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| Critical Illness Cover |
A UK life insurance company has commented that with UK citizens living longer than at any time in history, people should be looking at taking out policies like critical illness cover, decreasing term cover and level term cover with more seriousness than ever before.
Statistics released by the company, Life Trust, show that with an increasing number of British people taking on new debt as they move into their sixtieth decade, life insurance policies like critical illness cover are becoming hugely important to senior citizens.
The life insurance company's chief executive officer commented, "People are living longer, healthier lives. This is great news but only if people have the finances in place to really enjoy their post-career years.
"The combination of rising life expectancy and the impact of inflation over time can have huge financial implications, and this report allows us, for the first time, to see the scale of these trends.
"With more and more people reaching 90 and beyond, and with 90 becoming the new 70 in terms of healthy aging, it has never been more necessary for the industry and individuals to understand the true cost of modern retirement."
Policies like critical illness cover are much cheaper to elderly people who live healthy lifestyles. To find out more about living a healthy lifestyle go to the Age Concern website.
CETA Worried About Mortgage Protection Lack of Clarity
CETA Insurance has accused the Financial Services Authority (FSA) of failing to "draw a clear distinction" between "expensive borrowing and credit card protection" and a type of reduced term life insurance, sometimes known as mortgage protection, that protects policyholders from the possibility of repossession.
The allegations come at a time when the Office for National Statistics says unemployment is rising and the credit crunch is tightening wallets across the UK, meaning more and more family homes are at risk.
CETA's Managing Director, David Quick, believes that high-profile investigations by the FSA have prompted many consumers to avoid declining term life insurance in the mistaken belief that coverage is uncompetitive and ineffective.
He commented, "We have repeatedly warned that OJ K should draw a clear distinction between competitively priced MPP I and expensive lending and credit card protection which generate huge profits for banks and retailers."
“Now that the housing bubble is bursting, and repossession orders are soaring, many are likely to lose their homes as they are led to believe they must avoid a 'torn' MPP I cover. The FSA's lack of clarity may have the effect of turning a crisis into a disaster."
The FSA denies any ambiguity in their approach to drawing a clear line between the types of mortgage protection that reduce term life insurance and "expensive loan and credit card cover", commenting, "We have always said that PPI's can be a useful product for people. Certain.
“Changing economic conditions did not affect our approach as we were concerned about customers who would not be fully covered by the policies they were selling, and therefore would not be effectively covered if they were made redundant.
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