Do not cut your insurance down
Cutting down on your personal cover seams ideal when trying to reduce costs, however many of these products are designed to protect you in times of need.
A survey, undertaken for American Express Insurance Services, has shown that many of us intend to cancel insurance to save money. 27 per cent of the consumers surveyed, planned to reduce their medical insurance and 17% were considering reduceing pet insurance.
The chairman of Amex Insurance Services, says that it is a bad sign when consumers cut back on the very products that offer protection during hard times.
Tony Solomon, agrees with this view, saying do not cancel you policies, because loss of cover may adversely effect their family and themselves in the years to come. Life insurance and critical illness are both too important to sacrifice. If the worst happened and you were to die, or fall terminally 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 BIBA, 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 contents insurance, 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, 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, protection of your family is important. 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.
