When was the last time you checked how much of your savings is accessible and how quickly you can access it?
Some of research figures from First Direct indicate that about 28% of households in the UK have just £250 in terms of accessible savings. The survey also indicated that 32% of the people will not be able to cover their rent or mortgage if they were unexpectedly made redundant or lose their main source of income. The situation is graver in the age group of 25-34 wherein about 39% have savings less than £250.
Kesh Thukaram, Director Best Insurance commented saying that though it is commonly known that people in general do not have a huge amount of savings, these numbers are shocking. The numbers imply that one in three people in the UK will not be able to survive for more than a week if they lost their job or lose their main income. The economic condition in the UK is not expected to return to normal levels of growth for some time to come and hence people should actively consider investing into some form of redundancy insurance or income protection insurance so that if they lost their jobs or cannot work due to accident or sickness, there is a fall back.
Stuart Boseley, Director of Best Insurance added saying that this is exactly what the Income Protection Task Force is trying to address. There are more people in the UK with life insurance rather than income protection insurance. While life insurance is important, when times are hard and when there is a lot of uncertainty, income protection is more important than other forms of protection insurance.
The number of employers who have announced that they will be going into administration or closing down over the last few weeks is yet another indicator to the precarious situation in terms of job certainty.
Income Protection is an important protection as it covers unemployment, redundancy and loss of income due to accident or sickness. For those people with a mortgage or a loan, payment protection is also an option to consider. With many insurers, the cost of payment protection insurance is comparatively less than income protection insurance. Payment protection also offers similar protection against redundancy or unemployment. Best Insurance is one of the largest providers of income protection and payment protection insurance in the UK and have trained specialists who help customers to choose the product that is best suited to their circumstances.
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