Life Insurance Business Drops As Protection Business Increases

Despite the current economic downturn, consumers still view products such as income protection insurance and employment cover as important, if figures from an industry insider are anything to go by.

Figures from AEGON show that three quarters of advisers have not recorded any decrease in the amount of individual protection business they sell during this harsh economic time. The study also found that more than eight out of ten advisers (82 per cent) consider price as the most vital issue when customers choose a cover provider.

According to Stephen Crosbie, the head of proposition, protection and investments at AEGON, insurance cover "is the bedrock of everyone's financial portfolio". "Our research shows individual protection products are holding up well in the current economic downturn. Advisers and their clients clearly understand the importance of having adequate protection in place if the unexpected were to happen." He went on to state that consumers "may be looking for ways to reduce monthly outgoings but advisers have an important role to play in ensuring they don't make false economies".

According to new data from the Association of British Insurers, the recession has resulted in more than one in ten people in the UK to opt out of life insurance contracts. People are clearly trying to work to a budget and protecting their income while they are alive seems to be less important than providing for their dependents if they die.

If things are tight, especially as we have seen large increases in the monthly premiums that companies offering redundancy cover are charging, then reviewing your life insurance premiums rather than cancelling the policy may be worth considering. Recently Friends provident announced that they were re-pricing the life insurance range with 93% of level term assurance premiums being reduced and 79% of mortgage life insurance premiums being reduced.

Where can I check if I am paying too much?
There are many online life insurance comparison websites that will let you quickly check if you can save money on currently life insurance premiums. Many online life insurance sites offer you discounted premiums meaning that if you arranged you policy via a bank or mortgage broker you could quite well see substantial reductions in your monthly premiums.

Many people are paying for insurance that they are unclear as to exactly what they are covered for. If you are uncertain then it may be beneficial to speak to an independent financial advisor you will be able to look at you policy and explain to you what it covers you for before checking if he can save you money by replacing you policy with a new provider.