Payment Protection Insurance Sales Increase On The Back Of Slowing Economy
As the UK economy continues to slow down and it looks as though Britain is about to head into a recession, the number of people unemployed is starting to rise dramatically and many experts predict that there could be as many as two million individuals unemployed by the end of this year, with worries over further job losses throughout next year.
In September alone, an additional 31,800 people applied for unemployment benefits and these figures look set to rise, with all sectors of the economy being affected by the slow down.
On the back of this news, it is hardly surprising to find out that there has been a large increase in the number of applications for Payment Protection Insurance (PPI) from individuals who are worried about being able to maintain the repayments on their mortgages, secured loans or other unsecured loans and credit cards.
Shane Craig of the PPI broker Paymentcare.co.uk said “we have seen a significant rise in enquiries from workers looking for cover in the event of losing their homes and the enquiries are coming from all sectors. Coupled with reported job cuts at the Ministry of Justice, there are additional fears that job losses in the financial sector will mount as Lloyds TSB takes over HBoS, the biggest mortgage provider in the UK. If now is not a good time to take out protection against job loss, then I do not know what is.”
But before you rush out and buy a PPI policy to protect your various loans, please bear in mind that these policies have a bad reputation for paying out claims and peace of mind is one thing, but you need to know that the policy you take out will actually provide the cover you require for your loan repayments.
For many individuals who do not already have this type of cover in place, it may already be too late to apply for PPI, as if there is already any hint of redundancies within their company, this important area will not be covered by their policy in the event of a claim. For many applicants for PPI cover, this could be a classic case of closing the stable door once the horse has bolted!
