Vitality, who conducted a survey of 2,000 people, found that of those who would consider cancelling unemployment was the biggest factor at 13 per cent.
Approximately 12 per cent pointed to inflationary increases and nine per cent said children needing financial help would be a factor in cancellation.
Over two thirds said they would reinstate a cancelled policy if their finances improved.
‘Customers value life insurance policy’
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.
“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.”
He continued: “In fact, in 2022, our members received £60m paid back through rewards, with these members saving on average 28 per cent 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 per cent of those with it increasing their cover even when inflation was over 10 per cent.”
