State welfare reforms will increase need to buy income protection insurance
The planned changes in state benefits mean that those unfortunate enough to be made redundant will not find it easy to replace their loss of income with unemployment benefits. More people are likely to struggle to meet their household bills and make their monthly mortgage payments, potentially putting their home and family at jeopardy of repossession.
Research from Legal and General suggests that only 2% of people have cover if they are made redundant. One of the real social benefits of insurance is when redundancy happens. Income protection insurance allows for an income to continue. Mortgage payment protection insurance offers homeowners and their families a vital financial safety net providing a monthly amount, typically for up to 12 months that helps to meet their mortgage payments while they find another job. It can also cover them if they have an accident or become sick and are off work. Anyone who has a mortgage or is in the process of arranging one should seriously consider putting mortgage payment protection insurance cover in place to provide for the future, given that the state is unlikely to help much in the future.
Income protection insurance news: 25 March 2011