Many consumers drop life insurance products before the peak age for claims, new research by TAL shows.

The average age for discontinuing disability, critical illness, trauma and income protection cover is 45, with the average age for a claim at 46.5.

TAL Group CEO Jim Minto says the figures are disturbing.

“We know cost-of-living pressures are continuing to force people to rethink their domestic budgets,” he said. “But it is very unfortunate these people who stop their policies for this reason do not see financial protection as essential for themselves and their families.”

The average age of consumers who take up such cover is 37.5, according to the research.

The picture for income protection insurers is bleak: the study shows the average time between taking out cover and making a claim is now 4.7 years – down from almost six two years ago.

Mr Minto says the analysis underlines the increasing trend for people to claim on their life insurance products. TAL’s claim payouts grew 45% last year to $843 million.