Real Life Cover

Article published on 4th August 2008

With the threat of recession looming over us all, there are some economists who believe unemployment may soon hit as many as two million people. The high visibility redundancies in the financial and property sectors are also fuelling concerns.

Yet despite the findings of the Yorkshire Building Society (as explored in the last few articles), even as confidence in the economy has deteriorated, sales of accident, sickness and unemployment (ASU) policies are apparently increasing - at least according to The website has documented a 15% increase in sales for such products, probably because of daily news stories about the effects of the credit crunch hit home.

To help combat this rising insecurity in a sort of one-stop shop, Lifesearch has launched a new sort of insurance policy along with Fortis called 'Real Life Cover'. This offers life insurance, income protection and basic critical illness altogether in one plan, to which unemployment cover can be added. The idea here is that if one part of the policy doesn't pay out then another section will.

As things stand the policy is only available from Lifesearch, Asda and Fortis, although plans are afoot to distribute the product more widely as the opportunity arises. Also, other companies are likely to begin offering very similar products before long.

But this form of 'complete' insurance is not without its critics, as we will be exploring over the next few articles.


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