Do Young People Need Life Insurance

 

The number of young people who are buying life cover and other forms of financial protection continues to remain low. Protection specialists at Home Shield Insurance suggest that young people are the most financially vulnerable consumers as they continue to ignore the importance of life insurance.

 

Their findings over the last 12 months indicate that only 3.5 per cent of policies purchased were by people under 25, based on survey results during 2008. Life Insurance, Critical Illness Protection 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 keeps premiums low.al.

 

Despite the low cost of these policies, significant amounts of young people are not purchasing protection..

 

Whether you purchase a house, start a family, or simply want to ensure your loved ones will be provided for, Life Insurance is a must. If you’re one of those people who don’t think they need life insurance, think again.

 

Generation gap 
The best time to get these types of policies is when you are young and healthy, ideally in your twenties. 

If you are young and healthy, however, the one place your mind won't stray is towards death! What you may not realise is that this is the best time to purchase some form of life insurance.


There will never be a time when you will be offered more attractive insurance rates - the older you get, the more expensive life insurance will become. 


Young people do not buy life insurance because of the tough economic climate and lack of knowledge. Many do not consider getting coverage because they don’t think it is a necessity and believe it may be expensive.


In reality, if you are young and healthy you could secure life cover for as low as £5 - £6 per month, depending on certain criteria which will be explained by your advisor.


Younger people often follow the school of thought which suggests that they are young and invincible and therefore do not need insurance. This is where the problem lies; securing life insurance cover is an essential part of financial planning.

You may very well be planning to buy property, start a family and enjoy the luxuries of your hard work but an essential part of providing for your family is to make sure they are taken care of if something were to happen to you.


There are clear benefits for purchasing life insurance. Remember that the money generated by your life insurance policy after your death can address fundamental needs of your surviving family.

 

Securing adequate cover 
As well as minimal sales, our research suggests that younger people can also make poor product choices. 


In order to make more people aware of the importance of life cover, the insurance industry needs to start marketing products aimed at a younger age group. Just as you see advertisements for car and travel insurance. 


Also, Home Shield Insurance suggests that additional financial education in schools would outline the importance of coverage, as it’s just as important as learning about ISA investments and insurance in general.

 

June 9th 2013

 

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