Life assurance suits everyone

The wide variety of different protection products on the market can be confusing, but choosing term life assurance could be the most sensible decision, according to one firm of independent financial advisers (IFAs).

Though critical illness cover can provide important financial security in the sad event of yourself or a loved one contracting a troubling condition - and income protection insurance helps to provide regular payments, rather than a lump sum should you be forced to miss work - term life assurance can provide guaranteed safety for an individual or family.

A spokesperson for Surrey-based firm Libra Financial Planning explained the pros of taking out a term life assurance policy.

"Term assurance is the cheapest way of protecting an individual or a family," he said.

"The idea is you take out a specific amount of cover over a period of time, be it ten years or 25 years, and you insure yourself for however much you need. Should you die within that period; the life assurance company will pay up."

He confirmed that a term life assurance policy is based on "a guaranteed sum of cash."

But with the protection marketplace increasingly crowded, it could be easy to make a snap decision and purchase a term life assurance policy that doesn't necessarily suit you, he explained.

"Obviously people can go and buy it off the shelf at Tesco or Sainsbury's if they have an idea of what they want," the spokesperson said.

"It can be a complicated area and I think that advice is always for the best."

In fact, though term life assurance is a form of protection which can provide cover for any kind of individual, it's often worth taking the time to assess which policy is aimed at you and your financial status, he added.

"If you are a single male or female, and you have just bought your first house," he explained, "you don't necessarily need life insurance, because if you die, it just passes on to your estate, and you may want to have an income protection plan or critical illness cover.

In terms of protecting yourself and your family from any eventuality, 'thinking outside the box' is always the best idea.

Indeed, as the spokesperson explained: "Like anything, if a client is unsure, it's always best to get advice."

Industry statistics reveal the importance of securing a comprehensive protection policy - in 2006 Scottish Provident paid out 95.9 million in critical illness claims, 57 per cent of which were for cancer, with 13 per cent caused by heart attacks.

However, a growing number of UK consumers seem to be realising the benefits of protection policies; life cover provider Bright Grey saw an 18 per cent increase in sales of life assurance policies between 2005 and 2006.

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