How you Buy Life Insurance Shows your Age

The Association of British Insurers (ABI) estimateslife of the policy, so getting a more advantageous
that one in three Britons are without any form of lifedeal with more favourable premiums from the start
insurance, and of those that do have cover a furthercould save thousands over the life of the policy."
one in three may be under-insured. However, thoseHowever, a survey by Norwich Union showed that
headline figures don't show the full picture as manythe opposite applies when it comes to those over 30
industry experts believe the young to be moreyears old; they will shop around to make sure they
under-insured, and that may be because of the wayhave fully investigated the market before committing
that they buy life insurance.to a purchase. Norwich Union spokesman Darren
Recent separate surveys into the UK life insuranceDicks said: "As people get older they become more
market commissioned by Norwich Union andresponsible. They also tend to have children from 30
Sainsbury's Bank have highlighted that there may beonwards forcing them to think about things like life
a different approach between the generations wheninsurance." He believes that the combination of life
it comes to buying life insurance.experience and the need to provide for their children
The Sainsbury's Bank survey found that youngmeans that the over-30s, on the whole, tend to be
people tend not to shop around when it comes tomore financially aware. As a result they will take time
buying life assurance and the majority simply chooseto compare life insurance policies and the benefits
to go with their mortgage provider. The reason giventhat they offer, as well as the premiums charged. In
for this appears to be a form of attrition; that theyaddition, as people get older they also tend to have
are already so worn out and over-whelmed by themore experience of buying financial services and
house-buying process that they readily agree to thehave more confidence in shopping around to find the
cover offered by their lender; it is an easy option asbest deal.
they leave it to the lender to arrange all the details.However, despite the survey's findings Sainsbury's
But, taking this approach may not be in their bestBank estimates that UK mortgage-holders are
interest. A Sainsbury's spokesperson said: "Notcurrently under-insured by a staggering £2.3
shopping around is a big disadvantage for youngertrillion, and that can't all be down to people under 30.
people as premiums stay the same throughout the