Don’t gamble on your life (insurance)

With the impact of the credit crunch, falling house prices and growing consumer debt beginning to bite, life insurance and income protection is being seen as a lifeline for many financially stretched Brits.

New research from innovative protection provider PruProtect highlights that when times get tough people really do come to rely on their insurance cover. The majority of Brits value financial security over home comforts and would cancel their TV subscription (71 per cent) and mobile phone contract (47 per cent) ahead of their life insurance policy (11 per cent) or home contents cover (4 per cent).

When it comes to the type of protection Brits value most, life cover is at the top of the list for 35 per cent of people and income protection is second, favoured by 20 per cent of Brits. 18 per cent of people would opt for other cover such as Critical Illness Cover (12 per cent) or Payment Protection Insurance (PPI) (six per cent).

And when buying financial protection Brits are unwilling to be caught out by the small print. 42 per cent would rather have a product based on the extent of cover and number of applicable exclusions compared to a quarter (25 per cent) who buy on price alone.

Sammy Rubin CEO, PruProtect, said: “With financial markets undergoing a period of uncertainty, many people may be feeling less secure with their budgets and may have to face the difficult decision of stripping down their monthly outgoings.

“Life insurance-related policies such as income protection can be a vital lifeline, supplying funds to cover day to day costs such as mortgage or debt repayments, or if someone finds themselves in unexpected financial difficulties, such as being unable to work due to illness or injury.”

Based on the same “Vitality” system as PruHealth, PruProtect enables policyholders to earn Vitality points for looking after their health, for example by going to the gym, using a pedometer, having a fitness assessment or a health screen. These points, could help manage the cost of their premiums each year over term of their policy. PruProtect’s Vitality partners include, Virgin Active, Cannons, LA Fitness, eBay, Nuffield Proactive Health and Allen Carr’s Easyway to Stop Smoking.

Sammy Rubin continued: “The Vitality scheme gives people the flexibility to lead the life they strive for while encouraging them to be responsible for their health as well as their finances. Income protection and life cover products are designed to deliver security and peace of mind and with PruProtect’s offering people would not be forced to choose between life cover and maintaining their health.”