The Growing Life Assurance Protection Gap
Friday, November 9, 2007
Life assurance industry experts always bang on about the ‘Protection Gap’. This is the difference between the levels of life assurance cover that we have taken out against the amount of cover that the industry believes we need. However, if the latest figure that has been produced by the UK life insurance experts is correct then, as a country we are massively underinsured as the gap stands at a whopping £2.5 trillion, and is growing every year.
We are mainly very good at ensuring that we have the mortgage covered by life insurance should the very worst happen, but it appears that we have totally forgotten all the other costs such as other debts, supporting children and even the mundane, such as living expenses. Of course, those with no dependants have no need of life assurance, but those who do should consider it very carefully.
Unlike most things today, the price of life insurance premiums has actually fallen. In fact, if you compare life insurance premiums to costs ten years ago, they are actually 50% cheaper, meaning that if price was a barrier for most people a few years ago then that situation has changed.
At this point, you may be jumping up and down saying that you are actually ten years older than you were and therefore even though premiums have dropped, because of your age it will still be more expensive. That is a common misconception. Because people are now living longer they pose less of a risk to life assurance companies, and that has helped drive premiums down. Plus, there is more competition meaning that those pressures also force down prices.
Re-visiting the level of your life assurance may also allow you to investigate additional benefit options such as critical life illness cover. Prices will also vary depending upon whether you opt for level term or decreasing term assurance. Level term, as its name suggests offers the same benefits in the case of death over a fixed period, whereas decreasing term reduces the benefits over the period, usually in tandem with your mortgage. As that is repaid, then the amount you would require in cover also reduces.
Recent research produced by the Daily Telegraph highlighted that almost one in three adults in the UK were found to have no life assurance at all. Even though statistically the vast majority thankfully will not require it, if the worst should happen then think of the financial impact on those left behind. Are you happy to live with your own Life Assurance Protection Gap?
Article Source: ArticlesBase.com
Labels: Insurance, Life Insurance
Home Contents Insurance: Necessity or Luxury?
Sunday, September 30, 2007
In recent years, the value of possessions in your home has likely increased as consumer culture and the need to have 'the best' comes to the fore. Add to this the significant amount of personal possessions you are likely to accumulate over the years - jewellery, trinkets, vases and the like and you'd be surprised to learn just how much value there is likely to be in your home.
If the worst were to happen and you lost most or all of your possessions, would you be in a financial position to replace them? Sadly, for many people, the answer would be no, due primarily to the fact that many people do not have adequate home contents insurance to cover the cost of replacing items lost due to fire, flood, or theft.
The recent freak storms which lashed across the north of England brought torrential rain to many parts of the region. The city of Hull alone saw in excess of 16000 houses affected by the weather and many people were forced to leave their homes and possessions behind as widespread flooding caused untold damage across the city. The damage has been so bad that experts predict it could be up to eighteen months before some families are allowed to return to their homes.
The charity organisation, Oxfam has warned that the poorest people are most likely to suffer most in the aftermath, pointing out that poorer people are significantly less likely to have household insurance cover. As a result, many families could well be left with nothing and with no means of replacing their losses, while those who do have insurance face an average claim of £30,000. The total amount of insurance claims is expected to reach £1.5billion.
Yet many people still believe home insurance to be a luxury product despite its relatively low cost. Some homeowners believe that home contents cover is included in the cost of their buildings cover, while some tenants believe their landlord or local council covers home contents as part of their rental agreement for their property. However neither scenario is true, as buildings insurance only covers the structure of a property while a landlord or local council is only responsible for the upkeep of the building. In both cases, individual possessions are the responsibility of the householder, and thus is it important to ensure possessions are suitably covered.
Home contents insurance is available through most major banks and building societies, as well as specialist insurance firms, and arranging a home contents insurance policy should be a high priority on the list of any homeowner or tenant who doesn't already possess home contents cover. Of those that do have cover, it's a good idea to review the level of cover afforded by the policy and amend as necessary to ensure a good level of protection in the event of a claim.
Articles Source : ArticlesBase.com
Adam Singleton is an online freelance journalist from Scotland. His hobbies include travelling and hiking.
Labels: Contents, Home, Insurance
Renters Insurance Facts - What you Should Know
Friday, September 28, 2007
Homeowners need home insurance and renters need renters insurance. If you're a renter and you don’t have renters insurance, you're risking financial disaster. Here are some facts about renters insurance that you should know.
FACT: Renters are not covered by their landlord's policy
Property owners purchase insurance coverage for their buildings, not their tenants. This insurance covers the building itself from loss. It does not ...
* Cover your possessions if they are damaged or stolen.
* Pay your living expenses if your home or apartment is damaged and you have to live somewhere else during repairs.
* Cover you if someone is injured while visiting you.
You need to buy renters insurance to provide these coverages.
FACT: You have more possessions than you think
It only costs a couple hundred dollars a year to buy renters insurance. If you walk around your house and take inventory of everything you own, you'll realize it would cost much more than that to replace everything. Renters insurance covers all your possessions including:
* Electronic equipment
* Sports equipment
* Clothes and shoes
* Musical instruments
* Furniture
* Appliances
* Kitchen items
* Tools
* Jewelry
FACT: Renters insurance is cheap
You can buy renters insurance for only tens of dollars a month or a couple hundred dollars a year. This will buy you about $30,000 worth of coverage for your possessions and $100,000 worth of liability coverage to protect you from personal liability lawsuits if someone is hurt in your home.
To make sure you get the best rate on your renters insurance, go to an insurance comparison website where you can get fast quotes from multiple A-rated insurance companies. The best insurance comparison websites also let you talk online with insurance professionals and get answers to your rental insurance questions (see link below).
Visit http://www.LowerRateQuotes.com/renters-insurance.html or click on the following link to get cheap renters insurance rate quotes from top-rated companies and see how much you can save. You can also get more insurance facts and tips there.
Article Source : ArticlesBase.com
The authors, Brian Stevens and Stacey Schifferdecker, have spent 30 years in the insurance and finance industries, and have written numerous articles on renters insurance facts.
Labels: Facts, Insurance, Renters
10 Important Things to Remember When Buying Life Insurance
Tuesday, June 26, 2007
It is always better to find out vital information about life insurance prior to buying cover. This ensures that you obtain the best cover your money can buy.
10 facts about life insurance are:
1. Research the market: It is nearly always preferable to investigate all the cover available and to be clear about the monthly fees before deciding. A great place to source this info is online
2. The sooner the better: Do not procrastinate in buying a life insurance policy. The best time to purchase a policy is when you are young and in employment. This will give you a choice of great policies.
3. Do not get too much: Try to have just the correct amount of insurance that is within your budget. Getting too much cover will attract increased costs which is unnecessary.
4. Always tell the truth: Never try to misguide when completing the insurance application. If you are discovered hiding facts, such as smoking, the insurance provider may terminate your plan.
5. Stay healthy for lower costs: Health conscious individuals pay the least expensive fees. But, habits like cigarette smoking, too much alcohol, intake of drugs and obesity can make your premium sky high.
6. Never pay unnecessary fees: The fees of some insurance coverage are high due to the fact they also incorporate the commissions of the broker. To prevent this, go with an insurance company that offers policies sold direct.
7. Monthly fees can cost more: One way to keep costs down is to avoid monthly costs. You should therefore go for bi-annual or annual premiums, which are discounted.
8. Check your cover from time to time: You should
check your cover when there is a major change in your circumstances, like the birth of a child or your children starting university. Occasional reviews help you to ensure that you are paying the right fees, and that you have the right level of cover.
9. Do not rely upon your employers insurance cover: Most employees are provided with company insurance by their employers. But this may be insufficient for your requirements. Additionally, the group insurance policies get cancelled when you depart the company and because of this can not be relied upon.
10. Higher cover could be cheaper: With life insurance, monthly fees get less expensive as you go for increased cover. As such there is nothing wrong in increasing the cover, if your budget will allow it.
Don't leave it to chance. Get financial protection for your family with life insurance from Protected .Source: ArticlesBase.com
About the Author:
Luke Ashworth is the founder of Protected.co.uk which helps you search for life insurance via the website http://www.protected.co.uk.
Labels: Insurance, Life Insurance
