LIFESEARCH PRESS RELEASE
4th April 2007
More young people risk ignoring Life Cover
The percentage of younger people who are buying life insurance fell by 5% during the last 12 months.
Figures released by Protection specialists LifeSearch, which cover the period January 2006 to January 2007, show that the number of young people (aged 35 years and under) buying some form of life cover fell by 5%, to 31%, of all protection policies written by LifeSearch during this period.
As well as falling sales amongst younger age groups, research suggests that younger people can also make poor product choices. Young people (18-29) without dependants are almost 6 times more likely to their insure life (74%) than their income (13%).
In addition, just 12% of the 18-29 age group felt they had purchased the product which they felt best suited their personal circumstances, while 37% of this age group based their buying decision primarily on price alone, rather than comprehensiveness of cover or suitability of product.
LifeSearch Policy Adviser, Matt Morris, said: “This shows a worrying trend that the UK protection gap will continue to grow. Although the average age of first time buyers is probably rising, many younger people still have debts, mortgages and families that need financial protection in the event of the main income provider being unable to work.”
Life insurance is less expensive for younger people not only because of age, but also because younger people are likely to be healthier, which keeps premiums low.
For example, it would cost a healthy non-smoking male looking for £200,000 of level term assurance over a 30 year term £3,834 more if he bought cover at age 40 rather than age 35.
Age |
Monthly premium |
Cost over 30 year term |
35 |
£20.70 with Royal Liver |
£7,452 |
40 |
£31.35 with Royal Liver |
£11,286 |
Source: www.lifesearch.co.uk (0800 316 3166)
Kevin Carr, Head of Protection Strategy, said: “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.”
During the same period a number of other statistics emerged from the internal LifeSearch review:
- Sales of Family Income Benefit policies rose by 83%
- Critical Illness Cover up 18%
- Income Protection sales remained flat
- The number of smokers insured up 2%
- Average sum assured has risen £9,159 to £126,416
- Overall new business up 39%
- Average time to accept a policy is down 4 days to 22 days
- Average time to on-risk has fallen 6 days to 28 days
Enquiries
Kevin Carr, Head of Protection Strategy
Tel: 0207 065 1033 / 07887 838811
kevincarr@lifesearch.co.uk
Matt Morris, Policy Adviser
Tel: 0207 065 1020
mattmorris@lifesearch.co.uk
LifeSearch can source case studies where required and can provide tables of typical premiums.
Consumers can contact LifeSearch on 0800 316 4242 or at www.lifesearch.co.uk
Notes to editors
Agency: Communicate Research; Fieldwork: 14th-16th August 2006; Sample: 1001 UK adults with protection insurance.
All other research taken from internal LifeSearch sales figures between January 2006 and January 2007.
About LifeSearch
With more than 200,000 customers, more than £13bn of cover arranged and 30 awards and nominations LifeSearch is the UK's leading independent life insurance and protection specialist offering advice to consumers on life insurance, critical illness, income protection and family income benefit.
Established in 1997 by Tom Baigrie and Arthur Davies of London based Independent Financial Adviser Baigrie Davies, LifeSearch has offices in London, Milton Keynes and Leeds. The company currently employs around 100 people, of which approximately 50 are qualified advisers.
LifeSearch prides itself on the quality of advice and high levels of service it provides - always offering the most competitive quote possible based on a client's personal circumstances.
Through LifeSearchCare, LifeSearch is also the only intermediary to provide its clients with free support and counselling provided by RED ARC.
Recognition of the service the company provides is reflected in the number of positive customer feedback forms LifeSearch receives. Since launch, this figure is in excess of 10,000.
LifeSearch Limited is an Appointed Representative of Baigrie Davies and Company Limited, who are authorised and regulated by the Financial Services Authority.
