More restrictive lending practices and soaring property prices, as demand out-weighs supply, has meant that many people have had to delay purchasing their first property and are continuing to rent for longer periods. The number of people renting in Ireland now stands at almost 900,000 (Source: Savills Dec 2017). The profile of renters in Ireland is no longer made up of mainly students and young professionals but now also includes co-habiting couples, families, retirees etc.
Combined with the economic barriers to buying property, many of the other triggers to buying life insurance such as getting married and having children are happening later in life for many. These are times where people might take the opportunity to examine their finances and put arrangements in place to protect themselves and their loved ones if they die or are unable to work due to serious illness or injury.
Research conducted by Coyne on behalf of Irish Life(2017) shows the financial planning impact of changes in Ireland’s socioeconomics. According to the research only 38% of renters in Ireland have some sort of financial protection in place compared to 60% of homeowners. While borrowers are generally required to arrange Mortgage Protection Insurance before their mortgage is approved, the same is not required of renters. While Mortgage Protection may not cover all of a person’s financial needs, it will provide an important level of cover and encourage people to consider other levels of protection that they might need.
In the same research (Coyne Research on behalf of Irish Life 2017) people estimated that they could last just 3 months on average if they were unable to work and almost 2 in 3 renters say that their landlord would take action if they missed just two rent payments. None of us know what is around the corner and if you are one of the almost 900,000 (Source: Savills Dec 2017) renters in Ireland, you might consider what would happen if you died or you weren’t able to work due to an illness or accident. It is an important question and one that’s worth asking of your-self.