Price and awareness handbrakes to trauma
Price sensitivity and consumer awareness of the need to protect against trauma are the two primary issues affecting the uptake of trauma insurance in Australia, according to AMP’s Planner Protection Poll.
The poll found more than 40 per cent of planners consider price sensitivity as the main deterrent to trauma uptake, while 47 per cent of planners responded that an increase in awareness of the need for trauma insurance is crucial.
AMP’s director of wealth protection products Michael Paff (pictured) said many Australians remained unaware of the importance of trauma insurance.
“Many people don’t plan for the worst-case scenario, they either don’t think about it, believe it won’t happen to them or they seriously underestimate the true cost associated with a serious illness or accident, Paff said.
“Financial planners have a crucial role to play in educating people about the value of protecting themselves against sudden illness or injury,” he added.
According to the AMP Planner Protection Poll, financial planners also indicated product complexity represented another one of the hurdles to the increase in trauma uptake amongst consumers.
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