The increasing cost of living in the UK
Household incomes continue to be heavily impacted by higher prices, rising taxation, and the ongoing effects of conflicts in Ukraine and global trade tariffs.
As a result, you may be reviewing your current outgoings and looking for ways to make a saving. But be careful what you cut, making some savings now could cost you a lot more in the long run. This is particularly true with life protection.
If you’re thinking about cancelling your life cover, you should consider the long-term affect this may have for you and your family.
Firstly, if you cancel you won’t be covered if the worst happens. Secondly, it’ll cost you more when you come to replace your lost cover. This is because, you’ll be older and your state of health might change meaning the cost of cover would increase.
You should consider alternative options which will keep you protected and continue to provide peace of mind during these unprecedented times.
Remember:
You took out cover for a reason! Unless your circumstances have changed, your cover gives you financial protection you need if the unexpected happens.
Cancelling your life insurance policy now is likely to mean you pay more for the same cover in the future, because any future replacement cover is based on your age, health, and lifestyle factors as at the time of taking out protection.
In some circumstances, if your health declines, you may not be able to get cover at all.
What are my options to keep my life cover if I can’t afford the payments?
We understand there is a lot to consider, and we are here to help. Rather than simply cancelling your cover, many of our policies provide flexibility which allows you to reduce your premium by reducing the level of cover, or the sum insured, rather than cancelling completely. We’ve provided further information on how you can manage your life insurance.
You can also call us. Although we can’t provide advice, we can help you understand the options available to make an informed decision on what’s best for you.
If you have a financial adviser, we recommend speaking to them first so they can guide you through the options available based on your personal circumstances and what’s right for you.
Life insurance: help and support
Don’t forget your policy benefits may include Zurich Support Services, which is an option you might want to explore. It’s included as standard in some of our policies and offers help and support with anything from day-to-day worries to financial concerns.
You can also access independent support through sites such as Money Helper and the Citizens Advice Bureau. We’ve included the links here too in case that helps:
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