Unemployment is the primary driver behind customers cancelling their life cover, according to research from VitalityLife.
However around half of UK adults (56%) said they would never consider cancelling their life insurance policy.
The insurer surveyed 2,000 people to identify the top reasons they would purchase or cancel a policy, as well as whether they had considered cancelling their protection in the last 12 months.
It found those who would consider ending their policy cited losing their job as the biggest reason (13%) closely followed by inflationary increases (12%) and their children needing financial help (9%).
Around two-thirds (67%) said they would reinstate a cancelled policy if their finances improved, and of those who have no current policy a quarter (25%) said their number one reason to take one out would be if they were in a better financial position.
Justin Taurog, managing director at VitalityLife, (pictured) said: “The past year has presented a real opportunity and challenge for advisers, and while times have been financially tough for consumers, our findings show they value their life policies.
“Ultimately, when faced with the need for financial cuts, consumers are assessing the overall value their life insurance policies offer them.
“For us this is where traditional insurance plans fall short; too often bought and forgotten about until a claim needs to be made.”
