Life Insurance for young adults

According to a new poll by the Skipton Building Society, buying life insurance is one of the actions that show a person has become a fully-fledged adult. It was listed tenth among the top 50 indicators of being ‘grown up’.

However, the survey also confirmed that young people are finding it harder to achieve this and other basic financial goals that indicate they are now grown up thanks to the difficult economic climate.

The flagging economy had been blamed for blocking young people’s passage to adulthood, preventing them from making a transition by owning a home or getting life cover.

Nearly half of Brits think that young people today are unable to be financially independent until they are in their late 20s. This is not surprising given the increasing number of people still living with their parents because of high rents and unemployment.

When asked what shows a person has become a fully-fledged adult, owning a house topped the list, but as banks now require large deposits before approving a mortgage, it’s no wonder young people are finding it difficult to achieve this dream.

Other actions considered as top ten displays of adulthood include financially important things such as writing a will and paying into a pension, as well as social actions including watching the news, cooking an evening meal from scratch and recycling.

Although the survey didn’t go look at the deeper reasons for people assigning these things the ‘adult’ tag, acceptance of one’s own mortality and recognition of a responsibility to others should the worst occur would certainly suggest a more mature frame of mind.

Since so many youngsters are having to wait later to get on the property ladder these days, it is frequently when they become parents that they take this step. This emphasises the importance of life insurance to protect the remaining family members from the financial consequences of a sudden death which could potentially leave them homeless.

This latest study is another reminder of the inherent contradiction at the heart of the life insurance market. In times of economic trouble people often cut back on their expenses including the one which is more important than at any other time, their life insurance premium.

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