UK Life Insurance Cover

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How does the law relate to my purchase of Life Insurance?

There are a number of important regulations that affect the purchase of Life Insurance.

The following information should be relevant as you consider purchasing Life Insurance on the Internet. You should regard this information as a useful introduction. It is not designed to cover everything, but it should help to get you started.

If you want more background information about the regulation of Life Insurance Companies and Insurance Brokers, you can visit the website of the Financial Services Authority at www.fsa.gov.uk.

You will find that you need to reside in the UK in order to purchase Life Insurance from a UK-based Life Insurance Company. Although this is not actually specified in UK law, the law does make it impossible for a UK-based Life Insurance Company to sell Life Insurance to anyone who does not live in the UK.

There is no law that says you must have Life Insurance. In the UK, this is a form of insurance that you can choose to have or not.

The Insurance Company that you purchase your policy from will be subject to all UK Corporate Laws. In addition, there are laws that only apply to Insurance Companies. Such laws regulate the risks that Insurance Companies take on in relation to their financial reserves. These laws are designed to make sure the Insurance Company will be in a position to pay out if you make a claim.

The Data Protection Act 1998 is another important piece of legislation. It is concerned with the way UK organisations store, safeguard and use the information that they have collected about you. This is obviously important for Insurance Companies who will hold a lot of personal data such as medical histories. The Data Protection Act means that your data cannot be passed on to another company without you being given the opportunity to refuse permission for this use. Reputable websites that sell Life Insurance will have a Privacy Statement that explains how they use the information they hold. Brokers Online provide the privacy statement for us, as they hold and maintain your details. It is a good idea to take time to read this statement.

The other vitally important piece of legislation is the Financial Services and Markets Act (2000). Click on the question below for more details.

Other relevant questions…

What’s important about the Financial Services and Markets Act (2000)?
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