“The discussion paper from the Financial Services Consumer Panel today further compounds the view that if the protection gap is going to be closed, the industry needs to do more to simplify, overly complex industry and medical jargon for clients in a bid to make these products more palatable to the masses.
“Just this week, The Academy of Medical Royal Colleges said that correspondence from doctors to patients contained far too many medical terms opposed to plain and simple English. The protection industry needs to take note of this decision and do more to make sure the language which surrounds protection products firstly doesn’t put advisers off offering them to their clients and secondly that those clients are in turn not deterred by the same complexity.
“The paper recognises that critical illness protection is one of the easiest types to understand. However, even more can be done to simplify this type of product. Some providers currently produce a plain English guide for clients, an industry standard version of a plain English guide to critical illness would help to remove any possible confusion for consumers and give them a verified resource.
“If these types of ideas could also be applied to income protection, we may be able to go some way to reducing the protection gap and make sure people are covered for every eventuality.”