Worrying Gap in the Life Insurance Market

Wednesday, March 3, 2010

New figures recently released show a worrying trend in the 35 – 45 year old age gap. Very few people within this age bracket have made adequate investment into life insurance.

A survey commissioned by F&C Investments, a worldwide leader in providing responsible investment strategies, highlights the fact that over half of Britons in this age demographic are not feeling fully confident that they are in control of their finances.

One Poll conducted the survey and three thousand 35 – 45 year olds were questioned about their financial status, lives and attitudes. Worryingly, only approximately half of the respondents claimed to be fully in charge of their financial situation and over 35 per cent stated they felt that they had control over their finances to some degree. A surprising 14 per cent said that they felt as though they had no control on their finances at all.

To break this down further, 14 per cent responded that they had a will and felt that they had made adequate provisions in terms of life insurance with regard to their own and their family’s security. On the flip side, however, 22 per cent admitted to not having life insurance or even a will.

Interestingly, the research revealed that it is men who are more likely to have a will in place but tend not to have a comprehensive life insurance plan in place. This is the polar opposite to women who invest in adequate life insurance but are less likely to have made out a will.

As Scott Stevens from F&C points out, "There is a real need for people in this age group to sort their financial lives out."

Orson Barratt