Don’t lose out on life cover – Bright – Life Insurance St Neots

Research from Royal London has shown that 52,000 people cancelled their over-50s life insurance policy last year, resulting in an estimated £173 million in life insurance being lost.

Bright – Life Insurance St Neots

If you put the 52,000 people that cancelled their insurance into numbers, it shows that 28% of those who purchase over-50s life insurance go on to cancel their policy later on in life. As a result of cancelling their insurance, they lose their cover and won’t receive any benefit from the money that they’ve already paid if the worst was to happen. In terms of premiums paid, it results in £86 million going straight down the drain.

The rate of cancelled policies is certainly alarming, but so is the amount of money that has been wasted. The research also revealed the reasons for the cancellations, with the majority saying financial difficulties were why they cancelled. 33% of cancellations were down to no longer needing the policy, 60% said that it was down to long-term money issues and the fact that they needed to prioritise other bills.

In the report, it says that cancelling life insurance will leave customers ‘poorer and unprotected’ and concerns have been raised about how easy it is to cancel a policy, as well as the fact that most policies lack the safety features customers need. Jerry Toher of Royal London had this to say about the findings: “This research highlights how poorly designed products affect customers, especially those on a low income, and confirms why the over-50s life cover market must change current practices,”.

He continued to say “Not all over-50s life insurance policies are the same – the underlying details can make thousands of pounds of difference to a customer. We urge customers considering this type of protection to shop around. But don’t just compare the price – take time to understand the product features and how it works to prevent getting caught out.”

life insurance st neots

Bright – Life Insurance St Neots

However, you never know when you’re going to need life insurance, therefore how can you ever be certain to cancel it. The problem is once someone cancels their life insurance, they’re not protected. Unfortunately it often takes something bad to happen, such as a heart attack for people to realise that they do need life insurance, but by this time it’s too late. As you no longer have a clean health record, it’s highly likely that your premiums will increase. Meaning that if you couldn’t afford it before, it’s unlikely you’ll be able to now. Ultimately, the 33% who claimed they no longer needed their life insurance may be left wondering what they were thinking if the worst was to happen.

Bright – Life Insurance St Neots

If you need any guidance on life insurance, don’t hesitate to get in touch with one of our advisors today!

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