Public sector workers without redundancy fall-back plans such as unemployment cover or income protection insurance may want to consider putting in place such measures because of impending budget cuts.
Civil service jobs may be under threat following chancellor of the exchequer Alistair Darling’s refusal to confirm or deny whether the government would target the public sector in a bid to reduce spending last night.
Speaking to a City audience at the annual Mansion House dinner, the chancellor avoided giving any guarantees against future cuts despite the fact that prime minister Gordon Brown has been accusing the Conservatives of considering cuts.
With the government unable to give any spending guarantees beyond 2011, now more than ever is it vital for civil service workers to start thinking about protecting their financial future.
Depending on the level of cover and terms of the agreement, products such as unemployment cover can come in handy by providing a source of income until a new job comes along.
A recent article by Love money stated that accident, sickness and unemployment insurance can guarantee income of between 50 per cent and 65 per cent of one’s salary until retirement age is reached or a full recovery is made.
With all types of insurance the greater the risk the higher the premiums and in recent months we have seen many of the providers of accident sickness and unemployment increase their premiums.
There are now some providers of income protection and life insurance policies that offer unemployment cover as an add on benefit. An advisor at an online comparison website points out that although you must have a small amount of life cover with the policy if you do not require income protection cover that their premiums were still highly competitive.
Where can I find out more about unemployment cover?
Many online comparison websites allow you to compare premiums on the standard accident sickness and unemployment cover providers. However none of these sites currently have the facility to offer quotes on life insurance or income protection cover providers who offer unemployment as a rider benefit.
To obtain quotations on polices life the Synergy Protect contact you will need to speak to an independent financial advisor. Most financial advisors do not charge a fee and have access to all the major insurance companies. The will review your complete financial situation and make a recommendation to suit your circumstances and budget. With all financial advice you are not obliged to take the policy they recommend and you are free to shop around for a more competitive premium if you so wish.
Jason Haines is a protection and mortgage advisor at godirect.co.uk, one of the UK’s most trusted information site about personal finance. The have details on the latest income protection cover and offer free free independent income protection quotes with their new interactive quote system.