Expert: Use payment protection insurance to guard against emergencies
Published On 1 February 2008
New research suggests that more people should consider payment protection insurance to guard against future financial difficulties.The study by the Association of British Insurers (ABI) showed that nearly a quarter of people have no idea how they would cope should they lose their regular income.
What's more, the research indicated that around 23 per cent of the population will be jobless at some point during their working life.
The ABI added that, with many consumers delicately balancing debts to keep afloat financially, insurance could be vital to cover a period of unemployment.
Nick Starling, the ABI's director of general insurance and health, explained: "It is important when people are taking out a loan or a mortgage that they think about how they would meet repayments should they fall ill or become unemployed.
"Insurance can play a role in helping people meet their financial obligations in these circumstances."
However, Mr Starling stressed that it was important that consumers picked the right insurance products.
"Don't just pick the first one you look at, or the cheapest, but shop around to make sure it’s the right policy for your needs," he concluded.
