Redundancy Insurance Policy, 16-24s May be Young, but not Carefree

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The belief that 16-24 year-olds are a ‘carefree’ generation is no longer true, according to research* recently undertaken for independent payment protection insurer, British Insurance. It found an increasing number - 50% - of workers in this age group are worried about losing their jobs - up from 34% five months ago

Viewers of The Apprentice have seen how graduate Alex Epstein fell victim to the recession after he was made redundant from his communication role in Manchester and British Insurance wonders if this is adding to their angst.

“No other age range registered such a huge leap in uncertainty over its working future,” says BI Managing Director, Nel Mooy, “perhaps it’s the realisation that what happened to Alex could happen to them, coupled with debt burdens from tuition fees.”

Aside from the Apprentice, 65% of survey respondents know someone who has lost their job and overall, those concerned about redundancy protection has risen to 52%. However a growing number – 86% - are without PPI (also known as unemployment insurance) up from 80% in May.

Workers without cover appear confident their savings (52%), families (33%), the State (28%), credit cards (12%) or even the Lottery (4%) will bail them out. This is in spite of a High Street bank recently predicting that 30% of adults have less than £249 set aside as a financial safety net – equal to around five days average take-home pay.

BI believes the low uptake of payment protection insurance can also be attributed to an increasing number of people (42% up from 37%) who have little or no idea what PPI does. After its May survey, the provider joined forces with personal finance comparison site Moneynet and launched a Consumer Guide to Payment Protection Insurance. BI offers a loan payment protection insurance policy, which can help you rest assured that all your plans and dreams are safe.

Nel concludes: “Although people are more concerned about redundancy, fewer are keen to take out a redundancy insurance policy that will pay their bills if they lose an income. Is this because they’ve become ‘hardened’ to the prospect of job cuts and do not want to worry about safeguarding future finances until they know where the axe will swing – which by then will be too late for many wanting to take out a policy?”

The Guide can be viewed at http://www.britishinsurance.com or http://www.moneynet.co.uk and is available for download as a PDF at both of these sites.

Note to Editors
*Survey undertaken by TNS Omnibus- 654 16-64 year-old full or part-time workers were questioned online from 12 – 14 October 2010.

Previous survey undertaken by TNS Omnibus- 665 16-64 year-old full or part-time workers were questioned online from 29 April – 4 May 2010.
View The Apprentice candidates at http://www.bbc.co.uk/apprentice

Case Studies available upon request.

British Insurance is a widely-recognised consumer champion and one of the UK’s leading independent providers of Payment Protection Insurance.

British Insurance is a trading name of Towergate Underwriting Group Limited who are authorised and regulated by the Financial Services Authority.

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Nel Mooy
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