Insurance for Millennials When Youth Actually Works For You

Millennials Face Stretched Finances, But Get Cheaper Insurance While They’re Young

According to recent research, those born at the start of the 1980s are, on average, only half as wealthy as those born in the early 1970s thanks to debilitating student debt, racing house prices, shrivelling company pension offerings, wage stagnation, cratering interest rates and the rise of the ‘Gig Economy’.

With all this in mind, it’s no wonder the term ‘millennial’ is fast becoming a by-word for ‘hard-up’.

The problem is so extreme that the millennial generation are the first post-war group to be worse off than their parents.

This is why people of my age are often labelled the ‘Peter Pan’ generation, because so many of us have had to put off reaching the milestones that previous generations rounded far earlier. These include leaving education, leaving home, getting married and starting a family, while buying your first home is often a distant pipe dream.

Josh Martin
Independent Protection Expert at Drewberry

Just Being Young Can Help You Get the Best Income Protection

As well as being late to all of these other major milestones, millennials are also often late to the party when it comes to securing worthwhile levels of Income Protection and Life Insurance.

Of course, this is also true for Britons across the age spectrum, with many of us seeking out protection products after life has forced our hand.

Sometimes it’s because they’ve seen what happened to a family member or friend who has suffered an illness or injury and didn’t have the proper cover in place, but more common triggers for getting insurance cover include buying a property or starting a family.

It’s these triggers that put millennials at particular risk from not having adequate protection – with so many of the catalysts for seeking life cover deferred for millennials, it’s not surprising that, as a group, they tend to be slow to take up life insurance.

Yet when you’re young, you tend to have very few serious health conditions, which means you get far more comprehensive cover. As you get older and develop medical conditions – especially things like bad backs – you’ll start to find insurers excluding you for pre-existing medical conditions.

So getting covered as a young person means you’ll probably face few if any exclusions and get the best Income Protection possible for you.

In terms of insurance, millennials will be better served getting on the ‘protection ladder’ sooner rather than later. Taking out Income Protection or Life Insurance as a young person is actually one of the few areas where youth in on your side.

The cost of insurance for younger people is so low it’s usually cheaper overall to put your cover in place while you’re still in your 20s, even if you don’t have a mortgage or a family to worry about yet.

Rob Harvey
Independent Protection Expert at Drewberry