16 Dec It’s never a good idea to cancel your insurance!

We understand times are tough for everyone. With Christmas looming fast and finances seemingly stretched further each day, there’s a rising number of individuals in the UK that are cancelling their insurances to save a bit of money.

When looking to save money, it is always the things we can’t physically see that are the first to go and insurances fall into that category. You aren’t getting anything physical each month that you pay so it is easy to think ‘that’s one to cancel’ – and by just cancelling a direct debit, it’s also a cancellation that doesn’t involve any human interaction to dissuade you from doing so.

So what are the implications of cancelling insurances?

If you have life, critical illness and /or income insurance and you cancel, it’s simple – should you need to make a claim you will be unable to do and you will lose any premiums paid. It’s a real waste of money to try and save some cash in the short term!

If you cancelled your income protection for example and needed time off work for an illness or stress, you would have no safety net to fall back on, with the assumption that you have cancelled insurances as you have no savings for a rainy day. This will add to an already troublesome situation and can leave you wondering how you are going to pay for your mortgage or rent as well as all your other bills.

If you cancelled your critical illness and were suddenly diagnosed with a condition or illness, again you would be unable to claim and that cash payout that you would have been entitled to would no longer be payable and, again, the financial stress and strain will be added to your plate.

If you drive a vehicle, you don’t cancel your car insurance when times are hard, so why would you cancel your personal insurance?

If you are struggling and need some advice, speak to our friendly insurance team who may be able to help with the level of cover you have to help make things more affordable. But please, whatever you do, do not cancel your insurances – you never know when you will need them, and it could be sooner than you think!