Young people fail to see the benefit of life insurance and are neglecting to invest in financial protection policies.
More needs to be done to highlight the benefits of financial protection to Britons under the age of 25, LifeSearch has said. The insurance provider has suggested that young consumers do not invest in financial protection products, despite often having outstanding debts and mortgages.
Figures released by the firm found that only three percent of policies written over the course of 2008 were for customers aged 25 or under. This is despite an overall increase in business of 20 percent across the same time period. LifeSearch saw a net increase in critical illness cover of 37 percent, while the number of life insurance policies taken out with the company rose by 13 percent.
Matt Morris, policy adviser at LifeSearch, said 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.
"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," he commented. "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.
