HSBC Insurance has issued a warning to customers not to make cutbacks on their insurance in an attempt to save money during the credit crunch.
The insurance division of the bank says: "At a time when individuals are tightening their belts, there is always a temptation to cancel or cut back on insurance, as it is mistakenly seen as a luxury - not a necessity."
According to HSBC Insurance the oncoming recession will lead to increasing job insecurity, so may also make income protection insurance more valuable.
Income protection insurance: News update: December 2008
