A new survey of financial advisers finds that most believe the recession has made personal insurance more important.
The recession means that personal insurance is now more vital than ever, financial advisers have claimed.
Adviser body the Personal Finance Society (PFS) surveyed its members to find out their opinions on how the importance of personal insurance has been affected by the recession. More than three out of five said that the cover was now more vital than before the onset of the downturn.
Fay Goddard, chief executive of the PFS, said that the recession "has refocused the attentions of advisers on their clients' protection needs". She added: "Our sense of health and mortality inevitably becomes sharper when we are surrounded by financial turmoil, and protecting our loved ones becomes a higher priority."
The survey also discovered that it is not just advisers who believe personal insurance is more of an issue now than in the past. More than three-quarters reported that their clients are giving more thought to protection.
Despite these good intentions, however, many consumers are still trying to cut costs on their insurance to help save money during the downturn. Two-thirds of the advisers tended to agree that their customers are often looking to reduce premiums or cancel policies completely.
