Rising inflation is putting pressure on life insurance customers over the age of 50 to carry on paying their monthly premiums, new research has suggested.

A study of 1,000 over-50s by financial mutual Scottish Friendly found that more than one in five (22%) customers are thinking about cancelling their monthly payments because of the cost of living crisis.

According to Scottish Friendly’s findings, women are most affected with 28% of those with an over-50s life insurance plan considering no longer paying into their plan, compared to just 17% of men.

The mutual also warned that the consequences for customers could be severe as it would put their cover at risk and mean they could possibly end up with nothing.

The majority (57%) of respondents with an over-50s life insurance plan said they took out a policy to cover funeral costs, while 46% did so to provide financial support for their family in case of their death. Meanwhile, just 9% started a plan to help pay off their mortgage.

However, as people’s incomes are squeezed by inflation, which increased to an annual rate of 10.4% in February, Scottish Friendly stated that consumers will need to look at ways to reduce their outgoings.

“Inflation has increased again after falling for three consecutive months and continues to affect household budgets,” commented head of marketing at Scottish Friendly, Jill Mackay. “Dealing with price rises is particularly difficult for those on fixed incomes, such as those in retirement.

“When times are hard, people will naturally look at ways to save money by cutting back on their spending, and protection may be one of the areas in which they look to do so.

“However, while it might be true that not all types of insurance are indispensable, it is important to think carefully before cancelling life insurance cover. If customers choose to stop paying in then it risks ending the policy and they may end up not getting back what they paid in.”

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