Payment protection 'crucial' as unemployment rises to highest level for 17 years

Unemployment has risen again and rates stand at the highest in 17 years.
Official figures for the last quarter of 2011 show that there were 2.67 million people unemployed, up 48,000 on the quarter.
Insurers said the figures show how important it is that consumers provide a financial safety net against being out of work.
John Pollock, group board director for Legal & General’s Risk businesses, said that an estimated two thirds (67%) of the population do not have any insurance such as mortgage or payment protection insurance to help them to continue to pay bills should they lose their job.
He added: "Insurance can play a crucial role in helping people keep their homes and maintain their standard of living if the worst should happen."
Free advice on income protection.

Brits willing to take out 'at least some' CI cover

Some cover is better than none, Ageas says
Cash-strapped consumers are being urged to consider taking out small levels of critical illness (CI) insurance if they feel unable or reluctant to pay for top level cover.
As household budgets become ever-more stretched, Ageas Protect said it is understandable that some individuals feel unable to take out protection cover that could prove vital if they should fall seriously ill.
However, the insurer said it has conducted research which shows that one in ten parents would be prepared to pay £20 a month for a CI policy which covered themselves and their children, according to research published this week.
A survey of over 2,000 adults for the life office also shows that 15% of adults would be prepared to spend £5 a month, while 17% would spend up to £10 each month.
Andy Milburn, head of marketing at Ageas Protect, said that given the fact that a non-smoking thirty nine year old male, for example, could get £25,000 worth of accelerated CI cover for £14.59, some form of protection is within the reach of many people who are otherwise going without.
The research found that while parents are more likely to have life insurance, CI or income protection cover in place, six out of ten (60%) parents with children under 18 years – around 9.5 million parents – have no protection cover or financial provision in place to support their own or their child’s medical bills, as well as any time off work to look after a sick child.
Milburn said that it is "clear" that parents are willing to pay to protect themselves and their children, at least for a "reasonable" monthly amount.
He said: "Starting off with a small amount of CI cover, which can always be increased at a later date, could be the perfect solution to help educate not only parents, but consumers up and down the country, that CI cover can be taken out for the same monthly outlay as a pet insurance policy, and will provide a vital support at a time of need.”
Last year almost nine in ten (89%) of respondents to an Association of British Insurers survey said they would be prepared to pay no more than £5 a week for income protection cover, while 29% said they would not be prepared to pay anything at all.
COST OF LOWER LEVELS OF CI COVER
£25,000 Accelerated Critical Illness
M ns 30nb to age 65: £9.98
M ns 39nb to age 65: £14.59
M ns 43nb to age 65 £17.70
F ns 30nb to age 65: £9.53
F ns 39nb to age 65: £13.71
F ns 43nb to age 65: £15.66
£25,000 Accelerated Critical Illness with Total Disability
M ns 30nb to age 65: £11.84
M ns 39nb to age 65: £16.69
M ns 43nb to age 65 £20.38
F ns 30nb to age 65: £12. 68
F ns 39nb to age 65: £18.84
F ns 43nb to age 65: £21.51
M: male
F: female
ns: non-smoker
Source: Ageas Protect
For free comparative quotes on critical illness cover

More evidence that Brits take out pet cover ahead of protection insurance

Latest survey to reveal nation's animal lovers fail to protect their own family's lifestyle
More proof that individuals continue to choose to purchase pet insurance than protection products is revealed in research published this week.
A survey carried out for Ageas Protect shows that less than one in ten (9%) people have a critical illness (CI) policy in place – equivalent to 4.5 million adults – while 12% have taken out a pet insurance policy, equating to 5.9 million adults. The Opinium survey of over 2,000 adults suggests that one fifth of parents stated they would have to rely on savings if they were to fall seriously ill.
Earlier this month Friends Life published research which suggests that while 14% of people would automatically take out pet insurance, just 10% would take out CI cover. Research carried out for Scottish Widows last year, meanwhile, showed that across the UK just 7% of people have income protection insurance, compared to 15% who have taken out pet insurance.
A study carried out last year by unbiased.co.uk, the professional advice website, suggests that more than one in four (27%) UK adults hope to leave enough money for their family or pets to live comfortably after they are gone. However, an estimated 29.5 million UK adults do not have a will in place.

Free advice on critical illness

Why use an insurance broker?

Consumers find protection among hardest products to understand

Only pensions rank lower for clarity among mainstream financial services products
Protection is among the hardest of all mainstream financial services products for consumers to understand, according to research published this week.
In a survey of 2,500 people for the Association of British Insurers (ABI), payment protection insurance (PPI) and critical illness (CI) cover ranked the lowest in terms of understanding.
Just over half (52% of respondents to the survey rated their understanding of PPI at 5 or below (out of ten), while even less (36%) rated their understanding at five or below.
Among the widely-held financial services products included in the survey, only pensions (31%) ranked lower.
Respondents were most comfortable comparing the features of motor/van insurance and savings/current accounts, with 52% ranking each at 7 out of ten or above. Respondents again ranked PPI, as well as mortgage payment protection insurance, and CI cover bottom in terms of product comparisons, with pensions and annuities also receiving lower ratings.

For free advice on critical illness products