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The UK has a serious problem – a generation of vulnerable adults

October 2024

Ryan Griffin, Director of Protection

Ryan Griffin, Director of Protection at insurer Beagle Street, discusses what must be done to help a generation of young adults go from financial vulnerability to financial resilience.

With 10 million young adults without life insurance, the UK has found itself with a serious problem – a generation of vulnerable adults. Millions of people are at risk of being without the financial support they’d need if a loved one were to pass away.

Beagle Street, which is part of the OneFamily Group, researched how families would cope if an earner passed away*. It found many would not have the financial resilience to cope, largely due to the cost-of-living crisis, increased rents and mortgage rates and lack of savings.

"If one adult partner in a family dies prematurely, the impact can be huge on the surviving partner – not just emotionally but also financially"

The report estimates the average baseline financial impact of the death of a family breadwinner across England, Scotland and Wales would be £195,000 over the course of 10 years.

If one adult partner in a family dies prematurely, the impact can be huge on the surviving partner – not just emotionally but also financially – and they may be unable to continue their previous standard of living.

This estimation is just a starting point and covers the most basic costs such as essential household spending and mortgage payments. For many, the reality may be much higher in order to cope with additional expenses of running a family.

We know from speaking to our customers that many people do not have a safety net in place to support their family if they were to pass away. It’s very worrying as it means a whole generation of people could be left in a seriously vulnerable position.

"Many people do not have a safety net in place to support their family if they were to pass away. It’s very worrying as it means a whole generation of people could be left in a seriously vulnerable position"

Chris Kisby, a 36-year-old sales assistant in Lincolnshire, took out cover with Beagle Street when his daughter Violet was born. He said it felt essential that he could offer some security to his family if the worst were to happen. Chris described having Violet has been a “big turning point” and a “massive wake-up call”.

Like many of us, Chris has been feeling the effects of the cost-of-living crisis over the last couple of years and had to clear some other direct debits to make room for the monthly costs. But he told us he’s glad he did it and wishes he’d done it sooner.

Insurance offers vital financial protection to families like Chris’, although, we also know there are millions of people out there without it. A Beagle Street study found more than half of adults (51%) aged 18-40 do not have cover.

When asked why they don’t have cover, almost three in 10 (28%) say they’ve never thought about it and a similar amount (27%) say they simply can’t afford it.

"As providers we have a responsibility to communicate in a clear and simple way. This will make people feel more comfortable talking about it and know that getting life insurance isn’t something to be scared of or put off"

It’s understandable why some people may not want to think about what would happen if they died and the cost-of-living crisis hasn’t helped this, as it’s forced people to make difficult decisions with their budgets.

But, to make sure this generation of adults are not in a vulnerable position, the insurance industry must play a vital role. There are two important things we must focus on – affordability and accessibility.

And as a mutual, our focus in on supporting those people who may be underserved elsewhere. For us it’s all about social inclusion; we believe that everyone should be able to access protection that they can afford and is right for them and their families.

With more than half of young adults without cover, it’s clear more must be done to improve accessibility. To do this, the industry must not only raise awareness of life insurance, but also make it clear that getting cover doesn’t have to be daunting.

When we spoke to Chris, he pointed out it’s not something he often talks about with his friends. It can be a difficult conversation to have, but talking about life insurance is vital. As providers we have a responsibility to communicate in a clear and simple way. This will make people feel more comfortable talking about it and know that getting life insurance isn’t something to be scared of or put off.

I am sure there are many families out there who – just like Chris’ – could benefit enormously from the peace of mind that cover could offer them. But, as an industry, we can do more to help them with clear communication that encourages people to think positively about life insurance – so that it’s less of a taboo subject – whilst also manufacturing products that better meet the needs of those who are most in need of protection.

Encouraging this type of conversation will really support young adults in the UK and help them go from financial vulnerability, to financial resilience.

Unless otherwise stated, all research conducted by Opinium, on behalf of OneFamily, 14th – 19th February 2024, among a sample of 2,000 UK adults aged between 18-40.

*Beagle Street’s Adverse Life-event Financial Impact report

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