Life insurance enquiries down

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Life insurance enquiries fell by more than 50 per cent during June and July, according to a new report.

A study by Moneynet has found that both June and July saw only 4,000 people seek a life insurance quotation, a drop from 8,000 in May.

The firm believes that the excitement of the World Cup in June and Julys hot weather were two of the main factors behind the slowdown.

In addition, rising utility and council tax bills also had a part to play, with the usual take up of term assurance policies, which pay out upon death, especially affected.

The figures are a real cause for concern, as Moneynets chief executive, Richard Brown, explains.

"This is not so much a tail off as a catastrophic slump," he said.

"Life cover is as cheap as chips and it is perhaps a false economy to abandon it - the upshot is that homeowners with young children could leave themselves very vulnerable by ignoring this basic cover."

He added that a rise in interest rates could result in even fewer life insurance policies being taken out.

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