Workers should buy cover before it's too late, says Burgesses

People should guard against the threat of unemployment while it is still possible to do so, says specialist protection insurer Burgesses. It is urging Britain's working population to urgently consider buying insurance against becoming unemployed before lead insurers withdraw these policies from the marketplace, fearing a rush in claims.

Braintree, Essex (PRWEB) December 04, 2008

Sara-Ann Burgess, MD Burgesses

People should be taking out this cover right now - not when their position in an organisation comes under threat. By then it is too late and your request for cover is likely to be denied by the insurer.

People should guard against the threat of unemployment while it is still possible to do so, says specialist protection insurer Burgesses. It is urging Britain's working population to urgently consider buying insurance against becoming unemployed before lead insurers withdraw these policies from the marketplace, fearing a rush in claims.

It follows the publication yesterday (3rd December) of shock statistics showing the economy is contracting even faster than feared with more and more people chasing fewer and fewer vacancies.

The KPMG revealed permanent positions declined for an eighth consecutive month in November. Worryingly, the rate of contraction had accelerated to a new survey record.

Both permanent and temporary staff demand was hit - falling at their fastest ever recorded rates and only the Nursing/Medical/Care sector avoiding the downturn.

Burgesses managing director Sara-Ann Burgess said: "People should be taking out this cover right now - not when their position in an organisation comes under threat. By then it is too late and your request for cover is likely to be denied by the insurer."

It is likely that it will be the younger segment of the workforce that will suffer most as companies operate a last in first out policy to cope with the downturn. This will have a huge impact on those that have used the favourable interest rates and high loan-to-value mortgage products available in recent years to get on the property ladder.

Those that have recently climbed onto the property ladder, in many cases young borrowers with a relatively small deposit, will be hardest hit in this downturn.

"Young property owners that do not have mortgage payment protection insurance (MPPI) should quickly see about obtaining this essential cover - especially as we move into an economic slump," Burgess added.

"Very affordable age-banded MPPI policies are available from independent suppliers like British Insurance and can be bought online."