Are we all under insured as a result of the UK economy?

As several countries around the world still continue to battle with uncertain economic conditions, Britain for the first time has seen a slight slump in inflation rates last month, reportedly the lowest since late 2009, as the rates dropped to 2.4 per cent. Though the fall is expected to continue over the next few months, there may not be any immediate respite from high prices, even if the trend has been welcome by early summer sale bonanzas.

The impact of high food, transport, fuel and electricity costs over the past few years is still prevalent, with most households being considerably under insured in the process. Households were and are still hit by relatively lesser wage inflow, while expenses continue to be on the higher side. Uncertain job markets make it difficult for graduates to get a job, while job cuts of recent times have made it painful for households to make ends meet. It has been observed that people have been moving away from basic home and health insurance schemes with over 40 per cent of them attributing it to affordability. Households with children or families run by single parents find it hard to meet their monthly expenses, with most of them opting out of the renewal process. There are still several others who are unable to appreciate the value of insurance.

Why Opt for Insurance?

Home and health insurances are of immense help, given the costs associated with rebuilding damaged property or specialty or emergency health care. Home insurances are a must, given the extreme weather conditions prevalent in the country today, and with most households running the risk of being affected by floods this year. While objects inside the home remain covered, rebuilding a damaged building with help of insurance is ideal, especially if the property is mortgaged. Home insurances also ease the burden of compensating for accidental fires that may damage adjoining properties as well at times.

Life insurance cover is gaining popularity among the employed, as the cost of living continues to grow at almost twice the inflation rate. Households can opt for suitable health, home and even pet insurance schemes to take adequate care of their loved ones and belongings even in these expensive times.

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