Young, care-free and cover-free

It is no surprise that the devastating Covid-19 pandemic has affected everyone from all walks of life in some sort of way. However, figures show that the younger generations are amongst the hardest hit.

 

Since the beginning of the pandemic, 44% of 18-24 year olds have experienced income loss due to furlough, a reduction in hours or redundancy- this is 25% higher than those in their 40s. Yet most young people still remain unprotected and uninsured- but why?

The answer… many believe other expenses take priority over paying for protection policies - as research shows Millennials and Gen Z believe bills, holidays, debts and even a Netflix subscription are more important than insurance right now. Another factor for young people is that because they are young and a fit, they don’t believe they need protection - they are young, care-free and evidently cover free.

However, the benefits of protection policies for young people should not be dismissed. Nearly half of 18-24 year-olds could only cover the cost of living for one month if they lost their income - yet many protection policies are designed to help with just that when your circumstances change. For example, income protection is designed to replace your lost income if you are unable to work due to illness or injury - while critical illness cover can offer you a lump sum if you are diagnosed with one of more critical illnesses. Life insurance on the other hand can help your loved ones financially in the event of your death - helping to cover the costs of mortgages, any outstanding debt, childcare and more. Not only this, but the premiums for these protection policies are cheaper the younger you take them out.

To find out more about individual protection and insurance, visit our Health & Protection page within the Learning & Education centre.