Continued high inflation is prompting many people, particularly those over 50, to question whether paying for life insurance is money well spent. These findings* have sparked fears of vulnerabilities.
Cutting costs
The survey of 1,000 over 50s has shown that 22% of customers are thinking about cancelling their monthly premiums because of the rising cost of living. Those with fixed incomes, such as retirees, are particularly susceptible to rising prices, the research claims.
Although cutting back on spending might be a necessary choice, cancelling life insurance policies can end up costing you and your family further down the line. As well as leaving your loved ones without vital protection now, if you cancel your policy, it will likely cost you more in the future should you choose to take out a new plan.
Gender imbalance
More women are considering cancelling than men, according to the research. Some 20% of women with an over-50s life insurance plan are considering no longer paying, compared with 17% of men.
Take time
Protection is an essential part of long-term financial planning for everybody. In the short term, rising costs are posing challenges for many. But having the right insurance cover for your unique needs is an indispensable safety net for you and your loved ones.
Before you cancel your life insurance premiums, it is important to think of the wider impacts for your financial commitments and your family. Get in touch to discuss your options.
*Scottish Friendly, 2023
Approver Quilter Financial Services Limited & Quilter Mortgage Planning Limited. 19/10/2023
You can find the research here.
