A Shout Out for Insurance

The UK insurance industry is the 4th largest in the world and over 300 years old. We often buy motor and home insurance and some of us buy life insurance. Most working adults have long-term saving products, like a work pension. Why buying insurance/long term savings is a good thing?

Disaster strikes

The key role of insurance is providing financial support when trouble strikes. Insurers pay an average of £38m in property and motor insurance claims each day. Over £250 million is paid out in claims centered around holidays. Pet insurers paid over £730m dealing with pet claims 2021.

Dealing with risk

Insurance protects people and businesses against the risks, by providing financial compensation from an insured event. Without insurance, people would be less likely to:

• buy their own home, as a fire or flood could destroy their investment. Even a single road accident could result in them being sued for thousands.
• start their own business, as being the owner, they would be responsible for the cost of a fire or an accident or theft.
• think about controlling risks, such as an intruder alarm to reduce the break in risk.

Long term saving is key

While pensions can be a complicated to understand, insurers provide a way of saving for retirement. Long term insurers pay out over £184m a day to pensioners (that’s in addition to the State Pension). Pension saving include tax benefits both for contributions and a 25% tax-free lump sum upon retirement. Pension schemes are available through employers, where staff make regular contributions to a long-term insurer. The self-employed or those not working can set up a personal pension. To enjoy a decent standard of living, it's better to save some extra money in a personal pension fund. 

ChildMax continues to ensure your salary and pays your take home salary while you’re on 12 months’ unpaid leave, caring for a sick child. It starts from £49.50 or for easy budgeting an initial payment of £8.25 followed by 11 monthly payments of £3.75.

 Visit at www.insurewithmax.com or call the UK call centre 0333 323 0098 for more information.

 Sources:

https://portfolio.cpl.co.uk/ABI-KeyFacts/2022/general-insurance/

https://www.abi.org.uk/globalassets/files/publications/public/abi/securing-our-future---succeeding-in-an-uncertain-world.pdf

https://www.abi.org.uk/globalassets/sitecore/files/documents/publications/public/migrated/how-insurance-works/abi-insurance-in-the-uk_the-benefits-of-pricing-risk.pdf

https://www.abi.org.uk/globalassets/files/publications/public/lts/abi_bro3906_pensions_savings_research_v4.pdf

Date: 06 February 2023 by Max Robinson