According to research from Vitality, around 87 per cent of UK adults who have life insurance haven’t considered cancelling.
However, of the 13 per cent who had considered it, more than a quarter are aged 18 to 34-years-old. The following 10 per cent are between 35 to 54-years-old with nine per cent of the cohort among the over-55s.
On the flip side, young people are more likely to take out protection, with 62 per cent of 18 to 34-year-olds aged between 18 to 24-years-old when they first took out the policy and 38 per cent aged between 25 and 34-years-old.
Vitality said that this suggested that protection was still a “valued product” for this age group.
Job loss and inflationary increases were the main drivers for them to cancel a policy at 16 and 17 per cent respectively.
Young ready to review and reinstate policy
More than three quarters of young people said they would reinstate their protection policy for any reason and over a third said that they would put cover back in place if their finances improved.
This compares to 14 per cent of older people who would reinstate a policy if their finances looked up.
Moreover, younger people are the most likely group to buy a protection policy after a life event. Over a third are likely to buy after having a child, nearly a quarter after having a property and 19 per cent after getting married.
Justin Taurog, managing director at VitalityLife said: “Traditionally we tend to think of the younger generation being much less likely or more reluctant to buy life insurance, so these results show a shift in this behaviour and attitudes are really encouraging.
“However, given we also see that young people are more likely to cancel their life insurance, the challenge for the industry is clear.”
He added: “Demonstrating ongoing value is undoubtedly part of the solution here. Our own data really brings this point to life, with those who engage most with the Vitality Programme over a third less likely to cancel their insurance compared to those who don’t.
“This is due to the tangible and ongoing benefits they access through it all the time. But there is significant appeal in accessing health and wellbeing support, and the positive impact that will have on their health outcomes throughout their life.”
