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21 Nov 2024
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Income protection vital in light of unemployment situation

People in employment may want to put in place income protection measures such as accident, illness and unemployment cover in light of new projections on the performance of the UK job market.

Despite an upturn in the economy, unemployment in the country will continue to increase well into 2010, according to an academic from the University of Coventry.

Professor David Bailey from the university's Business School said that more needs to be done to help people maintain jobs because unemployment in the UK is rising faster than in European Union states.

"Whilst the government should be praised for measures to help unemployed workers find training and/or employment - such as its £1 billion Future Jobs Fund - it has failed to act in terms of actually keeping workers in jobs," he explained.

Income protection insurance is designed to kick in case of redundancy or incapacitation through an accident or illness.

It offers a source of income until recovery or a new job comes along, although there are exclusions over the duration of the payment.

Such cover is vital because it ensures bills or debts continue to be paid.

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