As the cost of living rises and we all search for ways to save money. It’s tempting to think about cancelling your insurance policies. But before you make the decision, it’s worth considering a few factors.
Cancelling your policy could save you money in the short term – but it could cost more in the long term. If something happened, the financial shock might be far greater than the cost of the premiums you’re paying. So, if you can afford to carry on paying your premiums, you’ll have more financial resilience to deal with whatever might come your way in the future.
It’s not easy to think about what might happen to your family if you were to die or suffer a serious illness or injury. But it’s something to consider before cancelling any life insurance, critical illness, or income protection policies. For example, could you or your family lose your home if you had no cover?
If you cancel a policy now, but plan to take out cover again later, it’s likely to be more expensive because you’ll be older. You might also find it hard to get life insurance again if you’re in worse health than when you originally took out a policy.
Many protection policies also have guaranteed premiums. This means they won’t increase throughout the term of the policy – so if your policy has guaranteed premiums you’ll never pay more than the price you’re paying now.
Instead of cancelling your cover you might be thinking about lowering the amount of cover you have. There are things to consider before making this decision too.
Again, this could save you money in the short term. But in the longer term, if you needed to make a claim and it wasn’t enough for everything you need how might that affect you or your family?
Many policies let customers lower their cover amount, but it isn’t always easy to increase it again. This means you may need to take out an extra policy in the future, which again could cost more money if you’re older. Or, if your health has worsened you may not be able to get cover again.
Other ways to reduce spending and save money
The rising cost of living is putting huge pressure on household budgets. But there are other ways to reduce your spending that could help you.
Before deciding to cancel your policy or reduce your cover you might want to think about other ways you could cut back. For example, HSBC UK has tips on how to save money, alongside a wide range of resources available to help. Click on the links below to find out more:
If your budget is tight and you’re considering cancelling your HSBC Life policy, please call us. We may be able to make your policy more affordable while still providing you with a level of protection.
We’re unable to give you financial advice. If you want to reduce the amount of cover you have we’d be happy to talk this through with you. It would be helpful if you have an idea what you’d like to reduce it to, or how much you’d like to pay each month. This way we can send you some quotes to help you make an informed decision.
We strongly recommend seeking financial advice before deciding to cancel or reduce your cover. If you took your policy out through a financial adviser please contact them directly. If you don’t have a financial adviser you can visit www.moneyhelper.org.uk or www.unbiased.co.uk.
Here’s how to get in touch if your policy number looks like this: 123456/HS
These policies are usually taken out from a price comparison website, or with an independent financial adviser.
You can call our Customer Service team on 0333 207 5563. Lines are open from 9am to 5.30pm, Monday to Friday, (excluding public holidays).
Here’s how to get in touch if your policy number looks like this: AB12C3D
These policies are usually taken out from an HSBC Mortgage Adviser, or the HSBC UK website.
You can call the HSBC Life Helpdesk on 0345 745 6125. Lines are open from 8am – 6pm, Monday to Friday (excluding public holidays).
For Investment queries
If you have any questions regarding your HSBC Onshore Investment Bond, would like a current valuation, want to make a change to your investment, or make a complaint, our Customer Support Team is available to help. Please call: 0345 603 9164, 9am to 5.30pm, Monday to Friday, (excluding public holidays)