Vitality finds younger people are most likely to cancel protection policies.
19 December 2023
Younger people more likely to cancel protection policies
Research from Vitality has found that while young people between 18-34 are the most likely group to cancel a life insurance policy, they are also the most likely to purchase one following a big life event.
Vitality found most UK adults (87%) who currently have life insurance haven’t considered cancelling. However, of the 13% of people who have considered it, 18-34-year-olds are the most likely to consider cancelling at just over a quarter (27%), followed by 10% of 35-54-year-olds and 9% of over 55s.
While 9% of people said they had cancelled their policies within the last year, this same group of young people made up 16% of that group. This compares to 9% of 35-54-year-olds and 6% of people over 55.
However, while Vitality’s findings reveal young people are most likely to cancel an existing policy, 62% of 18-34 years olds were between 18-24 when they first took out their policy, and 38% were aged between 25-34. Suggesting that protection is still a valued product for this age group, with external influences like job loss (17%) and inflationary increases (16%) being the main drivers for them to cancel a policy.
In fact, young people were the most likely group to reinstate their policy with 78% saying they would for any reason, and 27% if their finances improved. In contrast only 14% of older people would reinstate a policy if their finances improved. Additionally, they were also the most likely group to purchase a policy for big life event like having a child (34%), buying a property (24%), or getting married (19%). While they are most likely to next make these life decisions, it does highlight they are preparing for a future they want to and will protect.
Justin Taurog, Managing Director at VitalityLife said: “Traditionally we tend to think of the younger generation being much less likely or more reluctant to buy life insurance, so these results showing a shift in this behaviour and attitudes are really encouraging.
“However, given we also see that young people are more likely to cancel their life insurance, the challenge for the industry is clear.
"Demonstrating ongoing value is undoubtably part of the solution here. Our own data really brings this point to life, with those who engage most with the Vitality Programme over a third less likely to cancel their insurance compared to those who don’t. Undoubtably this is due to the tangible and ongoing benefits they access through it all the time, but there is significant appeal in accessing health and wellbeing support, and the positive impact that will have on their health outcomes throughout their life.”
Notes to Editors
Research was conducted by Opinium among 2,000 UK adults in November 2023