Which factors are identified as affecting the demand for life assurance?

The demand for life assurance is influenced by a variety of interrelated factors, which include age, lifestyle, income, dependents, affordability, and even movements in the housing market. Understanding these factors helps in analyzing why individuals seek life assurance and how much cover they might require.

Age is significant because as individuals grow older, their financial responsibilities often increase, leading to a higher demand for life assurance to protect dependents. Lifestyle choices, such as engaging in risky activities or having health issues, can also prompt individuals to consider life assurance to ensure financial safeguarding against unforeseen circumstances.

Income plays a crucial role since higher earnings usually correlate with greater financial responsibilities, compelling individuals to invest in life assurance to secure their family's financial future in the event of untimely demise. Dependents are a critical consideration as those with children or other dependents often have a heightened sense of responsibility, increasing the urgency for life coverage to maintain financial stability for those they leave behind.

Affordability is another essential factor; individuals can only invest in life assurance if it fits within their budget. This level of affordability can dictate the type and extent of coverage offered.

Lastly, movements in the housing market affect demand because changes in property values can lead to adjustments in financial obligations (like mortgages), influencing