product had experienced a change in circumstances such as a new job or having a child, only 28% asked their financial adviser if they needed to adjust their protection cover, research from LV= has revealed.
The Wealth and Wellbeing Research Programme – a study of 4,000 adults – found that more than a third of protection policyholders who experienced a change in circumstances had not thought about whether this necessitated changes to their protection cover.
This rose to 46% of women, compared with 26% for men.
Just under a fifth (19%) had made changes to their protection cover due to a change in their circumstances.
Meanwhile, one in 10 adults with a protection product had experienced welcoming a child and changing jobs since taking out their cover.
In both cases, this was more likely for 18 to 34-year-olds, compared with other age groups.
Mike Farrell, protection sales and marketing director at LV=, said: “Our latest research found that a concerning number do not consider changing their protection cover when experiencing important life changes.
“When applying for protection cover, many people focus on the here and now, but it is important not to get caught out as families continue to grow in the future.
“Family dynamics are diverse and constantly changing. For example, one in ten parents aged 35 to 54 live in a ‘blended’ family household supporting children from a previous relationship.
“As more people depend on household income, it is important to review your protection cover regularly with your adviser so that a sufficient financial safety net is in place.”
He added: “We are very proud of our work in introducing LV= Parent and Child cover into the protection market and will continue to equip advisers with more choice to offer tailored solutions for their clients.
“Being able to offer this level of support when customers need it most will make a real difference to them and their families.”
