The Pensions Insurance Authority (PIA) says it is dangerous to cut back on insurance due to economic hardships.
The authority notes that during economic times, people do not have as much disposable income as they had before.
PIA Communications Manager Doreen Kambanganji has told Money FM News that this places stress on buying any product that is a grudge purchase such as insurance.
Ms Kambanganji says the temptation is for people to cut back on their insurances saying this can be exceptionally dangerous.
She has advised that cutting back on possibly unnecessary insurance cover is not a bad thing at all.
“Many people insure what they believe they are likely to lose or have stolen like a cell phone, rather than to look at what is less likely to happen but that can have far reaching consequences for them if it does happen, like a house fire spreading to a neighbor’s property,” she said.