As the cost-of-living squeeze starts to bite, many are looking to make savings on their monthly budget. Experts are warning families to think twice, however, before scaling back on essential protection.
The number of protection policies held by UK households has fallen by 8%1 year-on-year, research suggests. Worse yet, two in five people2 are now considering cancelling their life insurance policy in the near future.
A protection policy is an investment in your financial future – and the financial futures of your loved ones. Relinquishing this cover could be very costly.
Life insurance pays out as a one-off payment to support your dependents, ensuring they will not face hardship once you are no longer here to support them. Income protection, meanwhile, exists to support you financially if you are unable to work due to illness or injury.
A hasty cancellation could end up costing you more should you later decide to take out a new policy. Premiums are determined by age and health so the longer you wait, the more you will probably end up paying.
Here to help
There are ways to bring down costs without cancelling your policy. Talk to us to see if your cover still matches your needs.
As with all insurance policies, conditions and exclusions will apply
1iPipeline, 2022, 2NerdWallet, 2022