(PRWEB UK) 30 November 2011

The firm says 59% of workers are fearful of redundancy, up 7% from last year, and 8% higher than when research was first commissioned in May 2010.

Despite increasing nervousness around future earnings, fewer workers have plans in place to prevent debts escalating if their salary goes. In May 2010, one in five respondents had unemployment insurance, now only 14% do.

The remaining 86% plan to bridge any income gap using; savings, family, State benefits, credit cards, the Lottery or they don’t know what to do.

British Insurance Managing Director Nel Mooy, comments: “Although we’re told the UK is coming out of a recession, this confidence is clearly not shared by the majority of workers. And with economists predicting the economy will stagnate over 2012 or worse, suffer a deep recession if the Euro-Zone situation deteriorates, it’s advisable to have a plan to replace any future lost income without dipping into savings or falling into debt.”

Although only a small percentage of workers have Income Protection – an increasing number are buying cover online, following the Competition Commission’s recommendations to source policies independently from their credit arranger. Previously ranked fifth as a purchase option, internet providers are now second, alongside Independent Financial Advisers. Banks and mortgage lenders currently retain the top spot.

Nel concludes: “People are realising online firms offer more competitive premiums; however, I worry many only consider Payment Protection Insurance – also known as short-term Income Protection – once they’ve heard their job may be at risk. Most policies have an initial exclusion period of 120 days after their start date, which means if you’re unemployed within the first four months of taking out cover, you won’t be able to claim. So apply for cover whilst your job is secure.”

To find out more about short-term Income Protection visit http://www.britishinsurance.com

Ends

Note to Editors

Office for National Statistics – labour market estimates – June to August 2011 – 29.10m. 59% of 29.10m = 17.169m
** Survey undertaken by TNS Omnibus – 676 16-64 year-old full or part-time workers were questioned online from 6 – 10 October 2011.

Full survey results and data available upon request

British Insurance is a widely-recognised consumer champion and one of the UK’s leading independent providers of Payment Protection Insurance.

British Insurance has a Linked In profile at http://www.linkedin.com/company/british-insurance and can be followed on Twitter at Twitter: @britishins

British Insurance is a trading name of Towergate Underwriting Group Limited who are authorised and regulated by the Financial Services Authority.

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UK mortgage payment protection insurance is one of the best things to happen to the mortgage industry in the last few years. However, high street banks and lenders recognised an opportunity to make a profit when they saw one, and this often clouds the general public’s judgement of the product. Many dismiss UK mortgage payment protection insurance before probing into it as far as they should to see what it ca actually do for them.

UK mortgage payment protection insurance is a protective policy that will pay out for up to 24 months’ if an individual is sick, injured as the result of an accident or involuntarily unemployed. All three situations would result in an individual being unable to work for a period of time and thus would jeopardise the financial security of a household in the ensuing months, if not years. It would certainly mean that it would be a struggle to keep up with mortgage repayments.

UK mortgage payment protection insurance will pay the mortgage and related bills, such as home and contents insurance, for the period of time laid out in the terms and conditions of the policy. Anybody over the age of 18 and up to 64 is eligible for UK mortgage payment protection insurance as long as they work over sixteen hours a week. This ensures that the majority of main wage earners are completely covered, and it is often them paying the mortgage and related bills.

There are many advantages and benefits to having UK mortgage payment protection insurance. It is an essential product these days and is most definitely worth its weight in gold to those who need it. Even if you hope that you will never need to use it, UK mortgage payment protection insurance is worth investing in just in case.

About the Author

Simon Burgess is Managing Director of the award-winning British Insurance, a specialist provider of uk mortgage payment protection insurance, loan protection insurance and income protection insurance.

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