Mr Vodafone... you’re listening

Insurance Institute will publish a key report that looks at how the Government and insurers could work better together to ensure as many households as possible are protected against the financial consequences of long-term illness.

According to the report’s authors, 1million people every year suffer a prolonged absence from work due to illness. Only one in ten have insurance – income protection – to help them cope with any financial fallout. Most of the rest struggle to keep afloat, often plunging into debt.

The report comes up with a number of recommendations, all of which make great sense. For example, making it easier for people to find out what financial help is available if they suffer illness. They also urge the insurance industry to explain its products in words that people can understand. That would be a first. DEFRAUDING people out of their pensions is a despicable act. Sadly, it’s a crime that will not go away.

It often starts with a call out of the blue – a cold call – asking whether you would like to get your hands on your pension early (before age 55). Sometimes it’s a text. But irrespective of how it commences, the financial consequences for those who get persuaded to ‘liberate’ their pension are catastrophic.

In the worst case, your pension fund is syphoned offshore, never to be seen again. At best, you will be hit with a toxic mix of erosive charges and a big tax bill.

Financial adviser Darren Cooke is so incensed by these callers he has launched a petition on the parliamentary website demanding a blanket ban on any cold-calling related to pensions and investments.

Mutual insurer Royal London has just put its weight behind Mr Cooke’s campaign with boss Phil Loney stating it is unacceptable that vulnerable people (that is, most of us) continue to be exposed to such unscrupulous sales calls. Readers who feel the same can ‘sign’ Mr Cooke’s petition at petition. parliament.uk/petitions/166980. If 10,000 back it – 2,000 have so far – the Government will be forced to respond formally. Go on, sign it.