People Ditching Pensions And Insurance Payments To Save Cash
One of the leading comparison websites has been doing research, and found that a great many people in the UK are going to drastic measures, in order to make ends meet. The drastic measures in question, are the cancelling of insurance and pension contributions. No fewer that 42% of us are doing this, in order to ease the pressure of the current financial climate. All in all, 19m have lessened financial security, in order to swim, as opposed to sink.
So how about a rundown of what has been getting axed? Well 15% of Britain's have cancelled breakdown cover; 15% have cancelled health and dental protection policies. These top the list, but only just, as 13% of us have had to cancel life insurance polices.
It is something of a phenomenon that people seem to be more concerned about their home insurance polices. Only 6% of people have cut back on this. It may be somewhat warranted though, as concerns have been raised in the media, over mortgages. Not many people have dropped mortgage protection insurance, either; just 7%.
The vat majority of people that have been cancelling policies, have been cancelling insurance polices or pensions contributions; some 86%. This has amounted to savings for some, of between �51-�100. the majority though, failed to save any more than �50.
Although it is great to make these savings in the short term, the long term ramifications could be ones of serious detriment. 1 in 10 people have tried to make savings by not paying pensions contributions, which means that if they cannot make up any shortfall that they have caused by doing this, they may find themselves suffering for a great part of their future lives, in a financial sense, that is.
It certainly is not a surprise that the attempts to save money by a lot of us, appear somewhat draconian, but people really do not know what to do. It is a big leap though, from putting less in your weekly shopping trolley, and removing the security of pensions contributions and life insurance. the potential cost of such harsh decisions could have generational significance that far outlasts the credit crunch.
It is important to be aware of the cause of cancelling such polices, and it is also important to consider whether or not savings can be made in other areas. Sometimes it is a good decision to cancel policies, because people have overlapping, due to various other polices. In a lot of circumstances though, people are setting themselves up for a terrible pratfall.
There are less drastic options than completely cancelling policies anyway. It is possible in a lot of instances, to get cover from a company that is cheaper. It may also be a case of reducing premiums by increasing the amount of excess that is related to a policy. It is also possible to make payouts lower, or increasing the timescale, before a company has to pay out. With certain policies it can be an option to review the amount of cover that you have, and lowering the level, so that the monthly premium becomes lessened. The removal of accidental damage cover, from home insurance, is a good example of how such savings can be made. Be perspicacious, and it still may be feasible to keep you and your family well protected.