Customers Canceling Life Insurance Due to Recession

Latest figures from the Association of British Insurers or ABI reveal that 13% of the people have decided to scrap their Life Insurance policy in this economic downturn. The ABI says that customers are either ignoring prompts to renew their policies or are canceling them altogether in order to save money in such difficult economic times. The research shows that 13% lesser people have life insurance cover than at the time when recession started.

The other types of insurance which people are sacrificing in the recession period are home contents insurance, home insurance and buildings insurance. As many as 22% are canceling their home contents insurance while 17% have decided not to renew their buildings insurance.

ABI director, Stephen Haddril advises people not to treat insurance as a non-essential commodity but as an important one especially as it provides one with essential cover during times of recession. In the event of any misfortune, an insurance product will help to bail you out of the situation.

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