Millennials driving demand for life insurance – but beware these rumours and speak to an expert
Big events sometimes focus our attention on what matters. Over the last 18 months, tragic stories from around the world have shown us the terrible impact of ill health and death and so it’s perhaps no surprise that there has been an increased interest in personal protection.
Data from a leading price comparison site, published in i news, show that sales of life insurance rose by 18% between the start of the first UK lockdown in March 2020 and March 2021.
And it is younger people – particularly women – who are taking more interest in making sure they and their families are protected.
However, experts have warned that as more millennials head online to buy life insurance they could read “crazy, untrue rumours” and risk falling foul of sharp practices and commission-hungry salespeople promoting policies that aren’t always appropriate.
Read on to find out why cutting through the myths and speaking to an expert can help.
Young people propelling an increase in demand for life insurance
New figures from i news show that it’s millennials that are thinking most about protecting themselves and their loved ones during the pandemic.
40% of 18 to 34-year-olds who have life insurance took out their policy after the first lockdown. And separate research has revealed that the pandemic has prompted 62% of millennial women to put life insurance in place.
Putting life insurance in place provides peace of mind that those you care for will be financially supported if you’re no longer around. And the younger you are, the cheaper your premiums will generally be. It’s possible to put life insurance in place for just the cost of a couple of cappuccinos every month.
We’ve previously looked at why you should buy life insurance if you’re a millennial, so if you have a mortgage, a family, or you’re financially co-dependent, now’s the time to follow the lead of your peers and look into getting the right cover.
Make sure you avoid “crazy, untrue rumours” about life insurance on social media and online
While there has been an uptick in interest in life insurance, providers are treading carefully so as not to be seen to be exploiting the pandemic.
As insurance industry expert Phil Jeynes says: “It’s an uncomfortable position [for insurers] to be in, because while Google searches for life insurance are up 12% in a year, it’s because people are scared and uncertain about the future.
“The challenge is how to get certain messages out there to people who are clearly interested in life insurance without frightening them, and how to stop crazy, untrue rumours.”
If you have been searching for life insurance online, it’s possible you will have seen information relating to one of these three common myths.
1.Getting the Covid-19 vaccine invalidates your life insurance
In recent weeks there have been several instances of false claims being made online that having the Covid-19 vaccine will invalidate your life insurance.
This is an example of the type of claim we have seen.
Put simply, this is untrue. Having the Covid-19 vaccine has no impact on your protection policies. Indeed, the Association of British Insurers issued the following statement:
“There are some claims being made that having the Covid-19 vaccine will impact your life insurance cover. This is false.
“Receiving a vaccination against Covid-19 will not impact your insurance cover, be it life insurance, private medical insurance or other forms of insurance.”
If you’ve seen anything online that suggests having the Covid-19 vaccine makes your life insurance worthless, ignore it.
Similarly, if you read that your life insurance will not pay out if you die from Covid-19, this is also false. Indeed, insurers paid more than £200 million of life insurance claims for deaths from Covid-19 in 2020 alone.
2.Insurers do anything they can to avoid paying out
Another common myth you might read online is that life insurers do anything they can to avoid paying out.
Here are the facts. Insurers paid the vast majority (98%) of life insurance, income protection and Critical Illness policies in 2020.
The 2% of claims that were not paid were due to policyholders failing to disclose medical conditions when they took out cover, or certain policies not covering particular conditions (for example, a Critical Illness policy will typically not pay out when you contract Covid-19).
For many people, the last 18 months have been financially difficult. You may have been furloughed, your own business could have struggled or, worse, you or your partner could have lost their job.
So, it’s perhaps no surprise that you may have looked to make savings or reduce your outgoings.
When it comes to life insurance, people routinely overestimate how much it would cost. For many people, a simple term assurance policy will cost just a few pounds each month – often less than the cost of a couple of coffees or a takeaway.
Why it’s so important you speak to an expert before you buy life insurance
Another concern that many people have when looking to buy life insurance is being “sold” a policy they don’t need by an unscrupulous, commission-hungry salesperson.
Vicky Churcher, intermediary director at AIG, one of the UK’s leading insurers, told a recent industry conference that online life insurance leads are being sold to “multiple parties”, resulting in people “getting contacted over and over, with some vulnerable customers ending up with several unwanted policies”.
We’ve also seen claims that customers are being encouraged to lie or not disclose their true medical history or employment status when they make their application. Of course, this could mean that any claim you make could be rejected.
If you want to be sure you’re getting the right cover for your needs, it pays to speak to an expert. At I’m Insured we have years of experience in helping customers to find the most appropriate protection for them. We do this by:
- Employing experts who are knowledgeable about the various types of cover on offer. They can provide you with useful information and help you to find the right protection for you
- Working with dozens of the UK’s leading insurers to make sure you get the right cover at the right price
- Helping you to save money. We deliberately take a lower rate of commission than the standard to reduce the cost of your cover.
We can also access specialist cover for people with pre-existing medical conditions, or for customers who live in jurisdictions such as Jersey, Guernsey, the Isle of Man, or Gibraltar.
Speaking to a trusted professional means you’ll get an honest and independent service and that you won’t be “sold” a policy you don’t need or that’s not right for you. It can also help you to avoid one of a rising number of financial scams.
Writing in i news, Iona Bain has some great advice. She says: “Never be frightened, hassled or rushed into buying a policy. Always go to a respected broker or adviser to find the right cover that will deliver the goods if disaster strikes. You – and your family – deserve nothing less.”
To find out how we can help you get the right life insurance for your needs, contact us now or call 0800 334 5980.
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