Cost is one of the most influential deciding factors that leads to people to cancelling Life Insurance.
While Life Insurance isn’t typically expensive, some people may think that it is an unnecessary outgoing. That’s why many people with money troubles consider having their policy cancelled to cut costs.
Before you cancel your policy, it may be a good idea to think carefully about what your premiums buy you and whether the cost is worth the reward.
Can Your Family Afford To Not Have Life Insurance?
Cancelling Life Insurance could mean that you leave your family without any financial support if you were to pass away.
If you are not immediately struggling to keep on top of your premiums, it may be worthwhile to keep up with your Life Insurance policy. That way, your family will always have some money to fall back on should you pass away.
If you feel that your premiums are too costly for comfort, there are other ways of saving money aside from cancelling your cover.
Cut Costs or Cancel Your Policy?
There are some changes that you can make to your policy in order to reduce the cost of Life Insurance. This includes decreasing your policy’s payout if it’s more than you currently need (i.e. more than your current outstanding liabilities, such as a mortgage).
If you would prefer to find a cheaper policy with a different insurance provider, you should consider speaking to an insurance adviser with access to the whole market.
This is especially the case if you’ve had the insurance policy for a while and are older than you were when you took it out, or if you’ve suffered any medical conditions since taking out the policy.
Age and medical history will be major factors in deciding the price of a new policy, so it may be that moving to another provider doesn’t save you money at all when all’s said and done.
In the end, if you’re really finding it difficult to cover the cost of your premiums then it may be best to cancel your policy. However, Life Insurance is not usually an expensive protection product and offers considerable benefits for your loved ones.
Independent Protection Expert at Drewberry