Millennials ahead of the game on life insurance
In another sign that millennials are far more responsible with their cash than many other generations, research shows that 25-34-year olds are the most likely to take out life insurance.
Comparethemarket said more than 40% of its life insurance customers over the fourth quarter of last year were in this age bracket. It attributed this to the fact that many people are taking major life steps – buying a house, getting married or starting a family. Their attention naturally turns to life insurance.
At the same time, life insurance is relatively cheap for younger generations, so the commitment doesn’t seem as significant.
This survey paints a far more positive picture than previous surveys. For example, in September last year, LifeSearch’s Health, Wealth and Happiness report showed more than two-thirds of the UK adult population either hadn’t purchased any life insurance (57%) or didn’t know whether they have it or not (11%).
Daniel Hutson, head of life insurance at Comparethemarket, said: “Given premiums get progressively higher the older you get, it’s encouraging to see that the number of people under 35 with life insurance has slightly increased over the past year.
“However, over half (52%) of this market are still without cover, and given that those who take out life insurance at 36 pay, on average, over £175 a year more than those who do so at 24, it’s worth taking out a policy as early as possible to benefit from the savings that could be made.
“So even if you’re not yet on the housing ladder, it’s worth bearing in mind the bigger picture and getting ahead of the game, so that when you need to protect your finances, for your house or family, it is already in place and affordable.”