Economic uncertainty and rising living costs are putting many households under increasing financial strain, making people more aware of the role that life insurance can play in building resilience.
However, it's not just external factors like these that are driving this need. We know major life events, like buying a home or starting a family, are also natural triggers for people considering cover. And yet, research from the Association of Mortgage Intermediaries (AMI) shows that, more broadly, this demand does not always translate into action, with 18% of adults abandoning their protection journey at the application stage, rising to 25% among under-35s.
How do we translate demand into adoption?
There is no single solution to improving conversion rates in any sector, but both advisers and providers have a key role to play.
Much of the growth in the protection market is driven less by customers actively seeking life insurance and more by advisers embedding protection more effectively into mortgage and financial planning conversations. AMI research shows that firms that integrate protection early and revisit it at key life stages see better conversion. Equally, advice remains critical in closing gaps in coverage and knowledge where they exist. Adviser-led conversations help turn awareness into cover, dispelling misconceptions around issues such as need and affordability.
L&G’s claims data underlines the importance of timely adoption. While the average age for life and over 50s life insurance claimants is 70, the youngest claimant in recent data was just 20 years old.
The role of providers and innovation
While the adviser community has a crucial role to play in increasing life insurance adoption, providers are supporting this effort through more flexible product designs, simplified application and claims processes, and added-value health and wellbeing services. These all help to make life insurance more tangible and accessible for customers.
In 2025, L&G digitised the claims submissions process for its single and over-50s life insurance policies, enabling third parties to make an online life claim for the death of a loved one. Not only does this mean that L&G now offers a fully digital journey for all Retail Protection claims, but it also provides claimants with 24/7 access to cater for their individual needs during difficult times.
How can we best set ourselves up to increase adoption?
As technology becomes more integrated into our daily lives, the advice sector is shifting towards a hybrid model, blending digital and human interactions. While many consumers begin their protection journey online, AMI research found that 70% of people still value the trust and empathy offered by advisers.
To turn demand into action, advisers need the confidence, skills and support to engage clients across both digital and traditional channels. At L&G, we offer bespoke support to firms to close skills gaps and help advisers meet the expectations of a younger, more digitally savvy audience.
Improving life insurance adoption is a shared responsibility. Advisers must continue to embed protection into everyday financial conversations, while providers should ensure that the journey remains simple, relevant and flexible for customers. As an industry, we can make significant progress by listening to customers and adapting to their evolving needs.
