Insurance.Do Not Cut It To The Bone
Cutting down on your personal cover often seems ideal when trying to lower outgoings, however many types of cover are intended to protect you in times of need.
A review, carried out on behalf of The Telegaraph, shows that many of us intend to cancel insurance to save money. 27 per cent of the consumers surveyed, planned to reduce their medical cover and 17% were considering reduceing pet insurance.
The CEO of AIS, says that it is a bad sign when consumers cut back on the very products that ensure their financial stability.
Tony Solomon, concurs with this view, saying it is dangerous to cancel you insurance, because loss of cover may adversely effect their family and themselves in the years to come. life cover and critical illness cover are both too important to sacrifice. If the worst happened and you were to die, or fall seriously ill, then cancelling your cover could leave your family with without hope, he says.
Your insurer maybe able to help if you cannot afford your premiums so give them a call
The British Insurance Brokers Association, says that people do not appreciate the process and cost involved in replacing possessions, if they are stolen or damaged. He advises everyone to take out buildings and contents insurance cover, but to look at reducing your cover level, as they may not need all your possessions covered. For example, contents insurance costs about 149 pounds a year on average, a reduction of 25% maybe possible by cancelling extra options on the policy.
Pet cover may appear to be unnecessary, but without cover you may struggle to cover the vet bills. So which policies are you safe to cancel? Referring to health cover, Solomon says that many people get free health insurance from their employers. However, you must protect your families finances. Therefore, it would be advisable to choose Critical illness, which pays out a lump sum, rather than mortgage cover or medical insurance.