Cutting down on your insurance often seems ideal when trying to reduce outgoings, however many types of cover are intended to cover you in times of need.
A survey, done by The Telegaraph, indicates that many of us intend to cancel insurance to save money. 27 per cent of the consumers surveyed, planned to reduce their health cover and 17% were considering reduceing pet insurance.
The chairman of Amex Insurance Services, says that it is a bad sign when consumers cancel the very policies that offer protection during hard times.
Tony Solomon, confirms this opinion, saying you must think twice before cancelling, because loss of cover may have a damaging affect on their family and themselves in the years to come. term assurance and critical illness are both too important to sacrifice. If the worst happened and you died, or fall terminally ill, then cancelling your policy could leave your family with without hope, he says.
If you cannot afford your premiums you must talk to you insurer.
The BIBA, says that people do not appreciate what is involved in replacing possessions, if they are stolen. He advises everyone to take out home insurance, but to look at reducing your cover level, as they may not need every single item covered. For example, contents insurance costs about 149 pounds a year on average, you can reduce this by 25% by canceling the extra options.
Pet cover may appear to be unnecessary, but without cover you may struggle to be able to afford the vet bills. So which policies are you safe to cancel? Referring to health insurance, Solomon says that many people are fortunate enough to receive health insurance as part of their employment package. However, if this is not the case, it is of the utmost importance that you protect the future of your family financially. Therefore, it would be advisable to choose Critical illness, which pays out a lump sum, rather than mortgage protection insurance or private medical treatment cover.