I can’t afford my insurance premiums, what can I do?

If you can no longer afford your insurance premiums, Future Proof can help.

What can I do other than cancel my protection policies?

With budgets being squeezed in all areas owing to the current economic climate, increasing numbers of clients are approaching us for assistance.

We are confident that we have recommended the best policy for your circumstances. However, if your circumstances have changed, or your budget is tight, we can help give you some breathing space which can help make your insurance premiums more affordable.

Remember, Some cover is ALWAYS better than no cover. Imagine a future scenario where the breadwinner has died and your family is left without a lump sum to help them financially in this current economic climate.

Are you finding the impact of insurance premiums increasingly tough on your monthly budget?

Help is at hand and there are many things we can do to help ease your financial worries without shifting the focus of your needs for the future.

1) We can look into removing any paid-for benefits which are an additional charge on top of your standard cover to reduce your monthly premium. E.g. Global Treatment

2) Reducing the sum assured

3) Switch your policy from an increasing sum insured (index-linked) to a level one, so that your payments are fixed

4) Recommend a Decreasing Term policy instead of Level Term for your mortgage (applicable for repayment mortgages only)

5) Reduce the term of your policy

6) Look into the possibility of a Level Term policy to replace a Whole of Life policy

7) Did your original policy have increased premiums due to your medical disclosures at the time? Have you given up smoking? We can review the market to ensure that you are receiving the best underwriting terms and the cheapest premium available

8) Are you a Company Director? We can look into arranging life insurance which is paid through your company, making your income more tax-efficient and saving you money.

Many insurers have increased their levels of flexibility to support customers who are in financial difficulty at this time. Including adding premium holiday options. You are not alone, and many households are having to re-jig their monthly commitments at the moment. Insurers do vary in what they can offer to help their clients. We will be happy to help you explore your options.

Many people who take out new cover do so as a result of being “Cold Called”.

There are companies that promise cheaper premiums for ‘exactly’ the same or indeed ‘better’ cover, but these should be treated with caution and customer reviews should be researched on the internet so you know exactly who you are dealing with.

Naturally, we believe in giving the best advice and have a strong duty of care to all our clients.  We understand that sometimes the lure of a better offer is sometimes too good to refuse.

Make sure you are protected. Only Bona Fide advisers do this…

If you took out alternative cover with a broker they are legally bound to provide you with a number of documents ”before” any policy is started.

Initial Disclosure Document – every broker must give you this document which sets out the level of service offered, whether any fees are involved, company contact details, and their complaints procedure.

Quote – This details the cover you are applying for and the commission the broker will receive.

Application – This is a copy of what the broker has submitted to the insurance company. Don’t just take their word for it, it is your policy and it will be you and your loved ones who will be affected if the information given is incorrect, not the broker.

Check that the disclosures you have made are accurately documented. There might be a medical condition that has been omitted, or, a medical reading which has been inputted incorrectly. One client who canceled a policy arranged by Future Proof in favour of a ‘cheaper’ policy sold to them through a cold calling advisory service, asked us to check their new policy document. We found that instead of taking out a joint policy, only one of them was insured. In another scenario, a client had had a period of mental illness that had been completely omitted from their new application by the new adviser – which made their monthly premium far cheaper than it should have been. This means that if a claim had been made, there would have been a strong possibility that it would have been declined by the insurer due to non-disclosure. There are reasons why premiums can seem cheaper but the cover and claimant may suffer as a result of this. Cheap is not often cheerful.

Key Features Document – This provides information about your cover and is produced by the insurer, you should keep this safe with the other documents you should have received.

This document explains what you are and are not covered for and gives you the chance to check that your new policy covers you and your family as you have been led to believe.

If you have not been given all of these documents you should be concerned. At Future Proof, we send out all of the above as a matter of course.

If you have any concerns or are unsure about anything relating to your policy, please call us on 0800 644 4468 preferably before you cancel your Direct Debit or lapse your policy – we are always happy to help and advise.

We are not salespeople, we are advisers and our advice will always be given ethically with a duty of care for every individual.