Adults aged 18 to 40 who have received financial education were significantly more likely to buy protection insurance compared with those who have not, research from the OneFamily Group, parent company of Beagle Street, revealed.
The study of 2,000 adults revealed that 30% of 18 to 40-year-olds hold life insurance, rising to 37% among those who have had financial education, compared with just 27% among those with none.
Income protection ownership rose from 7% to 10% among financially educated respondents, and critical illness cover increased from 7% to 9%.
Perceptions of importance also shift markedly.
Among financially educated respondents, 84% considered life insurance important (versus 75% with no education), 81% said the same of critical illness (versus 69%), and 75% viewed income protection as important (versus 58%).
Only 36% of respondents said they had received any form of financial education, with online resources the most common source (43%), followed by family and friends (36%), university or college (29%) and employers (20%).
Just 18% received financial education in primary or secondary school.
The findings also highlighted demographic disparities: 41% of men reported having had financial education compared with 32% of women, and 44% of homeowners compared with 30% of renters.
Regionally, 48% of Londoners have received financial education, nearly double the 25% recorded in Scotland.
The insights follow the UK Government’s announcement that financial literacy will be compulsory in schools from 2028, covering budgeting, mortgages, interest and wider money management skills.
Ryan Griffin, protection director at OneFamily, said: “There are some stark differences when it comes to financial education, with nearly three in five 18 to 40 year olds having had no financial education at all.
“What is clear however is the important role it plays in helping both Gen Z and Millennials understand the importance of protection, with a surge in numbers understanding the importance of Critical Illness, Income Protection and Life Insurance following some form of financial education.
“This is an important foundation to build on, and indications show Gen Z understand the importance of protection better than previous generations. However, there is still more to be done to turn awareness and understanding into action.”
He added: “With the recent news that children will also learn financial literacy from 2028 at primary school, there is a real opportunity here for younger generations to learn about both money management and protecting their futures earlier.
“This is essential to help people build confidence, resilience and the ability to make informed choices.”
