Consumers advised to insure their salary
9th July 2008
As the British Chamber of Commerce (BCC) has warned that the UK could be heading for recession, an industry expert has advised consumers to take out insurance to protect their income.
David Kuo, head of personal finance at Fool.co.uk, said that now is the time for people to cut back on their outgoings and "think seriously about income protection".
The credit-crunch is beginning to affect businesses and Mr Kuo said that income protection will help those who may lose their job if the country falls into a recession.
Mr Kuo explained the benefits of the insurance: "Income protection will protect any income you have in case you were to face a redundancy and that at least will give you some breathing space before you find your next job."
Economists usually define a recession as two consecutive quarters in which the gross domestic product of a country is in decline.
The latest BCC economic survey polled 5,000 businesses and found that if trends continue the country is only one quarter away from a recession.