More than 10 million young UK adults are without the safety net of life insurance, as more than half (51%) do not have cover.
A survey conducted by life insurer, Beagle Street, asked 2,000 adults aged 18-40 about their behaviours and attitudes towards life insurance. Of those without cover, almost three in ten (28%) say they’ve never thought about it and a similar amount (27%) can’t afford it. One in five (20%) say the cost-of-living crisis means they have no spare money.
Of those with life insurance, more than a third (34%) say they spoke to a financial adviser, 27% used a price comparison website and 26% had recommendations from family and/or friends.
With increased interest and mortgage rates during to the cost-of-living crisis, this could mean millions of people are without a savings safety net if the worst were to happen and a family member passed away. If one adult partner in a family dies prematurely, the impact can be huge on the surviving partner – not just emotionally but also financially – and they may be unable to maintain their previous standard of living.
A Beagle Street report studied the financial impact of the death of a family breadwinner. It estimated the baseline for this impact is on average £195,000 over the course of ten years. This estimation is just a starting point and covers the most basic costs such as essential household spending and mortgage payments. For many, the reality may be much higher, to cope with additional costs of running a family as a single, bereaved person.
Life insurance can help people to protect their families if they were to pass away. Beagle Street, which is part of the OneFamily Group, offers life insurance and critical illness cover, providing peace of mind for less than £10 a month**.
Chris Kisby, a 36-year-old sales assistant in Lincolnshire, took out cover with Beagle Street when his daughter, Violet, was born.
He said, “When I was in my twenties, I never considered getting life insurance, but as time went on I started to think about it more seriously. I met my partner Jo and her son Leo about four years ago. Jo fell pregnant last year and when my daughter, Violet, was born I felt this overwhelming urge to protect her in any way I could.
“Violet is wonderful, she’s just six months old but she’s already a passionate young lady who knows what she wants. It felt absolutely essential that if the worst was to happen then I could offer some measure of security for my family. Having Violet was a big turning point and a massive wake-up call for me.”
Ryan Griffin, Director of Protection at Beagle Street, said, “What we’re seeing is a generation of adults without life insurance and we know from speaking to our customers that this includes people from a range of backgrounds, including young families with children.
“This is worrying as many families would struggle to cope if a breadwinner passed away, potentially leaving thousands of people in a vulnerable position. I would say that getting cover is easier than people may realise. Our research shows that, of those with cover, many used a financial adviser or price comparison website to find cover that was right for them and I’d say this is a great place to start.”
**Based on a 30-year-old non-smoker, £200,000 decreasing term cover for 40 years
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