Brokers say having a baby and ‘worry’ are the main triggers to life insurance take up
According to Brokers throughout the country surveyed by leading protection specialist Royal London, starting a family and the birth of a first child is the main reason Irish people put life insurance cover in place (excluding mortgage protection). It will come as little surprise to you that 41% of respondents cited this life changing event as the principle motivator behind why people take out life cover. While over half of Brokers said ‘worry’ was the biggest emotional driver leading towards the purchase.
The Royal London survey asked: What is the principal driving force for people taking out life insurance (excluding mortgage protection)?
The respondents answered as follows:
|Birth of first child||41%|
|Death of relative or friend||22%|
|Buying first home||20%|
|Marriage/ civil partnership||11%|
It also asked respondents: In terms of making financial decisions which emotion has the biggest bearing on a client’s decision to apply for life insurance (excluding mortgage protection)?
Commenting on the results Daragh Feely, Head of Sales at Royal London said, “As you’ll be aware life insurance can sometimes slip down the priority list for consumers and, more often than not, it’s Brokers who provide the invaluable service of reminding consumers about the importance of this type of protection. It’s not like mortgage protection which is a prerequisite when taking out a mortgage or car insurance which is a legal requirement and yet the consequences of not having life cover in place can be far more severe.
You told us when people enter into a new life stage, like starting a family it’s most likely the first real pressing need to purchase life insurance. This type of cover becomes more relevant as it could be the first time in a person’s life when they have to consider the financial security of their future and the future of those they’ll be providing for.
On a more sombre note our survey revealed that the second highest driver behind the purchase of life cover was the death of a relative or friend. You told us that during this sad and challenging time it can be a small comfort to your clients to put some reassurance in place so that if the worst were to happen to them, their family would at least be financially secure.
The vast majority of you (79%) say that worry and fear play the biggest role in your client’s decision making process to purchase life insurance. And while having life cover won’t eliminate your client’s worries around their own or their partner’s mortality, it does provide some relief in the knowledge that the financial impact on their family will be lessened.
At Royal London we frequently ask Brokers for their views on financial issues which provide us with invaluable insights. Using these survey findings we raise awareness of key financial issues to the public through the press. So far this year we’ve highlighted the benefit of Broker advice in over 100 articles in the media. We’d like to thank all those who took part in this survey.”