Affordability and cost of living
Things are a bit tight financially – should I cancel my policy?
We completely understand things are challenging for lots of people and as the cost-of-living increases, we know it might be tempting to consider cancelling your policy.
Before you make the decision to cancel, we’d like you to know the alternatives to cancelling, so you can make an informed decision.
Alternatives to cancelling your plan which can reduce your premiums may include:
- reducing your sum insured
- reducing the term of your policy
- removing elements of cover
Different products have different levels of flexibility, so give us a call or speak to your financial adviser and we can talk you through the options available based on your particular policy. If you don’t have a financial adviser and would like to speak to one, you can find one at unbiased.co.uk or vouchedfor.co.uk.
When you make changes to your policy, it’s really important to make sure you’ve still got the right amount of cover for the length of time you’ll need it.
Disadvantages of cancelling your plan
If your needs haven’t changed, cancelling it completely means you’ll lose the reassurance your policy provides in the event the worst happens. This is especially true if you still have people who depend on you financially or you need the cover provided by your policy to pay off a mortgage, loan or other debts.
If you do decide to cancel your policy and subsequently take out a new one on a like-for-like basis, your new premiums will be based on your age, health, and lifestyle at the time, which means they’re likely to be higher.
Managing your money in uncertain times
MoneyHelper has developed a series of useful guides and tools designed to help ease the squeeze when it comes to managing the rising cost of living.
Why not take a look here: Managing your money in uncertain times.
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Your Zurich policy gives you additional support
If you’re struggling, 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.