Critical Illness Cover News - protected.co.uk

Credit-crunching cost-cutting measures may include cutting back on life insurance in a bid to save some extra cash.

Such is the claim of Prudential, which reveals that it could cost Britons thousands of pounds in additional premiums if they cancel an existing policy but then replace it further down the line.

However, having protection in place could be important during the recession in case finances take an unexpected turn for the worst, the organisation urges.

"Protecting the financial well-being of the family is vitally important, particularly in times of economic uncertainty," states Kevin Carr, director of protection development at PruProtect.

Taking out a policy such as critical illness cover could ensure that if a wage-earner can no longer work, the blow to a household's income may be cushioned.

Furthermore, the Association of British Insurers warns that the cheapest life insurance policy may not necessarily be the best and individuals should check what they are covered for.