Life-changing events can mean that insurance policies become unsuitable - but millions may not be aware of this, new research has revealed.
More than ten million Britons could be paying for the wrong insurance policy as a result of a change in their circumstances, Barclays has claimed.
A new job, a child or getting onto the property ladder could all mean that the cover people are paying for is no longer suitable for them, particularly in the life insurance, income protection and critical illness cover markets. This could become even more important, as unemployment and repossessions are tipped by analysts to increase over 2009.
Research by Barclays found that more than four in ten protection policy customers have had such an event since they last revised their cover.
David Stuart, director of advice and products at Barclays Financial Planning, warned that purchasing a policy was not "the end of the matter". He continued: "It is crucial that people think about updating any cover, or switching to different types of products if, for instance, they have a child, get married or buy a house."
However, he suggested that a large part of the problem could be that people are unaware what the policy covers at point of sale. The firm found that almost 40 percent of respondents did not take professional advice when buying insurance, while more than a tenth were unsure if they had.
