Income protection enquiries spike amongst younger workers

Price comparison website ActiveQuote has recorded a 400 per cent increase in enquiries from those under 25 regarding income protection (IP) insurance.

The site also saw a 300 per cent increase in requests for quotes from those under the age of 30, while quotes for under 35s rose by 250 per cent during the same period in March 2020, when compared to the previous year.

The number of enquiries from customers aged 20 and under also rose five-fold during the same period.

The site believes that customers, as a whole, enquiring about IP, were on average two years younger in March 2020 than they were in February – the biggest monthly increase in the last 14 months.

Rod Jones, Head of Partnerships at ActiveQuote, said: “Income protection has traditionally been something that consumers in their early 40s look to consider, but since the pandemic hit in early March the average profile of enquirer has been edging closer to the mid-30s.

“The average age of a would-be policyholder has been growing steadily younger since January 2019 but dropped by two years in March this year alone, after the outbreak of COVID-19 and subsequent lockdown was confirmed here in the UK.”

He believes the “significant margin” indicates that the Coronavirus outbreak has reignited interest in IP within a new generation of workers.

Jones said: “Like any insurance product, the earlier income protection cover is put in place the greater the benefits it is likely to bring, both to the policyholder and the loved ones many are seeking to protect by acquiring it in the first place.”