Despite the increasing temptation to cut out or cancel a life insurance policy in order to reduce expenses, policyholders are being cautioned that such action could end up costing much more in the future.
Life insurer, Prudential, issued the warning after they found that many people are axing their life cover in order to save money . The insurer said cancelling a life policy could cost thousands of pounds to replace and that it could turn out to be a false economy.
Prudential added that those in doubt should consider cancellation very carefully before deciding on it. Also, older customers in particular would find it difficult to take out a a policy that is not very expensive, given that age is a consideration when signing up a new customer. Such customers could therefore find themselves facing a higher premium than they expected.
Further, changing circumstances can affect premiums and a policy that is easily cancelled now could be very difficult to replace at the same price based on new circumstances, said the insurer.
Policyholders urged not to discard life cover
Financial Services > Income lnsurance > News
Policyholders urged not to discard life cover
Thu, 12 Feb 2009
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