Why You Should Keep Your Policies
When you’re struggling to make ends meet, you might think it’s a good idea to cancel monthly expenses like your life insurance policy or private health insurance cover. These types of policies and covers are important, because they give you financial security that wouldn’t be possible otherwise.
Cancelling a policy might save you some money in the short term, but what about the long run? If you passed away or were unable to work, your family would still need to pay for school expenses, medical bills and more, without your income.
It may not always be possible to purchase new policies at the same rate (premium) as the previous one, after you’ve cancelled it. Life changes, such as illness or a new job can increase the cost of your new policy, so you’ll end up paying more than before. In some cases, you might not be allowed to purchase a new policy at all, which means you won’t get any cover.
Before you think about cancelling your policies, make up a savings plan and look for other ways you can cut back and save money. Cancel luxury expenses like satellite TV or take away foods, rather than taking away your family’s financial protection.