New data shows life insurance sales increased during lockdown
Data shows that sales of life insurance policies increased by 18% from March 2020 to March 2021, with young people behind the growth.
The subject of death has been almost unavoidable over the past year or so, with updated statistics being reported on a daily basis during the Covid-19 pandemic forcing us to face up to our mortality more than we would normally like.
This seems to have had an effect on the numbers of people buying life insurance, with new data released by comparethemarket.com showing that life insurance sales have increased by 18% between the start of the first national lockdown in March 2020 and March 2021.
An increase in young people buying life cover
According to the data, it is young people behind the rise in new policies; 40% of 18-34-year-olds who have a life insurance policy took it out after the start of the first lockdown.
Separate data from online life insurance broker Anorak would appear to confirm this, as they found that 62% of ‘millennial’ women decided to buy life insurance because of the pandemic.
The Covid-19 pandemic has prompted as many as 5.8m UK adults to either buy or consider buying some form of life insurance, according to financial services provider Canada Life. That adds up to 11% of the population, and over 1m of those were between the ages of 19 and 34.
You might like: When should I get life insurance?
63% of adults do not have cover to protect their loved ones
Despite the recent rise in people taking out life insurance policies, there remains a huge amount of UK adults who do not have any cover in place. The research by Canada Life found that up to 32.9m - or 63% - of UK adults are without an active life insurance policy.
A study by the price comparison website MoneySuperMarket.com in January 2021 found that many homeowners with dependents were not taking out cover due to “widespread myths” about life insurance.
These myths included people thinking life insurance was too expensive and that life insurance companies rarely pay out. However, the average monthly cost of life insurance for £100,000 of cover is currently around £11 - which is less than a quarter of what the average UK household currently pays for streaming services such as Netflix, Disney+ and Spotify.
What are the benefits of life insurance for young people?
With more young people now either buying or considering buying life insurance, we’ve outlined some of the benefits of taking out life insurance at a younger age:
- Young people can usually benefit from much cheaper life insurance premiums, especially if they’re fit and healthy when they apply
- Those low premiums also won't change as you get older (unless you have a decreasing term policy where the premiums will go down).
- You’ll have the comfort of knowing your family will be looked after and covered from a young age.
- If you’ve got dependents who rely on you, you know that they’ll be looked after financially under your life insurance premium and you don’t have to worry about taking out a policy at a later age.
For more information, read our detailed guide: Do young people need life insurance?
If you haven't yet got life insurance and you're wondering whether or not you need it, what type of policy to get or how much it costs, speak to one of our trained advisors at Bobatoo today:
Alternatively, check out our related guides below for more tips and advice on life cover and protecting your family.
- A Guide to Critical Illness Cover
- Life Insurance for Over 50s
- Do Young People Need Life Insurance?
- What Happens to Our Debts When we Pass Away?
- Warning Issued Over Scam Email Claiming COVID-19 Vaccine Voids Life Insurance
- Benefits of Life Insurance
- 7 Common Mistakes Made When Buying Life Insurance
- Do You Need Life Insurance For a Mortgage?