Hero Block - AT
Non odio euismod lacinia at quis risus sed vulputate odio.
The roaring 20s hasn’t exactly delivered in the way many of us hoped. From a global pandemic to a cost of living crisis in the UK and elsewhere, it’s fair to say we’ve been living through turbulent times. To help you make sense of what this all means for your family finances and insurance needs, we’ve put together a quick guide to the cost of living crisis.
The UK cost of living crisis explained
In the UK, the ‘cost of living crisis’ is a term familiar to millions and refers to the fall in real disposable incomes (taking into account inflation, taxation and benefits) experienced by British households and businesses since late 2021. Against a backdrop of rising energy costs and disruption to global supply chains, the UK has experienced double-digit inflation for the first time in more than 40 years, forcing many households to think carefully about tightening their belts.
Should I keep my life insurance?
In these turbulent times, many families are understandably looking to reduce their spending, whether it’s cutting back on takeaways or filling up the car less regularly. So it’s tempting to think you could do without life insurance amid this worrying cost of living crisis. However, for the reasons we explain below, keeping your life insurance policy could be worth it. Here’s why:
You could pay more later. Any life insurance quote you’re offered will be based on your circumstances at the time, such as your age, smoker status and health history. That’s why life insurance is generally cheaper when you’re younger. If you were to cancel and later take out another policy, your premiums might be higher and if your health changes it could be more difficult to get cover.
You won’t get your money back. The life insurance premiums you’ve paid to date will be non-refundable unless you’re cancelling within 30 days of the policy start date.
Your family won’t have cover. If you’re looking to cancel your life insurance as a way to save money, but without replacing it with another policy, your loved ones won’t have financial protection if you were to pass away. With the rising cost of living millions of people in the UK are having to make difficult decisions about their money and what they can afford. Less disposable income for many households, means life insurance could be more important than ever. Life Insurance could financially protect your loved ones when they need it most, with a cash sum to help pay the mortgage, debts, or contribute to everyday living expenses if you were to die while covered by the policy.