The credit crunch has had quite a dramatic effect on many people’s lives in the UK, particularly with regard to their financial situation.
Due to the rising cost of living and high mortgage and personal loan costs, many household budgets are being stretched to the limit and in some cases way beyond!
Tighter lending restrictions imposed by the majority of banks and building societies do not make matters any easier and many of home owners are now struggling to restructure their finances through re-mortgages to secure better deals.
It makes sense therefore to have a look at those other areas of expense to create those financial savings.
American Express Insurance Services have published that their latest research reveals that 44% of the 2000 people in the UK questioned, 44% of them are seriously considering stopping payments on mortgage payment protection policies and savings plans.
Of particular concern is the fact that 27 per cent are planning to cancel their health insurance policies and 30 per cent intend to cancel their mortgage payment protection policies leaving them with no protection for their mortgage and other loan repayments.
Yes, it may be possible to resurrect these plans when things improve but this cannot be guaranteed. MPPI is quite simply designed to assist you financially should you find yourself unemployed etc. and it is at this very time when in fact you should be looking to review your current levels of cover. Financial instability and money worries can often be traced back to be a major cause of health problems and stress related illnesses.
Quite simply, it is a false economy to cancel protection plans, particularly at the moment. There is nothing to gain in paying premiums for years to only cancel the plan when you may need to draw on those benefits.
So don’t be too hasty to cancel these types of policies, look at them as essential family items and don’t put your home and family financial wellbeing under even more threat.
