Warning against the cancellation of life insurance policies

The cost-of-living crisis has seen people considering cancelling their life insurance payments to save money. 

Research carried out by insurance company, Vitality, suggested that only three out of ten respondents considered life insurance as a financial imperative.

It also revealed that a majority of people did not consider life insurance policies as something of importance to them.

The research also suggested that even people who took out policies to protect their families are reconsidering their options.

Much of this is related to financial pressures with money needed for what people considered more pressing financial priorities.

Nevertheless, nearly 40 per cent surveyed said they had never considered cancelling or switching an existing policy. A quarter had also never considered cancelling or moving serious illness or income protection policies.

One significant issue arising was the fact that policyholders were not fully aware of the value of their policy.

It is essential to know the value of and the specific terms and conditions linked to life insurance, payment protection and illness cover policies. If in doubt, contact a financial professional.