'Match life insurance to situation'

By Marianne Straker, Wed 10 Sep 2008 - Published in Life Insurance

People should try to ensure that their life insurance policies are matched as close to their individual circumstances as possible, it has been recommended.

The Association of British Insurers (ABI) points out that there are several different forms of life insurance cover which may not be appropriate for all customers.

Level term life insurance policies, which provide a set sum for the entirety of the policy, and decreasing term insurance which is cheaper and often taking out against a mortgage were two examples cited by the organisation.

Jonathan French, spokesperson for the ABI, commented: "The most important thing is that any individual who is taking out life and protection insurance makes sure that they get the most appropriate type of insurance for them."

Earlier this month, broker My Mortgage Direct suggested people may be attempting to save money by abandoning their life insurance policies, as only 20 per cent of new borrowers take out cover for their mortgages.

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