One in 10 UK adults are considering cancelling their protection cover as living costs mount, according to research from Vitality.
The insurer’s survey of 2,000 UK adults shows more than a third of adults in the UK (37%) have never switched or cancelled a life insurance policy, with a quarter having never switched or cancelled an income protection (IP) policy (27%) or critical illness cover policy (28%) respectively.
However, around one in five are currently considering switching these policies, and more concerningly, more than one in ten would consider cancelling all together, with one in seven (13%) of these saying they would consider cancelling life insurance now due to the cost of living crisis.
Fewer than a third (29%) of those surveyed regarded insurance as a non-negotiable financial priority.
The research also found a third of respondents with life insurance took it out to make sure their family would be provided for should something happen to them (31%) and around a quarter (24%) to be as prepared as possible.
Among income protection customers, a quarter (25%) said they had taken it out to make sure their family would be provided for if they couldn’t work due to ill health and 23% took it out to be as prepared as possible.
One in five (19%) said they had taken IP out to make sure their outgoings would be covered if they were unable to work.
Andy Philo, strategic partnerships director at Vitality, said: “Our research has shown protection policies are far from immune from the impact of the cost-of-living crisis.
“With households up and down the country prioritising their current outgoings, it’s important they are reminded why they took their protection policy out in the first place and the safety net it provides them.
“As the economy faces more uncertainty, and savings are under pressure and people are thinking about where and how they can save money, it’s never been more important that people know the full value of a protection policy.”