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Efficiency savings, cutting back of bureaucracy and reform of public services are just some of the phrases used by politicians to avoid actually spelling out the truth about jobs. A huge number of Government Employees are about to discover that they will very soon join the thousands of people in the building industry and financial services who were denied access to Income protection and Mortgage Protection Insurance because their jobs are at risk.

Those people in building related industries, everyone from ground workers to estate agents, lucky enough to have secured income protection insurance before the bubble burst, are insulated from the financial consequences of widespread redundancies. Many of their friends and colleagues, who never bought this cover in time, are now worried sick about paying their bills.

The downturn for the private sector continues with over 2000 redundancies announced every week. Financial services, big ticket retailers, motor and engineering industries continue to suffer. However the cold wind of secession has yet to be felt by Civil Servants, Town Hall employees and anyone in public services.

The Government may say they are waiting to see some green shoots of recovery before tackling the alarming budget deficit. More cynical observers may suggest it is the last throw of the dice that might keep a few more Labour MP's in their jobs after the next election. Either way, irrespective of the political hue of the next Government, 2010 will see an unprecedented cut back in public expenditure.

It should be remembered that even the Thatcher Government only managed to slow down the rate of public expenditure. Whoever wins the next election will have to achieve an absolute reduction in real terms to tackle the enormous budget deficit - its going to be bloody.

Unlike those in the private sector, who just may begin to see some light at the end of the tunnel by 2010/11, for the public sector, that light is a fast approaching train. The gloves will be off politically with the next Government demonstrating it will balance the books before they are shredded by the international exchange traders or brought to book by IMF. The fact remains, with a combination of record borrowing and far less tax revenue from the battered private sector, there is no alternative.

For a long serving civil servant or town hall employee, the consequences of suddenly losing what was thought to be a job for life, will come as a terrible shock. When savings run out, bills turn red, letters get nasty and in as little as 16 weeks, mortgage companies can take repossession. The huge majority will incur £1000's in debt for deferred mortgage interest to hang on to their home. This could take a lifetime to repay and is no joke.

Income Protection Insurance is available as an alternative to anyone who does not have ready savings to keep paying the bills when they are looking for work. This cover will usually include a back to work service from re-employment experts. At least this cover can still be secured by people in steady work and not yet under threat of redundancy.

For those in the public sector there remains a window of opportunity to buy this cover. The underwriters will close this as soon as Government plans become clear. The financial impact of not being able to get another job for months is something most people under 40 have never experienced in their working lives.

The more fortunate with safe jobs may be thinking they have no need for this cover. The greatest issue for so many employees these days concerns knowing if their job is truly safe. It is fair to say that anyone with the equivalent of six months wages in ready savings might consider the risk worth taking. After all, no one wants to pay for insurance they could survive without. However, the majority of low paid people in public services have nothing like this to fall back on. For those who qualify for this insurance, it is something to consider buying right now.

Some of the best income protection insurance deals are on-line. Money Supermarket and recommendations from consumer websites such as Money Saving Expert are a great place to start any investigation. Income Protection Insurance and Payment Protection Insurance are fundamentally the same. They cover the individual for up to 50% or more of their gross monthly salary that will be paid for up to a year to any individual who is unable to work due to accident, sickness or unemployment. Most importantly, it would pay enough for a family to get by financially. It is not subject to tax and does not preclude them from claiming for state benefits.

Dennis Haggerty the Marketing Manager of on-line specialist provider commented "By shopping around, it is still possible for the majority of working people to buy this insurance for under £10 a week paying £1000 benefit per month for time off work due to accident sickness and unemployment. This premium drops to just £7 per week for the under 25's"

From the senior managers in Whitehall down to the mostly unseen millions employed by local authorities and in the public services, the one thing they can guarantee is that jobs will disappear. To protect their families, or simply to cover substantial debt repayments, paying £10 per week for Income Protection Insurance may be well worth the peace of mind in these troubled times.

Dennis Haggerty FCII M IDM Marketing Manager iprotectinsurance.co.uk specialises in the supply of low cost on line Lifestyle Protection, Income Protection and Mortgage Payment Protection Insurance. Key to the success of i:protectinsurance has been the focus upon supplying a product range that is available exclusively on-line.

By eliminating the usual costs associated with selling insurance: telesales teams, direct mail, middlemen and commission, i:protect can offer customers exceptional value for money. The i:protectinsurance product range includes Income Protection / Lifestyle Protection, Mortgage Payment Protection, Gadget Insurance and Mobile Phone Insurance called Phone PLUS

Photo by Bradley Olin.

Income Protection Insurance and Mortgage Payment Protection

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