Average age of those seeking income protection (IP) drops during COVID-19 outbreak
IP enquiries via the ActiveQuote site from those under 25 rose by more than 400%, by more than 300% from those under 30 and by more than 250% for under 35s in March 2020, compared to the same time last year.
The protection broker and comparison service also saw the number of enquiries from customers aged 20 and under rise five-fold during the same period.
Overall, customers enquiring about IP via the protection comparison site were two years younger on average in March 2020 than they were in February. ActiveQuote said this represents the biggest month-on-month decrease in over 14 months.
Rod Jones, head of partnerships at ActiveQuote, said: "Income protection has traditionally been something that consumers in their early 40s look to consider, but since the pandemic hit in early March the average profile of enquirer has been edging closer to the mid-30s.
"The average age of a would-be policyholder has been growing steadily younger since January 2019 but dropped by two years in March this year alone, after the outbreak of COVID-19 and subsequent lockdown was confirmed here in the UK."
Jones added that the "significant margin" possibly indicates that the outbreak has ignited IP interest within a new generation employees.
ActiveQuote also found that the average age of those seeking IP cover through its site dipped more sharply in March than across the entire 14-month period leading up to it. It then rose again slightly from age 36 to 37 in April, which is still two years younger than the average customer approaching the site for the same reason back in April 2019.
Jones said: "Like any insurance product, the earlier income protection cover is put in place the greater the benefits it is likely to bring, both to the policy holder and the loved ones many are seeking to protect by acquiring it in the first place.
"Insurers have long been championing the benefits long-term IP can bring and if there are any silver linings to be had from the hardships many are unfortunately experiencing now, it's that the UK workforce as a whole looks set to be better protected in the future as a result."
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