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Younger people 'neglecting income protection'

Younger people 'neglecting income protection'

Category: Loans

Updated: 24/02/2009
First Published: 24/02/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Many consumers aged 25 and under are failing to protect their debts against the possibility that they become unable to work, it has been revealed.

Research by insurance specialist LifeSearch has found that just three per cent of all policies written last year were for this age group, despite a large proportion owing money through secured and unsecured loans.

Policy adviser Matt Morris noted that "more effort" is needed to ensure that young adults are made aware of the need for insurance.

"Many younger people have debts, mortgages and families that need financial protection in the event of the main income provider being unable to work," he noted.

According to LifeSearch, such policies can work out to be a lot cheaper when bought earlier in a person's lifetime.

Consumer campaign group Which? recently advised those with unsecured loans to consider income protection as an alternative to payment protection insurance, as it can be more effective and cover a wider range of debts.

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