Insurance is important

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

A customer survey, done by AEIS, indicates that many of us will reduce our insurance cover to save money. 27 per cent of the consumers surveyed, planned to reduce their health cover and 17% were considering canceling pet insurance.

The chairman of Morethan, says that it is concerning when consumers cancel the very insurance that ensure their financial stability.
Tony Solomon, concurs with this opinion, saying it is dangerous to cancel you insurance, because loss of cover may adversely effect their family and themselves in the years to come. life cover and critical life insurance are both too important to sacrifice. If the worst happened and you were to die, or fall seriously ill, then cancelling your policy could leave your family with nowhere to live, 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 what is 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 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 pay an expensive vets bill in an emergency. So which policies are you safe to cancel? Referring to health 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 critical illness cover, which pays out a lump sum, rather than mortgage life assurance or health cover.