Date published: 27th Nov 2022
Concern as consumers cut back on cover
Fewer than one in four people has a life insurance policy that would support their family in the event of their death, a new study has found. As the cost-of-living burden worsens, experts fear that the protection gap could continue to widen.
Indeed, a tenth of respondents said they have already given up one or more insurance policies to save money. Withdrawing cover in tough times is a risky decision that could leave your family exposed to financial shocks.
A policy for life
Life insurance is a crucial safety net that exists to protect your family’s financial life into the future, ensuring they will not face difficulties once you are no longer around to support them.
In the short term, cutting back on cover could put a few extra pounds in your pocket. However, relinquishing protection could be very costly should the unexpected occur while you are not covered.
It can also end up costing you more should you later decide to take out a new policy because premiums are determined by your age and health condition.
Here to help
In difficult economic circumstances, the right cover helps build your financial resilience. If you are struggling with the cost, talk to your adviser to see if your cover still matches your needs.
As with all insurance policies, conditions and exclusions will apply