Industry Calls For Protection Education in Schools

Industry experts are proposing that insurance and protection are classed as a ‘financial skill’ and should be made a key module in personal finance education.

As of September last year, for the very first time, personal finance education became part of the UK’s National Curriculum and is now taught in secondary schools nationwide.

Students cover topics such as savings and pensions, budgeting and risk management, and financial products and services; these lessons are delivered during their citizenship classes and are a compulsory part of the syllabus. Similarly, primary school children learn through mathematical problems involving money.

However, reports show that an average of only 34% of schools are teaching lessons on the topic of ‘risk and insurance’ – compared to the 94% of schools that are covering ‘budgeting and managing personal money’.

Under the topic of financial products, the basic mechanics of life insurance will be covered – products such as life insurance itself, income protection and critical illness cover.

Leading insurers are calling for these topics to be made high priority, due to the importance they hold when it comes to protecting families against unexpected financial difficulties.

It’s suggested that how insurance works should be taught, as well as the limits that arise from relying on state support when a main wage earner is unable to work, or where there is an unexpected death.

Insurers want schools to emphasise the importance of protecting oneself and any dependents, encouraging children to consider the needs for financial security – and the possible shortfalls if a person remains unprotected.

Kevin Carr from Protection Review says: “Should protection be included? Absolutely. It is the foundation of financial planning and is arguably more important than any investment allocation. The cost of protection may be prohibitive to some, but understanding the cost of not having it when you might need it is equally important.

“I believe we would see a better protected population of families as a result of a good financial services education – and, what’s more, we might just see fewer people being ripped off by financial services products as a whole too.”

Essential Insurance welcome the teaching of personal finance in schools, as it can be a useful tool to get a better understanding of the importance of adequate cover. We’re also proud to offer no nonsense, no obligation advice, so if you feel you need to brush up on your own knowledge, call us today – we’re here to help.