If you’ve looked at your household budget recently and thought, “Something has to give,” you’re certainly not alone.
With mortgages, the food shop, childcare and power bills all costing more than they did a few years ago, insurance can easily end up on the chopping block.
It’s a conversation we have almost every week.
The surprising thing is that many people assume the only options are to keep paying exactly what they have or cancel it altogether.
In reality, there’s usually a third option.
Insurance Should Fit Your Budget
One of the biggest misconceptions about insurance is that it’s an all-or-nothing decision.
Good insurance advice isn’t about selling you the biggest policy possible. It’s about helping you protect the things that would have the biggest financial impact if life didn’t go to plan.
For one family, that might mean making sure the mortgage could still be paid if one parent couldn’t work (mortgage protection).
For someone else, it might be keeping life insurance while reducing other cover until their finances improve.
The right answer is different for everyone.
The Cost of Being Underinsured
It’s understandable to focus on the monthly premium because it’s the number you see leaving your bank account.
But it’s also worth asking a different question:
What would happen financially if you couldn’t earn an income for six months?
Or if a serious illness meant one parent had to take extended time off work?
Those are the situations insurance is designed for.
The goal isn’t to insure against every possible event. It’s to protect your family’s financial stability when the consequences would be hardest to absorb.
If Money Is Tight, Review Before You Cancel
If your premiums are becoming difficult to manage, don’t assume cancelling is your only choice.
A review may uncover opportunities to:
- Adjust your level of cover.
- Remove benefits you no longer need.
- Prioritise the covers that protect your biggest financial risks.
- Make sure you’re not paying for something that no longer suits your circumstances.
Sometimes a small adjustment can make a meaningful difference to affordability while still keeping important protection in place.
Insurance Isn’t About Buying More
At Canvas, we often spend just as much time talking people out of insurance they don’t need as we do recommending cover.
Our job isn’t to maximise premiums.
It’s to help you make informed decisions that fit your life, your family and your budget.
That means asking questions before recommending products.
The Bottom Line
If insurance feels expensive right now, that’s completely understandable.
But before you decide to cancel a policy, it’s worth having a conversation.
Often, a few thoughtful changes can make your cover more affordable while still protecting the things that matter most.
If you’d like an obligation-free review of your current insurance, we’d be happy to talk through your options in plain English.
Frequently Asked Questions
Should I cancel my insurance if money is tight?
Not necessarily. Many policies can be adjusted to better suit your budget without cancelling them altogether. Speaking with an adviser can help you understand your options.
What insurance should I prioritise?
Everyone’s situation is different, but many families choose to prioritise cover that protects their income, mortgage or dependants if something serious happens.
Can I reduce my insurance premiums?
Often, yes. Depending on your policy, you may be able to adjust your level of cover or remove benefits that are no longer appropriate for your circumstances.
Is it worth reviewing my insurance every few years?
Absolutely. Major life events such as buying a home, having children, changing jobs or changes to your income are all good reasons to review your cover. At Canvas, Kris checks in with each client every year their policy has been in place to check if anything needs to be reviewed or changed.
