One in three underinsured

Have you renewed your life insurance policy in the last five years? One in three people haven't and they are running the risk that they are underinsured.

The Norwich Union is concerned that people are letting life insurance drop down their list of priorities as they are calculating their household budgets.

Home insurance premiums, mortgage repayments and other household bills have all risen this year.

Spokesman Darren Dicks says: "The amount that it costs, compared to what it actually protects, means that it's something that most people should take out.

"There are only a very few segments of the population that it doesn't really apply to.

"If you are single, and you've already covered yourself for critical illness and income protection, then it may not be appropriate to get life insurance."

For all other people, who should be checking that their policies are adequate to cover family events and mortgage repayments in the event of their death, the Association of British Insurers says that between 2005-2006 £41,168 million was paid in life insurance premiums and £45,469 million was paid out in benefits.

25/10/2007 12:01:31