Generation gap widens with spike in over 55s life cover enquiries
Life cover comparisons are on the increase among the over 55s, with a steady growth in the number of enquiries to ActiveQuote.com in the first quarter of each year since 2017.
Among the interesting trends we’re seeing, life insurance is being increasingly sought by our mature customers, as well as people living in London and the south east, while the gap between the numbers of men and women making life insurance enquiries is getting smaller.
As we reported earlier this year, there’s been a spike in the number of young people comparing income protection insurance - thought to be due to job insecurity and fears around Brexit - and the younger generations are also making more and more enquiries about private medical insurance (PMI). Yet enquiries about life insurance from customers aged between 35 and 54 has decreased over the same period, highlighting the differing priorities among the generations.
ActiveQuote.com head of partnerships and marketing Rod Jones said: “Our recent figures show that there is a bigger share of women are making life insurance enquiries than they did in the first quarters of 2017 and 2018, and we’ve also seen an increase in the share of customers aged 55+ and above enquiring about life insurance..
“Coupled with the growth in applications from younger people for income protection and PMI, it seems that young people see life insurance as less important. It’s also possible that older people may not be mortgage-free at 55, hence the need for protection in place for longer.
You may not think you need life insurance if you’re under 30, but there’s a good chance that, in your 20s, you’ll move in with a partner and take out a mortgage together, or have a child. In fact, Office for National Statistics figures show that four in every 10 mums are under 30, and life insurance is designed to financially safeguard your dependants should you pass away.
Younger people often choose a ‘term’ life insurance policy, which runs for a set number of years, such as the duration of your mortgage or until your children reach 18. For the over 55s, whole of life cover can be a good option, as the policy runs for the rest of your life and your dependants are therefore guaranteed a payout.
Rod said: “We understand that, in the current uncertain climate, younger workers are more concerned with the ‘here and now’ of protecting their income and health than looking into long-term financial planning. The truth, however, is that life cover and income protection can be invaluable at any stage of your life, depending on your own personal circumstances, and it’s always wise to look into all the options available to you.”
Whether you’re in your fabulous 50s or just setting out in your 20s, reading these life insurance myths will help you sort the facts from the fiction. And pop over to our online insurance comparison calculator to see what’s available to you - you might be surprised!