CZECHIA: Czechs’ priority when purchasing life insurance is protecting their loved ones, not themselves

31 January 2024 — Daniela GHETU
51% of Czechs have taken out life insurance, with the primary reason of protecting their family in case they become unable to provide because injury or illness or death. Providing for their own needs in the event of illness or injury only comes second, a recent CAP survey shows.

According to data from the Czech Insurance Association, there are 4.7 million life insurance policies in the Czech Republic. The results of the current survey also correspond to statistics, indicating that 51% of Czechs have some type of life insurance. "Half of economically active individuals still lack insurance protection. Yet, life insurance, in particular, can have a very significant impact on the stability of the family budget. Just last year, insurance companies recorded around 420 thousand insurance events, primarily accidents, but also serious illnesses, disabilities, which demonstrates the need to be prepared for such events," explains Jan Matoušek, Executive Director of the Czech Insurance Association.

Typical clients of life insurance are adults up to 49 years old with at least a high school education. In this category, 65% of individuals have it arranged. The most common reason for its arrangement is to provide security for loved ones in case of unexpected events. "This is typical primarily for the age group of 18-49, where it is the main expectation from this type of insurance for 81% of its clients," specifies Jana Hamanová from the research agency SC&C, which conducted the survey for ČAP.

Secondly, 63% of insurance clients expect life insurance to secure their needs in the event of an accident or long-term illness. "These numbers vividly demonstrate that in the case of life insurance, we think about others, not ourselves. We underestimate the risks that threaten us and their impacts on ourselves," adds Jan Matoušek. Due to a mortgage, 17% have life insurance.

We protect ourselves against long-term consequences and death

Key risks for Czechs are the long-term consequences of injury, illness, and death. Life insurance covers them for 74%, respectively 73% of clients. In the event of injury or illness, 61% of respondents are insured. "Life insurance is typical for clients aged 18-49. In this age group, about 65% of people use life insurance. Clients aged 18-34 are most likely to insure themselves in the event of injury or illness," specifies Jana Hamanová. Directly for the case of income loss, 24% of clients are insured.


About the survey:

The survey of the Czech Insurance Association Perceptions of the insurance industry was carried out by the independent research agency SC&C. Data collection took place on the 17th–22nd 3. 2023 and was attended by 1026 respondents aged 18-71 in a representative representation according to gender, age, education, economic activity, region and size of the municipality of residence.