However, before making any hasty decisions, it’s crucial to understand the consequences of cancelling your insurance policies.
A real life example
A recent, heartbreaking story in the news about an Auckland mum highlights why it is important to consider these decisions carefully. She cancelled her life insurance policy after having it for 10 years, only to be diagnosed with terminal cancer just weeks later. Not only is she now unable Times are tough, do I really need insurance?to care for her children, but her husband has had to take time off work to care for her and the family. Had she kept her policy, she would have qualified for a terminal illness benefit, providing crucial financial support during this difficult time.
The decision may have long-lasting consequences
Insurance provides a safety net for when the unexpected happens. If you cancel your policy, you risk losing coverage for pre-existing conditions, or worse, being unable to obtain any coverage at all. This could impact any personal insurance that requires medical underwriting, for example, life and trauma insurance, income protection, and health insurance. Once cancelled, you might not be able to reinstate your cover with the same terms, especially if your health has changed.
Avoid financial burden
One of the key reasons to maintain insurance is to avoid putting further financial pressure on your family if something goes wrong. This is especially important for covers like income protection and trauma insurance. These policies can provide financial support if you become sick and are unable to work, ensuring you can still meet your financial obligations and support your loved ones.
What should you do if you’re worried about the cost?
If you’re concerned about the cost of keeping your insurance, the best course of action is to speak to your adviser before making any decisions. They can review your policies and current circumstances, helping you understand your options and find the best solution for your situation. There may be ways to adjust your cover to make it more affordable without losing essential benefits.
In these challenging times, maintaining your insurance can be a crucial step in safeguarding your family’s financial future. Before making any changes, speak to your Haven Financial Adviser to ensure you’re making the best decision for you and your loved ones.
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