A study of 2,000 adults carried out by UnderwriteMe found that costs were the main concern, with 32% worried about the expense of life insurance.
Over a fifth – 21% – were unsure if insurers would pay out, while 14% felt the process was complicated or overwhelming.
A further 14% said they did not know where to start looking into life cover or who to trust, while 11% said timing was a factor and they would think about life insurance later.
Confusion with life cover pricing
A lack of understanding of the pricing of life cover was also a barrier for people, with 51% saying they would be frustrated if an initial quote increased after giving additional personal information. Some 24% of this group said a change in price would be ‘very frustrating’.
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Respondents seemed confused about the pricing of life insurance, as two-thirds knew that personal factors such as medical history, occupation, hobbies and family health could impact this, but others were unaware.
Nearly a quarter – 24% – said they did not know how this influenced the cost of life cover and a tenth said they were unsure of their own understanding.
Cost seen as a bigger barrier for women
UnderwriteMe’s research showed that 55% of the women who responded to the survey would be frustrated if the price initially quoted for life insurance changed after sharing additional personal details, compared to 47% of men.
Further, women were more likely to say cost was a hindrance to taking out life insurance than men.
Cost was also a concern for younger generations, as 36% of millennials and Gen X respectively said this was a barrier to buying life insurance, compared to 26% of boomers.
Younger adults were also more likely to be confused by the process, with a fifth of those aged 18-34 saying they did not know where to begin. This was compared to 15% of adults aged 35-54 and 8% of those aged 55 and over.
Gen Z were also most likely to find the process confusing or overwhelming, while Gen X had the most doubt about whether insurers would pay out.
Nilesh Patel, chief revenue and customer officer at UnderwriteMe, said most people understood the importance of life insurance, but a lack of clarity about the process put them off, and left them without “vital protection”.
Patel said: “Cost worries play a big part here, but uncertainty about what will influence the final price can be just as significant. When quotes change or the purpose behind certain questions is not fully understood, it can create doubt. For some people, that doubt is enough to delay a decision, even if they recognise the value of having that protection in place.
“There is also still a clear confidence gap around underwriting. If the process feels unfamiliar or unpredictable, people can assume it will be more complicated than it is. Technology is now enabling real-time underwriting so this is a solution that can help deliver results quickly and help advisers with getting applications over the line without delays.”
