If you intend to survive the recession without inviting Fingale’s Law into your domain, then your ethos has to be intelligent money management at all times. So, it’s worrying to hear that so many people are cutting their budgets in the wrong way – most visibly, by cutting home, buildings or life insurance.
Intelligent money management isn’t just about sensible budgeting, but also about preparing for that rainy day, one which most definitely will come your way. All it takes is one unplanned, uncontrollable event such as redundancy, pregnancy or even burglary and if you’ve no savings or cover to dip into, you’re basically up you know what creak!
And if you’re one of those who say you can’t afford to carry on with your insurances, you’re not alone. One in four Britons cancelled their home insurance in order to have spare cash during the recession. 22% of the nation have cancelled or decided not to renew their home contents insurance, 17% don’t have buildings insurance and 13% opted out of their life insurance policy – so what happens if the unthinkable happens? Well apparently 49% of you don’t have a clue!
The Association of British Insurers (ABI) released these figures at a recent conference and warned that cutting back on such essentials creates a false economy.
The report went on to confirm 21% of people in the UK are also seriously thinking about reducing, or stopping their savings altogether.
Survival of the recession is not about cutting out vital lifelines which will save us in the long run, but about being sensible with regards to how and where you spend your disposable expenditure after essential costs have gone out – including your insurance covers!
For those of you who are in an IVA or DMP, it’s important to know creditors do understand about these things and your insurance cover is permitted within your re-payment plan. For those lucky enough not to be in the level of debt that they need to opt into a debt solution, heed this warning – if you’re cancelling your insurances, it won’t be long. Have you never heard of Fingale’s Law?