Sales of income protection insurance are growing in the UK, with younger adults leading the trend, according to research by Eleos.
Eleos found that the annual premium equivalent (APE) for income protection nearly doubled over the last four years, rising from £58m to an estimated £108m.
The study revealed that the 25 to 34 age group made up 52% of policyholders, while the 35 to 44 age group accounted for 30%.
Those without children were found to be more influenced by external factors like global health and economic conditions compared to parents, who focused more on their immediate family’s needs.
Economic conditions, such as inflation and the impact of recent government policies, have heightened concerns, with 47% of recent purchasers citing economics as a major factor in their decision.
This contrasts with only 15% of those who bought policies over two years ago.Â
Health concerns have also surged in influence, with 33% of recent policyholders reporting health as a motivating factor compared to just 14% for older purchases.
Kiruba Shankar Eswaran, CEO of Eleos, said: “The findings of our report underscore a significant shift in the income protection insurance landscape.
“We’re seeing younger generations, particularly those aged 25-34, taking proactive steps to secure their financial future.
“This trend presents a compelling opportunity for companies who want an embedded insurance solution to provide financial protection for their customers.”
