More than half (53%) of young adults aged 18 to 40 do not understand what critical illness cover is for, and 29% have never heard of the product, according to research by Beagle Street.
However, once they understood the product, 79% of those surveyed would definitely consider taking out the cover.
Around 12.7 million (73%) young adults were found not to have critical illness cover to support their family.
Beagle Street spoke with a customer who had received £13,500 after a serious heart attack, who said: “I recommend critical illness cover to everyone. You never know what’s going to happen in life.
“You may never use the cover and hopefully you don’t, but if you do, then that reassurance goes a long way. If we hadn’t have had it, we wouldn’t be where we are now.”
Three-fifths (61%) of young adults either have or would consider critical illness cover in order is to give themselves and their family peace of mind, followed by 42% who would use it to pay for private medical insurance, and one in three (33%) who would use it to keep on top of bills.
A fifth (21%) of young adults surveyed were uncomfortable thinking about how their family would cope if they became seriously ill and could not work, while 10% said their family would not cope as they are the main wage earner, and the same amount did not know what they would do.
The most important aspect people considered when taking out cover was the cost (63%), followed by the range of conditions covered (49%), and access to healthcare advice and support (40%).
Ryan Griffin, executive director responsible for protection products at OneFamily, said: “With such a large number of young adults considering critical illness cover once they understand the benefits, it’s clear that there is a need for this product to be more accessible.
“We see every day the safety net that critical illness cover creates for families that are hit by serious illness.
“For many people, being diagnosed with a serious condition would create worrying financial problems.
“Critical illness cover can be a lifeline for families in difficult times to keep on top of their bills, pay off part of a mortgage or even pay for rehabilitation support.”
