Direct Line stops selling life insurance
Insurance company Direct Line has pulled out of the life insurance market.
The company announced on its website it would stop selling life insurance policies and would not be accepting any new applications.
Existing policies remain in place in line with the terms and conditions of the individual policy.
A message on the company website said: "[Direct Line] is no longer accepting new applications for life insurance or life cover with critical illness. We apologise for any inconvenience this may cause."
Paul Cowman, spokesperson for Royal Bank of Scotland, the parent company of Direct Line, says: "Following a strategic review of Direct Line Life, we identified that it needed considerable investment to improve its infrastructure.
"We explored a number of options to address the future of the business, but unfortunately none of them provided a viable solution that would benefit our colleagues, customers and stakeholders."
Existing customers who would like more information about their policies can contact the company through its website or on 0845 246 8123.
Direct Line will continue to sell a host of other insurance policies including, car, travel, home, pet and breakdown cover.
Generally thought of as being interchangeable with life assurance, but isn’t. Life insurance insures you for a specific period of time, at a premium fixed by your age, health and the amount the life is insured for. If you die while the policy is in force, the insurance company pays the claim. However, if you survive to the end of the term or cease paying the premiums, the policy is finished and has no remaining value whatsoever as it only has any value if you have a claim. For this reason, life insurance is much cheaper than life assurance (also called whole of life).