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Cash-strapped Brits cutting back on insurance

04 April 2012

Millions of Brits are not insuring themselves against things like death, critical illness and redundancy in order to save money.

The economic turmoil is making many people cut back, but scrimping on insurance can cost you much more in the long run. You can find good prices on policies like life insurance with Money Expert.

Research by financial advice website Unbiased has found that three out of ten Brits are not insured in areas such as income protection, life insurance, critical illness and mortgage payment protection.

As well as this, the research also found that some people are cutting back on their policies, with nearly one in ten reducing their amount of cover in the last 12 months.

“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,” said Karen Barrett, CEO of Unbiased.

“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.”

A recent survey revealed that 15 million Brits would be at risk financially if they were to lose their main source of income, but 15% of people said they don’t see income protection as a necessity.

“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,” added Ms Barrett.

“If you are worried that the cost of insurance is too much of a burden on your finances then speak to an IFA (independent financial advisor) to decide where you are most at risk.”

You can compare insurance policies such as life insurance with Money Expert.

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