Article

It is natural for those who are feeling the pinch to look to trim their outgoings but anyone who is tempted to cancel their payment protection insurance (PPI) and mortgage payment protection insurance (MPPI) should realise that they could be guilty of making the mother of all false economies.

Both types of cover offer the ability to protect against unemployment as well as accident and sickness, and few jobs can be considered totally safe in the current economic environment.

This June the Confederation of British Industry (CBI) forecast that unemployment would peak at 3.03 million in the second quarter of 2010¹. But even this could turn out to be an optimistic forecast. Some economists are predicting that unemployment could reach 4 million by 2012².

With recruitment at an all time low, at least the benefit payments from a PPI or MPPI policy can tide you over if it takes many months to find another job after being made redundant. Any savings that you have tucked away are unlikely to last very long if you lose your income but the bills will keep arriving and the so-called “State safety-net” will never enable you to do anything more than subsist.

Anyone can be unlucky and lose their job but those who risk going without PPI or MPPI could well be helping to compound their own misfortune. The cover can make the difference between keeping a roof over your head and having to co-operate with the bailiffs.

webmoney, can provide immediate cover online for both PPI and MPPI often without an exclusion period for switchers, and it charges younger people lower premiums to reflect the fact that they are less likely to claim.

¹ Times Online
² Guardian