Unemployment-only cover represents viable option for consumers

Assurant Intermediary Sales and Marketing Director. Kevin Paterson comments:

“We know that affordability of cover is a real issue for many consumers as they consider purchasing insurance protection for their personal finances.

"Although inflation eased last month, household budgets are still being stretched as wages fail to keep up with price increases. There is a real danger that some consumers might cut back or even eliminate cover altogether.”

“The unemployment rate has hit its highest level since January 1996. As UK unemployment continues to rise, insurers and intermediaries have a duty of care to help consumers find affordable protection, providing a lifeline in case the worse happens.

“While long-term income protection or complete accident, sickness and unemployment cover could be beyond the financial reach of some consumers, unemployment-only cover can provide consumers with valuable peace of mind without breaking the household bank,”

Assurant Intermediary launched unemployment-only cover last year.

The policy is renewable annually and covers a maximum monthly benefit of 125 percent of mortgage or rental payments or up to £2,000 or 60 percent of normal gross monthly income, whichever is lower. The unemployment-only benefit is available for up to 12 months.