With household debts and unemployment at a high, moneysupermarket.com urges consumers to safeguard their finances and improve awareness of insurance policies such as income protection and critical illness.
As the effects of the recession take hold, recent figures reveal unemployment is at its highest rate for 11 years while the average household is in debt to the tune of around £60,000. Critical illness or income protection could prove vital if you find you are unable to work due to illness or unexpected redundancy.
Despite this, recent research from the price comparison site shows people’s awareness of policies such as payment protection insurance is limited. A quarter doesn’t know what it is, while only one in seven consider it crucial and already have it.
Emma Walker, head of protection at moneysupermarket.com says: "There is a common misconception that critical illness insurance is expensive. At around £30 a month it seems a sensible addition to finances and could provide peace of mind. It can cover mortgage or loan repayments, pay for private nursing care or treatment, or even fund a holiday to recover. We are all feeling the pressure on our finances at the moment and the additional money could make all the difference. It is crucial to read the small print thoroughly and to be accurate when giving information at the application stage. Non-disclosure is one of the main reasons that a policy does not pay out. Exclusions and restrictions are common."
Income protection insurance: News update: December 2008