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Increasing number of under 35s take out life insurance

Paloma Kubiak
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Paloma Kubiak

The number of people under 35 taking out life insurance has increased slightly over the past year, according to a price comparison site.

Comparethemarket.com figures reveal the number of people aged 35 and under taking out life insurance has increased from 47% to 49%.

While a small increase, it said this is encouraging given that premiums get progressively higher the older people get. Someone taking out life insurance at the age of 36 can expect to pay on average over £175 a year more than those who take out cover at the age of 24.

It found that 16 – 24 year-olds pay an average of £10.94 a month, 25 – 34 year-olds pay £16.78, 35 – 44 year-olds pay £25.68, the 45 – 54 age group pay £32.67, while for 55 – 64 year-olds it’s £34.47. Those aged 65+  pay the most at £64.13.

‘Mature independents’ are more inclined to buy life insurance (44.62%) compared to retired people (1.52%) and over half of the under 36 market (52%) are still

People living in greater London pay the highest average premium of £37.48 a month, however, comparethemarket said just 5.73% of sales are from these residents.

At the other end of the scale, policies taken out in the West Midlands are the cheapest at an average £16.17 a month. The location with the highest proportion of people buying cover through the comparison site is the North West – 13.92%.

A larger proportion (24.86%) buy life insurance with a cover term of 21-25 years while just 4.74% buy cover spanning 41-50 years.

O9n cover amount, a greater proportion (23.04%) have a cover amount of £100,000 to £149,999 compared to just 4.62% protecting themselves for £10,000 to £19,999.

Dan Hutson, head of life insurance at comparethemarket, said: “It’s worth taking out a policy as early as possible to benefit from the savings that could be made. So even if you’re not yet on the housing ladder yet, it’s worth bearing in mind the bigger picture and getting ahead of the game, so that when you need to protect your finances, for your house or family, it is already in place and affordable.”