Public Sector Employees Take Action Now Before Redundancy Strikes
Added: (Wed Dec 30 2009)
Pressbox (Press Release) -
Just when there are finally signs that things are beginning to stabilise in private industry, Public Sector jobs look set to take a big hit. All political parties are now telling us that there will be swingeing budget cuts after the next election. If ever there was a time civil servants, local authority employees and healthcare workers should be thinking about protecting themselves from redundancy, it is now.
Dennis Haggerty the Marketing Manager of iprotectinsurance commented "Our message to customers has always been that there is no reason to risk losing your house or getting into serious financial difficulties because you are unable to work. Protect your family and your home with one of our low cost policies”. Many thousands have responded by taking out a Mortgage Protection or Lifestyle Protection policy with iprotectinsurance.co.uk over the years. However, very few of their policyholders are employed in the Public Sector.
At iprotect they believe this is because these type of jobs were previously immune from a downturn in the wider economy. Winchester based iprotect have dealt with hundreds of claims this year from people who had been made redundant for the first time in their lives. Individuals in private sector jobs previously considered perfectly safe.
Most people took out loans and ran up credit card bills during the good times. These commitments, as well as rent or mortgage repayments, still have to be met by men and women suddenly thrown out of work through no fault of their own. Families without savings have been plunged into a terrible spiral of debt. They could have avoided this by taking out iprotect’s Lifestyle Protection insurance for example. However, it is essential to secure this cover before an employer starts talking about cut backs and redundancies.
Dennis Haggerty commented on behalf of iprotect "We have letters from families with large mortgages to pay each month. They have left us in no doubt that they would have lost their homes should it not have been for their policy with us. We have included an extract from one of these letters under the ‘What our customers say’ pages our website. It is so important that people realise that this cover is available to them and how it can protect them from financial meltdown."
With the example of what happened in private industry, it is now vital Public Sector employees take the opportunity to buy this cover before it is too late. As soon as specific Government Departments are tasked with budget cuts, Underwriters will refuse to offer insurance to people in occupations or functions certain to be considered for redundancy. The same thing happened when the banks ran into trouble in 2008, everyone knew they would be cutting their workforce and overnight this insurance became impossible for bank staff to buy.
Insurance is all about spreading the risk. If 10% of people are made redundant and have to claim, their payments will be met by the premiums of the remaining 90% still working. This keeps the cover affordable. However, if the only people to take out this insurance were certain to claim, the risk could not be spread or shared between enough people to make the cover viable to offer. This is the reason Underwriters decline to insure people with a higher than average probability of being made redundant.
For Public Sector employees the most important issue is to act now before the post election budgets are disclosed and the window of opportunity to buy this cover is slammed shut.
This is a typical example of a Mortgage Protection quotation. The premium for a person age 30 is £20.90 per month for a policy would pay them £1000 each month, for up to a year, if they are unable to work due to accident, sickness or unemployment. This policy would have a 30 day excess period, which can be increased to 60, 90 or even 180 days to reduce premiums further. For more information, or to get a instant on-line quotation, visit www.iprotectinsurance.co.uk specialist providers of low cost Mortgage Protection and Lifestyle Protection Insurance.