Consider your insurance options
Cutting down on your insurance often seems ideal when trying to reduce costs, however many insurance policies are designed to provide help to you in times of need.
A customer survey, carried out on behalf of The Telegaraph, indicates that many of us will reduce our insurance cover to save money. 27 per cent of the consumers surveyed, planned to reduce their health insurance and 17% were considering canceling pet insurance.
The chairman of Morethan, says that it is a worrying development when consumers cut back on the very insurance that offer protection.
Tony Solomon, agrees with this opinion, saying do not cancel you policies, because loss of cover may adversely effect their family and themselves in the years to come. life insurance cover and critical illness cover are both too important to sacrifice. If the worst happened and you died, or fall terminally ill, then cancelling your policy could leave your family with without hope, he says.
If you cannot afford your premiums you must talk to you insurer.
The BIBA, says that people do not appreciate the process and cost involved in replacing possessions, if they are stolen. He advises everyone to take out home insurance, but to look at the different levels of cover, as they may not need all your possessions covered. For example, contents insurance costs about 149 pounds a year on average, a reduction of 25% maybe possible by cancelling extra options on the policy.
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 get free health insurance from their employers. However, protection of your family is important. Therefore, it would be advisable to choose Critical illness, which pays out a lump sum, rather than mortgage protection insurance or health insurance.
This entry was posted on Saturday, May 30th, 2009 at 5:14 am and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.