TOUGHER times are leading people to ditch insurance policies to help them save a bit of money – but this could leave their families seriously struggling.
According to investment firm Charles Stanley, one in 10 adults has given up cover, such as life insurance and income protection, and a further one in five plans to stop policies to keep up with the cost of living.
Fewer than one in four have life insurance to help support their family should the worst happen, while only one in 10 of us has critical illness or income protection.
It is vital that everyone has their finances protected, with the right cover at the right price. Latest figures from Scottish Widows reveal it handed out an average of £3.8million per week, paying out more than 98% of life insurance and critical illness claims in 2022. Critical illness claims were up 11% in 2021.
Rose St Louis, protection director at Scottish Widows, said: “When you hope for the best in life, it’s difficult to spend time planning for the worst.
“People often grudge-buy insurance policies as something they hope to never need. But that’s when our promise to protect customers in their toughest moments kicks in.
“Putting the right cover in place means your family will not have the additional distress of making ends meet after losing a loved one.
“It can also help ease the worry that if you were unable to work from a critical illness, then you could still manage financially.”
LIFE INSURANCE EXPLAINED
What: A policy that pays out a lump sum on your death. There are two types: Term Assurance covers a fixed period of time, say 10 or 20 years and pays out if you die during that term.
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