Why Cancel Your Mortgage Protection When You Need it Most?
The Association of British Insurers (ABI) have just published figures stating that just 8% of consumers are thinking about purchasing critical illness, private medical insurance or mortgage payment protection insurance.
This is in spite of almost one third (31%) of the 2.
500 working adults who were surveyed saying that they were more concerned about losing their job than three months ago and equally they also expect the economy to deteriorate further over the next year increasing the likelihood of losing their job.
Of this group just 16% hold mortgage payment protection.
Of those who had cancelled previously held mortgage protection insurance 30% cited the cost as being the reason for their cancellation.
People do not consider that the worst case scenario will happen to them; it is always going to happen to someone else so they feel that the expenditure is unnecessary.
When it comes time to tighten their belt they cancel the one thing that could potentially keep the roof over their head in a very volatile and uncertain financial market place.
Life Insurance is the most commonly held insurance product.
The consumer wishes to make sure that should he/she die their loved ones will be taken care of.
The principle is that if they are alive they can take care of them; this therefore is a complete contradiction of cancelling the one insurance product that will provide a roof over their families head if unemployment suddenly became a reality.
The insurance companies should do more to help rebuild confidence in a market that has recently taken a severe hammering by being more transparent about the product and the claims statistics to reassure customers that mortgage payment protection is a valuable product and should be the last "outgoing" that should be cut and not the first.
This is in spite of almost one third (31%) of the 2.
500 working adults who were surveyed saying that they were more concerned about losing their job than three months ago and equally they also expect the economy to deteriorate further over the next year increasing the likelihood of losing their job.
Of this group just 16% hold mortgage payment protection.
Of those who had cancelled previously held mortgage protection insurance 30% cited the cost as being the reason for their cancellation.
People do not consider that the worst case scenario will happen to them; it is always going to happen to someone else so they feel that the expenditure is unnecessary.
When it comes time to tighten their belt they cancel the one thing that could potentially keep the roof over their head in a very volatile and uncertain financial market place.
Life Insurance is the most commonly held insurance product.
The consumer wishes to make sure that should he/she die their loved ones will be taken care of.
The principle is that if they are alive they can take care of them; this therefore is a complete contradiction of cancelling the one insurance product that will provide a roof over their families head if unemployment suddenly became a reality.
The insurance companies should do more to help rebuild confidence in a market that has recently taken a severe hammering by being more transparent about the product and the claims statistics to reassure customers that mortgage payment protection is a valuable product and should be the last "outgoing" that should be cut and not the first.