One in ten people would scrap life insurance cover to save money, research shows.
Consumers are being urged not to cut back on life insurance and critical illness cover in a bid to save money during the credit crunch. According to finance journalist Edmund Tirbutt, this could be a "dangerous fault" to make.
He was responding to research carried out on behalf of the protection specialist Bright Grey, which revealed that seven percent of consumers have reduced the amount they spend on insurance policies as a result of the economic downturn.
Almost one-quarter said they would rely on friends and family to help make ends meet if they became unable to work due to illness, while one-third said they would turn to the state for financial assistance.
Figures from the Prudential also show that ten percent of people would give up their life insurance policy to ease the strain on their personal finances.
Commenting, Mr Tirbutt said: "The evidence shows that one in ten people are cutting back on insurance. Generally that would include motor and household, but it also includes life insurance and critical illness cover. This is a very dangerous fault to make.
"One of the problems is this cover gets more expensive as you get older, so if you cut back on it now, you may find you're facing a different financial decision with regard to what it costs."
