Insurance is important
Cutting down on your insurance appears easy when trying to cut costs, however many policies are designed to cover you in times of need.
A customer survey, undertaken for The Daily Mail, indicates 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 health insurance and 17% were considering reduceing pet insurance.
The managing director of Amex Insurance Services, says that it is a bad sign when consumers cancel the very insurance that offer protection.
Tony Solomon, confirms this opinion, saying it is dangerous to cancel you insurance, because loss of cover may have a damaging affect on their family and themselves in the years to come. life assurance and critical illness insurance are both too important to sacrifice. If the worst happened and you were to die, or fall critically ill, then cancelling your policy could leave your family with nothing, he says.
If you cannot afford your premiums you must talk to you insurer.
The British Insurance Brokers Association, says that people do not appreciate the process and cost involved in replacing possessions, if they are stolen. He advises everyone to take out contents 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, 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 medical cover, Solomon says that many people get free health insurance from their employers. However, protection of your family is important. Therefore, it would be advisable to choose CIIC, which pays out a lump sum, rather than mortgage protection or health insurance.