Most age groups increasing the amount they are insuring their lives for

10th June 2013

Both men and women have increased the amount they typically insure themselves for in the past year according to Scottish Provident.

Men in their 30s have increased the amount they insure themselves for by 20%. While those in their 30s lead the way, those in their 40s and 60s have also increased their level of cover by 10%.  However, men in their 50s have increased cover by just 6% (£318,736 – 2011, £337,630 – 2012) while the amount that women in this age group value themselves at has actually fallen by 8% in the past year (£224,660 – 2011, £207,490 – 2012).

Average Scottish Provident sum assured for Life Assurance (figures in £s) – 2011

Age Female Male
30s 237,867 281,554
40s 225,963 325,776
50s 224,660 318,736
60s 80,263 337,071

Average Scottish Provident sum assured for Life Assurance (figures in £s) – 2012

Age Female Male
30s 262,398 337,617
40s 240,726 359,801
50s 207,490 337,630
60s 123,318 372,145

 

Ian Smart, head of product development, at Scottish Provident, says:  “We have seen a trend over the past year with both men and women increasing the level of cover they have in place, particularly at the younger end of the age spectrum.  Men in their 30s have typically increased the amount they value themselves by a fifth (20%) while women have seen an increase of 10%.  This is the age at which many people purchase their own home and start a family.  It is therefore only natural that they will also consider whether they have sufficient financial protection in place to safeguard these major events.”

22 thoughts on “Most age groups increasing the amount they are insuring their lives for”

  1. Drf says:

    Nero fiddles whilst Rome burns?

    1. Anonymous says:

      Hi Drf

      The economic situations in Spain and Italy have definitely diverged at least for now haven’t they? Let’s face it Spain is looking better than France right now too.

  2. Londoner says:

    The unemployment figures are very much helped by the fact that millions of Spaniards are now living in England and Germany.

    1. Anonymous says:

      Hi Londoner

      According to the latest demographic statistics then there has been an outflow of people from Spain. In 2013 the situation was as follows.

      “During 2013, Spain registers a negative migratory balance (–256,849 persons), 80.2% higher than that in 2012. This balance is due to a 4.3% decrease in immigration and a 22.7% increase in emigration.”

      The population peak was at the end of 2012 when the population was 46.8 million which represented quite a surge on the 40.5 million of 2001. Now the trend is the other way..

  3. Pavlaki says:

    I hope the institute that provides economic statistics is still as independent as it used to be. Rajoy and the PP have silenced a lot of criticism in the media by getting rid of troublesome editors and putting friendly faces in their place. I wouldn’t put it past them to do the same in order to get the economic numbers they want just before an election. Cynic? Moi?

    1. Anonymous says:

      Hi Pavlaki

      An interesting point although the latest estimate for GDP growth comes from the Bank of Spain so place(wo)men would be needed there too! I am waiting to see what the GDP deflator turns out to be as it might be falling prices that have caused the growth. We will need the full release to find that out.

      1. Pavlaki says:

        Having seen the Greeks cook the books I am wary of official stats that don’t tie in with the ‘on the ground’ scenario. I’m probably being too cynical but once bitten and all that!

    2. Anonymous says:

      Cínico(a), yo? Mejor en castellano.
      Fudging the numbers is a world-wide sport. I would not mind betting that there are conferences to discuss the best way to do this, probably somewhere warm and expensive. Most of the sessions will be led by the Spanish, the Americans and the UK.

  4. Anonymous says:

    Some positives, but don’t neglect to consider how vehicle incentives have jacked up consumer spending and thus GDP. Sustainable growth isn’t quite as strong as the numbers would leave you to believe.

    1. Anonymous says:

      Hi geoffrey2k and welcome to my part of the blogosphere

      Do you have some details on the vehicle incentives please? In some ways the UK has used similar measures although the push has come thorough cheaper credit following the Bank of England FLS and to some extent form PPI payouts.

      1. Anonymous says:

        Here is a story on the prior one, and I believe it was extended yet one more time in the second quarter. I’ll have to dig deeper in to my dirt pile.

        http://spanishnewstoday.com/plan-pive-5-receives-another-175-million-offering-2000-euros-off-the-purchase-of-a-new-car-_19280-a.html#.U9FigahM4os

      2. Anonymous says:

        Ah, here it is :

        http://moneysaverspain.com/plan-pive-grants-2014/

        they are totally addicted to this junk! If you want to look at the effect, you can download the passenger car registration data here :

        http://sdw.ecb.europa.eu/browse.do?node=2120801

        You’ll see a spike in registriations (implying sales) each time they roll out another tranche of this. I think the original scrappage program started in 2009, then it morphed into something else.

        As is the case with much of the global recovery, its one sort of fakery or another. Spain has been quite adept at rolling this out when it was most needed to offset other bad news.

        1. Anonymous says:

          Who do you suppose is paying for the PIVE plans? I bet it’s not the Spanish taxpayer.

    2. Anonymous says:

      Spanish PIVE incentives for car purchase are now a permanent feature of the landscape. Remove then, even gradually, and the ‘economic recovery’ goes into reverse for a while. Since when was it the taxpayers’ (or EU’s) job to subsidise car purchases? Seems odd to me, but at least they don’t discriminate by country of vehicle manufacture.

      Prices advertised for cars in Spain almost always net off the PIVE subsidy, which for PIVE 6 is between €2000 and €3000, requiring the definitive scrapping of an old vehicle against the receipt of the subsidy. The budget for the next year or so is €175m, being a rather obvious subsidy for vehicle sale in Spain. If the cash runs out (they are expecting to scrap 175000 old cars, which means an average subsidy of €1000 per car. I don’t quite understand how that squares with the minimum subsidy of €2000, but anyhow…) then theoretically there are no more PIVE’s until PIVE 7. Of course they can always find some more money.

      Meanwhile, in the real world, after many years of ‘scrappage’ Spain cannot have many old cars left. In fact, if you go there are take note, their ‘parque’ of vehicles is decidedly modern. Soon you will be allowed to scrap a 3 year old car!

  5. Anonymous says:

    Hi Shaun,

    Is the increase real GDP, or is it estimated additions due to crack, pot and hookers ?

    1. Anonymous says:

      Hi ExpatInBG

      I am expecting them to be fully in play when we get the third quarter numbers at the end of October. So far I have not seen them added perhaps because Spain is expected to have relatively minor gains of between 1% and 2% in GDP. We might get an update when the second quarter numbers are properly released.

      1. Jim M. says:

        Do the numbers for crack, pot and hookers need to be seasonally adjusted or is that all covered when we do the guessing bit?

        1. Anonymous says:

          here is one for Shaun’s lexicon.

          Crackpot numbers – estimated additions to GDP which attempt to record illegal activities.

      2. Anonymous says:

        Off topic, but here’s another report of French flight from Hollande’s punitive taxes, background music “Taxman” by the Beatles

        http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=11299113

  6. Noo 2 Economics says:

    Hi Shaun, I’m happy to read relatively good news on your blog for a change with nary a caveat. What I’m unhappy about/don’t understand is that Spanish 10 year bond is 2.57% and UK 10 year is 2.61%?? Are we really in the same state as Spain or are they in as “good” condition as us?

    1. Anonymous says:

      Hi Noo 2

      It is funny/intriguing how two different methodologies come to similar answers isn’t it? The “whatever it takes” speech of Mario Draghi and other ECB moves have returned Spanish bonds to being priced relative to bunds again. The German bund bull market has pulled many of the other Euro area bond markets with it.

      Meanwhile Gilt prices have been pulled down and yields pushed higher by the UK recovery. This has been weakened by the fact that any yield rise gets pounced on these day…

      So we are not in the same state but we are not as different as is often presented in the media.

  7. Anonymous says:

    What about the state of the banks, including the regional savings banks and their hidden (enormous) bad debts? The Spanish government is praying this problem will go away over time. It won’t, the figures are far too big.

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