Cutting down on your personal cover is often the easy option when trying to lower costs, however many types of cover are intended to protect you in times of need.

A survey, undertaken for American Express, shows that many of us will reduce our insurance cover to save money. 27 per cent of the consumers surveyed, planned to reduce their health insurance and 17% were considering a reduction in pet cover.

The CEO of AIS, says that it is worrying when consumers reduce the cover of the very products that offer protection.
Tony Solomon, agrees with this view, saying do not cancel you policies, because loss of cover may have a damaging affect on their family and themselves in the years to come. life cover and critical illness insurance are both too important to sacrifice. If the worst happened and you died, or fall critically ill, then cancelling your cover could leave your family with without hope, he says.

You are advised to talk to your insurer if you are having difficulty paying your monthly premiums, as they may be able to arrange a tempoary reduction in the amount of cover.

The British Insurance Brokers Association, says that people do not appreciate the process and cost involved in replacing possessions, if they are stolen. He advises everyone to take out contents insurance, but to look at reducing your cover level, as they may not need every single item covered. For example, contents insurance costs about 149 pounds a year on average, a reduction of 25% maybe possible by cancelling extra options on the policy.

Pet insurance may appear to be unnecessary, but without cover you may struggle to be able to afford the vet bills. So which policies are you safe to cancel? Referring to medical cover, Solomon says that many people get free health insurance from their employers. However, you must protect your families finances. Therefore, it would be advisable to choose CIIC, which pays out a lump sum, rather than mortgage cover or medical insurance.

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