Post Office flags up unemployment insurance cover

Friday, 28 November 2008 12:00

The Post Office is promoting its payment protection product after it discovered a worryingly low number of people had unemployment cover.

Despite rising unemployment levels and spiralling concern among the population that they might lose their job, 71 per cent of people were not covered for this eventuality, a Post Office survey found.

And the research by the Post Office also showed 40 per cent of people had nothing, or less than a month's salary, saved to provide them with a safety net should unemployment blight their lives.

With 75 per cent of those questioned unaware of the benefit entitlements available to them, the Post Office admitted it had "great concern".

Its Lifestyle Protection enables policyholders to cover each £100 of monthly outgoings - to up to 60 per cent of their gross monthly salary - for just £4.50 per month

This would provide a monthly payment of up to 12 months if the policyholder was unable work because of accident, sickness or unemployment. It means, for £45 a month they could receive up to £12,000.

The Lifestyle Protection plan is a standalone product, so is not linked to one specific debt and can cover a percentage of the policyholder's income.

But the Post Office is also urging people to find out what they would be entitled to in terms of benefit.

And Duncan Caesar-Gordon, head of protection at the Post Office added: "You can take out unemployment cove for a relatively low cost, which also covers you if you were unable to work due to sickness or accident."

"It's a small price to pay for peace of mind."

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