Inflation hit new heights in October, with a rise of 11.1% year-on-year1, driven mostly by essentials such as food and fuel. As the increasing cost of living continues to impact on people’s lives, it is more important than ever to remember another financial essential – protection insurance.
Protection is a vital part of long-term financial planning. With the right protection for your unique needs, you have an indispensable safety net for any unexpected downturns in your financial situation.
As inflations soars, people are, understandably, trying to pinch every penny. Indeed, one in 10 respondents to a recent survey2 said they had given up insurance policies such as life insurance, private health insurance and income protection specifically to save money.
Ditching your protection policy may seem like an opportunity to save on your monthly outgoings. In reality, however, it can have a disastrous effect on your financial wellbeing.
As well as leaving you and your loved ones without essential cover, cancelling your protection now can mean you end up paying more if you decide to take out a new policy in the future. Premiums are determined by age and health so the longer you wait, the more you will probably end up paying.
Think about any other spending that could be cancelled first. Remember that cancelling protection can undermine a carefully constructed financial plan.
Support when it’s needed
Life insurance pays a lump sum to cover costs if the policyholder dies unexpectedly or prematurely; income protection supports you if you are unable to work due to illness or injury, while critical illness cover pays out if you are diagnosed with a specified illness.
All provide vital protection for you and your family, making sure you can meet financial commitments and giving you the peace of mind that your loved ones will not face hardship.
For all budgets
Soaring prices and bills are undoubtedly making things more challenging right now; that’s why it is more important than ever to have the right protection for your needs. A suitable protection policy provides certainty in the most challenging times.
There are protection options for all budgets and ways to save money on your policy if your affordability has changed. Think about whether the level and type of cover you have is suitable for your current needs; if your circumstances have changed, it is possible that you might need to update your cover too.
Here to help
Don’t cancel in haste – it is important to speak to your adviser if you are thinking about changing your protection. Policies start from a few pounds a month – we can help you find the right cover for your unique needs. Contact us today to see how we can help.
As with all insurance policies, conditions and exclusions will apply
1 Office for National Statistics
2 Charles Stanley