You took out protection cover for yourself, your loved ones and/or your stuff because you value it and because it is either expensive to replace or irreplaceable. If you cancel your protection policy your will be exposed. If a disaster strikes, it could result in financial stress, debt and emotional difficulty.
Before you cancel your policy, consider the following 5 options.
1. Payment skips. Does your policy allow monthly payment skips? If so, what payments skips are available to you and will that help you bridge a difficult financial period in your life?
2. Reduced cover. Can you reduce the cover you have take originally to a lower cover amount? If you can, this will result in a lower, more affordable monthly premium but you will still be protected to a certain extent against unexpected events.
3. Consolidate and save. Do you own more than one of the same type of insurance policy (For example, two funeral policies)? If so, you might be able to combine them into one and save.
4. Is your cover still relevant? Who are you protecting? Are there people or items covered on your plan that you can potentially let go of for a period of time? If so, paying for cover for less people or items could reduce your monthly payment and make it more affordable.
5. Don't miss out on benefits! Depending on your age or situation - you might be able to benefit from Payment Protection benefits. If you have for example, Payment Protection benefits on retirement and you are close to retirement, you might not need to pay any premiums soon and you will remain covered. If you cancel your plan, you will lose these benefits.
By not cancelling your policy, you remain covered and you can always increase cover or add people to your plan again over time as you need to. You also avoid new waiting periods and a period of no cover.
*Disclaimer: It is important to read the terms and conditions related to your specific policy. The relevant benefits and options will be explained in your terms and conditions or user guide.