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Expert defends voluntary nature of life cover
September 15, 2011
A spokeswoman for trade body Grid does not believe making life cover mandatory would be the right approach.
People should not be forced to take out life cover or other forms of protection, an expert has claimed.
Katharine Moxham, a spokeswoman for trade body Grid, revealed her views on retaining choice in the protection field, after a director at PruProtect spoke out in favour of making protection compulsory.
Speaking at a media briefing earlier this month, Deepak Jobanputra, actuarial and product director at PruProtect, claimed that protection insurance "should be compulsory".
He argued: "Everyone needs critical illness, not just life cover."
But Ms Moxham insisted that making protection mandatory would be a step too far.
She told IFAOnline.co.uk: "On balance, incentivisation or 'soft' compulsion is far more likely to be the route of choice for protection since people's needs vary so greatly in this space."
Most insurance products are not compulsory at present, with the exception of products that are required to fulfil third-party legal obligations, such as motor insurance and employers liability insurance.
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