Giving up your insurance could be costly

As the cost-of-living squeeze starts to bite, many are looking to make savings on their monthly budget. Experts are warning families to think twice, however, before scaling back on essential protection.

Cutting back

The number of protection policies held by UK households has fallen by 8%¹ year-on-year, research suggests. Worse yet, two in five people² are now considering cancelling their life insurance policy in the near future.

A protection policy is an investment in your financial future – and the financial futures of your loved ones. Relinquishing this cover could be very costly.

Safety net

Life insurance pays out as a one-off payment to support your dependents, ensuring they will not face hardship once you are no longer here to support them. Income protection, meanwhile, exists to support you financially if you are unable to work due to illness or injury.

A hasty cancellation could end up costing you more should you later decide to take out a new policy. Premiums are determined by age and health so the longer you wait, the more you will probably end up paying.

Here to help

There are ways to bring down costs without cancelling your policy. Talk to us to see if your cover still matches your needs.

As with all insurance policies, conditions and exclusions will apply

¹iPipeline, 2022, ²NerdWallet, 2022

10 September, 2022

More news

21 January, 2025

Home insurance premiums are showing signs of stabilising after a period of significant increases, ac

Premium income for home and motor insurance has been rising sharply in recent years. In 2023 the growth rate was 8.8%, but in 2024 this slowed to an estimated 7.9% and is expected to keep easing in th

16 January, 2025

House prices are expected to stay on a positive trajectory over the course of 2025*.

House prices returned to growth in 2024, with prices increasing by 1.5% in the 12 months to October – an improvement on -1.2% the year before. The average UK house price is £267,000 and is expected

6 January, 2025

If you’re buying a home, home insurance is not the only protection you will need – you should al

Income protection If you are unable to work due to illness or injury, income protection insurance provides a replacement income. This is typically 50% – 65% of your earnings rather than the full