But it is those newly unemployed workers that are also homeowners that will feel the cold depths of economic depression more than others. The threat of redundancy for them also entails the prospect of possibly losing the roof over their heads, should they be unable to find a replacement job quickly enough.
Braintree, Essex (PRWEB) December 19, 2008
The true effects of the economic collapse has yet to be seen with thousands of families facing the prospect of the New Year homeless, warns Burgesses.
The independent protection insurance specialist was speaking out following the publication this week of shocking new figures by the Office for National Statistics that revealed that unemployment is rising at the fastest rate for a decade.
Worryingly, the number of vacant positions in the wider economy has also contracted sharply creating an explosive cocktail of rising unemployment coupled with job scarcity.
The managing director of Burgesses, Sara-Ann Burgess, said: "Christmas is traditionally a time of giving - unfortunately all that is on offer for many workers this year are P45 notices and we can all do without them.
"And while the latest rise in the unemployment figures are depressing, it should be remembered that the thousands of people that have being made redundant in the last few weeks are not included and the actual picture on the ground is in fact much worse that these bald numbers show.
"But it is those newly unemployed workers that are also homeowners that will feel the cold depths of economic depression more than others. The threat of redundancy for them also entails the prospect of possibly losing the roof over their heads, should they be unable to find a replacement job quickly enough."
People with property can, however, take action that gives them the best gift they could have in these troubled times - peace of mind.
"The best Christmas present that homeowners can buy for themselves is an insurance policy that guards against the worst-case scenario and they find themselves unable to make their mortgage repayments because of accident, sickness or unemployment," advised Burgess.
"Mortgage Payment Protection Insurance (MPPI) can be bought relatively cheaply from specialist independent providers like British Insurance.
"However people need to act quickly. Insurers are already withdrawing the unemployment cover contained in traditional MPPI policies as they fear the recession will result in big exposures to claims.
"People also need to honest when taking out this policy, especially when it comes to declaring how secure they are in their current employment. Failure to be frank about this issue can leave insurers with a loophole to reject a claim.
"But cover can still be found and customers can search online where independent firms such as British Insurance has detailed information about the cost and extent of cover currently available."