Fairinvestment Reveals People Making Insurance Cutbacks

A significant number of Britons are putting themselves at financial risk, new research shows.

In a study carried out by Fairinvestment, it was revealed that just under a quarter (24 per cent) of people do not have home, life, travel, payment protection or medical insurance. According to the online finance portal the likelihood that people will have such forms of monetary protection increases depending on how old they are. It was reported that six per cent of those between the ages of 46 and 50 do not have any of these forms of insurance, with this rising to 53 per cent among 19 to 21-year-olds. The firm also showed that men are slightly more likely not to have insurance, with 24 per cent of males lacking any of the above forms of cover, in comparison to 23 per cent of women.

Indeed by not having cover, consumers could find that they are forced to shell out money from their own pockets in order to meet various costs incurred during an accident or emergency situations - for example, replacing lost luggage while on holiday or paying for repairs to their property after a flood. This could have an impact upon their ability to get to grips with other areas of monetary demand in areas such as credit cards, utility bills and personal loan repayments.

The study also revealed that about two-thirds of Britons have some form of home insurance, while some 14 per cent of women have medical cover.

Commenting on the results, Rachael Stiles, spokesperson for Fairinvestment, said: “It is good to see that people are valuing their homes and contents by taking out insurance. But the fact that almost a quarter of people are without insurance like life and travel insurance is concerning. As budgets get tighter, I can understand why Brits are cutting back, but insurance should be one area that is sustained. Particularly when it comes to travel insurance because it makes sense to pay a small one off premium for cover rather than having to shell out for hefty unexpected costs like medical expenses, lost luggage and replacement flights.”

She went on to report that it is particularly important for people to have life insurance “as you never know what is around the corner”. It was reported that if a consumer loses their income they may have to count on their partner, friends or family members to help meet the cost of their mortgage and other financial commitments. However, it was claimed that taking out a life insurance policy would normally be able to cover such expenses.

For those looking for a way to get to grips with their finances in the months ahead taking out a cheap loan could prove to be effective. By selecting this sort of loan, borrowers may be able to meet various costs quickly, leaving them with an affordable rate of monthly repayment. The monetary assistance on hand with a loan could also help people to take out comprehensive insurance cover, whether this is for their home, health, holiday or otherwise. This may be especially effective after Bupa revealed that more than half of Britons claim to be more concerned about their financial situation since the emergence of the credit crisis.

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