Nine months into, 68% of all applications for life insurance received by Luminor Bank, Latvia were from clients of this age group, and two thirds of them were men.
“We have noticed that significant life events give rise to a sense of greater responsibility towards relatives, which leads to the decision of buying life insurance. Clients most often think about life insurance when they are having a child, buy a house, get married, or have to go through the loss of a relative,” says Yekaterina Zinicha, Head of Development Department at Luminor in the Baltic States.
She notes that clients often purchase life insurance offered by the bank when they make commitments on mortgage. “People want to make sure that in case something happens to them, their families are protected and do not have to worry about paying off the mortgage. The majority or 80% of customers prefer to insure life for the loan amount so that in case of unforeseen event the loan liabilities of the borrower are covered and the relatives are released from them. In some cases, the amount of coverage is even bigger if clients want a safety cushion available to the family at about the annual income level, which would make it easier to adjust to the situation in the event of a decrease in income. Life insurance like making savings is also the basis for the formation of sustainable family budget,” explains Zinicha.
The average life insurance coverage among millennials reaches 55,000 euros, and the largest coverage is almost 220,000 euros. The data of the insurance company ERGO show that the benefits paid are most often used to pay off loan obligations and stabilize the family budget.
Photos are from open sources.