The number of young people buying life cover fell by 5% to 31% of all protection policies written by Lifesearch during the last 12 months, according to figures from the firm.
Between January 2006 and January 2007, income protection sales remained flat, critical illness cover sales rose by 18% and sales of family income benefit policies rose by 83%.
A separate survey for Lifesearch of 1,001 UK adults with protection insurance reveals young people (aged 18-29) without dependents are almost six times more likely to insure their life (74%) than their income (13%).
Just 12% said they had purchased the product which they felt best suited their personal circumstances, while 37% based their buying decision primarily on price alone, rather than comprehensiveness of cover or suitability of product.
Kevin Carr, head of protection strategy at Lifesearch, says: “Clearly more work needs to be done to reach the 35 and under age group so they fully understand why protection is important and which type of cover is best for their individual circumstances. Many are either buying no financial protection at all, or are relying on the internet to get the best deal, which might work in car insurance, but not with financial protection.”
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Emily Perryman on 020 7034 2680 or email [email protected].IFAonline
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