Insurance Information

Many life insurance customers are opting to cancel their life insurance cover as a way of fighting the recession. The number of people who do not buy insurance is increasing for the same reason.

The research found that more people are either failing to renew their premiums or are cancelling them to help reduce costs during the downturn.

However, according to ABI Research, choosing to cut back costs by cutting back on insurance is a false economy. A spokesman said: “It's a false economy. Life insurance may seem expendable when family budgets are being squeezed, but people should think long and hard about the most sensible places to made savings rather than rashly cancelling essential life insurance cover. People should only cancel their cover if it's the last resort.

In uncertain times life insurance provides a vital financial safety net to steer individuals and families through the recession, as well as helping to provide long-term security. Ditching life insurance or reducing cover must only be a last resort.

According to life insurance experts, those who opt out of insurance are more likely to have to pay more in the long run. They warn customers that the cost of insurance increases as the policy holder gets older.