There will be few people unaware of the current publicity surrounding numerous financial institutions struggling to continue trading at the moment with some major players almost “going to the wall”.
There will also be some people starting to feel concerned, and questioning the stability of the companies they have investments with – in this instance, by investments, we are talking about life insurance quotes and policies relating to Whole Life Insurance, Term Life Insurance and Pension Plans.
When purchasing insurance, a pension or some other kind of financial product, the company you buy from will be regulated by the Financial Services Authority (FSA).
If a company that is a regulated by the FSA is “in default”, i.e. goes bust, or is unable to pay your claim, you are protected by the Financial Services Compensation Scheme (FSCS) if you have suffered financial loss.
The FSCS offers protection for:-
- Deposits
- Life insurance and General Insurance firms
- Investment Business (on or after 28 August 1988)
- Home Finance such as mortgages (advice and arranging since 31 October 2004)
- General Insurance policies advice and arranging (since 14 January 2005)
- £35,000 per person for deposits
- £48,000 per person for investments
- 100% of the first £2,000 plus 90% of the remainder of the claim
December 4, 2008 1:25 AM
Regardless of whether you opt for term life or whole life insurance, the most important thing is to shop around and compare rates. I bought a policy through http://www.reliaquote.com but I also had good experiences with SelectQuote.com and Insurance.com. No matter which way you go, taking a few minutes to look at multiple locations will save you money in the long run.
December 4, 2008 3:10 AM
Very interesting information about life insurance . There is so much to learn and a lot you need to know when deciding on an insurance plan.