(PRWeb UK) April 14, 2011
Nearly nine out of ten workers (86%) are hopeful their savings, families, the State, credit cards or the Lottery will bail them out. One in five women and 14% of men don’t know what they’ll do.
Over half of those without unemployment insurance (56%) cite cost, their dislike and lack of funds as the main reasons for their failure to buy. However, British Insurance says the premium for a payout of £1000 a month can be under £30** and despite its poor reputation, where properly sold, can help redundant workers pay bills for up to a year.
The remainder of respondents either had no idea, or were unsure what unemployment insurance does. Managing Director, Nel Mooy, comments: “In this case ignorance certainly isn’t bliss. An increasing number of workers, from 16 to 54, fear redundancy yet are unaware they can access financial support via this cover.”
In 2010, 37% of respondents were unaware of PPI’s benefits - as opposed to 44% this year - signalling the need for more information from providers and websites such as the FSA’s Money Advice Service.
It also appears banks and mortgage providers continue to be the first port of call for would-be purchasers – they’re favoured by 44% of workers, followed by credit card/loan companies (18%), insurance brokers (15%) and Independent Financial Advisers (12%). Only one in 10 turns to an online provider.
Nel concludes; “There’s a misconception that this cover is too expensive so I urge people to shop around and compare premiums in the same way they would their home or motor insurance – they could be pleasantly surprised. It’s worrying that people are prepared to reduce their savings or rely on others, including the State, if they lose their salary. Equally disturbing are those who will simply ‘wing it’.
“The weekly Jobseeker’s Allowance for over 25s is £67.50 – barely enough for a weekly shop – so it’s easy to see how debts can escalate, particularly for the 72% of respondents who require between £501 and £2000 a month to pay their bills.”
British Insurance first commissioned research in April 2010. The firm questions full and part-time employees on; their attitudes to redundancy and unemployment insurance, their understanding of the cover, preferred PPI providers, cost of monthly bills and opinion on how they would manage debts if they lost their job.
To view PPI and other products visit http://www.britishinsurance.com
Note to Editors
- Survey undertaken by TNS Omnibus- 665 16-64 year-old full or part-time workers were questioned online from 5 – 7 April 2011.
** Income Payment Protection covering unemployment for a 35 year old with a 60 day excess to cover £1000/month would cost £29.40
On average 74.93% of customers taking out policies between 1st January 2011 and 31st March 2011 paid less than £30 per month.
British Insurance is a widely-recognised consumer champion and one of the UK’s leading independent providers of Payment Protection Insurance. It is a trading name of Towergate Underwriting Group Limited who are authorised and regulated by the Financial Services Authority.
Nel Mooy, Managing Director, British Insurance, T: 01206 773636, M: 07967 698573 E: Nel(dot)Mooy(at)towergate(dot)co(dot)uk
Emma Andrews, Marketing Director, British Insurance, T: 01206 780500, M: 07921 588100, E: emma(dot)andrews(at)towergate(dot)co(dot)uk
Francesca Breeze, Freelance Journalist/PR Consultant, T: 01273 421115, M: 07710 963838 or E: Francesca(dot)breeze1(at)ntlworld(dot)com