“Deciding on how to shop around will depend on personal choice. However, it’s crucial that consumers get professional advice, unless they know exactly what they need and they understand all the technical terminology,” he cautions.
Millennials who are looking into a protection policy without the help of an adviser may be tempted to choose the cheapest option which suits their current lifestyle choices.
But as Mr Brown says: "Advisers will be able to assess the individuals' lifestyle and the risks involved, as well as use their industry expertise to review the market for the best product and provider that best suits the customer’s own requirements.”
Choosing income protection, critical illness cover or life insurance through an adviser also means a wider range of providers to choose from.
Easy to adapt
Most people, once they have started paying monthly for a protection plan, will want it to continue to meet their changing needs throughout the rest of their life.
This is where an adviser can help steer younger clients towards a protection policy that might adapt along with their lifestyle choices.
When thinking about protection, it is crucial to shop around and think long term, according to Old Mutual Wealth’s head of protection, Paul Roberts.
“A protection policy will only become more important as people get older and so it’s crucial millennials don’t just buy for today, but buy for life,” he says, noting cover should set them back by approximately just £20 a month.
“However, as they get older they need to continually engage with their cover as their lifestyle changes,” suggests Mr Roberts. “For instance, if they get a partner or have children they may need to increase their cover.
“It’s important for younger clients to look for plans that can be adapted and have good increased options so it continually fits with their lifestyle.”
Figure 1: A policy quote for 'Mr Millennial' combining critical illness and life cover.
Source: Old Mutual Wealth
Tom Conner, director at Drewberry Insurance, agrees the cost of a protection policy does not have to be very high and going via a financial adviser may actually help keep costs down, particularly if the client has a specific budget.
“Deciding which cover is best and understanding how to make the most of your budget also impacts people of all ages, so speaking to an adviser, which is unlikely to cost more than going direct (and may even be cheaper) remains the best way for most people,” he explains.
He says many clients who seek financial advice end up with something quite different from what they thought was the best solution at the start, even when the price of the policy is around £10-20 per month.
