Younger People Shun Life Cover While Older People Can Get Covered
According to recent research a large and growing number of young people are failing to see the benefits of life insurance cover, and are choosing to neglect investing in such financial protection policies.
The life insurance provider, LifeSearch, has urged that more needs to be done to highlight the benefits of financial protection to Britons under the age of 25-years. The insurance provider has suggested that young consumers do not invest in financial protection products, despite often having outstanding debts and mortgages.
A life insurance policy can work to provide financial assistance, if a person becomes unable to support their family financially, should they become unwell or unemployed.
Younger people are shunning life cover
Figures released by the firm indicated that only three per cent of policies written during 2008 were for customers aged 25-years or under. This is despite an overall increase in business of 20 per cent across the same time period. LifeSearch saw a net increase in critical illness cover of 37 per cent, while the number of life insurance policies taken out with the company rose by 13 per cent.
Matt Morris, the policy adviser at LifeSearch, stated that the data suggests providers need to reach out to young customers, especially as life insurance, critical illness cover and income protection are often cheaper for those aged under 25.
He said: "Clearly more effort needs to be made to reach younger people. Many younger people have debts, mortgages and families that need financial protection in the event of the main income provider being unable to work. Often they either buy no financial protection at all or rely on the internet to get the best deal. That might work with car insurance, but not with financial protection."
LifeSearch revealed that a healthy non-smoking male aged 25 could take out life insurance for as little as 6.20 per month. This compares to 10.50 if the policy was purchased at age 35.
Longer lives raise insurance limit
In addition the firm noted that a life insurance policy over a 30 year term could be 1,548 more expensive if it was bought at age 35 rather than age 25 - for a healthy non-smoking male looking for 100,000 of level term assurance.
Life insurance, Critical Illness and Income Protection are just three protection policies that are less expensive for younger people, age 25 and under, not only because of age, but also because younger people are likely to be healthier, which works favourably with keeping premiums low. Yet despite this price advantage young people are not purchasing protection products in significant numbers.
This may be due to other financial concerns that were noted such as mortgage loans and debt repayments. Also younger people may be looking to put off life cover until later years, when they feel it may be more beneficial.
In relation, recent trends have indicated that more people are living for longer. So in line with this, the life insurance provider, AXA, has raised the age limit on its life cover from 70-years to 85-years in response to this changing social trend.
Also AXA has increased the period of time customers have to accept an offer of protection without having to complete a declaration of health. Advancements in medical science and standards of living have resulted in people living longer than ever before.
The increase in the length of time people are living has delayed some of the key milestones in life, with women over the age of 35-years having the fastest growing birth rate in the UK and the average first time buyer's age has risen to 34-years old.
As people reach significant life stages later the need to protect themselves and their families for longer is paramount. The increase in the length of time people are living has also impacted on women and men that are at retirement age are staying in work for longer.
Iain Mallon, the Director of Protection Marketing at AXA, said: By offering life cover to people up to the age of 85 and increasing the acceptance period to 180 days we are helping people to meet the needs of modern day life. By being flexible and making these changes AXA is ensuring it can meet changing customer needs."
The life insurance provider, LifeSearch, has urged that more needs to be done to highlight the benefits of financial protection to Britons under the age of 25-years. The insurance provider has suggested that young consumers do not invest in financial protection products, despite often having outstanding debts and mortgages.
A life insurance policy can work to provide financial assistance, if a person becomes unable to support their family financially, should they become unwell or unemployed.
Younger people are shunning life cover
Figures released by the firm indicated that only three per cent of policies written during 2008 were for customers aged 25-years or under. This is despite an overall increase in business of 20 per cent across the same time period. LifeSearch saw a net increase in critical illness cover of 37 per cent, while the number of life insurance policies taken out with the company rose by 13 per cent.
Matt Morris, the policy adviser at LifeSearch, stated that the data suggests providers need to reach out to young customers, especially as life insurance, critical illness cover and income protection are often cheaper for those aged under 25.
He said: "Clearly more effort needs to be made to reach younger people. Many younger people have debts, mortgages and families that need financial protection in the event of the main income provider being unable to work. Often they either buy no financial protection at all or rely on the internet to get the best deal. That might work with car insurance, but not with financial protection."
LifeSearch revealed that a healthy non-smoking male aged 25 could take out life insurance for as little as 6.20 per month. This compares to 10.50 if the policy was purchased at age 35.
Longer lives raise insurance limit
In addition the firm noted that a life insurance policy over a 30 year term could be 1,548 more expensive if it was bought at age 35 rather than age 25 - for a healthy non-smoking male looking for 100,000 of level term assurance.
Life insurance, Critical Illness and Income Protection are just three protection policies that are less expensive for younger people, age 25 and under, not only because of age, but also because younger people are likely to be healthier, which works favourably with keeping premiums low. Yet despite this price advantage young people are not purchasing protection products in significant numbers.
This may be due to other financial concerns that were noted such as mortgage loans and debt repayments. Also younger people may be looking to put off life cover until later years, when they feel it may be more beneficial.
In relation, recent trends have indicated that more people are living for longer. So in line with this, the life insurance provider, AXA, has raised the age limit on its life cover from 70-years to 85-years in response to this changing social trend.
Also AXA has increased the period of time customers have to accept an offer of protection without having to complete a declaration of health. Advancements in medical science and standards of living have resulted in people living longer than ever before.
The increase in the length of time people are living has delayed some of the key milestones in life, with women over the age of 35-years having the fastest growing birth rate in the UK and the average first time buyer's age has risen to 34-years old.
As people reach significant life stages later the need to protect themselves and their families for longer is paramount. The increase in the length of time people are living has also impacted on women and men that are at retirement age are staying in work for longer.
Iain Mallon, the Director of Protection Marketing at AXA, said: By offering life cover to people up to the age of 85 and increasing the acceptance period to 180 days we are helping people to meet the needs of modern day life. By being flexible and making these changes AXA is ensuring it can meet changing customer needs."
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