Banks, insurance companies and brokers are “cold calling” people at the moment offering them a free financial review.
But be wary. What they are really at is trying to push protection polices, like life insurance, on consumers.Do not become a victim of insurance mis-selling.
Sales of mortgages, pensions and investments products have collapsed. As a result, the emphasis has now switched to pushing products such as life insurance, serious-illness cover and income protection.

I have received two cold calls – one from a from a life company I have never dealt with - suggesting that a representative sit down and do a review of my finances. But as soon I told them what I do for a day job, the phone call ended.
Now, why is it that the man from the life company who rang my home did not want to go ahead and arrange the appointment once he learned that I wrote about personal finance?

 

• Be aware that in a recession sales of these types of protection policies traditionally rocket as consumers become much more risk-adverse.

•  If you do agree to a request from your bank, life company or broker to sit down and discuss your finances, make sure you do not end up being sold something you do not really need.

• Because those who sell protection policies are adept at playing on your fears and they sometimes use scare tactics to get you to sign up for additional and unnecessary cover.

The basic policies you need are motor, home and life cover.
If you have a mortgage, you will have been required by the lender to take out mortgage-protection insurance, so that ticks the life-cover box.
Note that you may also have life protection and/or income protection as part of your company pension – many people have.
Also note, that credit unions offer some of the best rates on life insurance, if you need that, through a mutual company called CUNA Life.
During the boom many people were sold inappropriate life products. Check that the cover you have is what you need and that you are not paying too much.
For more information, see the Regulator’s website, at www.itsyourmoney.ie, under ‘Planning for the future’.