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Newsletter

Brits unsure what cover they are getting from life insurance

By Marianne Straker, Mon 18 Apr 2011 - Published in Life Insurance

Many UK customers are suffering from a protection gap in their life insurance cover, according to the Association of British Insurers (AIB).

The organisation said that when people take out a policy during major life events, including getting married, buying a house and having a family, there seems to be confusion over what their cover gives them.

Kelly Ostler-Coyle, a spokeswoman for AIB, said: "There is a protection gap in the UK between what people think they are covered for, in terms of if they die, and the reality of what the insurances are that they actually take out."

She advised people to update their cover every couple of years, especially as everyone's circumstances change.

Recently, research from Nationwide found that just under half of Brits have life insurance cover, and mums are less likely than dads to have a policy.

Furthermore, over 75 per cent of parents do not have any critical illness cover in place.