UK’s life insurers have been asked to keep definitions of their products simple and also to improve the transparency of their offerings to customers so that the ‘perception gap’ can be controlled.

The latest insurance report shows that consumers are puzzled over the life insurance cover they think they have in comparison to the one they actually own.

The life insurance company has to empower consumers with all the information they need for moving to more awareness. This will help them make informed decisions and they can improve their financial protection as well.

As the pressure on the safety net that is provided by the government gets intense, the report has urged the life insurance industry to aid customers in taking more responsibility for provision of future protection.

According to the report, almost half of the consumers (44%) feel that when it comes to finances, they are reasonably well positioned if they have to suffer disability, long term illness or death.

Although people look at life insurance as a way of financially safeguarding themselves, only 36% believe they can really rely on having adequate insurance.

The report warned that unrealistic optimism like this can make people oblivious to the fact that no matter what insurance they have, it will be unlikely to support their future.