13% stated unemployment was the biggest reason to cancel life insurance coverage, followed by inflation (12%) and children needing financial help (9%).
However, 56% of those surveyed claimed they would never consider cancelling their life insurance policy.
In addition, the results found a correlation between life insurance, unemployment and financial security with 67% saying they would reinstate a cancelled policy if their finances improved.
Furthermore, of those who have no current policy, 25% said their number one reason to take one out would be being in a better financial situation.
Vitality surveyed 2,000 people to identify the top reasons for purchasing or cancelling a policy, as well as if they had considered cancelling their protection in the past year.
Justin Taurog, managing director, VitalityLife said “The past year has presented a real opportunity and challenge for advisers, and while times have been financially tough for consumers, our findings show they value their life policies. Ultimately, when faced with the need for financial cuts, consumers are assessing the overall value their life insurance policies offer them.
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“For us this is where traditional insurance plans fall short; too often bought and forgotten about until a claim needs to be made. It’s why our products and services are designed to become part of their daily life, something they are incentivised to engage with to receive everyday benefits and better health.
“In fact, in 2022 our members received £60m paid back through rewards, with these members saving on average 28% of their premium through these rewards alone. We’ve also seen that our indexation policies have given those worried about inflation peace of mind, with 96% of those with it increasing their cover even when inflation was over 10%.”
Vitality also found that 60% of Brits are worried about the cost of care if they get diagnosed with dementia.
In addition, almost half (46%) do not know the average cost of caring for someone with dementia at all, which is an estimated £100,000 ($124,667).