The need for protection insurance

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Due to economic uncertainty following the result of the European Union referendum, many companies are considering cutting jobs. This makes it important for people to take out protection insurance in case of financial hardship if they are made unemployed.

Following the referendum result some major companies, including bankers JP Morgan, Airbus, Ford and Toyota, have said that they are considering cutting jobs because of Brexit, reported in July 2016..

The same article mentions that PricewaterhouseCoopers, the professional service firm, has warned that about 100,000 jobs in the financial services could go when Britain eventually leaves the EU. It also claims the Institute of Directors has surveyed 1,000 of its members and found that 23% are not hiring new employees, while 5% are considering making redundancies.

Faced with this uncertainty about jobs, workers need to consider how to protect themselves if they become unemployed. There are several protection insurance schemes that can help, including mortgage protection insurance and income protection insurance, which can help cover mortgage payments and other living expenses after unemployment.

It is advisable to act soon, because if an employee’s company makes an announcement about redundancies, it will make them ineligible for unemployment insurance.

Most policies are not designed as long-term solutions but make payments for at least a year, which is a realistic timeframe for people to find another job.

Insurance protection policies vary in what they cover and how much they cost. It is advisable to use a broker who can find the right deal to suit a person’s individual circumstances.

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