Shining the spotlight on health
Elsewhere, the global pandemic has rightfully highlighted the need for quality health protection, with mental health in particular receiving lots of attention. A recent survey by the Mental Health Foundation, the UK’s leading mental health charity, revealed ‘loneliness’ stood at 26% in February this year, more than double its March 2020 level.
Reflecting the growing importance and demand for health protection, UK insurers are offering a range of mental health VABs, including for those dealing with anxiety, depression, addiction and PTSD. These provide valuable reassurance, as well as professional counselling as and when required. Other advantages related to VABs range from additional protection for a policyholder’s partner and family to services like online doctors, saving the need to join the queue at the local GP surgery.
But despite growing demand, large sections of the public remain completely unaware that such products exist, or are indeed affordable.
‘Generation X’ becoming ‘Generation Protect’
Finally, the pandemic is also increasing financial awareness among young people.
Whilst the majority are turning their attention to traditional assets which are better, a small minority remain influenced by more high-risk trends such as buying and selling crypto currency or designer trainers. Greater financial education is still required, helping the younger generation understand the risks and volatility of “get-rich-quick” investment schemes advertised on their social feeds, or spoken about by their peers, and genuine investing for the future.
This presents a great opportunity for advisers to reach an often difficult-to-access market. Whilst issues and misconceptions have existed on both sides, it is the attitude of young people that has changed first. This shift and the ‘on-message’ benefits of VABs is an excellent chance to reach out to younger generations and highlight the many different short- and long-term benefits that come with expert financial advice.
Furthermore, the increasing use of technology to research and deliver advice is another positive move that must be recognised by advisers. With younger audiences often turning online to access financial advice digitally, it’s critical that advisers adapt accordingly, understanding how their needs might differ to the older generation.
A brave new advice landscape?
The pandemic has had a tragic and disruptive impact, including to the advice sector, but it’s encouraging it has inspired many people to take much needed steps to sure up their financial protections. While historically neglected, VABs provide an excellent opportunity for advisers to showcase the value of their services, and ultimately help clients unlock the benefits of greater health and financial peace of mind.
