Household budgets have been under pressure for some time, with higher mortgage payments, energy bills and everyday living costs affecting many families.
When monthly outgoings rise, it is understandable to look for areas where costs can be reduced. However, one area that can sometimes be overlooked is financial protection.
The risk of cutting back on cover
Life insurance, critical illness cover and income protection are designed to provide financial support if illness, injury or the loss of an income leaves you unable to work or meet your usual commitments.
Reducing or cancelling cover may lower your monthly outgoings in the short term, but it is important to consider what would happen if your income suddenly stopped.
Mortgage payments and other household bills would still need to be paid, which could quickly place additional pressure on your finances.
Does your existing protection still suit you?
Protection is not something that should simply be arranged once and forgotten about.
Your circumstances may have changed since your policy was first set up. You may have:
Reviewing your existing cover can help make sure it still reflects your current needs.
You may not need to cancel your policy
If affordability has become a concern, cancelling protection altogether may not be the only option.
Depending on your circumstances and the policy you hold, it may be possible to adjust your existing cover so that it remains affordable while still providing some financial protection.
Having the right cover in place can provide reassurance that you and your family have a financial safety net if life does not go according to plan.
If you would like to review your existing protection or discuss the options available, get in touch with the Oviso team.
To find out more about mortgages, personal insurance, business insurance and protection or to discuss the options available for your circumstances, contact our team of advisors
