A recent survey by the Association of British Insurers (ABI) has found that 31% of those surveyed in the fourth quarter of 2009 were concerned about job security (ABI Savings and Protection Survey Q4 2009*). The same percentage of people believed that the economy would worsen in 2010, an increase on the figurer uncovered in the third quarter of 2009 (27% in Q3 2009).
Respondents to the survey also stated that they would struggle if they lost their jobs, with more than 65% believing they would cope badly and over 30% very badly. Despite these responses, the average percentage of people over the previous six surveys that held mortgage payment protection insurance (MPPI) was only 16%. This means that there were a large percentage people who had concerns about the economy and their job security who were inadequately prepared for the financial risk of losing their job. MPPI is a relatively inexpensive form of mortgage protection and those who believe there are tougher times ahead should seriously consider taking out a policy. If affordability is an issue it might be worth having a review of your monthly expenditure and seeing if is possible to make savings in other areas in order to be able to plan your financial security.
The survey also found that the most popular forms of personal protection policies held over the last six quarters were life insurance (47% of working respondents), critical illness cover (17%), MPPI (16%) and private health cover (15%).