Life Insurance Providing Little Protection From Terrorism
Recent statements by the City of London Police Commissioner James Hart that future terrorist attacks in London's financial centre are, "a matter of when, rather than if", will increase already serious concerns over issues of personal and business financial protection.
Mr Hart's statement pointed out that, "if you want to hurt the government, hurt people at the same time, and you want to cause maximum disruption...where better to hit than at the financial centre?"
Mr Hart also echoed a report by the insurer Axa which warned that just under 50% of small firms do not have a plan in place to ensure that their business could survive should they be hit by an emergency or disaster. Axa highlighted that many businesses, especially in the South East danger zone, are not even covered against general risks such as fire and flood, which have a much greater chance of hitting a business than the now high profile terrorism threats.
The research carried out by Axa found that almost one in five small to medium-sized firms had been hit by some form of disaster and about 5% of them took more than a year to get their businesses back on track. Any company that does not have cover against potential future disasters could stand to lose large sums of money, or even go out of business, if the Commissioners warnings go unheeded.
Emergency services workers are also experiencing additional worries about their financial protection in light of the terrorist attacks. Somerset fire-fighters have recently temporarily called off threatened industrial action amid claims they may not be insured for dealing with terrorism. In a postal ballot, Union members had previously overwhelmingly voted in favour of taking some form of industrial action short of a strike, such as refusing to train on specialist equipment which can be used in response to terrorist incidents. The actions have been called off pending a report due next month from a working party which has been set up with the Somerset Fire and Rescue Service to study the fire-fighters' personal insurance.
Adrian Woollaston, of the Somerset branch of the Fire Brigade Union said: "Somerset fire crews want our employers to address our very real concerns and this gives an opportunity for them to do so."
The fears experienced by the fire-fighters revolve around exclusions which added to many group life insurance policies that prevent pay-outs being made should the policy holder be injured or killed as a result of a terrorist attack.
The Association of British Insurers has sought to reassure emergency workers who may die as an indirect consequence of terrorist events by stating, "exclusions do not generally apply on stand-alone life assurance policies, regardless of the occupation of the policyholder", however, they also indicate that "other personal insurance cover" such as personal accident, mortgage protection, income protection and critical illness cover are usually subject to exclusions.
This would mean that many existing insurance policies held by emergency workers to protect their future and that of their family, such as mortgage payment protection, may not provide any cover in the event of a terrorist attack.
Searching through all the available insurance policies using information sites like Moneyfacts or Moneynet can go some way to helping by providing guide information and price comparisons, but more needs to be done.
Sam Oestreicher of Unison said, "We are asking all insurance companies to look at their policies and if they have such exclusion clauses to drop them".
Carefully checking through the various complicated clauses inherent in financial policies is something many consumers prefer to ignore, but as the fire-fighters are currently finding out, it is vitally important in order to ensure the protection is there.
Insurance information Association of British Insurers
Insurance comparisons ? Moneynet
Richard lives in Edinburgh, occasionally writing for the personal finance blog Cashzilla, and reciting Vogon poetry.
What Do You Mean My Auto Insurance Policy Doesnt Cover This!!
Auto insurance is an agreement between you and your insurance company where you arrange to pay a premium in an exchange for the peace of mind that your insurance agency will pay for vehicle related financial losses during the duration of the policy. You need auto insurance because you are liable by law to pay for losses you cause to others in the event of an automobile accident. Purchasing auto insurance is the sur...(related: Insurance)
How To Match The Right Insurance Policy To The 4 Stages Of Life
As we go through life our needs change. A Young man or women with a family has very different insurance needs then the Empty Nester. Here is a guide to help you determine what type of insurance best matches your need based on the 4 Stages of lifeStage 1 While traveling the great state of Missouri one of the biggest objections I hear is why do I need life insurance. I'm young, single and healthy. That is the best time to buy life insurance. The younger you are and the healthier you are the cheaper life insurance is.When you are still young and single you may not really need life insurance but that is the best time to buy it. A small whole life policy of 50,000 or maybe 100,000 is really is good investment for a young person. As long as y...(related: Insurance)
What Are The Differences Between A Cancellation Notice And Non-renewal Notice?
OK, you take that stroll down to the mailbox excitedly as you do everyday hoping to find the catalogue with all that neat stuff you want to buy or to find that magazine you love to read or to find that big check Uncle Bob sent! Come on, you know you love getting mail and really look forward to this daily ritual. You know that Mr. Postman has brought you something fun along with those pesky bills.However, sometimes you get mail that sca...(related: Insurance)
Health Savings Accounts (hsa): Do They Vary From State To State?
The Health Savings Account (HSA) is an amazing tool that a lot of people have been talking about. It is meant to help you save money on insurance and make your life simpler, maybe even help you be healthier.Is this tool available in all states? And are HSAs in each state the same?The Health Savings Account (HSA) was passed in the U.S. Congress in December 2003. It was signed by President George W. Bush. That means it is a federal law. The HSA is availa...(related: Insurance)
What You Need To Know About Auto Insurance
Let's be realistic, everyone needs to have auto insurance. Aside from the fact that almost every state requires it, it is only logical for a driver to see that his vehicle is properly insured. Auto insurance offers property, liability and medical coverage. A full policy c...(related: Insurance)
Term Life - Who Needs It?
If you've read any of the books or articles by popular personal finance gurus you've probably heard of the affordable life insurance alternative called Term life. Term life insurance Quotations are recommended by many popular personal finance gurus and can be a good choice for:· Young families or those on a limited budget, yet still need a large amount of life insurance.Are there family members who depend on your income and would be placed in financial crisis if you died suddenly? If so, term life might be an excellent option to protect those you care about most.· If you have large debts that you'll eventually pay off, such as your home mortgage or auto loan.Since younger people are less of an insurance risk, term life saves you money when you're young and gets more expensive as you grow older. Te...(related: Insurance)
Six Crucial Insurance Claim Possibilities
There are DOZENS of insurance claim possibilities which will increase the dollars awarded you in the settlement of your personal injury insurance claim. Some of them rarely see the light of day but some do. The six I've listed below are crucial for you to be aware of as you prepare to go to war with Adjuster Henry Hard-Nose regarding the value of your loss. They are:(1) EMOTIONAL REACTIONS TO YOUR INJURY: When it comes to placing a dollar value on the "Emotional Reaction" of an injury one enters into an area where most individuals, even experienced claims adjuster's and Legal Beagles, are at a loss.Four often ignored "Characteristic Symptoms" can be: Confusion, Anxiety, Depression ...(related: Insurance)
Tips For Choosing A Life Insurance Company
More than 150 insurance companies offer thousands of life insurance products in the UK.Choosing the right company and right product from this bewildering choice is challenging. Fortunately, there are some common sense guidelines th...(related: Insurance)
What Answers To Questions For A Home Insurance Price Quote Will I Need To Know?
Lets face it, finding the best home insurance price quote can be an aggravating task if you're not fully prepared with answers to the common questions that most insurance companies will ask. This article outlines the questions that an insurance agent will...(related: Insurance)