Your Age Shows - How People Buy Life Insurance
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ABI - the Association of British Insurers - has estimated that approximately one third of all British residents do not have any type of life insurance. And, to make matters even worse, about one third of the people with cover may very well be under insured.
What may put this further into perspective is that younger people are even more under insured than their older brethren. Sainsbury’s Bank and Norwich Union commissioned surveys about the life insurance market in the United Kingdom. Both found that one’s approach to life insurance bore a direct correlation to the generation they are a part of.
The Norwich Union survey indicated that people over thirty years of age tend to shop around and make comparisons before committing to a specific life insurance provider. The Sainsbury Bank survey corroborated this in that they found that younger people were more prone to simply choose pretty much the first insurance provider they found rather than shopping around to see where they could get the most coverage for the least amount of money.
A spokesperson for Sainsbury Bank said that, “Not shopping around is a big disadvantage for younger people as premiums stay the same throughout the life of the policy, so getting a more advantageous deal with more favourable premiums from the start could save thousands over the life of the policy.”
Contrast this with what a spokesperson for Norwhich Union said: “As people get older they become more responsible. They also tend to have children from thirty onwards, forcing them to think about things like life insurance.”
When people are still in their twenties they are probably buying their first house. The process itself can be so overwhelming that they almost automatically agree to the coverage that the lender recommends, even though it ultimately might not be in their best interest. They’re probably thinking that it is a lot easier to take the cover offered than it would be to search for themselves and take care of all of the “messy” details.
Once people reach their thirties many have children and are more fully aware of their responsibilities to their kids as well as their partners. They have more life experience and realize that the relatively short amount of time that they invest in comparison shopping could yield a huge result as far as the difference in premiums and benefits are concerned.
In addition, since they’re older, their increased confidence as well as experience with various financial products comes into play.
The moral perhaps is, if you are young, although it seems to be a drag, force yourself to take the time to make comparisons in life insurance products before going ahead. Why? Because this decision will affect the rest of your life.
And for more information about how to buy life insurance go to http://www.TotallyMoney.com/life-insurance/standard-life-life-insurance.aspx
Wendy Moyer is a professional writer.
