Food & Drink

Insurance.Do Not Cut It To The Bone

Cutting down on your personal insurance cover appears easy when trying to cut outgoings, however many insurance policies are intended to protect you in times of need.

A review, done by The Daily Mail, has shown that many of us are planning to cancel insurance policies to save money. 27 per cent of the consumers surveyed, planned to reduce their medical cover and 17% were considering a reduction in pet cover.

The managing director of AIS, says that it is a bad sign when consumers cut back on the very policies that ensure their financial stability.
Tony Solomon, confirms this view, saying you must think twice before cancelling, because loss of cover may have a damaging affect on their family and themselves in the years to come. life cover and critical illness insurance are both too important to sacrifice. If the worst happened and you were to die, or fall terminally ill, then cancelling your insurance could leave your family with bankrupt, he says.

Your insurer maybe able to help if you cannot afford your premiums so give them a call

The BIBA, says that people do not appreciate the overall value of their possessions and the cost of replacing them, if they are stolen. He advises everyone to take out home insurance, but to look at reducing your cover level, as they may not need every single item covered. For example, contents insurance costs about 149 pounds a year on average, but you should be able to save 25% by cancelling accidental damage and personal possessions cover.

Pet insurance may appear to be unnecessary, but without cover you may struggle to be able to afford the vet bills. So which policies are you safe to cancel? Referring to medical cover, Solomon says that many people have medical insurance with their employment. However, you must protect your families finances. Therefore, it would be advisable to choose Critical illness, which pays out a lump sum, rather than mortgage protection insurance or medical insurance.

 

 

Find People Free

This entry was posted on Thursday, July 2nd, 2009 at 12:40 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.