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Why you should talk to an adviser before cancelling your insurance

 

Looking through your expenses and whittling them down to the bare minimum can be tempting when times are tough. One of the things people tend to cut first is their insurance premiums, but this might not be the best idea for you in the long term. If you are thinking about cancelling your insurance, here’s why you should talk to an adviser first.

Advisers can talk you through your options

If you’re on the fence about cancelling your insurance altogether because you still want to be protected if the worst should happen, advisers can discuss the options. This could be reducing your cover, or changing your excess and wait period options. Advisers work with people of all backgrounds and budgets, making them well-versed in tailoring options to suit your needs.

They can help you figure out if you still need the cover you have

If you haven’t looked at your insurance policies for a while, you might actually have cover in place that’s no longer necessary, or that isn’t right for you. Sitting down with an adviser and discussing what’s changed in your life since you took out your cover might help you to reduce your premiums, or at least give you a better understanding of the cover you want to prioritise.

An adviser can help you understand the consequences

If you do decide to cancel your cover, it’s important that you’re fully aware of the consequences of doing so before you make your decision. An adviser can discuss what cancelling your insurance would mean for you, including your ability to take out any cover in future, so that you can make your decision knowing the risk you’ll potentially need to take on.

They can help you plan for the future

Sometimes you’ll cancel your insurance because you just don’t need certain kinds of cover anymore – that’s great, but it’s still a good idea to talk to an adviser about how it might impact your future. For example, if you’ve paid off your mortgage already, you might want to cancel your life cover, but if you then decide to purchase another home down the line, it might be better to have kept your existing cover in place.

If the worst happens, you don’t want to be left without the right cover to protect you and your family. Especially if finances are tight, it can pay to keep up your premiums as much as you can so that you don’t end up needing to fork out for expensive treatments. If you’re looking at cancelling your cover for whatever reason, have a chat with your adviser first – they’ll get you sorted with the right solution for your needs.

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