If in doubt, disclose

When taking the decision to buy any type of protection policy, you do so to gain the peace of mind that, should something happen, your income or your family will be covered. However, we are continually hearing that policy providers find ways to turn down claims - and always this happens just when the people concerned needed the money most. So why would a provider turn down a claim? The primary reason will be that the insurer finds some incorrect, missing or incomplete information on the original application forms. This is called 'non-disclosure' and examples include details such as claiming to be a non-smoker, reducing your weight significantly, not checking the status of a dangerous hobby (sailing, skiing or maybe even horseriding) or simply not owning up to an existing medical condition, even if you thought at the time it was irrelevant. If such details are uncovered, they can make any policy you thought you bought in good faith, completely invalid. For this reason, particularly for any sickness related plans (eg: critical illness or income protection), it is sensible to seek Independent advice. Such plans may all carry the same name but the conditions they cover and the exact definitions they use for those conditions can vary widely. Covering yourself against any unforseen circumstance can appear to be an expensive business when you first start the conversation. It is therefore absolutely vital that you get the type of cover right - and don't give your insurer any reason to be able to get out of your claim should you ever have reason to need it.

100 families a day helped by CI

More than 100 new families are now claiming each day on their life and critical illness (CI) insurance policies, according to data published recently by the ABI. The average claim was £52,000, double the average UK annual salary.

Covering childcare costs that never end!

Many parents have bought life policies in the past assuming their children would be independent at 18. New research shows parents are funding their children for much longer, so new protection options are needed.

Gone are the days when your little ones flew the nest at age 18, leaving you to breathe a sigh of relief that your current account might at some point recover. Becase of the difficult economic environment, parents today cannot expect to get their financial freedom back until their children are much older.

Day-to-day living is more expensive, jobs harder to come by, and house prices are high with loans often difficult to obtain without paying a large deposit or a very high rate. According to The Children's Mutual, 93% of parents are still providing towards their childrens' finances until they are 30, and 16% of parents are still supporting their children beyond the age of 30.

This raises the question, do parents have sufficient protection in place? Even if they have sensibly planned ahead to ensure their offspring are financially supported, will that support continue if something should happen to one or other of the parents?

With children being financially dependent for longer, it makes sense to review existing policies to see whether the sums assured allow for the extra money that older children now need from their parents.

It seems that providing a secure financial future for their children is becoming an ever-expanding financial commitment for parents. This makes it vital to keep protection cover up to date with changes in the social and financial landscape.