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86% 'at risk of debt problems if they lost their job'

By Lucy Bower

9 November2011

Worried about debts New research by online insurers British Insurance states that 86% of us don't have employment insurance and would rely on hand-outs from family and friends, savings, benefits, or would get into debt on credit cards if we lost our jobs, as reported by The Telegraph.

However, nearly 17 million employed people are worried about their job security, particularly when unemployment is so common. Employment insurance could help you avoid getting into trouble with debt if you lost your job, but it is less popular than in 2010. Last year one in five respondents had unemployment insurance, whereas today only one in seven does.

As incomes are squeezed by rising petrol, food and heating costs, many people have less disposable income for financial products and perhaps don't see employment insurance as a necessity.

British Insurers argues that employment insurance is more of a necessity in the current economic climate. The latest unemployment figures have soared to 2.57 million, which is the most this country has seen for 17 years. Young people have been particularly badly hit by unemployment.

Its managing director Nel Mooy commented: "It's advisable to have a plan to replace any future lost income without dipping into savings or falling into debt."

Image iStockPhotos / WaveBreakMedia

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Tags: British Insurance, employment, unemployment insurance, unemployment, Telegraph

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