A recent study by the financial services arm of a leading UK retail firm has found that hundreds of thousands of UK people are reducing or even canceling their life insurance because of the Credit Crunch. This is leaving many families open to great difficulties if the main breadwinner dies without adequate life insurance. UK residents could search for the best term life insurance rate and reduce their costs instead of canceling insurance policies.
579,000 people are estimated to have given up or reduced their car insurance cover. The people who have given up have will, potentially, use a cheaper form of transport such as bus, bicycle or the train. Some people have also reviewed their life insurance with an estimated 816,000 people having given up or claimed to have applied for reduced cover in the last year because of their financial situation during the same period, according to Sainsbury's Finance.
This is terrible news for families. There is a famous quote from Winston Churchill about how he would like to write the words Life insurance on every front door in Britain because of the incredible benefits it gives to people for such a small cost.
Leaving your family with no life insurance means that there would be huge financial impact as well as an emotional one should the worst happen – which it will to a very unfortunate minority of families.
The best term life insurance rate is really quite cheap these days, because life insurance rates have fallen so much over the past few years. Young people – the very ones who are most likely to have the youngest children and greatest financial responsibility – are also the cheapest to insure.
It must be a great dilemma for people, though. The Credit Crunch is hitting hard both in practical terms but also in confidence. We just do not want to spend as much we used to because we fear for the future.
Speaking further about this, Neil Laird, who is Sainsbury's Home Insurance Manager, said, "Given the financial state we're in it's inevitable that people are going to be looking to make cut-backs, but it's a real concern when those cut- backs leave them vulnerable to far greater expense down the line. "
And that could be very bad news for the families who suffer the loss of the main breadwinner. They may be better off looking for the best term life insurance rate rather than canceling their policy.
People can easily find the best term life insurance rate by using a life insurance comparison website and taking out a viable, cheaper policy. They would still have protection in place for their families, if they did so.They need to be careful to not cancel a plan for a cheaper one unless it is a very good replacement and provides the cover needed.