Life Insurance Sector Lays It On The Line

Experts within the life insurance industry have urged many potential customers to think again with regards to their insurance policies. They claim that there is generally no need to live without any type of life insurance policy in these uncertian times as there are so many variable types on offer.

With all the indicators pointing towards the fact that fewer and fewer consumers are looking to purchase life cover, the question is what types of cover are available?

Types

For those looking for a bit of excitement and variety, there is the option of a Variable life policy, which encourages the customer to amass a sum of money in order for it to be invested in a stock offered by the given company. The amont payable would be based on how well the investment does.

Those looking for more traditional cover could choose a whole life cover which means you pay into a policy in order for it to be attributed out to a nominated beneficiary when you pass away.

Despite the variety and comprehensive cover on offer, the industry struggles to reach all of its intended audience.

Few

Only last year Norwich Union revealed the depressing news that over 20 million adults in Britain do not own a life insurance policy or any kind of protection cover.

The leading insurance company has warned that many of the population without life insurance policies are risking financial ruin by leaving their future up to chance.

Research has shown that the main reason for not purchasing life insurance is that they either haven't thought about it or considered taking out a policy (37%).

Head of protection marketing at Norwich Union, Darren Dicks commented; "These findings are cause for concern as they suggest many people are taking an 'it won't happen to me' approach to protection. Around 52% of UK adults have no life cover at all and the remainder are either underinsured or unsure about what type of cover they hold."

"There is currently a £2.3 trillion protection gap in the UK which leaves a large proportion of the population vulnerable. Many people wait until they have a particular event in their lives, such as a house purchase or the birth of a child before they purchase life cover, but people shouldn't take the view that they need to wait," he concluded

Peace of mind

Everyone, particularly families, are being urged by leading insurance companies to protect their mortgage and their lifestyle with the appropriate insurance as the realities of the credit crunch begin to take effect.

Following news that life cover policies are on the decline, Legal & General have reacted by painting a depressing picture to the British population.

Bonnie Burns, Product Marketing Director of Protection says: "Anyone with a mortgage is likely to be worrying about how much their payments might rise if they have to remortgage this year. This is set against a backdrop of higher council tax, higher food and petrol bills and slow wage increases. The question on many people's lips could therefore be 'can I afford protection?' but the question should be 'can I afford not to have it?'"