Life insurance for young people
The number of young people investing in life insurance is falling. LifeSearch, the protection specialists, released figures earlier this year showing that the number of people under 35 buying life insurance had dropped by 5% in the last year. The number of policies sold to young people also made up only 31% of the total number of policies the company dealt with in the last year. With the credit crunch hitting consumers hard right now, life insurance is probably not topping the list of priorities for under 35s. There are, however, several pros to life insurance for the young, especially if you have a family or other people who are dependent on you. So, why should you invest in life insurance at this time in life?
Firstly, life insurance for the young is cheaper, as the younger you are and the better health you are in, the less of a risk you pose to insurers and consequently your premiums will be lower. However, don’t just go for the cheapest policy, make sure you choose something that suits your requirements, especially if others depend on you. When doing their study, LifeSearch also found that only 12% of those under 35 with life insurance felt they had found the product they were looking for, while 37% said they chose their policy simply because of the price. In addition to this, many people currently only take out insurance covering their life and not their earnings.
For the 74% of those whose insurance policy covers their life, their policy would only pay out in the event of their death. For the 13% who cover their income, however, if they were taken ill and unable to work, their policy would pay out then too, helping them cover crucial costs such as existing debts or a mortgage. If you have a family that depend on your income, even partly, investing in income protection could be absolutely vital and will certainly give you greater peace of mind.
Apart from the need to tighten the purse strings, it has been suggested that there are a number of other reasons why much needed life insurance is being shunned by under the younger generation. Research commissioned by TCP Lifesystems revealed that many young people dislike the tactics used by insurance companies and feel their approach is too pushy. The results of the survey revealed that a third of 18 to 24 year-olds thought that insurance salesmen were too invasive.
Despite this, it is important to look past the off-putting sales tactics and remember what life insurance is really about: protecting you and your loved ones. If the thought of trawling the high street looking for the best deal makes you want to crawl into a dark hole, then it might be a good idea to go online and use a price comparison website such as Only Finance. There, the options available will be displayed in seconds, leaving you free to spend as much time as you want comparing the different policies without having a commission-greedy salesman breathing down your neck the whole time.
Ultimately, life insurance isn’t a legal requirement and, especially if finances are tight, it might be very tempting to forgo even researching what kinds of policies are out there. If you have other people who are dependent on you, however, or if you want income protection for yourself should you fall ill, life insurance is a must, even when you are young. It may been giving up a few extra pounds a month but as well as providing you with extra peace of mind, it could also relieve the burden on your loved ones should the worst happen.