23pc worried about choosing a financial product that is unsuitable

The Momentum UK Team 02 February 2012

Up to 23% of people are concerned that they will choose a financial product that is unsuitable for their needs, according to research released yesterday.

The worries could be well founded as the report also suggested that 49% don't understand the features of products that they have taken out and 69% of people naming price as a "very important" factor when selecting a financial product.

While price should play an important part in consumer decision making, a lack of understanding of product features may leave many financial services customers with products that are unsuitable or unnecessary for their needs.

The data is based on a survey of 3000 adults which was conducted by Defaqto and released yesterday.

David Cartwright, Defaqto's Head of Insight, said:

"Finding a financial product that is right for you can be complicated and often confusing. However, whether someone is insuring their home or car, or buying a protection product to safeguard their dependants' financial security, it is essential that they match the features and benefits they require with those provided by the products they choose.

"If people focus on price alone they can run the risk of buying an inappropriate product that doesn't meet their needs - and they are only likely to discover this when it's too late."