With all the economic uncertainty, we understand that it might feel tempting to cut costs where you can by cancelling protection. But it’s more important than ever to have the appropriate cover now so you don’t pay a bigger price further down the line. 

More are cancelling their cover

Research has found that 26% of workers ended an insurance policy last year, with financial pressures cited as the main reason1. The proportion of people who ended their cover due to higher living costs increased from 4% to 7% when compared with 2022. The report has also indicated that consumer focus has shifted when it comes to insurance – the demand for private health solutions and cash plans rose by 11% and 5% respectively, exceeding the demand for life insurance and income protection. But the latter two are vital forms of protection and should not be ignored.

The importance of life insurance

If you have a job that provides you with a death-in-service benefit, that doesn’t mean your life cover is superfluous – if you lost your job, you would lose that safety blanket, too. While other payments may be rising due to high inflation, the cost of your existing life insurance is guaranteed to stay the same. But if you cancel your policy, you will go back to square one as life insurance premiums generally cost more the older you are when you take it out.

Income protection is valuable

How would you fund your living costs if you were signed off work for an extended period of time? If you are unsure, the security offered by income protection should be considered. It serves a different purpose to critical illness cover, which normally pays out a lump sum in the event of specific illnesses. Income protection, on the other hand, will support you financially if you are unable to work due to any injury or illness. The cover will replace your earnings until you are well enough to return.

Get in the know

24% of those who cancelled an insurance policy last year did so because they had never made a claim. But you don’t always have to make a claim in order to benefit from having protection. Many insurers include free advantages that you can benefit from now, however only 49% of UK workers were aware of those additional perks. For example, some insurers provide access to wellbeing support, discounted health checks and gym memberships.

Make it work for you

We know there are many kinds of cover to get your head around, but we help you take control and get on top of your protection. 40% of people said that affordability was a priority when choosing an insurance policy, so we can work with you to find the right level of cover at a price you’re happy with.

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

1 The Exeter