The Devon-based firm, which specialises in advice for gay people, revealed that only 19 per cent of its customers bought a critical illness policy in the past year, down from 22 per cent in 2011.
The average value of a gay client’s CI policy was also £60,000 lower than that of their life insurance policy, typically valued at £242,578.
Chris Morgan, marketing manager at Compass, said CI policies were as relevant to “fiercely independent” gay clients as to straight clients.
He added: “The benefits are paid out on diagnosis of a serious illness, so could be particularly useful to couples taking out mortgages or people without any dependents.”