Young people turn to income protection to allay fears over future
Young people are increasingly comparing income protection quotes online, with fears around job instability and Brexit thought to be among the reasons.
At ActiveQuote, in the space of a year we’ve seen a sharp rise in enquiries about income cover from people aged between 25 and 34. At the same time, we’ve witnessed a drop in life insurance comparisons, which suggests that younger workers are more concerned with the ‘here and now’ than longer term financial planning.
There’s no doubt that Millennials are more likely to forge a portfolio career than previous generations, while the number of self-employed people has continued to climb throughout the 21st century. Research from our partner LV= shows that today’s workers are likely to have twice as many jobs as their grandparents did, with Brits clocking up, on average, nine roles and one career change over a 48-year working life. Added to the virtual extinction of ‘jobs for life’, uncertainty around Brexit continues to dent employee confidence, with a rise in online searches for redundancy cover and mortgage insurance for job losses.
ActiveQuote head of partnerships Rod Jones said: “Figures from ActiveQuote.com show that in the last quarter of 2018, there was a year-on-year increase in income protection enquiries from those aged between 25 and 34, while there was a decrease for life insurance enquiries during the same period.
“Could this be a reflection that life insurance is becoming less important for young people who may not have taken on the financial responsibilities of a mortgage, getting married or having children, as these now tend to be done later in life? This might explain the reduced need to take out life insurance when you have no dependants or mortgage, leaving many younger people prioritising protecting their income in these uncertain times.”
We’ve also seen a significant spike in private medical cover, or health insurance, enquiries from customers aged between 18 and 44, particularly those in the 25-35 bracket. Rod said: “Again, this could be a reflection of buying habits and the ‘on demand’ culture that younger consumers are now demanding, including the recent news that almost half of younger workers would prefer a digital health appointment to seeing a GP.”
The rise in income protection enquiries coincides with new research showing that almost a quarter of Brits would stay in a job they hate due to fear of change. A nationwide study by accountancy software providers FreeAgent revealed that more than four in 10 Brits - 43% - say their biggest concern for the immediate future is a change to their finances, closely followed by the impact of Brexit (42%) and economic uncertainty (24%).
Yet more than 80% of respondents admit to having major regrets about not adapting to new things in the past, with nearly three quarters (75%) confessing that life would be better if they were more open to change.
Having the right income cover - which comes in the form of short term or long term income protection - allows you breathing space should you lose a job through no fault of your own, helping you to pay the bills and maintain your lifestyle while making good, positive decisions about the next exciting step!