Research conducted by price comparison and switching service uSwitch.com has revealed that 42% of people have cancelled insurance or pension contributions to ease financial burdens.
This equates to just over 19m people reducing their financial security. Of those who have cut costs in this way, 15% abandoned private health and dental insurance whilst 13% cancelled a life insurance policy.
Mortgage payment protection insurance fared better, with only 7% of those revising their policies cancelling this protection.
The majority of those who have cancelled insurance policies in a bid to save money saved themselves up to £50 a month.
Ashton Berkhauer of uSwitch says: "It is not surprising that consumers are looking for ways to cut their spending. However, there is a big difference between cutting down on luxuries or your weekly shop and cutting out on life assurance or pension savings. The potential impact on you or your family finances if you get it wrong could be huge and long lasting, so it is important to go into it with your eyes wide open."
Customers should assess whether their policy is cost effective, whether the cover is being duplicated through another policy or a workplace benefit and, what the implications are of terminating it.
There are also alternative options, such as sourcing a cheaper provider or reducing premiums by increasing the excess, lowering the payout or increasing the length of time before payout.
With a bit of homework you may still be able to keep yourself and your family fully protected, while reducing the amount you pay - a good compromise in today's uncertain times.