Unemployment surged by 369,000 to 1.971 million last year, with almost 260,000 people made redundant in the last quarter alone.
With the difficult economic conditions set to continue throughout 2009, now is certainly a good time to consider taking out a protection policy.
Insurers across the board have been reporting increased demand for
mortgage payment protection insurance (MPPI), which as the name implies is a policy that meets your mortgage repayments should you become unable to.
How to find an affordable policy
Unfortunately, given that people are far more likely to make a claim in these uncertain times, many
PPI insurers have responded by hiking the cost of premiums.
This makes it more important than ever that you take a time to compare different providers, as the difference between the cheapest and most expensive can be astronomical.
Remember to check the smaller players too, as
independent PPI is often significantly cheaper. Finally, don't simply assume the bare-bones policy will provide the best value.
For example, I recently applied for an
online MPPI quote and found that unemployment cover was only £1 a month cheaper than unemployment, accident and sickness cover.
Now not the time to cut cover
Ironically, at a time when
insurance policies are proving more valuable than ever, millions of Brits are actually planning cutbacks on their level of cover in order to cope with the rising cost of living.
According to insurer LV=, these Brits are aiming to save an average of £125 over the course of the year, working out at just £10.41 per month.
This is a minor saving to make, considering they are leaving themselves liable for massive bills should disaster strike.
Save smarter
Rather than leaving yourself desperately short of vital cover, a far better money-saving strategy is to target waste elsewhere on your monthly outlays.
Whether it’s weekly drinks with work mates or that top-of-the-line satellite TV package, we all spend a fair portion of our monthly income on things that, while important to us, are nonetheless avoidable.
Unfortunately, if you’re still struggling to make ends meet, then these “luxury” purchases are the only place to target for further cutbacks.
Read our articles on
money-saving and
budgeting, and you’ll be able to make far more significant reductions to your monthly bills without having to cancel your insurance policies.
