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EPR Archived News |
Global warming: why consumers and insurers are getting hot under the collar over life insurance.Released on = August 18, 2005, 9:51 am Press Release Author = Rachel Lane Industry = Financial Press Release
Summary = Whilst financial products may never have been simple,
the diversity and complexity of personal finance and insurance products
is beginning to bewilder even educated consumers. Press Release Body = Global warming may have been lurking on our horizon for a number of years and historical records of terrorists have existed for thousands of years, but we are coming into a new age where we try and financially protect ourselves against such problems and if we’re honest … we’re struggling. The recent terrorism attacks in London brought home the fragility of human life to many Brits, who had previously been able to distance themselves from terrorist activity. For the partners and offspring of city workers, the fragility of their finances also became apparent with the potential loss of a loved one alongside the loss of future income and possibly the family home. It is widely agreed that most life insurance policies should cover acts of terrorism, though most websites (including the Association of British Insurers) do state that you should always, always read the small print, as there may be insurer-specific exemption clauses. It will be interesting to see what effect terrorism has on life insurance applications and whether there’s a rise in consumer interest as a result of terrorist attacks. Certainly the
indication so far is that life insurance applications will be treated
quickly and sympathetically in the event of a terrorist attack,
reiterated by the Association of British Insurers (ABI) and Ginger
Applegarth of MSN Money who stated that for insurers “to back
out of paying a claim now would be considered unpatriotic and a
marketing disaster.” In Applegarth’s column, she includes
an “insurance It isn’t
just your life insurance that can encompass a terrorism related
clause. Travel insurance and property insurance can also contain
terrorism related options. The website www.abi.org.uk states clearly
that “household, buildings and contents policies include damage
by fire, explosion or impact, whether caused accidentally, through
the malicious act of an individual criminal or in an act of terrorism.”
The Contamination cover is singled out by ABI as a contentious issue and apparently has been a standard exclusion on household policies since the 1960s, due the potential scale of claims, as many homes could be affected by a single incident. Cover against terrorism is also available for businesses, typically as an extension to property cover. Commercial property terrorism cover is typically allocated on an “All Risk” capacity, encompassing biological, chemical, radiological and nuclear contamination, as well as interruption to the business. Commercial property cover does not include electronic or internet related risks or hoaxes. Other life insurance
exemptions may include lifelong illnesses such as diabetes and epilepsy.
Lifestyle habits such as smoking may or may not invalidate a life
insurance application, but they will make it more expensive. Always
get your medical records assembled before you apply for life insurance,
as this will save time and possibly money as well. Once this information
is assembled, you can begin assembling some personal quotes through
life insurance comparison sites such ****************** About Rachel: Rachel is a straight talking little lady who lives in the Scottish hills. Rachel also
writes for the personal finance blog Cashzilla: a wee bit of banter
on finance related issues. Web Site = http://www.cashzilla.co.uk Contact Details
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