Income Protection Insurance - buy it while you can

26 August 2008

I saw Moneyfact's Liam Tarrys contribution to the BBC news item 'Protection Insurance in spotlight' and would like to pass on my support for presenting a strong message that I could not agree with more. Payment Protection Insurance has a poor reputation and deserves exposing under the strongest possible spotlight.

I would also like to think Liam's message, that there ARE good Income Protection policies out, there will not be lost on the audience, especially as I work for a company that sells income protection insurance. In fact, like the Post Office, we call it Lifestyle Protection Insurance to try to differentiate it further, as it tends to be 'tarred with the same brush' as Payment Protection Insurance and find it difficult to explain the difference so that people understand.

Sorry if this reads like an advert. its not supposed to, as my main point of submitting this is express my genuine concern that people with little saved and who really need income protection insurance, will be put off buying this when they most need it. I would hope that Moneyfacts would encourage people to buy while this insurance while they still can.

If the economy shrinks and job losses mount, the underwriters of this insurance will probably think twice about accepting people in occupations who can currently buy this cover very cheap, typically using the on line comparision sites.

Anyone in the building tade who bought this cover 18 months ago will be really glad they did, especially if they are now facing redundancy. They would find it just about impossible to buy now. And if, like the majority, they have little savings to fall back on, they risk losing virtually everything they have ever worked for: home, car and probably their marriage.