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Why you shouldn’t cancel your protection

Research shows that a rising number of people are cancelling their protection insurance policies as the cost-of-living crisis continues to bite.

According to research by Consumer Intelligence (1) , 8.2% of people have cancelled
or reduced an insurance policy and 6.8% said they would consider cutting back
in the future.

Not the answer

It is understandable that households struggling with basic expenses would look
to cut costs wherever possible. However, cutting back on protection insurance
could make an already difficult situation much worse.

It won’t happen to me

There is a tendency to think that bad things only happen to other people, but the
fact is that you never know what is around the corner. Protecting yourself
financially is one of the best ways to minimise your vulnerability to financial
shocks.

Sadly, being too sick to work is not as rare as you might think. According to the
Office for National Statistics (ONS) (2) , the number of working-age people who
can’t work due to long-term sickness is now 2.5 million.

You’re not alone

If you’re looking to cut costs and don’t know where to start, we’re here to help
by identifying areas where you may be able to economise – without sacrificing
your vital protection cover.

As with all insurance policies, conditions and exclusions will apply

(1) Consumer Intelligence, 2023
(2) ONS, 2023

Jake

October 6, 2023

Market update

Cancelling Protection, critical illness, Expenses, Income Protection, life insurance, ONS, Protection
How to cover your funeral costs

Fewer than one in five over 50s have arranged for their funeral costs to
be covered by a life insurance policy, a new study has revealed.

As well as 17% who have cover in place for funeral costs, a further one in 10
expect their loved ones to use proceeds from selling their house or assets. In
total, 42% have a savings pot in place to cover these costs. Despite this, 38%
said they can’t afford to put money into savings.

One in five of those without any financial provision for their funeral costs said
they don’t want to think about it, while 17% of those unsure how the costs will
be covered have no savings in place to pay for this.

Taking the burden away from your loved ones can be a huge relief for those you
leave behind.
As with all insurance policies, conditions and exclusions will apply

OneFamily

Jake

August 17, 2023

Market update

costs, Funeral, life insurance, loved ones, one family, study
Payouts and policies rise in 2022

Insurers supported people experiencing bereavement, illness, or injury
to the tune of £6.85bn in 2022, according to latest figures from the
Association of British Insurers (ABI).

Upwards trend

This total includes payouts from group and individual protection policies.
Individual policies paid out £4.64bn on life insurance, income protection and
critical illness claims, while group policies, which provide protection products
through an employer, paid out £2.21bn.

Protection when it’s needed

In total, some 287,000 individual claims were paid, with the average payout
from these policies increasing for the third year in a row to £15,448, a 9%
boost.

Over 15,900 people claimed against individual income protection policies in
2022, another 9% increase from the previous year. The total value of these
claims also rose by 22%. For the second consecutive year, the main cause of
individual income protection claims (34%) concerned musculoskeletal issues.

Acceptance rates stay high

The number of new individual claims paid has consistently been around 98%
since 2017. More than half of declined claims resulted from customers who had
not told their insurer key details about themselves or their circumstances.

As with all insurance policies, conditions and exclusions will apply

Jake

August 17, 2023

Market update

2022, ABI, acceptance rates stay high, critical illness, Income Protection, life insurance, Payouts, policies, Protection, protection when its needed, rise, upwards trend

Why you shouldn’t cancel your protection

Research shows that a rising number of people are cancelling their protection insurance policies as the cost-of-living crisis continues to bite.

Not the answer

It won’t happen to me

You’re not alone

How to cover your funeral costs

Payouts and policies rise in 2022