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Newsletter

Times to consider protection insurance

By Marianne Straker, Wed 24 Sep 2008 - Published in Life Insurance

Legal & General has highlighted some of the times savers should consider taking out protection insurance.

The firm cited the Swiss Re Term & Health Watch Report 2008 which suggested there is a 'protection gap' of £2.3 trillion in the UK and claimed it is important to reduce the amount of uncovered debt which is held.

Specifically, the organisation said critical illness cover and income protection should be acquired when mortgages are taken out, while life insurance should be sorted out when getting married.

In addition, family income benefit can be useful when starting a family, while business protection could offer some comfort should an enterprise be started.

Other times to consider forms of protection insurance include starting a new job, expanding the family, moving to a bigger house or when approaching retirement, the firm claimed.

Bonnie Burns, Legal & General's protection product marketing director, commented: "People may not realise that they could put their families under enormous financial pressure if they were to die or get ill because bills still need to be paid."

However, Lucy Widenka, personal finance campaigner for Which?, recently recommended people seek financial advice before taking out insurance on financial products, as the money could be used to protect finances in other ways.