New research from Vitality has uncovered that the current economic environment is preventing people from reaching the typical life milestones that act as the usual touch points for people taking out protection
Vitality asked people under 35 how the cost of living crisis was impacting them and found that three in ten (30%) said it has already stopped them from getting on the property ladder, and a further 20% saying it will stop them buying a property. With the same research finding that of those who already had life insurance, one in five (19%) took it out when they purchased a property with a mortgage, it’s clear that fewer people getting a foot on the property ladder will lead to less people taking out a policy to protect them and their families. This delay is therefore expected to leave more people unprotected.
Furthermore, the research found that a third (35%) of UK adults under the age of 35 said the cost-of-living crisis either has or will prevent them from living away from their parents’ house, rising to two in five (41%) of those aged 18 to 24.
Additionally, three in ten adults under the age of 35 said the cost of living crisis will stop them from starting a family (28%) – another key prompt to people to consider their financial resilience and how their loved ones might manage if something were to happen to them.
Andy Philo, Strategic Partnerships Director at Vitality, said: “With our research highlighting that the current economic environment could act as a catalyst for a widening protection gap for young people, it’s more important than ever that as an industry we offer real value from our protection products – and actively publicise them – to ensure people continue to take out protection to support them, their families and what matters most to them. “At Vitality our approach to insurance means our members get benefits in the form of rewards and incentives from day one of their policy, which we know appeals to clients, but also encourages them to actively engage with their policy, meaning they are less likely to cancel too.”