Life Insurance News

Norwich Union: Life insurance customers tend to be older - 22/10/2007

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Consumers usually wait until they have reached a certain level of experience with financial service until they take out life insurance, Norwich Union has asserted.

A spokesperson for the financial services provider explained that it is for this reason that many life insurance policy holders tend to be older.

Darren Dicks stated that consumers "tend to want to have experienced financial services for some time before they start buying things like life insurance".

Mr Dicks pointed out that the decision to take out life insurance is often motivated or triggered by significant life events, such as having children or any other occurrence that may cause people to think about taking such precautionary measures.

"There are some young policy holders but the majority of our customer base is a bit older," he added.

However, it is taking out a mortgage that usually acts as the most significant trigger for life insurance applications, the bank spokesperson asserted, as the product is "often sold as an addition to a mortgage".

Figures from the Association of British Insurers show that one in three Britons have no life insurance, with a further one in three having failed to renew their cover for five years, leaving them at risk of being underinsured.

Meanwhile, 64 per cent of life insurance was sold through independent financial advisers in 2005.

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