Income protection versus ASU cover:
the key product differences
Source: www.incomeprotectionquote.com 2014
ASU: the key metrics
Source: Chartered Insurance Institute July 2013
Accident, sickness and unemployment (ASU) insurance is very similar to MPPI, but is
not linked to or restricted by a mortgage. Many such policies are now called
short-term income protection (STIP) policies.
Sometimes an employer will offer a group ASU scheme for its employees (though
cover under this type of scheme is sometimes limited to incidents occurring at work).
Source: YouGov SixthSense, Insurance – Perceptions of Value/IPA Insight Centre Base: 2,082 online respondents aged 18+, UK, 2013
ASU, MPPI and accident insurance
by gender, age and social grade
0% 10% 20% 30% 40%
Total Male Female 18-24 25-34 35-44 45-54 55+ ABC1 C2DE
Source: YouGov SixthSense, Insurance – Perceptions of Value/IPA Insight Centre Base: 2,082 online respondents aged 18+, UK, 2013
ASU, MPPI and accident insurance |
by housing status
0% 10% 20% 30% 40%Own the leasehold/ freehold outright
Buying leasehold/ freehold on a
mortgage
Rented from local authority
Rented from private landlord
It belongs to a Housing Association
Source: YouGov SixthSense, Insurance – Perceptions of Value/IPA Insight Centre Base: 2,082 online respondents aged 18+, UK, 2013
ASU, MPPI and accident insurance |
by gross household income
0% 20% 40% 60% 80% 100% u n d er £ 5 ,0 0 0 p er y e a r £ 5 ,0 0 0 t o £ 9 ,9 9 9 p er y ea r £ 10 ,0 0 0 t o £ 14 ,9 9 9 p e r y e a r £ 15 ,0 0 0 t o £ 19 ,9 9 9 p e r y e a r £ 2 0 ,0 0 0 t o £ 2 4 ,9 9 9 p e r y e a r £ 2 5 ,0 0 0 t o £ 2 9 ,9 9 9 p e r y e a r £ 3 0 ,0 0 0 t o £ 3 4 ,9 9 9 p er y e a r £ 3 5 ,0 0 0 t o £ 3 9 ,9 9 9 p er y e a r £ 4 0 ,0 0 0 t o £ 4 4 ,9 9 9 p er y e a r £ 4 5 ,0 0 0 t o £ 4 9 ,9 9 9 p er y e a r £ 5 0 ,0 0 0 t o £ 5 9 ,9 9 9 p e r y e a r £ 6 0 ,0 0 0 t o £ 6 9 ,9 9 9 p er y e a r £ 7 0 ,0 0 0 t o £ 9 9 ,9 9 9 p er y e a r £ 10 0 ,0 0 0 t o £ 14 9 ,9 9 9 p er y e a r £ 15 0 ,0 0 0 a n d o v er
0% 20% 40% 60% 80% 100% Because I worry about my health
Because I have suffered in the past Because I fear I/we might be the victims of crime Other Persuaded to do so by my friends and family Because I don’t like taking risks I had to (e.g. required by law or another body)
To maintain my own/my family’s standard of … So that I can replace a lost, stolen or damaged item
To provide a financial safety net for me/my family For peace of mind
Source: YouGov SixthSense, Insurance – Perceptions of Value/IPA Insight Centre Base: 173 online respondents (who currently have PPI or ASU cover) aged 18+, UK, 2013
Reasons for taking out ASU/PPI cover:
peace of mind is the principal driver
0% 20% 40% 60% 80% 100% Other
Leaflets in my local supermarket Phoning my local bank or building society
Going to the offices of my insurer/broker Internet advertisements Going to my local bank or building society TV or radio advertisements Leaflets, promotional material sent by insurance…
Don’t know Phoning a broker and asking them to help The websites of banks or building societies Phoning around some of the insurers I know to…
Friends and family The websites of insurers/brokers I know
Price comparison websites
Source: YouGov SixthSense, Insurance – Perceptions of Value/IPA Insight Centre Base: 2,082 online respondents aged 18+, UK, 2013
Price comparison and informal sources
are considered the best avenue(s) for
0% 20% 40% 60% 80% 100%
I searched on the internet to find deals using a mobile phone Direct marketing I went to my bank’ I went straight to the insurance provider face-to-face I used an insurance broker to search the market A deal was recommended by a friend I spoke directly to the insurance provider by telephone I searched on the internet to find deals using a tablet Don’t know I searched on the internet to find deals using a laptop/desktop I used a price comparison website Other I used the same provider as I always have
Source: YouGov SixthSense, Insurance – Perceptions of Value/IPA Insight Centre Base: 173 online respondents (who currently have PPI or ASU cover) aged 18+, UK, 2013
Researching current ASU/PPI cover:
previous experience of a provider and
price comparison are key determinants
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