John Pollock commenting on today's ONS unemployment stats
15 June 2011
"The inflation figures announced yesterday made grim reading for the many people already struggling to make ends meet. Due to rising energy and food prices The Bank of England announced that it expects inflation to rise above 5% in the next three months, meaning continuing pressure on already stretched household finances in the months ahead.
With these pressures it's understandable that people are looking for ways to save money and to cut some corners. They are possibly considering stopping their insurance payments but I would really urge anybody in that position to just stop and think again.
The Employment and Support Allowance is currently a maximum of £99.85 per week, if you qualify. This level of income would make it impossible for many homeowners to make ends meet if there were made unemployed or unable to work due to illness or injury. They need to ask themselves just how they would cope if their insurance cover was not in place.
It's Father's Day this weekend and Legal & General conducted some research asking people how they would cope if Dad wasn't there or unable to work due to illness or injury. Worryingly the research showed that the number of people who had insurance cover in place, such as income protection had fallen. In this period of economic uncertainty where it is difficult enough for families to cope anyway, at least by maintaining their insurance cover they would know that they could rely on a cash sum or a regular monthly payment to help them until they were able to return to work, for example.
Yes, now is a good time to review your finances but to make sure you do have cover in place to protect you and your family, not to cut back."
Notes to editors
For The Bank of England statement; http://www.bbc.co.uk/news/business-13759286
Research commission by Legal & General with B different research of 1005 parents, across the UK, conducted between 4 and 13 January 2011 showed that the proportion of families with Income Protection cover had declined from 22% in 2009 to 17% in 2011 and only a quarter of parents had reviewed their personal protection policies in the last two years.
For more information please contact:
t: +44 (0) 1737 375369
m: +44 (0) 7788 926790