Its never too late to conquer your financial fears

There seems no end to the amount of seemingly everyday events and experiences that will bring people out in a cold sweat.

Some were more familiar with than others. We know, for example, what a torrid time cleaning the bath can be for arachnophobes, or the effect being in a crowd can have on claustrophobia sufferers.

But theres one phobia one that is rarely mentioned which, to judge by the circumstantial evidence, could be the most common of all chrematophobia

This is the scientific name for fear of money (the root stems from the Greek chremat, or wealth). And while its unlikely there are many people who will run a mile rather than hear the jingle of loose change or rustle of banknotes, the signs are the condition is more widespread than anyone might like to imagine.

For a start theres the seemingly unstoppable rise in credit card debt. Some experts suggest that having such easy access to plastic cards and zero per cent finance deals has cut off consumers from the financial realities of their desire for material possessions.

Then there are the repeated warnings about the shortfall in pensions, and the suggestion that many thousands of people are simply living in denial about the need to prepare and provide for their old age.

But its not just paying into a pension or paying off debts that give people the heebie-jeebies. More and more of us are also going without insurance of our homes, our cars, even our lives.

This weeks flooding has helped to highlight the seriousness of the issue. According to the Association of British Insurers (ABI) the average cost of flooding to homeowners is 20,000. The ABI believes one in four of those homes is likely to have no contents insurance. In total, the ABI estimates there may be as many as six million homes without contents coverage.

The proportion falls to one in 20 amongst car drivers, but a glance down any congested street shows just how many motorists are really represented by this statistic. The ABI points out also that motorists with no insurance are more likely to be driving unroadworthy vehicles, and, much worse, to be drunk while at the wheel.

Increasingly the burden created by these various uninsured groups is falling on the older generation. As the ABI noted in its Insuring Older People report earlier this year, the opportunities for insurers created by the rising personal spending power of older people are balanced by significant challenges.

Older customers present higher risks to insurers for some products, like motor and travel cover, it says, adding that this means they can sometimes pay more for those policies.

The report also notes that some insurers may not be able to offer cover if they lack the necessary underwriting expertise to serve this market. On the upside for older people, the ABI report says the average age limit for new motor insurance policies has risen to 82, from 74 a decade ago.

The ABI says it is developing a new referral system to help older customers get the cover they need. We envisage a system whereby an insurer which cannot provide cover to an older customer will direct them to alternative insurers or brokers that will be able to help so they are less likely to receive a simple refusal for a quote if they are over a certain age, for example.

The market also is adapting to the countrys changing demographic profile. Castle Cover, for example, is one of a new breed of specialist insurers targeting specific market segments, in this case the over-50s.

http://www.castlecover.co.uk

Launched last July by industry expert Andrew Marchington, with backing from HSBC Bank and Asset Ventures Ltd., the company says its specialist knowledge helps it find low cost, high quality insurance for people in this age group.

Castle Cover says the over 50s receive a poor deal on insurance. They tend to claim less frequently and do not exaggerate claims, unlike younger people, says its chief, Andrew Marchington. As a specialist, we therefore offer much more competitive prices to the 50+ group.

Having concentrated initially on home insurance, other products such as motor, travel and pet insurance now form part of the Castle Cover offering:www.castlecover.co.uk

James Zhao works with clients in insurance, travel and ebusiness. For more information on insurance, please visit http://www.castlecover.co.uk.Caitrin Blog28441
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