As a mum I’m more aware of problems
THE MAIL ON SUNDAY - 18TH NOVEMBER 2007
Redundancies will rise sharply if there is a big economic downturn, so taking steps to insure your income should the worst happen will soften the blow.
Simon Burgess at British Insurance, a stand-alone provider of income protection insurance says he has seen sales double over the past three months.
‘Consumers are worried by the credit crunch and are taking steps to protect themselves and their families from the prospect of redundancy,’ he says.
Stuart Tragheim, director of intermediary business at LV=, formerly Liverpool Victoria, says many people take out the wrong type of cover.
‘Usually, people get life cover first when they should be getting cover against the financial consequences of redundancy or long-term illness,’ he says.
Cover for a 40-year-old man wanting replacement income of £500 a month would cost £23.75 a month with British Insurance. Similar cover with Paymentcare would be £22.
Jenna Bibby, 26, from Braintree, Essex, has taken out a policy with British Insurance to cover income of £1,000 a month.
Jenna, who works for a direct marketing company, is on maternity leave, having given birth to her first child, Max, in September. The policy, which would start to pay out from day one of a claim – many start only after 30 days – costs £34 a month.
Jenna, whose husband Trevor, 27, is a mechanic, says: ‘After having Max, I am more conscious of protection our income. The cover is worth the money for the peace of mind it gives me.’
