Navigating the Cost of Living Crisis: Why Insurance Still Matters
- Connor Anderson
- May 7, 2024
- 2 min read
How Adele's very unfortunate experience underscores the vital role of financial protection amidst rising costs and unexpected challenges in daily living.
In today's challenging economic climate, families like Adele Baker's are facing profound impacts on their finances. Adele's decision to cancel her life insurance to alleviate financial strain, only to be diagnosed with terminal cancer shortly after, highlights the critical importance of seeking professional advice before making significant financial changes and furthermore that life is full of uncertainty. My heart aches for Adele's family, this story serves as a sobering example of a troubling trend: more young individuals facing terminal illnesses, navigating financial worries alongside personal crises.
Financial concerns amid the crisis led Adele and her husband Shane to make difficult decisions, like cancelling life insurance, to make ends meet—a choice that might have seemed necessary at the time. Adele's sudden diagnosis of stage 4 bowel cancer shattered their hopes and plans for the future, prompting them to seek chemotherapy to maximize their time together as a family.
Richard Klipin of the Financial Services Council acknowledges that rising costs are compelling many to re-evaluate discretionary spending, such as insurance, due to financial constraints. A recent survey revealed that nearly half of those who terminated life insurance policies cited the burden of high living expenses as the primary reason.
While reducing expenses may appear practical, it's essential to conduct a thorough review of financial statements before finalising decisions. Eliminating insurance coverage can leave individuals exposed to significant risks. Consulting with a knowledgeable adviser can provide valuable insights and alternative strategies to navigate challenging financial circumstances. Adele's story serves as a wake-up call, emphasizing the importance of seeking advice and making informed decisions amidst rising costs and unexpected crises.
Taking an hour to review your insurance policies could make a substantial difference in your financial well-being. Ensuring that policies are optimally structured to meet your needs can lead to significant savings and better coverage. If you haven't reviewed your insurance in a few years, now is an excellent time to seek advice and explore potential benefits and potential cost savings or better protection.
In certain circumstances premiums have been reduced by up to 30% simply by transitioning legacy policies to newer platforms or adjusting health insurance excesses, however it is important to mention you should seek advice first. A good adviser will collaborate with you to create a tailored plan aligned with your unique situation and priorities. These proactive steps can provide peace of mind and financial security during uncertain times, ensuring you're well-prepared for the future. If you haven't spoken to your adviser and you are feeling the burden from this cost of living crisis please speak up.
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