According to an income protection company study, the PPI scandal has put at risk about half of the UK’s population in a spiral of debt. With many unwilling to purchase the controversial insurance because of its connotation and consumer distrust with banks, most UK families can suffer if their breadwinners have an accident, sickness or get unemployed.
PPI was designed to repay your loan in case you got into the aforementioned troubles for 12 months. As the product became a “dirty word” in the United Kingdom, flaunted by rogue CMCs and the root cause of financial pain among British, families may depend on the UK government to address their financial woes in time of need.
According to figures researched by income specialist Cirencester Friendly, huge numbers of people do not have any back-up plans. Figures show that 33% of UK workers have life insurance, 8% with a critical illness cover and only 4% with income protection.
Brits will now have to apply for Employment Support Allowance should they be unable to work after 28 weeks. The assistance merits them £102.15 and £109.30 weekly depending on your national contributions and circumstances.
The best way to deal with the situation, according to experts and income protection companies, is to ask the cover your employers can provide you. Younger children and young adults may not need life insurance yet, but income protection can be crucial for them especially if they’re supporting families.