Income protection insurance is also known as various other things,
such as disability, redundancy, ASU, or accident, sickness and unemployment
More than 20% of Britons would not be financially
prepared if an unexpected lifestyle change, such as a redundancy
or caring for an elderly relative, was thrust upon them, according
to research carried out by Birmingham Midshires.
The report reveals that over 80% do not have enough
money set aside to support their families even for a short
period of time should they become unemployed through redundancy.
More than 90% could not afford to pay the cost of a retirement home
and 70% couldnt pay funeral expenses, should the need arise.
These findings highlight the potential difficulty
many of us could run into if an out of the ordinary
expense occurred. Most of us could do a lot more to make sure that
a financial cushion is in place to provide protection against problems
and emergencies. Income insurance is one such type of defensive
Accident, sickness and unemployment insurance (ASU)
is not cheap, but if you have a family and mortgage commitments
it could be an important backstop in the event of a disaster, particularly
if you dont have savings to fall back on.