Continued high inflation is prompting over 50s to reconsider whether they really need their life insurance policies, research has suggested1, sparking fears of vulnerabilities.
A survey of 1,000 people aged 50+ has shown that 22% of customers are thinking about cancelling their monthly payments as a result of the rising cost of living. Those with fixed incomes, such as retirees, are particularly susceptible to rising prices, the research claims.
Although cutting back on spending might be a necessary choice, cancelling life insurance policies can end up costing you and your loved ones further down the line. As well as leaving your family without key protection now, if you cancel your policy, it will likely cost you more in future should you choose to take out a new plan.
Women were more impacted than men, according to the research. Some 20% of women with an over-50s life insurance plan are considering no longer paying, compared with 17% of men.
Protection is an essential part of long-term financial planning for everybody. In the short term, rising costs are posing challenges for many. But having the right insurance cover for your unique needs is an indispensable safety net for you and your loved ones.
Before you cancel your life insurance payments, it is important to think of the wider impacts for your financial commitments. Get in touch.
1Scottish Friendly, 2023
Financial protection policies typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.