Do you need Protection? Consider the facts :
Huge numbers of us have no idea how we would cope financially in a crisis, according to a survey.
Some 25 percent of people do not know how they would make ends meet if the main breadwinner died, 21 percent if they suffered a long-term illness and 19 percent if they lost their job, according to a poll of 2,000 people for the Association of British Insurers (ABI).
Others said they would cut back their expenses, manage on remaining income, rely on the state, use savings, rely on family and friends, or sell their house.
Figures show that 23 percent of people will be jobless at some point during their working lives -- more than a third of whom will be out of work for a year or more.
There are also currently 2.4 million people in the UK with long-term illnesses who claim incapacity benefit.
The findings come at a time when fears are mounting over an economic downturn and widespread job losses are expected, particularly in the City.
Nick Starling, the ABI's director of general insurance and health, said: "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."
Source of Protection Article – Association of British Insurers News Release dated 1 February 2008.
Source of unemployment and long term illness data – Department of Work and Pensions Quarterly Statistical Summary dated 14 November 2007.
There are four main insurance products that can help people should they lose their regular income: life insurance, income protection insurance, critical illness insurance and payment protection insurance.
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