- One third of young adults (29%) have never heard of critical illness cover, and over half (53%) don’t know what it is for
- Four in five (79%) may or would definitely consider taking out cover once they understand the product
- Almost three quarters (73%) of 18–40-year-olds don’t have critical illness cover
- 51-year-old father of two, Jason Fenton, explains how critical illness cover supported his family financially when he had a serious heart attack and needed 4 months off work
More than half (53%) of 18–40-year-olds don’t understand what critical illness cover is for, and one third (29%) have never heard of the product.
Around 12.7 million (73%) young adults don’t have critical illness cover to support their family. However, research conducted by insurance company, Beagle Street, found that four in five may or would definitely consider taking out critical illness cover once the product had been explained.
Critical illness cover pays out money if you are diagnosed with a specified serious injury, illness, or medical episode. The policy holder can use the money for whatever is needed.
Jason Fenton, 51-year-old father of two, knows first-hand the importance of critical illness cover after he had a serious heart attack and was able to claim £13,500 from Beagle Street.
He said, “receiving the money was like a weight had been lifted from our shoulders. It meant we were able to pay off a few things and my wife has been able to go down to working four days a week. We were also able to use some of the money on a family holiday to Majorca. It was so beneficial to spend ten days of quality time together, soaking up the sun and relaxing after what had been such a stressful time for everyone.
“I recommend critical illness cover to everyone. You never know what’s going to happen in life. You may never use the cover and hopefully you don’t, but if you do, then that reassurance goes a long way. If we hadn’t have had it, we wouldn’t be where we are now.”
Beagle Street’s research found that the main reason (61%) young adults have or would consider taking out critical illness cover is to give themselves and their family peace of mind. This was followed by 42% saying they would use it to pay for private medical insurance if needed, and one in three (33%) would use the money to keep on top of bills.
The cost-of-living crisis means many families have less savings to fall back on in times of need. One fifth (21%) of young adults surveyed said they didn’t want to think about how their family would cope if they became seriously ill and couldn’t work. One in ten (10%) said that their family wouldn’t cope as they are the main wage earner, and the same amount didn’t know what they would do.
Managing Director of Beagle Street, Alistair Rose, said, “It’s concerning so many young adults aren’t aware of the importance of critical illness cover. We see every day the safety net that critical illness cover creates for families that are hit by serious illness.
“For many people, being diagnosed with a serious condition would create worrying financial problems. Critical illness cover can be a lifeline for families in difficult times to keep on top of their bills, pay off part of a mortgage or even pay for rehabilitation support.”
-ENDS-
Notes to Editors
Unless otherwise stated, all research conducted by Opinium, on behalf of Beagle Street, which is a part of OneFamily, between 25 September – 9 October 2023, is among a nationally representative sample of 2,000 UK adults aged between 18 and 40.
About Beagle Street
Beagle Street is a leading distributor of life insurance and critical illness cover to thousands of customers across the UK. Launched in 2012, the brand aims to deliver a life insurance service that is straightforward and supports customers throughout every step of the life insurance process while retaining, speed, ease, and value at its core.
Beagle Street is part of OneFamily, a customer-owned financial services company that offers lifetime ISAs, lifetime mortgage advice, junior ISAs, child trust funds, bonds, and over 50s life cover.