Protection ploughs as people feel pinch
Almost half the population plans to cut corners on financial products as their incomes are squeezed by the rising cost of living.
According to a survey by American Express Financial Services, 24% will stop buying travel insurance, 44% plan to stop paying into family savings accounts and 21% will stop putting money into Child Trust Funds.
In a uniquely British way, the survey reveals that Brits put their pets before their partners, with 27% planning to stop their health insurance payments, but only 17% expecting to axe their pet insurance premiums.
30% are also intent on stopping their income protection insurance payments. And a worrying 5% say they will stop paying their buildings and motor insurance – both of which are legal requirements
Chris Rolland, Head of American Express Insurance Services commented:
“Life may be getting more expensive, but it is worrying that 48 per cent of Brits are planning to cut back on the policies that are designed to protect them during hard times. This may well be a false economy as people could end up paying out much more than they bargained for if something should happen.”