As the risk of redundancy increases for more and more people working within the financial services sector, PPI lobbyist Sara-Ann Burgess from Burgesses, urges employees to ensure they have Payment Protection Insurance (PPI).
In banking alone, recent headlines include the takeover of HBOS by Lloyds TSB, the nationalisation of Bradford & Bingley and the acquisition of its savings unit and branches by banking giant Santander, the axing of 1100 jobs worldwide by HSBC, the acquisition of Alliance and Leicester by Santander and the collapse of investment bank Lehman Brothers.
Sara-Ann Burgess comments: “Years ago, working in a bank was considered a secure job, but as we’ve witnessed over the last week or so, nothing is secure. Hundreds of business units and branches will be either axed by those purchasing them or because of the economic downturn, leaving workers and firms that support them under enormous financial pressure. PPI can help relieve this pressure and at least provide employees with some financial breathing space whilst they’re looking around for other jobs or maybe a career change. Income Protection provides a monthly replacement income for up to a year, ensuring bills can still be met, whilst Mortgage Protection covers the monthly mortgage payment. Independent providers could be seen as the more stable option in the current climate and they’re certainly cheaper. British Insurance offers Income Protection at £3.40 per £100 of monthly replacement income and Mortgage Protection at £1.60 per £100 of payments. Both of these are for unemployment cover. It is a bit like a Mexican wave, one bank goes down, then we hear of another, then more job losses and so it goes on. Those with PPI can at least ride this wave a little easier and rest assured their monthly commitments will be met.”
If you work for a bank which is known to be in trouble or being taken over, or you have information that suggests you will soon be out of a job, then you must advise insurers of this on any new application, or any clam may be invalid due to non-disclosure of information.
Income protection insurance: News update: October 2008