How Will the Protection Industry Fare in 2008 @ 03:55 PM    
With the credit crunch looming, people with mortgages in distress, shopping bills rising, do we have money to spend on life insurance and other forms of protection? Life offices, reinsurers and independent consultants predict a fall in life insurance and critical illness sales. However, on the other hand they predict a rise in demand for Income Protection! (Industry Views Report, LifeSearch December 2007-January 2008)
Does this mean we as consumers are more concerned about not being able to work and losing our salaries? Have we realized just having life insurance, that pays out if we die is highly unlikely ever to payout?
We all need some form of protection, especially if we have a family or a mortgage. The good news is the Industry Views report also suggests the cost of life insurance will fall and the price of Income Protection and Critical Illness policies will flatten out in 2008. Does this mean we can all be better protected?
Some argue consumers are unaware of the differences between Income Protection and Payment Protection Insurance. Does the ABI need to do more to ensure consumers are made aware of the differences between these two products?
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There's more to Life Cover than price @ 10:24 AM    
Life Cover is the most well known of all the financial protection products and the most frequently bought. Most people buy it to protect their debts (especially a mortgage) and their dependents if they die within a certain period of time. The policy will pay out a lump sum, or you can choose to have a regular income paid over a period of years instead of the lump sum if you prefer. This Life Cover option is known as Family Income Benefit.

Make sure the policy is written into trust by your insurance company for free. Trusts sound complicated but they are basically just a piece of paper, which legally changes the ownership of an asset - in this case the life policy. Just about every life insurance policy should be written in trust because it means you reduce your Inheritance Tax liability, the money is paid quickly to the person you have nominated to receive it and avoids any Inland Revenue delays, which on average last six months.

Remember when buying any of these products to always shop around. The most familiar brands, such as banks, mortgage lenders and most supermarkets, are rarely the most competitive. If in doubt speak to an independent adviser for free. They can search the whole of the market to find the best product and price for you.

No consumer is obliged to take the advice but, if you do, and the advice turns out to be inappropriate, you can take them to the Ombudsmen for recompense. Without advice, such as the service provided by many online companies and most supermarkets - except for Asda who offer advice to their customers - you have no way of complaining about your product.

If in doubt, ask them directly if they offer advice. If the answer if ‘no’ then be aware that if you buy from them you are taking sole responsibility for that purchase so you better be sure you know what you are doing.
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