More than half a million Brits have cancelled their life insurance policies to save money during the credit crunch, new research shows.
Britons are cutting back on life insurance in a bid to save cash during the recession, a new study from Sainsbury's Finance has revealed.
The report found that more than half a million people - 532,000 - have cancelled their life cover over the past 12 months because of financial difficulties. However, this total rises to an estimated 816,000 when taking into account those who have attempted to reduce their cover.
Additionally, four percent of all life insurance holders were found to have switched to a cheaper provider over the last year because of their financial situation. Brits have also been cutting back on home, pet car and travel insurance.
"Given the financial state we're in it's inevitable that people are going to be looking to make cut-backs, but it's a real concern when those cut-backs leave them vulnerable to far greater expense down the line," said Sainsbury's home insurance manager Neil Laird.
"It can be tempting, with some insurance policies, to simply hope for the best. But policies vary a great deal, and cancelling your cover or opting for a cheaper deal that doesn't offer adequate cover could have serious financial consequences when something goes wrong. Insurance should be viewed as a necessity, not a luxury."
