Insurance.Do Not Cut It To The Bone

Cutting down on your personal cover seams ideal when trying to lower outgoings, however many of these products are designed to protect you in times of need.

A survey, carried out on behalf of AEIS, indicates that many of us will cancel insurance to reduce costs. 27 per cent of the consumers surveyed, planned to reduce their health insurance and 17% were considering canceling pet insurance.

The chairman of AIS, says that it is concerning when consumers reduce the cover of the very products that offer protection during hard times.
Tony Solomon, concurs 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 life insurance are both too important to sacrifice. If the worst happened and you died, or fall critically ill, then cancelling your insurance could leave your family with nothing, 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 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 insurance 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 cover, 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 CIIC, which pays out a lump sum, rather than mortgage life assurance or medical insurance.