Why you shouldn’t cancel your insurance

Although it might feel tempting to cut costs, there are many reasons why you shouldn’t cancel your insurance policies. In uncertain economic times, it’s more important than ever to have the appropriate cover in place. This can also ensure that you don’t pay a bigger price later down the line. The right approach is to check the level of cover your policies provide.

According to research published in The Exeter, 26% of workers stopped an insurance policy in 2023, citing financial pressures as the top reason. Compared with 2022, the percentage of people who stopped their insurance due to higher living costs increased from 4% to 7%.
Conversely, the demand for private health solutions rose by 11%, which is greater than the demand for life insurance and income protection. But these policies should not be ignored.

Insurance policies, such as life cover and income protection, provide you and your family with a much-needed financial buffer for emergencies and unexpected events. With the right level of cover in place, insurance payouts could significantly alleviate the stress on your loved ones, should anything happen.

Insurance protects you should the worst happen

Nobody can predict the future, so it’s impossible to know whether you will ever need to use some types of insurance policy. However, if you fell ill and could not pay your mortgage or

household bills, a critical illness policy provides you with a lump sum. If the worst happens and you or your partner die unexpectedly, a life insurance payment could settle your debts. If you have children, it is advisable to consider taking out a life insurance policy.

A SunLife report found that 27% of adults took out a life insurance policy to pay for a funeral. As the average cost for funerals is higher than ever at an estimated £9,658, this outgoing could prove expensive for many people. A life insurance payout would alleviate this burden, allowing families to grieve without additional financial stress.

Research by The Exeter found that 40% of people said that affordability was their main priority when they chose an insurance policy. But imagine the cost of not having insurance? When it comes to home insurance, a common scenario, for example, is when the policy does not provide adequate cover for someone’s home. When an application has been completed incorrectly, this could result in a policy not paying out in an emergency.

Check your existing policies

As insurance advisers, we often check people’s policies and discover they do not have an adequate level of cover in place. Before you take out life cover, critical illness, income protection or home insurance, always get professional advice. Our insurance advisers can work with you to find the right level of insurance cover at a cost you’re happy with.

At Bubble Finance Hub, our bespoke approach to insurance ensures you have a suitable policy and level of cover for your needs. Our experienced team have the ability to check hundreds of mortgages and our advice is always tailored to your exact circumstances.

If you need insurance advice, please get in touch to book an appointment.

As with all insurance policies, conditions and exclusions will apply.

Thank you for reading our blog, Why you shouldn’t cancel your insurance.

Bubble Finance Hub