Younger people need to be more careful about their choice of insurance products

According to the results of a recent survey many younger people in the UK are taking out the wrong type of insurance cover for their needs simply because of the cost of cover. The research carried out by LifeSearch suggests that a high percentage of those aged under thirty five are opting for insurance products that are not appropriate for their needs simply because of the cost of premiums. The survey revealed that only twelve percent of those aged between 18-30 years were confident about the insurance products that they had purchased.

The research also showed that younger consumers were tending to opt for insurance such as life cover rather than for something that might protect their income – although even life insurance cover levels have dropped by around five percent for those aged thirty five and under. Insurance companies have come under fire recently for exaggerating the benefits of certain types of cover when contacting potential customers, and it seems that the younger age groups may be most at risk from this type of mis-selling, as they are more concerned about price than about the benefits of the cover.

Of those surveyed by LifeSearch thirty percent admitted that their prime consideration when taking out any form of insurance was cost, and the benefits of the cover were secondary to this. For many, a slightly higher premium could mean that they actually end up with an insurance policy that could benefit them in the future rather than one that offers no relevant benefits but is cheaper. Experts advise this age group to really shop around for cover, as their age means that the cost of cover will generally be lower for many insurance products anyway.