Insurance is important

Cutting down on your insurance appears easy when trying to lower costs, however many of these products are designed to cover you in times of need.

A review, 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 health insurance and 17% were considering reduceing pet insurance.

The CEO of Morethan, says that it is worrying when consumers cancel the very insurance that offer protection during hard times.
Tony Solomon, concurs with this opinion, 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 insurance are both too important to sacrifice. If the worst happened and you died, or fall terminally ill, then cancelling your cover could leave your family with nowhere to live, he says.

You are advised to talk to your insurer if you are having difficulty paying your monthly premiums, as they may be able to arrange a tempoary reduction in the amount of cover.

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 home 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 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, protection of your family is important. Therefore, it would be advisable to choose CIIC, which pays out a lump sum, rather than mortgage life insurance or health insurance.