If you’re concerned about the cost of living crisis you may be reviewing your outgoings such as protection insurance. And as we face huge hikes in energy bills, food and fuel price rises and with interest rate increases you may be wondering if you can save cash by choosing a cheaper alternative to your life insurance and critical illness cover.
But unlike shopping around for the best deal on your favourite brand of baked beans or jeans when it comes to protection insurance you need to watch out because it’s not a simple case of comparing like with like.
That’s because when you take out protection insurance using an expert adviser they’ll find out exactly what cover you would like to put in place to protect you if the worst should happen.
But if you look online for a cheaper alternative, you may find you could save a few pounds a month but you might not realise the cover is drastically reduced compared to your current cover.
So if you want to review your cover it’s important to speak to an adviser so you’re fully informed.
Cheaper cover could let you down when you need it
While we’re all looking at ways to tighten our belts due to the cost of living crisis when it comes to protection insurance it’s vital you don’t confuse cheaper insurance with better.
That’s because what looks like a better deal could end up leaving you significantly worse off. For example, one client called recently asking to cancel the protection cover we had put in place in 2019 because she had found a “better offer” from another provider. The reason she thought it was better was because it was going to save her £3 per month.
However we chatted it through with her and she realised she couldn’t remember all the cover her current provider gives her. For example she had forgotten it was life and critical illness cover not just life cover. Plus, she’d forgotten it also gave her Global Treatment. We compared the two policies and explained that if she switched to the policy she had found she would have lost cover for 47 illnesses including lots of types of cancer.
So, for saving a few quid she would have ended up with much worse cover. This is just one example of why it’s so important to speak to your adviser if you want to review your cover rather than trying to do it yourself.
The value of quality protection insurance if the worst happens
Are you thinking about cancelling your protection insurance to save money because life is getting so expensive? Then it’s vital to remember the point of getting protection insurance in the first place is to offer a financial safety net at a time of need. And if you or a family member were to get ill now or if you or your partner were to sadly pass away, the cost of living crisis means it might be harder than ever before for your family to cope financially. So talk it through with your adviser. And don’t just take our word for it – read Lewis and Rachel’s story about how critical illness insurance offered them much-needed support when their baby daughter was born very ill.
If you have any questions about your protection insurance or you’re thinking of reviewing your current protection our team expert advisers are here to help so please don’t hesitate to get in touch.
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