UK cutting back on their life insurance policies

Shocking figures have emerged showing that a growing number of people in the UK are starting to cut back on their critical insurance policies, deciding that they can no longer afford them. The recession and amount of disposable income people have these days is starting to have an affect but the most worrying statistic revolves around the number of people dropping critical insurance policies, whilst not dropping things like sky television and mobile phone contracts.

According to the survey by unbiased.co.uk, 30% of consumers interviewed did not have the critical trio of insurance policies, including life insurance, critical illness insurance and income protection, or mortgage payment protection.

Of that thirty percent, around a third admitted that they had cut back on their critical policies in the last year, because they could no longer afford to keep them running, or had decided that they weren’t worth the money they were spending on them.

CEO of the web company running the survey, Karen Barrett explained, “Consumers looking to tighten their purse strings are now adding insurance policies to the ‘cancellation list’, choosing to let go of their financial security in favour of some extra cash in their pockets.  The ‘it won’t happen to me’ attitude seems to be at the forefront of people’s minds as they fail to realise what this may cost them in the future.

She added, “We need to raise awareness amongst consumers that the state is no longer prepared to intervene in the event of ill-health or redundancy; it is up to each of us to take on this financial responsibility.”

It’s believed there are around 15 million adults in the UK who would instantly fall into financial trouble if they were made redundant, and some 15% of those surveyed still didn’t consider income protection to be necessary.

Life insurance was still voted for as the most important insurance policy to look after a family’s long-term financial security by those surveyed, highlighting its importance, and really underlining the question, why are people considering not having life insurance when there are other things in life they can cut back on?

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