The Consequences of Cancelling Protection Policies
With the rising cost of living, some people may be considering cancelling their protection policies to save money. However, before making any decisions, you should contact your financial advisor for guidance. The consequences of suffering a critical illness or dying after having recently cancelled a policy can be financially and emotionally devastating for you and your loved ones.
The Financial Impact of Cancelling a Policy
While the National Health Service covers many medical expenses in the UK, the financial impact of a critical illness or death can still be significant. For example, the loss of a wage earner or the need to take time off work to care for someone with a critical illness can strain your finances, and you may struggle to pay off your mortgage or cover other household expenses.
Another thing to be aware of is that the cost of new coverage generally rises as you age, as you’re more likely to claim. Consequently, your existing policy may be much cheaper than a new one, and cancelling it could be a poor idea, especially as your chance of claiming may now be much higher.
The Role of Your Financial Advisor
At Rowley Turton, Chartered Financial Planners based in Leicester, we understand the importance of protection policies in securing your financial future. If you’ve lost touch with your previous advisor or are looking for guidance, we’re here to help. Our team of experienced advisors can provide valuable insights and help you find solutions that work for you.
Your financial advisor has a wealth of knowledge and experience regarding protection policies and can provide valuable insights into your own particular situation. They can help you understand the potential consequences of cancelling a policy and assess alternative options that may better suit your needs. For example, your advisor may be able to help you find more affordable options that still provide adequate protection or adjust your coverage amounts to better align with your budget.
It’s also important to remember that protection policies play an important role in securing your financial future. Cancelling a policy may seem like a good short-term solution, but it could have long-term consequences that could put your financial stability and loved ones at risk.
In conclusion, before making any decisions regarding your protection policies, it’s always best to have a conversation with your financial advisor. They can help you understand your options and make informed decisions that align with your financial goals and priorities.
So, if you’re feeling the strain of the rising cost of living and considering cancelling your protection policy, don’t hesitate to reach out to Rowley Turton, Chartered Financial Planners based in Leicester. Our team of experienced advisors is here to help you navigate this issue and find solutions that work for you.