Almost half (48 per cent) of adults aged between 18 and 40 say they do not have life insurance, a survey from Beagle Street has revealed.
The research, which surveyed 2,000 people, found that under a third of 18-40-year-olds do not think they can afford life insurance and 20 per cent say the cost-of-living crisis means they have no spare money.
Beagle Street also detailed the most common reasons people cancelled their life insurance policies, with rising costs of food being identified by the highest proportion of respondents (38 per cent).
Also reported to be influential for people cancelling their policies were increased energy prices (identified by 36 per cent of respondents), higher rent (26 per cent), and salaries not keeping up with inflation (26 per cent).
Individuals with life insurance additionally highlighted why they decided to take out their policy in the first place with 53 per cent saying it was to provide a lump sum to support their family if they died.
A further 39 per cent said their life insurance was taken out to pay off their mortgage and 27 per cent said it would cover the cost of a funeral.
Beagle Street managing director, Alistair Rose, commented: “The cost-of-living crisis is affecting all of us and it’s forcing people to make incredibly difficult decisions around their budgets.
“This research highlights that the current economic situation isn’t just affecting day to day financial choices, but also difficult decisions that will have a lasting impact on entire families.
Rose also stated that Beagle Street understands the pressure that people are under, but also knows the importance of protecting families if the worst was to ever happen.
“That’s why we’re committed to making sure all our products – including life insurance for 18-40s – are accessible to everyone, particularly during these difficult times,” she added.
tom.dunstan@ft.com
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