Insurance.Do Not Cut It To The Bone
Cutting down on your personal cover is often the easy option when trying to cut outgoings, however many types of cover are used to protect you in times of need.
A review, undertaken for The Daily Mail, shows that many of us are planning to cancel insurance policies 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 Morethan, says that it is concerning when consumers cancel the very products that ensure their financial stability.
Tony Solomon, concurs with this view, saying people should think twice before cancelling, because loss of cover may adversely effect their family and themselves in the years to come. term life insurance and critical illness cover are both too important to sacrifice. If the worst happened and you died, or fall terminally ill, then cancelling your insurance 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 home insurance, but to look at the different levels of cover, as they may not need every single item 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 insurance 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 medical cover, Solomon says that many people have medical insurance with their employment. However, protection of your family is important. Therefore, it would be advisable to choose Critical illness, which pays out a lump sum, rather than mortgage cover or health cover.
This entry was posted on Monday, June 29th, 2009 at 5:12 am and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.