moneysupermarket.com advises consumers to consider protecting themselves against the worsening effects of the recession.
Job losses are becoming more commonplace in the current climate and many Britons may be looking for options to insure their salary should they be made redundant, or be unable to work through illness or accident. People can cover themselves with payment protection insurance (PPI); insurance that will pay out a monthly sum to help if they become unemployed.
However, despite the potential to offer people a lifeline in times of need, research from the price comparison site reveals only one in seven Brits (14 per cent) consider PPI crucial and already have it. In contrast, almost a quarter of people (24 per cent) do not even know what it is. However, seven per cent admit the economic uncertainties have made them consider buying it.
Emma Walker says: "Whether it is mortgage or loan repayments or credit card commitments, Britons looking to insure their income should consider a PPI policy. It is worrying that a quarter of us don't know what it is and, therefore, the benefits of a policy. More concerning is a tenth of people would only buy a PPI policy if they felt their job was under threat. The best time to buy a policy is when you least expect to need it. The small print will usually reveal insurance of this kind is void if the policyholder is aware of impending unemployment. Even if the sector you are employed in has seen mass redundancies, you could be tarnished 'high-risk'. Be upfront about your situation and get as much information on your policy as possible so you are not in for any shocks. Exclusions and caveats are commonplace in a policy."
Income protection insurance: News update: September 2008