Argyle News : Phil's Blog

Sometimes topical issues can arise which demand an immediate and un-scheduled response. Phil's blog will discuss these issues in an open and down-to-earth manner.

04/04/08

Don't play a game of chance.

Stats from AXA's latest survey show that nearly three quarters of households say they are planning to cut their spending this year. The credit crunch and a lack of money left over each month means some will cut savings or their pension payments, while others say they will go out less. Whilst this is no real surprise given the financial circumstances we find ourselves in the most alarming figure to come out of the survey was that nearly 10% of people were thinking about not renewing their insurance cover.

The sceptic in me is not surprised as AXA of course an insurance company who sell life policies and would have been looking for answers like this when they set the questions. However Life insurance, House and Contents cover are all required (especially if you have a mortgage) and whilst saving a few quid a month may seem like a good idea it could cost you far more in the future if something unfortunate should happen. Could you afford to pay the bills if you or your partner died? Could you afford to replace expensive items if you are burgled?

In my view the decision to eat out less is a far more sensible approach to the situation as it is one that you control. Don't play a game of chance.