There’s a first time for everything. But these days that first time is happening a lot later – at least in certain areas of life.
The average age of a first-time bride is 30 and rising. For someone stepping onto the first rung of the housing ladder who doesn’t have access to the bank of mum and dad, government statistics estimate they will be at least 37-years-old before they can afford the keys to their first home.
And, with more women concentrating on their career before having a baby, a first-time mother is likely to be heading towards her late 30s before giving birth.
So what do these trends mean for the protection industry?
Protection insurance has traditionally been sold at key life stages. Marriage, starting a family and getting a mortgage have usually provided the trigger for a person to take out life insurance, critical illness or income protection.
However, with more people hitting these life stages when they are much older, how can advisers target customers more effectively and ensure they are protected and prepared for the future regardless of their current situation?
The first step is educating consumers about protection products, the reason why it is so important to have a financial cushion in place and why everyone needs to be protected no matter what life stage they are at.
Advisers are in a great position to do this and to make sure that their clients see protection as an essential part of their financial planning. Using examples from providers marketing material that show real life case studies will help to convince people of the need to be protected.
There is nothing quite like a real life story to bring home to people the importance of having a financial safeguard in place. For some people, it will be the death of a friend or colleague or experiencing someone close to them who has been diagnosed with a critical illness that will shock them into dealing with their protection needs.
Encouraging someone to take out protection insurance in their 20s will be challenging. But if they understand that the younger they start a policy the cheaper it is they may be more inclined to see the benefits.
The fact that 41% of critical illness claims with Bright Grey have been made by people who were under 40 is a reminder to people that illness can strike at any age.
In fact, with our youngest adult claimant aged only 21, it proves that where a critical illness is concerned there is no discrimination. Being struck down with a serious illness doesn’t just happen in middle age. It can happen to anyone at any time.
It is also important to make people aware that the longer they put off buying protection they may find health problems emerging that could make the policy unaffordable or they may be refused insurance altogether.
Single people may be under the illusion that without a family to support they have no need for protection, but this is far from the case.
If they become seriously ill and unable to work, there won’t be anyone to help them out financially. With no one to split the mortgage, rent or bills with, their outgoings could be more than a couple living together.
For most people living alone, protecting their income should be their main priority.
Single clients may be more likely to come up with objections when advisers bring up the subject of protection, but go to any provider’s website and you’ll find a variety of marketing material that will help to convince a person that protecting their lifestyle is as important for them as it is for anyone.
While life insurance might not be suitable for someone who doesn’t have a mortgage or dependents, critical illness and income protection is.
It’s important to point out that many products these days are so flexible that when your client’s needs do change, their plan can be updated by adding and removing covers, or by changing the ones they already have.
As more couples choose to marry later or not at all, there is a danger that they may overlook their protection needs. Without a financial safety net in place, unmarried couples who rely on the income of both partners could find themselves in serious financial difficulties should one of them become seriously ill.
Whether married, divorced or living together, protection can safeguard their future and ensure the financial security of others.
With the changing shift in lifestyle, providers and advisers should look beyond the traditional triggers of marriage, starting a family and buying a first home and target consumers when they are young and healthy and before it’s too late.
Most people think it will never happen to them, but why take that chance?
