Experts warn that life insurance policies should be regularly updated

Tuesday, August 17, 2010

Confused.com has undertaken research into the way the British public manage their life insurance policies. The online insurance comparison site has found that a number of people do not have up-to-date policies, meaning that their life insurance may not be providing adequate cover for their needs.

Matthew Lloyd, who heads up the comparison site, has issued a statement which outlines recommendations for life insurance customers, when it comes to keeping their insurance policies up to date. Big changes in customers’ lives and circumstances could impact their entitlement to existing policies of life insurance, without them even realising it. Lloyd has warned that people who currently hold either the wrong type of level of life insurance may encounter problems when it comes to benefiting from the policies or attempting to make a claim for financial recompense in the event of a life-changing event taking place.

According to Lloyd, people should be reviewing their life cover whenever anything significant occurs within their environment, including the birth of children, divorce, or getting married. According to the research undertaken by Confused.com, over sixty percent of customers do not have any life insurance cover at all, and only thirty percent have chosen to switch providers in order to take advantage of benefits from new suppliers, following a significant change in circumstances.

According to the research, people within the UK currently spend approximately £18,000 a year on household bills. Lloyd recommended that people consider their Life insurance policy in the same way; as a service provided, which needs to be reviewed regularly to ensure it adequately meets our needs. Just as we shop around for fuel providers, so we should be comparing Life insurance policies and selecting the best one from the range available.

Lloyd commented: "The fact that so few people with life insurance have ever switched provider suggests that they may not be reviewing it, making regularly monthly payments and forgetting about it."