June 25th, 2009Insurance is important
Cutting down on your personal cover often seems ideal when trying to cut outgoings, however many policies are designed to protect you in times of need.
A review, undertaken for American Express, 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 insurance and 17% were considering a reduction in pet cover.
The managing director of Morethan, says that it is concerning when consumers cancel the very insurance that offer protection.
Tony Solomon, confirms this view, saying people should think twice before cancelling, because loss of cover may adversely effect their family and themselves in the years to come. life insurance cover 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 insurance could leave your family with nowhere to live, 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 overall value of their possessions and the cost of replacing them, if they are stolen or damaged. He advises everyone to take out buildings and contents insurance cover, but to look at the different levels of cover, as they may not need all your possessions covered. For example, contents insurance costs about 149 pounds a year on average, but you should be able to save 25% by cancelling accidental damage and personal possessions cover.
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 insurance, 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 critical illness cover, which pays out a lump sum, rather than mortgage protection insurance or private medical treatment cover.