Life insurance customers 'failing to update policies'

Tuesday, 14 June 2011 03:50

People with life insurance are failing to keep their policies up to date, according to new research, despite large-scale changes in their personal circumstances.

Statistics from Sainsbury's Finance revealed just 37 per cent of customers review their cover following events such as getting married, buying a home or having children.

Some 5.33 million Brits could risk leaving their family in financial difficulty should something unthinkable happen, the company argued, with the burden potentially running into hundreds of thousands of pounds.

David Cook of Sainsbury's Life Insurance said policies "[enable] people to be secure in the knowledge that their dependants would receive sufficient funds if they were to die, which would help them to protect their standard of living".

The statistics showed that the most common situation in which individuals forget to re-evaluate their policy is switching jobs, with 82 per cent falling into this bracket.

However, those moving in with a partner tended to be more conscientious, with approximately half remembering to review their documents in these instances.

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