Under-35s 'missing protection milestones' as cost of living bites

The insurer predicts this will leave more young people unprotected as a result.

Vitality asked people under 35 how the cost-of-living crisis was impacting them. Three in ten (30%) said it has already stopped them from getting on the property ladder, while a further 20% said it will stop them buying a property. 

Buying a property is a usual catalyst for taking out protection, including life insurance, critical illness cover or income protection, to ensure the mortgage will still be paid in the event of death or illness.

Fewer people getting a foot on the property ladder looks likely to lead to less people taking out a policy to protect them and their families. 

The Vitality research also found of those who already had life insurance, one in five (19%) took it out when they purchased a property with a mortgage.

Yet it also found a third (35%) of UK adults under the age of 35 said the cost-of-living crisis either has or will prevent them from living away from their parents' house. This rose to two in five (41%) of those aged 18 to 24.

Another key prompt at which people consider their financial resilience, and how their loved ones might manage if something were to happen to them, is starting a family of their own.

But three in 10 under-35s said the cost-of-living crisis will stop them from starting a family (28%).

Separate research by Starling Bank in September found under-35s were actually putting their way of living into reverse, with young adults more likely than over-55s to report "downsizing" their lifestyle or spending to deal with the cost-of-living crisis.

It found those under 35 are twice as likely to be anxious about budgets or be relying on credit to help with the cost of living than their older counterparts (55+). 

They are also significantly more likely to be cutting back on spending and around one in three (33%) are checking their bank balances daily.

Andy Philo, strategic partnerships director at Vitality, said: "It's more important than ever that as an industry we offer real value from our protection products, and actively publicise them, to ensure people continue to take out protection to support them, their families and what matters most to them.

"At Vitality our approach to insurance means our members get benefits in the form of rewards and incentives from day one of their policy, which we know appeals to clients, but also encourages them to actively engage with their policy, meaning they are less likely to cancel too."