Insurance

Turning to the field of life assurance, insurance statistics show that the chances of a normal, healthy man of 35 still being alive at the ages of 60, 70 and 8o are respectively about 85, 65 and 3o per cent.

Of course, these statistics apply to the famous Mr Average' rather than to any particular person ; some of us unfortunately die prematurely, while others live to a ripe old age.

The type and amount of insurance you need depend on individual circumstances, but before you decide what private insurance you require, do not forget that you are already covered for certain benefits by the state's compulsory National Insurance scheme. In the personal field this at present extends mainly to health, unemployment and pensions insurance, while, in the industrial field, it principally covers industrial accidents.

Although the only compulsory insurances in the private insurance sector are for motor insurance and employer's liability (operators of nuclear reactors must also insure), many people find that they are sometimes given very little choice in particular forms of insurance. You may find, for example, that one of the conditions of your employment is that you should join your employer's private pension scheme.

Another example may arise when a building society or insurance company insists that you take out an insurance policy as a condition for obtaining from them a mortgage or other loan.

(The life policy required in this instance is to protect the lender against your dying before the loan has been repaid.) Both examples are, in fact, semi-compulsory insurance, because in practice you have little choice over whether or not you will take the insurance.

Once you have assessed the compulsory insurance which you already have, your next step is to assess what other types of insurance, if any, you need in addition.

Here, again, you may find in certain cases that you have little choice, for certain types of insurance are essential simply for your peace of mind.

For example, if you own your own home, you should at least insure the building and its contents against fire, accidental damage or theft ; if you are married with children, you should take out life assurance to protect your dependants. Professional people with specialized jobs may require insurance.

Solicitors, accountants, architects and doctors, for example, need cover against claims arising from their professional advice. Shopkeepers, hoteliers and road haulage contractors all require insurance against damage to third parties.




Insurance

read on: Priorities and Background

Turning to the field of life assurance, insurance statistics show that the chances of a normal, healthy man of 35 still being alive at the ages of 60, 70 and 8o are respectively about 85, 65 and 3o per cent.
Of course, these statistics apply to the famous Mr Average' rather than to any particular person ; some of us unfortunately die prematurely, while others live to a ripe old age.

The type and amount of insurance you need depend on individual circumstances, but before you decide what private insurance you require, do not forget that you are already covered for certain benefits by the... see: Priorities and Background