Cutting down on your personal cover often seems ideal when trying to reduce outgoings, however many policies are used to provide help to you in times of need.

A customer survey, done by The Daily Mail, indicates that many of us are planning to cancel insurance policies to save money. 27 per cent of the consumers surveyed, planned to reduce their medical insurance and 17% were considering a reduction in pet cover.

The managing director of Morethan, says that it is concerning when consumers cancel the very products that offer protection during hard times.
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. term life insurance and critical illness insurance are both too important to sacrifice. If the worst happened and you were to die, or fall terminally ill, then cancelling your cover could leave your family with without hope, he says.

Your insurer maybe able to help if you cannot afford your premiums so give them a call

The British Insurance Brokers Association, says that people do not appreciate the process and cost involved in replacing possessions, if they are stolen or damaged. He advises everyone to take out buildings and contents insurance cover, but to look at reducing your cover level, as they may not need all your possessions covered. For example, contents insurance costs about 149 pounds a year on average, but you should be able to save 25% by cancelling accidental damage and personal possessions cover.

Pet cover may appear to be unnecessary, but without cover you may struggle to cover the vet bills. So which policies are you safe to cancel? Referring to health insurance, Solomon says that many people are fortunate enough to receive health insurance as part of their employment package. However, if this is not the case, it is of the utmost importance that you protect the future of your family financially. Therefore, it would be advisable to choose critical illness cover, which pays out a lump sum, rather than mortgage life insurance or health insurance.