16th July 08 - Decreasing Term Cover or a Night in with Homer?
Posted on Friday, July 18th, 2008 at 11:09amA study by the Association of British Insurers (ABI) has prompted British Insurance to urge consumers hit by the credit crunch to forsake the joy of watching the Simpsons for more serious life insurance investments such as critical illness cover, decreasing term cover and level term cover.
These statements came in the wake of an ABI study which showed that around 69% of UK adults would consider not taking out any form of life insurance protection in the future.
Nick Kirwan, the ABI’s assistant director, commented, “It is worrying that so many people are not prepared to look at taking out protection insurance, even insurance which covers redundancy given the uncertain economic outlook.
”It's clear that we need to work harder to get the message across about the peace of mind and value that having the right protection insurance gives individuals and families.”
This led a spokesperson from British Insurance to suggest that many households may need to reevaluate their economies, giving greater priority to life insurance-type investments such as decreasing term cover while giving less to luxury spends like pay-TV.
He said, “Watching the Simpsons may lift your spirits, but it will not keep a roof over your head.
”Given the current climate many will argue it's more important than ever to be able to switch off from financial pressures and enjoy watching a movie or sport.”
He went on to make comments directly related to decreasing term life insurance, saying, “This I agree with, but not at the expense of losing your home. Job loss announcements are being made daily, yet I suspect more people are happy to shell out on monthly TV subscriptions than pay a lesser amount to protect their mortgage repayments.”
