The UK saw an increase in unemployment of 128,000 between October and October, reaching 2.64million. This is the highest number since 1994. The Office for National Statistics (ONS), which released it on 14 December 2011, confirmed that the unemployment rate rose from 7.9% for quarters past to 8.3%. Many employees are starting to wonder if they will lose their job or if there is something they can do to protect their family and themselves.
The Euro Zone crisis is still in full swing and there are rumors of a slowdown in China’s economy. This means that the global economy is being affected by the uncertainty. Few UK firms are now investing in additional staff or capacity. They can expect demand to stay flat, or even fall back in the event that the Euro troubles trigger a severe double dip recession. The UK’s growing jobless number is being fed by headline job losses in the retail sector as well as travel. British consumers are being squeezed by rising inflation and higher taxes. They are cutting back on their spending. The high street is being hard hit.
The number of people who are made redundant will only rise if there is no improvement in prospects for the private sector and the rapid job losses in government. As more people seek fewer jobs, it is likely that the time required to find alternative work after redundancy will increase.
It is difficult to survive for long periods without any wages, especially if you don’t have much savings or lose your job. According to the Council of Mortgage Lenders, repossessions are on the rise. As lenders become less patient, more homeowners will be forced to leave their homes. Individuals must have enough money to pay their bills, even if they lose their job. Families, especially, will require urgent financial assistance if the breadwinner is laid off and they have very little savings.
Income Protection Insurance covers the risk of redundancy for people who are currently employed and need to keep their families afloat financially. Lifestyle Protection Insurance is also available from major Building Societies and other specialist providers. This type of Financial Protection Insurance can pay for up to one year (some covers 2 years) if the policyholder becomes disabled due to illness, accident, or unemployment.
The buyer decides what monthly benefit they would like to receive. The monthly benefit is typically between 50 percent to 70 percent of the buyer’s gross pay, which is their pay before deductions for Income Tax and National Insurance. It may not provide as much income each month as they receive at work for most people but it will pay their bills and help them save even if they have limited savings. These products offer a monthly benefit of approximately PS1,000. They may also be eligible for State Benefits, or have a partner who can help them share the financial burden while they search for a new job.
This cover also pays the same monthly benefit to policyholders who are unable or unable work due to medical reasons. Redundancy can cause severe mental problems for some people. For example, trying to find a job for several months or being repeatedly rejected can lead to clinical depression. This short-term Income Protection Insurance Insurance, which covers unemployment and the sickness portion, can also be a financial lifesaver.
Many families in the UK are financially vulnerable. Their monthly budgets are stretched to their limits. It is impossible for them to save enough money to offset the effects of unemployment. They might be able find the equivalent to PS5-10 per week to cover an Income Protection Insurance policy. They would be very vulnerable to a job loss that lasts longer than a month. Short-term Income Protection Insurance is a much cheaper alternative to paying for loans and the financial penalties associated with restructuring debts.
